Santander Executive to Become New CEO of HSBC Mexico

(Bloomberg) -- Jorge Arce, who’s been deputy general director of Santander Mexico since early 2016, will become CEO of HSBC Holdings Plc’s Mexico unit in February replacing Nuno Matos, the bank confirmed in a statement.

A person familiar with Arce’s hire said Matos will join HSBC’s interim Chief Executive Officer Noel Quinn in implementing the bank’s global restructuring. HSBC said Matos’ future role will be announced at a later date. Matos had also worked at Santander previously and took over HSBC Mexico operations in late 2015.

Arce, 51, led corporate and investment banking at Santander Mexico. Under his tenure, the bank grew its share of Mexican domestic bond sales to over 20% of the local market last year from just under 13% in 2016, according to data compiled by Bloomberg, rising from third place to second.

“Jorge’s strategic experience and profound knowledge of the Mexican market will help us continue to strengthen our operations in the country,” said Paulo Maia, CEO of HSBC Latin America.

Prior to joining Santander, Arce was at Deutsche Bank AG for over two decades, in posts in New York and returning to Mexico to run the local unit of the bank as CEO, according to his LinkedIn profile and Santander’s website. He has also served as a vice president of the country’s banking association.

HSBC is Mexico’s fifth biggest lender by total assets, according to banking regulator data, behind Spain’s BBVA and Santander, Citigroup unit Citibanamex and Mexican bank Banorte.

HSBC sold or closed most of its Latin American operations during the last decade. The bank maintained its Mexico operations, where 40% of the population does not have a bank account. The Mexico unit struggled to overcome the stain of a $1.9 billion settlement in 2012 by HSBC with U.S. prosecutors for helping Mexican drug cartels launder money. By 2017, a five-year deferred prosecution agreement expired, signaling the U.S. was satisfied with improvements at the bank.

To contact the reporter on this story: Michael O'Boyle in Mexico City at moboyle7@bloomberg.net

To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Courtney Dentch, Dan Reichl

©2020 Bloomberg L.P.