By Megan Cheah
HSBC Holdings is selling its wealth management and retail banking business in Indonesia to Singapore's Oversea-Chinese Banking Corp., extending a strategy of shedding assets outside its core markets.
The deal involves the transfer of assets and liabilities under PT Bank HSBC Indonesia's retail banking and wealth management operations to OCBC Indonesia, OCBC said late Monday.
The total assets under management to be transferred is 6.6 billion Singapore dollars, equivalent to US$5.17 billion, growing OCBC Indonesia's assets under management by around 25%, said OCBC, Singapore's second-largest lender by assets.
The transaction adds 336,000 customers and around 1,300 staff to OCBC's Indonesian subsidiary. It further expands OCBC's operations in Southeast Asia's largest economy, following its acquisition of PT Bank Commonwealth Indonesia in 2024, said OCBC Group Chief Executive Tan Teck Long.
Total consideration for the deal, which is internally funded, will be calculated based on the net asset value of the target business at completion, plus a premium of up to roughly S$0.48 billion, subject to the agreement's adjustment mechanisms, OCBC said.
Excluding one?off transaction costs, the transaction is expected to be earnings accretive to OCBC after completion, which is expected in the second quarter of 2027.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
05-04-26 2148ET
