OCBC’s Indonesian unit is acquiring the wealth and premier banking portfolio of HSBC in Indonesia, confirming earlier speculation of the move, according to a report by Reuters.

The transaction will transfer S$6.6 billion (US$5.2 billion) in assets under management to PT Bank OCBC NISP, along with approximately 336,000 customers and 1,300 staff.

Based on unaudited figures as of December 31, the portfolio includes S$4.3 billion in customer investments across mutual funds, bonds, and insurance, S$2.3 billion in deposits, and a retail loan book of S$0.3 billion.

HSBC said the move follows a strategic review of its local wealth and premier operations and aligns with its broader simplification strategy, while it continues to focus on corporate and institutional banking in Indonesia.

The parties will determine the final purchase price upon completion, and it will include a premium of up to S$480 million.

OCBC expects the deal to increase its Indonesian AUM by 25% and boost credit card balances by over 150%.

The transaction marks the first major deal under OCBC Group CEO Tan Teck Long since January and builds on its 2024 acquisition of Bank Commonwealth Indonesia.

OCBC will fund the transaction internally and expects to complete it in the second quarter of 2027, without materially impacting its net tangible assets, earnings per share, or capital.

Featured image credit: HSBC