FacebookInstagramTwitterContact

 

Kate Shares New Photo Of Smiling Charlotte To Celebrate Her Ninth Birthday           >>           Reginald The Cat Has A Filthy Habit For Stealing Underwear From Strangers           >>           Travis Kelce Makes Surprise Appearance At Pre-2024 Kentucky Derby Party           >>           Anna Nicole Smith's Daughter Dannielynn Birkhead, 17, Debuts New Look At Kentucky Derby           >>           Turmeric Extract Combats The Joint-Damaging Effects Of Arthritis           >>           Cranberries Prevent Cancer And Many Other Chronic Diseases           >>           Boeing Starliner Rolls Out To Launch Pad For 1st Astronaut Flight On May 6 (Photos)           >>           Parrots in captivity seem to enjoy video-chatting with their friends on Messenger           >>           Google prohibits ads promoting websites and apps that generate deepfake porn           >>           Threads Now Lets You Control Who Can Quote Your Posts           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 05:01 AM

Subuh

: 05:11 AM

Syuruk

: 06:29 AM

Doha

: 06:51 AM

Zohor

: 12:32 PM

Asar

: 03:44 PM

Maghrib

: 06:32 PM

Isyak

: 07:42 PM

 



The Business Directory


 

 



World Business


  Home > World Business


HSBC Agrees To Sell Off Its Argentina Business


 


 April 11th, 2024  |  00:15 AM  |   338 views

WORLD BUSINESS

 

Banking giant HSBC is selling off its business in Argentina at a $1bn (£790m) loss after years of battling with the country's unstable exchange rate.

 

HSBC Argentina, which has more than 100 branches and 3,100 employees, will be bought by Grupo Financiero Galicia, a major private financial group.

 

Annual inflation in Argentina hit 276.2% last month, the highest in the world.

 

Five years ago, $1 would buy 43 pesos. It is now worth more than 860 pesos.

 

HSBC has been in Argentina since 1997, when it took full control of the local Banco Roberts and renamed it. That same year, it established itself in neighbouring Brazil by taking over the ailing Bamerindus bank, leading some observers to speak of its "relentless march into Latin America".

 

HSBC still holds on in Brazil, but purely as an investment bank: it sold its retail banking operation there in 2015.

 

Other operations elsewhere in the world have been sold off in recent years as the London-based bank has pivoted to focus more on faster-growing markets in Asia.

 

HSBC said the sale of its Argentine business, for $550m, will see it book a $1bn loss in its first-quarter results this year.

 

The size of the loss could vary for several reasons, including "associated hyperinflation and foreign currency translation", HSBC said on Tuesday.

 

Over the next 12 months, the business will also recognise $4.9bn in losses from historical currency translation reserves.

 

This refers to the loss that is racked up by translating the financial performance of the Argentine business, which is counted in pesos, on to HSBC's overall balance sheet, which is counted in US dollars.

 

"These reserve losses have accumulated over many years and arise from the cumulative translation of the Argentinian peso-denominated book value of HSBC Argentina into US dollars," HSBC said.

 

In 2023 alone, these losses grew by $1.8bn, the bank added.

 

The exact losses may well change between now and when the sale goes through, because the exchange rate is constantly changing.

 

HSBC chief executive Noel Quinn said: "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.

 

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

 

"Furthermore, given its size, it also generates substantial earnings volatility for the group when its results are translated into US dollars. Galicia is better placed to invest in and grow the business."

 

 

 


 

Source:
courtesy of BBC NEWS

by Ione Wells & Robert Plummer,

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]

 

Related News


Lahad Datu Murder: Remand Of 13 Students Extende

 2024-03-30 07:57:54

North Korean Weapons Are Killing Ukrainians. The Implications Are Far Bigger

 2024-05-05 10:30:19

Have The Wheels Come Off For Tesla?

 2024-05-04 07:51:07