2024-04-17 23:20:48
The global banking giant HSBC announced yesterday that it agreed to sell its Argentine division to the Galicia Financial Group, based in Buenos Aires, for 550 million dollars, to focus on its activities in Asia.
“This transaction is another important step in the execution of our strategy and allows us to focus our resources on higher value opportunities in our International network“, indicated the general director of HSBC, Noel Quinn.
The transaction amount will be adjusted based on the subsidiary’s results. The operation will also mean a charge of one billion dollars in the group’s accounts in the first quarter of 2024.
“HSBC Argentina is largely focused on the local market, with limited connectivity to the rest of our international network,” said the executive. And in a country facing triple-digit inflation, the subsidiary “also generates significant volatility in the group’s results when its profits are converted to US dollars.”
At the end of the operation, expected in the next 12 months, HSBC will cancel from its income statement 4.9 billion dollars of accumulated exchange losses, partly related to the strong devaluation of the Argentine peso, announced at the end of last year by the new president Javier mercy.
HSBC Argentina, which has its headquarters on the street Florida of Buenos Aires, It has a network of more than 100 branches, employs 3,100 people and has around one million clients. In 2023 it generated revenues of $774 million.
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2024-04-17 23:20:48