OCBC’s Indonesia deal boosts wealth push, may herald more M&A under new CEO Tan Teck Long: analysts

[SINGAPORE] OCBC’s latest Indonesian acquisition is expected to strengthen its fee income base and expand its wealth franchise in South-east Asia’s largest economy, as pressure on lending margins pushes banks to diversify earnings.

Analysts said the “bolt-on” deal could also signal more acquisitions to come, particularly in high-growth Asean markets where global banks are trimming their retail and wealth operations.

On Monday (May 4) night, OCBC announced that its Indonesian subsidiary, Bank OCBC NISP Tbk, would acquire HSBC’s retail and wealth management operations in Indonesia.