OCBC to Acquire Assets from HSBC Indonesia Retail Banking Business
OCBC has agreed to acquire the Indonesian retail banking and wealth management operations of HSBC, in a move aimed at strengthening its position in Southeast Asia’s largest economy.
The deal, announced Monday, will see OCBC’s Indonesian subsidiary take over assets and liabilities of the retail banking and wealth management operations of the International Wealth and Premier Banking (IWPB) business of HSBC Indonesia, adding around 336,000 customers and S$6.6 billion (US$4.9 billion) in assets under management (AUM) to its portfolio.
The transaction includes customer deposits, investment products such as mutual funds, bonds and insurance, as well as credit cards and retail loans. A small loan book of about S$0.3 billion will also be transferred.
OCBC said the final purchase price will be based on the net asset value of the business at completion, plus a premium of up to S$0.48 billion, subject to adjustments. The deal is expected to be completed in the second quarter of 2027 and will be funded internally.
Strategic expansion in Indonesia
The acquisition is part of OCBC’s broader push to expand its wealth management capabilities and deepen its presence in Indonesia, a key growth market for the bank.
“IWPB Indonesia is one of the largest foreign-owned retail banking and wealth platforms in the country,” OCBC said, noting that the business operates across 261 branches and has been widely recognized in the wealth management sector.
Once completed, the deal is expected to increase OCBC Indonesia’s AUM by about 25% and boost its credit card balances by more than 150%, while also adding approximately 1,300 employees to its workforce.
Group CEO Tan Teck Long said the acquisition aligns with the bank’s «Next Frontier» strategy, which focuses on expanding its regional franchise and growing its wealth business.
