March 31, 2023 | 05:00

Foreign investment banks operating in Mexico together have assets of around 424.682 million pesos, according to data from the National Banking and Securities Commission (CNBV).

This represents 3.35% of the 12.7 trillion pesos of assets accumulated by the banking system in January, the latest data is available.

In addition, investment banking in Mexico has changed its footprint in recent years, among participants which have reduced their merger and acquisition presence and operations.

J.P. Morgan

According to the latest data from CNBV, JP Morgan’s assets amount to 170,393 million pesos, which represents 1.34% of the total system.

Meanwhile, investments in financial instruments stood at 18,471 million pesos.

The history of financial institutions in Mexico goes back more than a century, despite opening a representative office in the nation’s capital in 1980.

In August 2020, the company notified Mexican authorities of the firm closure of this office and in February of the following year it will reportedly refer its local business to BBVA Mexico.

Bank of America

Bank of America (BofA)’s 131,544 million pesos of assets represented 1.04% of the total banking system as of January.

Meanwhile, investments in financial instruments amounted to 11,139 million pesos in the same month.

The representative office in Mexico, opened in 1951, was one of the first to open overseas, along with those in England, Tokyo and Paris.

barclays

The British investment bank has assets of 86,392 million pesos, which is 0.68% of the total.

Its investments in financial instruments amounted to 6,207 million pesos as of January.

Barclays obtained authorization to open a representative office in the country in 1974 and in 2006 requested its closure from the Ministry of Finance.

That same year, he launched investment banking and stockbroking operations in the country.

Credit Suise

Credit Suisse opened its representative office in Mexico in 1964, but opened its investment banking doors until 2002.

Swiss banks have assets of 23.142 million pesos, which represents 0.17% of the total banking system, according to figures from CNBV as of January.

His investment in financial instruments amounted to 1.066 million pesos, a decrease compared to the 7.237 million recorded in January 2022.

Last year, Credit Suisse has decided to transfer its private banking and asset management business to Actinver.

Ratings agency Standard & Poor’s considers that following the sale of the troubled bank to rival UBS, its activities in Mexico will gradually be disbanded as business operations in that country are no longer in line with the group’s long-term strategy at a global level.

BNP Paribas

The French institution BNP Paribas started operating as a bank in May 2021 after more than half a century of operating under a representative office in the country.

The bank owns 0.10% of assets in the banking system which amount to 13,211 million pesos, with data as of January.

Their investment in financial instruments in the first month of the year amounted to 1.316 million pesos.

German bank

German bank assets represents only 0.01% of the totaladded 1.574 million pesos.

According to the regulator, investment in financial instruments amounted to 1,246 million pesos.

Deutsche Bank opened its first representative office in the territory of Mexico in 1957 and notified the authorities of its final closure in 2020.

Last November, Citigroup announced it would purchase institutional licenses in Mexico with the goal of speeding up the process of enabling the separation between wholesale banking operations (such as Citi Mexico) and Banamex, with their new owners.

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