📈   Grupo Financiero Galicia: HSBC Argentina Acquisition Adds New Fuel To The Bull Case

Argentina’s banking system has long been a fragmented one, with no major bank, not even the state-owned Banco Nacion, holding a dominant share of system assets. But ongoing economic turbulence and the rise of a new economic regime under President Javier Milei mark a potential step-change in future industry dynamics. Last week’s exit by HSBC Holdings plc (HSBC) from Argentina, coming on the heels of a similar move by Itaú Unibanco (ITUB) last year, only reinforced the case for more consolidation among the major domestic banks. The beneficiary this time around, not just strategically but also financially (transaction price at a deep discount to book), is Grupo Financiero Galicia (NASDAQ:GGAL), the holding company for banking arm Banco ...

seekingalpha.com     Apr 15, 2024