Indonesia – OCBC has entered into an agreement to acquire the retail banking and wealth management business of HSBC Indonesia through its subsidiary, PT Bank OCBC NISP Tbk (OCBC Indonesia), strengthening its wealth management presence in the country.
The acquisition covers HSBC Indonesia’s International Wealth and Premier Banking (IWPB Indonesia) business, which serves retail and wealth customers through a range of banking, investment, insurance, and lending products. The portfolio includes customer deposits, investment products such as bonds and mutual funds, credit cards, and retail loans.
Under the agreement, OCBC Indonesia will acquire the assets and liabilities of IWPB Indonesia. The transaction includes assets under management (AUM) worth S$6.6b, comprising S$4.3b in investment products and S$2.3b in customer deposits. A retail loan portfolio worth S$0.3b will also be transferred.
The total consideration will be based on the net asset value of IWPB Indonesia at completion, along with a premium of up to S$0.48b, subject to adjustment mechanisms outlined in the agreement. The transaction is expected to complete in the second quarter of 2027 and is projected to be earnings accretive to OCBC, excluding one-off transaction costs.
According to OCBC, the acquisition will add around 336,000 customers and about 1,300 employees to its Indonesia business. IWPB Indonesia currently operates through 261 branches across the country.
Following completion, OCBC Indonesia expects the transaction to increase its AUM by 25% and expand its credit card balances by more than 150%, further strengthening its retail and wealth banking operations in Indonesia.
Tan Teck Long, Group CEO of OCBC, said, “This acquisition in Indonesia fits well into our Next Frontier strategy under the Franchise Shift of building up our Indonesia franchise. It follows our successful 2024 acquisition and integration of PT Bank Commonwealth Indonesia in further expanding our market penetration in Southeast Asia’s largest economy. Indonesia is a long-term commitment and a key growth market.”
He added, “We are excited about the scale and synergy that this high-quality portfolio brings to the group as OCBC, Bank of Singapore and Great Eastern come together to deliver the Whole-of-Wealth proposition. We look forward to serving HSBC Indonesia’s retail and wealth customers and welcoming our new colleagues to the OCBC family.”
OCBC Indonesia and HSBC Indonesia said they will work together to ensure a smooth transition for customers and employees ahead of the completion of the transaction.
