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Oversea-Chinese Banking Corporation (OCBC) has agreed to acquire selected assets and liabilities of HSBC’s wealth and premier banking business in Indonesia through its local subsidiary, in a transaction expected to complete in the second quarter of 2027. The deal will transfer a portfolio comprising 336,000 customers, assets under management (AUM) of SGD 6.6 billion (approximately USD 5.2 billion), and around 1,300 employees to OCBC’s Indonesian arm. The consideration will be based on net asset value with a premium of up to SGD 480 million. The move comes as global lenders streamline retail operations while Singapore-based banks expand their wealth and consumer banking presence across Southeast Asia, particularly in Indonesia, the region’s largest economy.
Oversea-Chinese Banking Corporation announced on Monday that its Indonesian subsidiary has agreed to acquire certain assets and liabilities of HSBC’s wealth and premier banking portfolio in Indonesia, in a transaction aimed at expanding its footprint in Southeast Asia’s largest economy. The agreement, disclosed on May 4, involves the transfer of HSBC Indonesia’s International Wealth and Premier Banking business to PT Bank OCBC NISP, with completion targeted for the second quarter of 2027. Advertisement
The acquisition will add approximately 336,000 customers to OCBC Indonesia, along with SGD 6.6 billion in assets under management and a workforce of about 1,300 employees. According to OCBC, the portfolio includes SGD 4.3 billion in customer investments across mutual funds, bonds and insurance products, SGD 2.3 billion in deposits, and a retail loan book of around SGD 0.3 billion, based on unaudited figures as of December 31.
HSBC stated separately that the transaction followed a strategic review of its Indonesian wealth and premier banking operations and forms part of a broader effort to simplify its global business. The bank indicated that it would continue to focus on expanding its corporate and institutional banking operations in Indonesia.
The financial terms of the deal have not been finalised, with OCBC stating that the final consideration will be determined upon completion. The structure includes payment at net asset value along with a premium of up to SGD 480 million.
OCBC noted that the acquisition is expected to increase its Indonesian unit’s assets under management by approximately 25 per cent and expand its credit card balances by more than 150 per cent. The bank added that, excluding one-off transaction costs, the deal is projected to be earnings accretive after completion.
The transaction marks the first major acquisition under OCBC Group chief executive Tan Teck Long, who assumed the role in January. It builds on the bank’s earlier expansion in Indonesia, including the acquisition of PT Bank Commonwealth Indonesia in 2024, as it seeks to scale its presence in the country’s growing wealth management and consumer banking segments.
OCBC stated that the acquisition will be funded internally by its Indonesian unit and is not expected to have a material impact on the group’s net tangible assets, earnings per share, or capital position.
Source - Reuters
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