(By Balaseshan) JPMorgan Chase & Co. (NYSE:JPM) said its investment banking arm J.P. Morgan has made a capital increase of $250 million to its subsidiaries in Mexico, which is further evidence of its long-term commitment to the country.
The sum, funded to J.P. Morgan Grupo Financiero, S.A. de C.V., will allow the global financial institution to provide additional lending capital to its Mexican customers.
The 62% capital increase brings the firm's total capital in Mexico to about $653 million, making J.P. Morgan the 8th largest Mexican financial group. The firm's wholesale business is the largest in Mexico.
The additional capital planned for Banco J.P. Morgan, pending final regulatory approval, will allow it to increase its lending limits in the country and to provide its growing list of clients with more credit opportunities.
J.P. Morgan Casa de Bolsa may also be funded with additional capital, which will allow it to increase its activities in the Mexican equity market.
J.P. Morgan traces its history of supporting Mexico with financing needs back to 1886. It opened its first Representative Office in Mexico in 1946, but it was not until 1994 that J.P. Morgan started to operate as a financial institution in the country.
In that year, J.P. Morgan Grupo Financiero, S.A. de C.V. was formed. The Grupo Financiero includes a bank (Banco J.P. Morgan, S.A.) and a broker dealer (J.P. Morgan Casa de Bolsa, S.A. de C.V.).
Banks in Mexico are making significant investments in recruiting and developing staff, as well as in state of the art systems. J.P. Morgan is excited with the opportunity this additional capital provides it to do more with clients.
JPM is trading down 0.29% at $34.93 on Monday. The stock has been trading between $27.85 and $46.49 for the past 52 weeks.