(Reuters) -HSBC Holdings said on Tuesday that it will sell its Argentina business to Grupo Financiero Galicia, the country’s largest private financial group, in a deal valued at $550 million.
The Asia-focussed bank said its unit, HSBC Latin America B.V., has signed a deal to sell the operations in Argentina to Galicia.
“HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network,” the company said in a statement.
The Argentina business, given its size, generates substantial earnings volatility for the group when its results are translated into US dollars, HSBC indicated.
Buenos Aires-based Galicia is Argentina’s fifth largest bank.
HSBC expects to record a $1 billion pre-tax loss on the divestment in the first quarter of fiscal 2024.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Savio D’Souza)
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