UBS estimates divestiture of business by HSBC in Mexico in 2016
The HSBC headquarters is seen in the Canary Wharf financial district in east London in this October 30, 2015 file photo. HSBC said on Monday it was being investigated by the Securities and Exchange Commission in relation to hiring practices of candidates with ties to government officials in Asia. REUTERS/Reinhard Krause/Files,
23 of February 2016 18:19:25
Mexico City – Although in 2015 the performance of HSBC México loans increased 7.1 percent, the financial group’s earnings fell sharply during the year.
According to a report from HSBC, while the loan portfolio grew compared with 2014, to reach 234.9 million pesos, profits fell in the same period 74.3 percent, to add just 510 million pesos, which meant an annual reduction by 1.471 billion pesos.
The decrease of the benefits of the financial institution explained the rise in allowance for loan losses as well as higher administrative expenses and promotion, and lower trading income.
Particularly the rise in loan provisions had to do with their business with housing developers.
On the other hand after the poor results of the financial group, the Swiss bank UBS said in a report that the Mexican unit would be the second market in which the British bank will soon stop operating in, within the emerging Latin American markets.
This operation is estimated by UBS to reach a value that ranges from $4.5 to $5.9 billion.
The investment bank said the divestiture of the Mexican subsidiary will respond to the strategy to get rid of assets to improve balance sheets, growth expectations and meet high regulatory requirements.