HSBC agrees to sell its Argentina business to Grupo Financiero Galicia for $550M

HSBC has agreed to sell its banking operations in Argentina to Grupo Financiero Galicia, the largest private financial group in Argentina. The deal is worth $550M, subject to certain price adjustments, and is expected to be completed within the next 12 months. As a result of the deal: A $1B pre-tax loss on disposal will be recognized in 1Q24. There will be an insignificant impact on the Group’s common equity tier 1 ratio by closing. At closing, c.$4.9B of historical cumulative foreign currency translation reserve losses will be recognized in the income statement – these have already been recognized in capital and will have no impact on CET1 or tangible net asset value. The transaction will be treated as a material notable item and excluded from the dividend payout calculation. “We are pleased to agree the sale of HSBC Argentina. This transaction is another important step in the execution of our strategy and enables us to focus our resources on higher value opportunities across our international network,” said Noel Quinn, HSBC Group CEO.