OCBC, the second-largest banking group in Southeast Asia, has agreed to acquire HSBC’s retail and wealth management operation in Indonesia through its subsidiary, PT Bank OCBC NISP Tbk, according to the Singapore lender.

The acquisition would add 336,000 customers and S$6.6 billion (US$5.17 billion) in assets under management to OCBC Indonesia, comprising S$4.3 billion of customers’ investments in mutual funds and bonds, as well as insurances and customer deposits of S$2.3 billion, Monday night’s announcement said.

HSBC’s Indonesian customer retail loan book of S$300 million will also be transferred to OCBC Indonesia.

Total consideration will be finalised later, which will be based on net asset value of HSBC’s Indonesian business at completion, plus a premium up to about S$480 million. The transaction is internally funded by OCBC Indonesia.

“This acquisition in Indonesia fits well into our next frontier strategy under the franchise shift of building up our Indonesia franchise,” said Tan Teck Long, group CEO of OCBC, in a statement.

The deal follows OCBC’s 2024 acquisition of PT Bank Commonwealth Indonesia, in further expanding its market penetration in Southeast Asia’s largest economy, Tan said.

“Indonesia is a long-term commitment and a key growth market,” he added.