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Hsbc To Sell Out To Banorte?

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Posted 04 April 2013 - 09:57 AM

There is an apparently well founded rumor that HSBC will sell its Mexican retail operations, and that the likely buyer will be the only major, Mexican-owned bank, Banorte, reports columnist Carlos Mota in the April 4 Mérida edition of Milenio. HSBC has been selling off its operations in Central and South America (for Mexicans: that means the continent of America) wherever it does not hold the dominant position in the respective local banking sector.

#2 Actinia



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Posted 04 April 2013 - 12:17 PM

Interesting, have you seen this rumour anywhere else? I've looked and cannot find any other sources of this rumour. I'll be very glad for HSBC to sell off its PYMES service as it can only get better, but on the other hand would be sad to see its Premier service disappear. The Financial Times had a piece on HSBC last December, http://www.ft.com/in...l#axzz2PVwOeuN3 wherein two things stand out "HSBC remains committed to its Latin American business, focused primarily on Argentina, Brazil and Mexico, in line with the HSBC group’s strategy" and "The group is also looking to move its retail operations upmarket, with a greater focus on wealth management". So maybe the Premier service will be the only thing that remains, let us see.


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Posted 04 April 2013 - 01:50 PM

In a Notimex despatch, as seen in El Universo (Mexico City) today, the director of HSBC Mexico denied that there was anything to the rumor. Perhaps he is telling the truth, or not. See: http://www.elunivers...tas/914658.html . The director noted that, within HSBC Holdlings, only in the UK are there more HSBC ATMs than in Mexico, and that Mexico is among its ten most profitable subsidiaries out of 79 countries in which HSBC is present.

Milenio's Mota did provide some of the reasoning making the rumor plausible.

However, corporate spokespeople around the world, like politicians, are known to deny with a straight face what they are planning to do.

This is not to deny that HSBC Mexico is a plum in the HSBC group!

Yet banks operating in Mexico are very profitable. Banco Santander and BBVA Bancomer, its Spanish rival, both have a return on equity of about 20 per cent – approximately twice the amount that their parent banks in Europe can muster. Little wonder that BBVA’s Mexico arm now accounts for about a third of the bank’s global profits.

In an interview last year, Agustín Carstens, central bank governor, said that the mix of Mexico’s higher growth rates and the strength of the banking system – all are well capitalised, and barely felt the sharp 2009 contraction – will finally produce the sort of sustained expansion needed to raise the country’s potential GDP.

“It has been hard work, but the conditions are now in place for the banking sector to do its job as a catalyst of growth,” Mr Carstens said.

Indeed, many banks have already started. Santander, for one, plans to open 100 new branches this year throughout the country. HSBC has just decided to pour $500m into Mexico to fund expansion and Citi, through its local Banamex subsidiary, is busy rolling out an aggressive credit card campaign that has so far resulted in the issuance of 900,000 credit cards over the past year.

from the Financial TImes (London), March 20, 2013 http://www.ft.com/in...l#axzz2PWK6Z8DL

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