“No, we are not looking to acquire in Mexico,” HSBC Group CEO Noel Quinn said in a call with investors.
Quinn noted that the group’s Mexican operations are doing well and produced “returns on tangible equity last year of around about 13%.”
Last month, US banking major Citi announced plans to pull the plug on its consumer, small business, and middle-market banking operations in Mexico.
Currently, HSBC is focusing on Asian operations and wealth management business, Quinn added.
The news comes after HSBC announced that its annual pre-tax profit more than doubled in 2021 to $18.9bn.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
“We have good momentum coming into 2022 and are confident that we can continue to execute against our strategy,” Quinn said at the announcement.
As per analysts, Citi’s retail operations could be valued between $4bn and $8bn and may attract bids from international lenders and consortium of Mexican investors.
Notably, Mexican President Andres Manuel Lopez Obrador had urged business leaders to take over Citi’s assets up for sale and “Mexicanize” the bank.
Spanish lender Banco Santander, Grupo Financiero Banorte SAB de CV and Bank of Nova Scotia could also bid for Citi’s assets.
Citi is yet to decide the method and timing of the exit, which is subject to regulatory approval from both the US and Mexico.