OCBC Acquires HSBC Indonesia's Business: Rp 89.8 Trillion AUM Changes Hands

JAKARTA. PT Bank OCBC NISP Tbk (NISP) has finally signed an agreement with PT Bank HSBC Indonesia to acquire the assets and liabilities of HSBC’s retail banking and wealth management business in Indonesia, known as International Wealth and Premier Banking (IWPB). The acquisition encompasses the retail and wealth customer portfolio with premium financial services, including deposits, investment products such as bonds, mutual funds, and insurance, credit cards, and retail loans. This acquisition is expected to strengthen OCBC Indonesia’s wealth management business. Excluding one-off transaction costs, this corporate action is projected to have a positive impact on OCBC Indonesia’s revenue after the transaction is completed, targeted for the second quarter of 2027. Additionally, a small retail credit portfolio worth Rp 3.6 trillion is also being transferred. The transaction value will be determined based on an agreement between the two parties, considering business prospects and potential synergies, and will be announced after the completion process. OCBC Indonesia President Director Parwati Surjaudaja stated that this acquisition is a strategic step to strengthen the company’s position in the wealth management segment. IWPB Indonesia is one of the largest foreign wealth management platforms in the country, with more than 336,000 customers and a network of 262 branches. Upon completion of the transaction, OCBC Indonesia’s assets under management are estimated to increase by around 25%. Moreover, this transaction also has the potential to drive credit card balance growth by more than 150%. On the human resources side, OCBC Indonesia will be strengthened by the addition of approximately 1,300 employees, which is expected to enhance the overall wealth management service capabilities. Parwati said that this acquisition will strengthen the company’s ability to provide comprehensive financial solutions to customers. The transaction also aligns with the OCBC Group’s Next Frontier strategy, which promotes business transformation through the strengthening of integrated wealth management services, including support from Bank of Singapore for private banking and Great Eastern in the insurance sector. OCBC Indonesia assures that it will collaborate with HSBC Indonesia to ensure a smooth customer and employee migration process after the transaction is completed. Management also reaffirmed its commitment to maintaining customer trust, including ensuring the security of funds in accordance with applicable regulations. “Further information regarding this will be announced closer to the transaction completion time,” she added.