OCBC (SGX:O39) agreed to acquire HSBC’s International Wealth and Premier Banking (IWPB) business in Indonesia through its subsidiary, Bank OCBC NISP, marking a significant expansion of its retail and wealth franchise in Southeast Asia’s largest economy.
Adding AUM of S$6.6b and 26 branches.
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The portfolio comprises customer investments in mutual funds, bonds and insurance of S$4.3b, customer deposits of S$2.3b, as well as a small retail loan book of S$0.3b.
Strengthening “Whole of Wealth” value proposition.
The total consideration will be based on the net asset value (NAV) of the business at completion, plus a premium of up to S$480m (maximum), subject to agreed adjustment mechanisms.
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Excluding one-off transaction costs, such as integration costs, the acquisition is expected to be EPS-accretive to OCBC, with completion targeted for 2Q27.
Shot in the arm for Indonesia franchise.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
