HSBC has agreed to sell its business in Argentina to domestic lender Grupo Financiero Galicia for $550 million as it exits a market where its business has been affected by hyperinflation and a volatile currency. Photograph: by Leon Neal/Getty ImagesHSBC has agreed to sell its business in Argentina to domestic lender Grupo Financiero Galicia for $550 million as it exits a market where its business has been affected by hyperinflation and a volatile currency.
HSBC will also have to recognise $4.9 billion in historical losses related to the falling value of the peso when the deal closes, which is expected to be within the next 12 months, the bank said on Tuesday. Those losses grew by $1.8 billion in 2023. The bank employs around 350 people in the Republic Mr Quinn said on Tuesday that the bank’s business in Argentina was largely focused on the domestic market, with limited ties to its global operations, and generated “substantial earnings volatility” when its results were translated into US dollars.
Argentina is struggling with sky-high inflation. The International Monetary Fund forecasts its economy will contract 2.8 per cent this year.
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