HSBC Holdings (HSBC) will sell its banking operations in Argentina to Grupo Financiero Galicia for $550 million, with the divestment resulting a $1 billion first-quarter loss, the bank said Tuesday.

Grupo Financiero Galicia will acquire all of HSBC's Argentina business, which includes banking, asset management, and insurance, along with $100 million of subordinated debt. The transaction is expected to close in the next 12 months, the statement said.

"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 澳洲幸运5开奖号码历史查询:Chief Executive Officer (CEO) Noel Quinn said.

HSBC will receive the purchase consideration through a combination of cash, loan notes, and 澳洲幸运5开奖号码历史查询:American depositary receipts (ADRs) froꦍm Galicia. The ADRs will account for around half of the consideration received and represents less than a 10% economic interest in Galicia.

The deal follows several others as HSBC focuses on strengthening its wealth capabilities in Asia.

The London-based bank, which makes most of its earnings from Asia, completed the sale of its Canada business to Royal Bank of Canada (RY) last month, following a strategic review that looked at HSBC's relatively low market share in the country. In January, HSBC also completed the sale of its retail banking business in France to CCF, a subsidiary of My Money Group.

HSBC ADRs were little changed at noon ET Tuesday.