The Wall Street Journal,NASDAQ and Fox Business have all reported on JP Morgan Chase & Co.’s recent announcement that its banking arm plans to increase its Mexico units by $250 million,which will bring the investment giant’s total capital in Mexico to around $653 million. This will make the global financial institution the eighth largest Mexican Financial group and is expected to provide additional funding for lending capital to Mexican consumers.
“This capital increase is further evidence of JP Morgan’s long-term commitment to Mexico,a country where the bank is making significant investments in recruiting and developing staff,as well as in state of the art systems,” Eduardo Cepeda,senior country officer of JP Morgan in Mexico told the Wall Street Journal. “We are excited with the opportunity this additional capital provides us to do more with our clients.”
The additional capital will allow JP Morgan to increase its lending limits and provide clients with additional credit opportunities. It represents a 62 percent capital increase according to NASDAQ,and may also be used to provide additional funding for JP Morgan Casa de Bolsa,which would allow the broker dealer financial services group to increase its current activities in Mexico’s equity market.
In a move that is sure to be good for the Mexico real estate market,the current capital increase was funded to JP Morgan Grupo Financiero S.A. and is planned for Banco JP Morgan,which is currently the country’s largest wholesale business. JP Morgan has been involved in Mexico since the late 1800s and opened its first office south of the border in 1946.
The financial giant has been operating as a financial institution in Mexico since 1994 and has enjoyed substantial growth over subsequent years. Today,JP Morgan’s Mexico offices employ more than 200 workers who provide a wide array of financial services,including investment banking,private banking and treasury and securities services.