Deal! OCBC Acquires HSBC Indonesia's Wealth and Retail Business via NISP

OCBC has agreed to acquire the assets and liabilities of HSBC Indonesia’s retail and wealth management business through its subsidiary, Bank OCBC NISP Tbk. The agreement was announced on Monday (4 May).

Through this transaction, OCBC Indonesia is expected to add S$6.6 billion in assets under management (AUM). This figure comprises S$4.3 billion in customer investments such as mutual funds and bonds, as well as S$2.3 billion from insurance and customer deposits.

Additionally, a retail credit portfolio worth S$0.3 billion will be transferred to OCBC Indonesia.

The transaction value will be based on the net asset value of the business at completion, plus a premium of up to Rp6.5 trillion.

Excluding one-off transaction costs, this acquisition is expected to enhance OCBC’s earnings upon completion. The transaction is targeted to close in the second quarter of 2027 and will be funded from internal resources.

This step reaffirms OCBC’s ambition to strengthen its position in Indonesia’s rapidly growing wealth management segment.

Upon completion of the acquisition, OCBC Indonesia’s AUM is projected to increase by 25 per cent, while credit card balances are expected to surge by more than 150 per cent.

The transaction will also add around 1,300 employees to OCBC’s wealth management team in Indonesia, along with approximately 336,000 new customers. The acquired portfolio includes deposits, investment products such as bonds and mutual funds, insurance, credit cards, and retail loans.

Previously, in April, OCBC was reported as the frontrunner in this acquisition, outpacing other banks including DBS, UOB, CIMB Group Holdings, and Sumitomo Mitsui.

This acquisition continues OCBC’s expansion in Indonesia. In 2024, the bank also acquired Bank Commonwealth Indonesia, which added more than 1.2 million customers.

The transaction marks the first acquisition under the leadership of OCBC’s new CEO, Tan Teck Long. He emphasised that Indonesia is a key market with long-term growth potential.

OCBC stated it will work closely with HSBC Indonesia to ensure a smooth transition for customers and employees. Further details will be announced closer to the completion date.

The agreement is not expected to have a significant impact on OCBC’s capital position, earnings per share, or tangible book value.

Prior to the announcement, OCBC shares closed down 0.1 per cent or S$0.03 at S$21.87 on Monday (4 May).