OCBC Bank acquires Commonwealth Bank of Australia’s Indonesian subsidiary for approximately S$191M

SINGAPORE: OCBC, Southeast Asia’s second-largest lender and one of Singapore’s major banks, is set to acquire Commonwealth Bank of Australia’s (CBA) Indonesian unit, PT Bank Commonwealth, for approximately $191 million.

The deal, which involves purchasing CBA’s 99% stake, is slated to conclude in the second or third quarter of the upcoming year, subject to regulatory approvals.

This marks OCBC’s first acquisition under the leadership of Group CEO Helen Wong, who assumed the role in 2021, becoming the first woman to lead the bank. Wong, recognized in Forbes Asia’s Power Businesswomen list in 2021, has strategically positioned OCBC to capitalize on growing business connections between China and Southeast Asia.

The acquisition is designed to bolster OCBC Indonesia’s capabilities in delivering comprehensive financial services, targeting consumer and SME segments.

Parwati Surjaudaja, President-Director of OCBC Indonesia, emphasized that the move is intended to strengthen the bank’s position in the Indonesian market.

PT Bank Commonwealth, the target of the acquisition, boasts over 1.2 million customers and total assets of A$1.8 billion as of June. With a focus on retail, SMEs, wealth management, and automotive financing, the bank aligns with OCBC’s strategy to expand its product and service offerings in Indonesia.

As of September, OCBC Indonesia stands as the fourth-largest private sector bank in Indonesia, with total assets of 247 trillion rupiah ($16 billion) and a 10% increase in disbursed loans compared to last year.

For CBA, the sale of PT Bank Commonwealth aligns with its broader strategy of concentrating on retail banking in Australia and New Zealand, shedding non-core businesses.