OCBC to buy HSBC wealth, premier banking portfolio in Indonesia
The deal will transfer HSBC Indonesia's International Wealth and Premier Banking portfolio to PT Bank OCBC NISP, or OCBC Indonesia, and is expected to increase OCBC Indonesia's assets under management by 25 per cent.
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Oversea-Chinese Banking Corporation (OCBC) said on Monday (May 4) its Indonesian unit has agreed to acquire certain assets and liabilities of HSBC's wealth and premier banking portfolio in Indonesia, expanding the Singapore lender's presence in Southeast Asia's largest economy.
Global banks are streamlining retail operations in some markets and shifting capital toward businesses with higher returns, while Singapore lenders continue to deepen their wealth and consumer franchises across Southeast Asia.
HSBC said in a separate statement that the transaction followed a strategic review of its Indonesian wealth and premier banking operations and formed part of its broader push to simplify the group.
It added that it remained committed to growing its corporate and institutional banking business in Indonesia.
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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 (US$5.2 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 Dec 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 per cent and grow its credit card balances by more than 150 per cent, OCBC added. Excluding one-off transaction costs, it expects the deal to be earnings accretive after completion.
The acquisition is the first major deal announced by OCBC Group CEO Tan Teck Long since he took over in January, furthering the bank's push to build scale in Indonesia after its acquisition of PT Bank Commonwealth Indonesia in 2024.
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.
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