HSBC Sells Argentine Business Amid Strategic Pivot to Asia

The $550 million sale to Grupo Financiero Galicia comes as HSBC refocuses on higher-growth markets and deals with Argentina's economic challenges.

HSBC agrees to sell its Argentine business to Grupo Financiero Galicia for $550 million, expecting a $1 billion loss due to hyperinflation and currency devaluation.
The sale is part of HSBC's strategic shift towards higher-growth markets, particularly in Asia, as it exits countries with limited connectivity to its international network.
Argentina's President Javier Milei, an anarcho-capitalist, has been battling hyperinflation, which soared to 140% last year, by devaluing the peso and slashing state spending.
HSBC's exit from Argentina follows other recent divestitures, including its Canadian and French retail businesses, as it refocuses its portfolio.
The transaction, expected to close within the next 12 months, will also include HSBC recognizing about $4.9 billion of historical foreign currency translation reserve losses.