OCBC acquires HSBC’s retail and wealth management operations in Indonesia
The move will add 336,000 customers and US$5.17 billion in assets under management to OCBC Indonesia
HSBC’s Indonesian customer retail loan book of S$300 million will also be transferred to OCBC Indonesia.
Total consideration – which will be based on the net asset value of HSBC’s Indonesian business at completion, plus a premium of up to about S$480 million – will be finalised later. The transaction will be funded internally by OCBC Indonesia.
“This acquisition in Indonesia fits well into our next frontier strategy under the franchise shift of building up our Indonesia franchise,” said Tan Teck Long, group CEO of OCBC, in a statement.
The deal followed OCBC’s 2024 acquisition of PT Bank Commonwealth Indonesia, further expanding its market penetration in Southeast Asia’s largest economy, Tan said. “Indonesia is a long-term commitment and a key growth market,” he added.