UBS Group AGintends for its Mexican brokerage unit, UBS Casa de Bolsa, to assume the operationsof local banking subsidiary UBS BankMéxico SA Institución de Banca Múltiple UBS Grupo Financiero over thenext year, Reuters reported, citing an internal memo.
Due to the planned restructuring, which is subject to regulatoryapproval, UBS will not seek to renew its banking license in Mexico, "a personfamiliar with the matter" told the newswire.
According to the memo, the headcount or the capital of the companyis not expected to "change materially" during the restructuring.
The firm said that the reorganization will help achieve higheroperational and capital efficiency as clients will have to deal with fewer legalentities.
The report also noted that Deutsche Bank AG is expected to sell its Mexican unit to Investa Bank SA Institución de Banca Múltiple, as globalbanks exit some markets due to low profits.