Wealth Management in Mexico 2005

• Sizing and forecasting of mass affluent and high net worth individuals were generated from Datamonitor's proprietary Global Wealth Model.
• Assesses competitive developments among the region's main players.
• Key companies covered: Banamex, Bancomer & Banco Serfin.
• Geography: Mexico.

• Assess market attractiveness by reviewing size and growth forecasts up to 2009.
• Assess the threats and opportunities for wealth managers in the market.
• Learn strategies to enhance share of wallet from client base.

EXECUTIVE SUMMARY

INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

Note on exchange rates

MEXICAN MASS AFFLUENTS AND HIGH NET WORTHS

Introduction

Mexico's retail savings and investments market is well-diversified

Deposits are the largest asset class, but mutual funds are also popular

233,000 wealthy Mexicans held EUR72bn in onshore liquid assets in 2004, mostly in the hands of high net worths

Mexican wealth took a hit during the stock market bust but did not decline

High net worths account for 21% of Mexico's wealthy population and 70% of that population's onshore liquid assets

Mexico lacks high net worth investors with entrepreneurial objectives

Regulatory overhauls in the last 15 years have created a banking system that is predominantly foreign-owned, but still difficult to enter

1995 was a watershed year for foreign banks in Mexico

Foreign firms find investment in Mexico a bureaucratic quagmire

Wealthy clients in Mexico are interested in internet banking and tend to split their assets between the U.S. & Mexico

Mexican clients are demanding more advisory products and are looking to preserve their wealth

The Mexican banking industry is largely oligopolistic

Data

COMPETITION FOR MEXICAN WEALTHY CLIENTS

Introduction

Key findings

The Mexican banking market is consolidated

The top five banks hold 88% of the sector's assets

Wealth Management in Mexico

Banamex is Mexico's largest bank

Grupo Financiero BBVA Bancomer is the largest financial institution in Mexico

Banco Serfin was named the best emerging market bank in Latin America in 2006

Mexico's offshore preferences

FUTURE MARKET SIZE

Introduction

Key findings

Market growth to 2009

The number of mass affluent individuals in the Mexican market is expected to dwarf that of high net worths over the next five years

More stringent financial regulations and an improved legal framework are some of the lessons to be learned from the Tequila Crisis

Data

APPENDIX

Definitions

Aggregate

High net worth (HNW)

Liquid assets

Liquid asset bands

Mass affluent

Global Wealth Model Methodology

The UK sub model

European sub model

Forecasting methodology

Continuous refinement to the understanding of liquid wealth distribution

Specific changes to data this year

Datamonitor's wealth numbers compared with other wealth numbers

Further Reading

Global Wealth Management SPP

Interactive Databases

Market Reports

Strategic Insight Reports

Wealth Management Competitor Tracker

Datamonitor Asia Pacific Wealth Management SPP

SPP writing team

List of Tables

Table 1: Retail savings and investments, % invested by asset class, 1999-2004

Table 2: Mexico mass affluent onshore liquid assets, EURbn, 2000-4

Table 3: Mexico number of mass affluent individuals, EURbn, 2000-4

Table 4: Mexico high net worth onshore liquid assets, EURbn, 2000-4

Table 5: Mexico number of high net worth individuals, EURbn, 2000-4

Table 6: Mexico mass affluent onshore liquid assets, EURbn, 2005-9

Table 7: Mexico number of mass affluent individuals, EURbn, 2005-9

Table 8: Mexico high net worth onshore liquid assets, EURbn, 2005-9

Table 9: Mexico number of high net worth individuals, EURbn, 2005-9

List of Figures

Figure 1: Mexico's wealthy population stagnated but did not decline during the stock market bust

Figure 2: The top 5 banks in Mexico account for 81% of banking assets, December 2005

Figure 3: The number of wealthy Mexican individuals and the amount liquid assets are both expected to grow at a steady pace over the next 5 years

Figure 4: Deposit market shares have remained fairly steady in the last five years

Figure 5: Mexico's wealthy population stagnated but did not decline during the stock market bust

Figure 6: High Net Worths held 70% of wealthy investors' onshore liquid assets in 2004

Figure 7: The top 5 banks in Mexico account for 81% of banking assets, December 2005

Figure 8: The number of wealthy Mexican individuals and the amount liquid assets are both expected to grow at a steady pace over the next 5 years