06:47 AM EDT, 04/09/2024 (MT Newswires) -- HSBC ( HSBC ) said Tuesday that it has agreed to sell its banking operations in Argentina to Grupo Financiero Galicia ( GGAL ) for $550 million.

The banking giant said the disposal will result in a $1 billion pre-tax loss in Q1.

The deal is expected to be completed in the next 12 months, HSBC ( HSBC ) said.

"HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network," HSBC Group chief executive Noel Quinn said in a statement. "Furthermore, given its size, it also generates substantial earnings volatility for the group when its results are translated into US dollars."

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