OCBC to acquire HSBC Indonesia’s wealth, retail business, adding S$6.6 billion in AUM
This move follows OCBC’s 2024 purchase of Bank Commonwealth Indonesia and deepens its push into the country’s wealth segment
[SINGAPORE] OCBC has agreed to acquire the assets and liabilities of HSBC’s retail and wealth management operations in Indonesia through its subsidiary, Bank OCBC NISP Tbk, the lender said in an announcement late on Monday (May 4).
The deal is expected to add S$6.6 billion in OCBC Indonesia’s assets under management (AUM), comprising S$4.3 billion of customers’ investments in mutual funds and bonds, as well as insurances and customer deposits of S$2.3 billion.
A customer retail loan book of S$0.3 billion will also be transferred to OCBC Indonesia.
Total consideration will be based on the net asset value of the Indonesia business upon completion, plus a premium of up to 6.5 trillion rupiah (S$476.5 million).
Excluding one-off transaction costs, the transaction will be earnings accretive to OCBC after completion, which is expected in the second quarter of 2027. It will be funded internally.
Expanding its Indonesian footprint
The move highlights OCBC’s ambition to deepen its push in Indonesia’s fast-growing wealth segment.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The completion of the deal will increase OCBC Indonesia’s AUM by 25 per cent and grow the credit card balances by more than 150 per cent.
The transaction is also expected to add about 1,300 staff to the lender’s Indonesia wealth management talent pool, and 336,000 customers to the bank’s operations, as well as a portfolio spanning deposits, investment products covering bonds, mutual funds and insurance, credit cards and retail loans.
Earlier reports in April suggested that OCBC was the frontrunner in acquiring HSBC’s assets, reportedly edging out other lenders such as DBS, UOB, Malaysia’s CIMB Group Holdings, as well as Japan’s Sumitomo Mitsui.
This acquisition builds on OCBC’s earlier expansion in the Indonesian market. In 2024, the bank also acquired Bank Commonwealth Indonesia, gaining more than 1.2 million customers in the process.
This acquisition of the HSBC retail assets is the first under the leadership of the lender’s new chief executive officer, Tan Teck Long.
“Indonesia is a long-term commitment, and a key growth market,” he said.
“We look forward to serving HSBC Indonesia’s retail and wealth customers and welcoming our new colleagues to the OCBC family.”
He added that this enhances the group’s “whole-of-wealth” proposition across banking, private banking and insurance.
OCBC said it will work closely with HSBC Indonesia to ensure a smooth transition for customers and staff, and that more details would be disclosed closer to completion.
The deal is not expected to materially affect its capital position, earnings per share or net tangible assets.
The shares of OCBC closed 0.1 per cent or S$0.03 lower at S$21.87 on Monday (May 4), before the announcement.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
