HSBC is among global banks facing pressure to exit underperforming businesses in emerging markets nations from Brazil and Mexico to South Korea, creating opportunities for local banks to assert control of their home turf, analysts at UBS Securities said on Monday.
Reuters reports that besides HSBC, global banks such as Citigroup and Standard Chartered Bank have expressed interest in exiting units chiefly viewed as substandard and underperforming businesses, UBS strategist Philip Finch said in a client note.
According to Finch, Canada's Bank of Nova Scotia ranks among potential candidates to buy HSBC's Mexican and Brazilian units. Citing recent media reports, he added Brazil's Itaú Unibanco to the list after a top executive expressed interest in expanding in Mexico late last year.
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