By Jasmeen Ara Islam Shaikh and Yantoultra Ngui
Bengaluru — Oversea-Chinese Banking Corp said on Monday that 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.
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$6.6bn ($5.2bn) in assets under management and about 1,300 staff.
OCBC said in a statement that the portfolio comprises S$4.3bn of customers’ investments in mutual funds, bonds and insurance; S$2.3bn of customer deposits; and a small retail loan book of S$0.3bn, 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$480m.
The transaction is expected to increase OCBC Indonesia’s AUM by 25% and grow its credit card balances by more than 150%, 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.
