OCBC to acquire HSBC Indonesia retail and wealth units

OCBC Indonesia has signed an agreement with PT Bank HSBC Indonesia to take over the assets and liabilities tied to HSBC Indonesia’s retail banking and wealth management business in the country, known as International Wealth and Premier Banking (IWPB Indonesia).

The bank said the final price has not yet been set.

It stated that the consideration will be determined after completion and will include a premium of up to S$480m.

The transfer covers IWPB Indonesia’s assets and liabilities. The total assets under management involved amount to S$6.6bn ($5.16bn), made up of S$4.3bn in customer investments in mutual funds, bonds and insurance, along with S$2.3bn in customer deposits.

The agreement also includes the transfer of a retail loan portfolio worth S$0.3bn.

The total consideration will be based on IWPB Indonesia’s net asset value at the time of completion, plus a premium of up to about S$0.48bn, subject to adjustment mechanisms set out in the agreement.

IWPB Indonesia serves 336,000 individuals through 26 branches.

OCBC said the customer base is complementary to its Indonesia business. Once the transaction is completed, OCBC Indonesia expects its assets under management to rise by 25%, while credit card balances are projected to increase by more than 150%.

The deal is also expected to bring across about 1,300 staff.

The deal will be financed internally and is expected to complete in the second quarter of 2027.

OCBC Group CEO Tan Teck Long 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.”

According to the HSBC, the move is part of the bank’s “ongoing simplification” as it “focuses on increasing leadership and market share in the areas where it has a clear competitive advantage”.

HSBC launched a sale process for its Australian retail banking business last month; however, the plan now focuses on offloading the loan portfolio rather than disposing of the entire operation at once.

This follows a similar move last year when it agreed to sell its retail banking operations to Nations Trust Bank (NTB).

"OCBC to acquire HSBC Indonesia retail and wealth units " was originally created and published by Retail Banker International, a GlobalData owned brand.

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