UBS closes brokerage in Mexico, sources say

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UBS closes brokerage in Mexico, sources say

MEXICO CITY NEW YORK Reuters - The Swiss bank UBS is closing its brokerage in Mexico, said three people familiar with the matter, following in the footsteps of other global banks that have opted to leave Latin America's second largest economy.

Why the closure was unclear? It was also not known if UBS would pull other local services.

Two of the sources said UBS will manage a presence in Mexico, but maintain operations from other regions to maintain operations.

UBS remained dedicated to our business in Mexico, said the statement in a statement. To ensure alignment with our operational priorities, we evaluate all of our companies regularly to identify growth opportunities and generate strategic efficiencies. UBS noted it hired Gustavo Galvan-Duque in early this year as head of the Spanish branch of wealth management for Mexico and would continue looking at local talent. Galvan-Duque did not immediately respond to a request for comment.

UBS originally reported on Bloomberg's plans to withdraw its brokerage from Bloomberg.

It is related to the lack of movement, and also that the investment environment is not the most favorable, said Jacob, wealth adviser of Columbus, a Mexican investment consultancy.

He added that the climate under President Andres Manuel Lopez Obrador, who took office in 2018, has not helped. The leftist has clashed with the business sector over decisions such as abandoning the construction of a new airport and changing rules in the energy sector.

The fact that there has been so much animosity from the beginning of the current administration towards the private sector is not a good sign, Zuloaga added.