OCBC NISP’s HSBC IWPD deal may see 48% AUM uplift: analyst

There is minimal overlap between the two banks’ customers.

OCBC’s acquisition of HSBC’s international wealth and private banking (IWPB) business in Indonesia strengthens its franchise in the country, according to UOB Kay Hian.

HSBC’s IWPB business is complementary to OCBC Indonesia, with a potential uplift of 48% for OCBC’s assets under management (AUM).

“There is minimal overlap as HSBC’s customers are predominantly professionals and white-collar executives, while OCBC NISP’s customers are mainly entrepreneurs and businessmen,” said Jonathan Koh, analyst at UOBKH.

The deal adds 1,300 experienced staff to OCBC Indonesia’s talent pool, alongside 336,000 customers, 26 branches, and an AUM of S$6.6b, the report said.

In 2010, OCBC acquired ING Asia Private Bank and its affiliated for $1.46b (nearly S$2.05b in cash). The deal came with 150 relationship managers, over 5,000 clients, and $15.8b in AUM.