Grupo Financiero Galicia will buy the business for 550 mln
Business includes banking, insurance, 100 mln subordinated debt
HSBC has been shrinking its global footprint to focus on Asia

April 9 Reuters HSBC Holdings, said on Tuesday it will sell its Argentina business and record a 1 billion pretax loss from the divestment in the first quarter of fiscal 2024 as the lender moves to sharpen its focus on Asia.

HSBC will sell the business, which covers banking, asset management and insurance and 100 million in subordinated debt, to Grupo Financiero Galicia for 550 million, according to a statement.

Buenos Airesbased Galicia is Argentina39;s fifth largest bank.

The divestment fits with the bank39;s Asia pivot strategy as it shifts capital especially to India and China.

The bank39;s Hong Konglisted shares were up 1.1.

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, HSBC Group Chief Executive Noel Quinn said in the statement.

HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network, he said.

The Argentina business, given its size, generates substantial earnings volatility for the group when its results are translated into U.S. dollars, according to HSBC.

HSBC Chairman Mark Tucker told shareholders earlier this month that a much speculated spinoff of the Asia business will…