HSBC (0005) agreed to sell its business in Argentina, and will book a US$1 billion (HK$7.8 billion) charge in the first quarter from the disposal as the lender hones its focus on faster growing Asian markets.
The bank will sell the operations to Grupo Financiero Galicia for US$550 million, subject to some price adjustments, according to a statement yesterday.
The deal includes all of HSBC Argentina’s business, which ranges from banking to asset management and insurance, as well as US$100 million of subordinated debt.
The move “enables us to focus our resources on higher value opportunities across our international network,” chief executive Noel Quinn said in the statement. The Argentine unit has “limited connectivity” to the rest of the business and creates “substantial earnings volatility for the group when its results are translated into US dollars,” he said.
Meanwhile, HSBC’s subsidiary in Hong Kong Hang Seng Bank (0011) announced that it will buy back shares for not more than HK$3 billion.
Shares of the bank rose 3 percent to HK$94.05 apiece.
Meanwhile, at an HSBC forum in Hong Kong, former UK Prime Minister Gordon Brown warned of two traps for China, including the middle-income trap and the Thucydides Trap. He also called on the United States to settle the Middle East tensions, saying that the super powerhouse should lobby the countries involved.
HSBC’s chief executive in Hong Kong Luanne Lim Hui-hung said Hong Kong has the unique advantage of linking with mainland China. And she thinks family offices are not choosing between Hong Kong and Singapore, as they have offices in various regions.
Hong Kong United Times丨香港聯合時報丨HKUT 