Oversea-Chinese Banking Corp said on Monday its Indonesian unit has agreed to acquire certain assets and liabilities of HSBC’s (0005) wealth and premier banking portfolio in Indonesia, expanding the Singapore lender’s presence in Southeast Asia’s largest economy.
The deal will transfer HSBC Indonesia’s International Wealth and Premier Banking portfolio to PT Bank OCBC NISP, or OCBC Indonesia, adding 336,000 customers, S$6.6 billion (HK$40.6 billion) in assets under management and about 1,300 staff.
OCBC said in a statement that the portfolio comprises S$4.3 billion of customers’ investments in mutual funds, bonds and insurance, S$2.3 billion of customer deposits and a small retail loan book of S$0.3 billion, based on unaudited figures as of December 31.
OCBC, Singapore and Southeast Asia’s second-largest bank by assets, did not give a final purchase price, saying the consideration would be finalised after completion and include a premium of up to S$480 million.
The transaction is expected to increase OCBC Indonesia’s AUM by 25 percent and grow its credit card balances by more than 150 percent, OCBC added. Excluding one-off transaction costs, it expects the deal to be earnings accretive after completion.
The acquisition follows OCBC’s acquisition of PT Bank Commonwealth Indonesia in 2024. It also comes as global banks streamline retail operations in some markets and shift capital toward businesses with higher returns.
HSBC has been reviewing retail banking operations in several markets, including Indonesia, as part of a broader effort to simplify its portfolio.
The transaction will be funded internally by OCBC Indonesia and is expected to be completed in the second quarter of 2027. OCBC said it was not expected to have a material impact on its net tangible assets, earnings per share or capital.
Reuters
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