HSBC sees Guatemala, Mexico growth

By Robin Emmott and Armando Tovar

ACAPULCO, Mexico (Reuters) - London-based HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz)(0005.HK: Quote, Profile, Research, Stock Buzz) aims to add Guatemala to its Central America-wide operations from 2009 and sees strong long-term growth in Mexico, the bank's regional president said on Thursday.

Paul Thurston told the Reuters Latin America Investment Summit that HSBC has applied for a banking license in Guatemala and hopes to start operations there next year.

He also expects HSBC's Mexican loan portfolio to grow in line with the local industry this year at between 20 and 25 percent.

HSBC, one of the world's top banks, in 2006 paid $1.77 billion for Panama's Grupo Banistmo, the biggest banking group in Central America, but was left without a foothold in Guatemala.

"Guatemala is the largest economy in Central America and closely linked to Mexico, and so it makes sense for us to look at how we can create a presence in Guatemala," said Thurston, who heads the bank's operations in Mexico, Central America and Colombia.

HSBC will compete with New York-based Citigroup (C.N: Quote, Profile, Research, Stock Buzz) in Guatemala, where many people do not yet have bank accounts but are eager for consumer, auto and housing loans.

Central America is also rapidly integrating its economies via the region-wide free-trade pact with the United States.

The bank, which operates in more than 75 countries, wants to expand in Latin America to target middle classes in emerging markets amid slowing growth in its core markets in the United Kingdom, Hong Kong and the United States.  Continued...