CNN —HSBC has agreed to sell its business in Argentina to Grupo Financiero Galicia, the largest private financial group in the country, for $550 million, the UK-based bank said on Tuesday.
The sale is expected to lead to a $1 billion pre-tax loss for HSBC in the first quarter of this year, the statement added.
“HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network,” Quinn said, adding that the unit “generates substantial earnings volatility” for the bank.
“Galicia is better placed to invest in and grow the business,” he said.
The bank, Europe’s biggest by market value, reported a big drop in quarterly profit in February, partly because of its exposure to China’s troubled real estate industry.
Persons:
Noel Quinn, ” Quinn, ”
Organizations:
CNN, HSBC, Grupo Financiero, “ HSBC
Locations:
Argentina, Grupo Financiero Galicia, Asia, United States, France, “ HSBC Argentina, “ Galicia, China