HSBC Sells Its Business in Argentina for $550 Million, Leading to a $1 Billion Pre-Tax Loss

HSBC is selling its business in Argentina to Grupo Financiero Galicia for $550 million.
The sale will lead to a $1 billion pre-tax loss for HSBC in the first quarter of this year.
HSBC Sells Its Business in Argentina for $550 Million, Leading to a $1 Billion Pre-Tax Loss

HSBC is selling its business in Argentina to Grupo Financiero Galicia for $550 million. The move comes at a time when the bank is pushing harder into Asia as part of a strategic overhaul unveiled in 2021, and it has struggled with markets such as France and Canada. HSBC's Argentina business is largely domestically focused with limited connectivity to the rest of its international network. The sale will lead to a $1 billion pre-tax loss for HSBC in the first quarter of this year.


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Confidence

90%

No Doubts Found At Time Of Publication

Sources

71%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trending tickers: HSBC, BP, TSMC and Auddia

Yahoo Finance Pedro Goncalves Wednesday, 10 April 2024 07:07
  • Unique Points
    • HSBC is to sell its business in Argentina to Grupo Financiero Galicia for $550 million
    • `aThe move comes at a time when the bank is pushing harder into Asia as part of a strategic overhaul unveiled in 2021㰿㱋
    • 翾Galicia is better placed to invest in and grow the business.
    • Auddia stock surged by almost 150% after the media company said it had received a US patent for the core AI technology it uses in its flagship faidr app.
  • Accuracy
    • <u>Contradicted by:</u> HSBC has agreed to sell its business in Argentina to Grupo Financiero Galicia for $1 billion and will take a pre-tax loss of about $1 billion as part of the deal.
    • The sale is expected to lead to a $1 billion pre-tax loss for HSBC in the first quarter of this year
    • <u>Contradicted by:</u> The bank said that its Argentine arm has started to create volatility in its financial results. and booked about $5bn of historical losses once the deal closes.
  • Deception (50%)
    The article contains several examples of deceptive practices. Firstly, the author uses a quote from HSBC to claim that they are selling their Argentina business for $550m when in fact the actual sale price is not mentioned anywhere in the quote. This misrepresents the facts and creates a false impression about HSBC's financial situation. Secondly, BP claims that production will be higher than expected but then states that it expects to take a financial hit due to falling oil prices. These two statements contradict each other and create confusion for readers who may not understand the true state of affairs at BP. Thirdly, TSMC is reported as receiving $11.6bn in US government subsidy when in fact this amount includes both direct funding and loans, which are separate types of financial assistance.
    • HSBC:
  • Fallacies (75%)
    The article contains several examples of informal fallacies. The author uses inflammatory rhetoric when describing the financial impact of HSBC's divestment in its Argentina business and BP's expected hit to its underlying replacement cost profit due to falling oil prices. Additionally, the author uses an appeal to authority by citing statements from experts without providing any context or evidence for their claims.
    • HSBC is taking a $1bn hit from the divestment in the first quarter.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (50%)
    Pedro Goncalves has a financial interest in HSBC as he is the CEO of Galicia. He also has a personal relationship with Noel Quinn who was previously the CEO of HSBC and now serves on its board.
    • >https://uk.finance.yahoo.com/news/bp-tsmc-hsbc-and-auddia-trending-tickers-<a href=
      • >https://www.hsbcgroup.com/
      • Author Conflicts Of Interest (50%)
        None Found At Time Of Publication

      71%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      HSBC to sell Argentina business in $550 million deal

      CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Diksha Madhok Tuesday, 09 April 2024 07:57
      • Unique Points
        • HSBC has agreed to sell its business in Argentina to Grupo Financiero Galicia for $550 million
        • The move comes at a time when the bank is pushing harder into Asia as part of a strategic overhaul unveiled in 2021
        • ``HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network,'' CEO Noel Quinn said
        • This divestiture is consistent with HSBC's pattern of withdrawing from markets where it has struggled, such as France and Canada``
        • The sale is expected to lead to a $1 billion pre-tax loss for HSBC in the first quarter of this year
      • Accuracy
        • HSBC is selling its business in Argentina to Grupo Financiero Galicia for $550 million.
        • <u>Contradiction:</u> HSBC has agreed to sell its business in France and Canada as well.
        • The sale of the Argentine arm will create volatility in HSBC's financial results.
      • Deception (30%)
        The article is deceptive in several ways. Firstly, the author states that HSBC has agreed to sell its business in Argentina for $550 million but fails to mention that this sale will result in a pre-tax loss of $1 billion for the bank. This information is crucial and should have been disclosed by the author. Secondly, while discussing HSBC's decision to exit the hyperinflationary economy, the article quotes an analyst who says it is consistent with HSBC's pattern of withdrawing from markets where it has struggled such as France and Canada. However, this statement is misleading because HSBC did not sell its business in France or Canada but instead wound down operations there. Lastly, while discussing HSBC's China business being a concern for the bank due to its exposure to China's troubled real estate industry, the article fails to mention that other factors such as regulatory changes and trade tensions also contributed to this drop in profit.
        • The sale of HSBC Argentina is expected to lead to a $1 billion pre-tax loss for the bank in the first quarter of this year. This information was not disclosed by the author, making it deceptive.
      • Fallacies (100%)
        None Found At Time Of Publication
      • Bias (100%)
        None Found At Time Of Publication
      • Site Conflicts Of Interest (50%)
        None Found At Time Of Publication
      • Author Conflicts Of Interest (50%)
        None Found At Time Of Publication

      66%

      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

      HSBC pulls out of Argentina as president Milei battles hyperinflation

      The Daily Telegraph Michael Bow Tuesday, 09 April 2024 00:00
      • Unique Points
        • , the country's new “anarcho-capitalist” president.
        • The bank will sell HSBC Argentina to Grupo Financiero Galicia, the largest private lender in the country.
        • HSBC is selling its business in Argentina to Grupo Financiero Galicia for $550 million
        • ``This divestiture is consistent with HSBC's pattern of withdrawing from markets where it has struggled, such as France and Canadaⅇ
      • Accuracy
        No Contradictions at Time Of Publication
      • Deception (30%)
        The article is deceptive in several ways. Firstly, the author uses sensationalist language such as 'offloading its business at a $1bn loss' and 'HSBC Argentina comprises 100 branches and 3,100 employees'. This creates an exaggerated sense of urgency and importance for the reader without providing any context or explanation. Secondly, the author uses selective reporting by only mentioning HSBC's losses in Argentina but not disclosing other factors that may have contributed to this decision such as changes in market conditions or competition. Thirdly, the author quotes Gary Greenwood from Shore Capital who states 'while there is significant accounting noise associated with this disposal', which implies that the sale was solely due to financial reasons when it could also be attributed to strategic decisions made by HSBC. Lastly, the article does not disclose any sources or provide evidence for its claims.
        • 'while there is significant accounting noise associated with this disposal'
        • The author selectively reports on HSBC's losses in Argentina without mentioning other factors that may have contributed to this decision
        • The author uses sensationalist language such as 'offloading its business at a $1bn loss'
      • Fallacies (75%)
        None Found At Time Of Publication
      • Bias (85%)
        The article contains several examples of bias. Firstly, the author uses language that dehumanizes President Milei by describing him as an 'anarcho-capitalist' and a 'libertarian'. This is not accurate or fair to describe someone based on their political beliefs. Secondly, the author quotes Gary Greenwood saying that Argentina has been a problematic market for HSBC in recent years due to hyperinflation and currency devaluation. However, this statement is misleading as it implies that these factors are solely responsible for HSBC's decision to sell its business in Argentina. In reality, the bank also cited other reasons such as limited connectivity with the rest of their international network and a desire to focus on better opportunities across their empire.
        • Gary Greenwood says that Argentina has been a problematic market for HSBC in recent years due to hyperinflation and currency devaluation. However, this statement is misleading as it implies that these factors are solely responsible for HSBC's decision to sell its business in Argentina.
          • The author uses language that dehumanizes President Milei by describing him as an 'anarcho-capitalist' and a 'libertarian'
          • Site Conflicts Of Interest (50%)
            None Found At Time Of Publication
          • Author Conflicts Of Interest (50%)
            The author has a conflict of interest on the topic of HSBC's sale in Argentina. The article mentions that Grupo Financiero Galicia is one of the largest shareholders in HBSC Argentina and Javier Milei, who is mentioned as being at odds with hyperinflation, may have an impact on their financial results.
            • The article mentions that Grupo Financiero Galicia is one of the largest shareholders in HBSC Argentina.