Mexico City — Credit Suisse México, a financial services company that has gradually reduced its banking staff, announced the suspension of its operations on the local stock market and derivatives portfolio on Monday.
The move is part of a strategy focusing on wealth management.
However, the firm’s clients will be transferred to Actinver, according to a statement to which Bloomberg Línea had access.
“We have decided to suspend the equity trading business in the stock market by Credit Suisse México, but we will continue to offer our clients the same local services through our strategic alliance with Actinver,” the document reads.
Credit Suisse lost an unprecedented 111 billion Swiss francs ($120 billion) worth of assets during the three final months of last year, most of which departed in the run up to the bank’s new strategy announcement on Oct. 27, according to Bloomberg.
Yet the bank ultimately reported almost 30 billion francs more in outflows by the end of 2022, despite a frantic campaign to call tens of thousands of wealthy clients around the world.
“Credit Suisse’s new strategy will take time to bear fruit while execution risks linger, exacerbated by tough markets. Uncertainty remains, including asset-disposal proceeds and related profit, and the structuring of a CS First Boston investment-banking carve-out. Legal issues and regulatory scrutiny persist in the wake of Archegos, Greensill, tax-evasion probes and legacy residential mortgage-backed securities cases,” according to Alison Williams, BI Banks analyst.
60 years in Mexico
Credit Suisse has been in Mexico for nearly 60 years and, although it will not completely discontinue its services, the firm explains that it will concentrate on the wealth management business in Latin America.
In October 2022, Credit Suisse announced that it had finalized the transfer of the portfolio of clients with local needs to Banco Actinver, and a team of financial advisors to provide continuity of service.
The bank stated at the time that the alliance with Actinver would help to simplify and improve the offering.
Credit Suisse had 440 investment accounts as of November 2022 with 10.97 billion pesos ($590.5 million) under management and around 19 employees, according to figures from the Mexican Association of Securities Intermediaries (AMIB).
Actinver had 113,130 accounts with 517.39 billion pesos ($27.8 billion) under management, with around 510 employees distributed across 48 branches.
Credit Suisse’s decision in Mexico also considers the suspension of its securities research and investment banking activities.
“However, securities research coverage in Mexico will continue with the remaining local team and regional research structures. In parallel, Mexican clients will continue to be supported locally by a dedicated investment banking team, in collaboration with the investment banking Americas division in New York and other local Latin American headquarters,” the statement said.
Actinver and Credit Suisse Mexico announced in July 2022 the transfer of clients with local needs.
The Swiss-based bank is dissolving its investment banking segment, and separating its capital markets advisory business.