MEXICO CITY – Executives for London-based HSBC, which controls one of the largest banking operations in Mexico, have told investors the chain is not interested in buying out Citigroup’s consumer bank in the country, known as Banamex.
“No, we’re not looking to acquire in Mexico,” Group Chief Executive Noel Quinn said in a call with investors focused on the bank’s quarterly earnings and outlook.
Citigroup announced in January it would put Banamex up for sale as part of Chief Executive Jane Fraser’s plan to simplify the bank’s operations.
Quinn said HSBC Mexico’s current operations are strong, and produced “returns on tangible equity last year of around about 13%.”
However, Quinn said HSBC’s focus for the moment was on Asia and wealth management. Over the past two years, Quinn has moved some of the bank’s top executives to Asia and has poured billions into the wealth management business.
Analysts say Banamex, which could go for between $4 billion to $8 billion, may see bids from international banks or coalitions of Mexican investors.
Mexican President Andres Manuel Lopez Obrador has said he hopes to see the bank, bought by Citi in 2001, return to Mexican hands.
(Reporting by Kylie Madry; Editing by Alistair Bell)