(Feb 26): Some of Asia’s biggest banks are working on bids for HSBC Holdings plc’s retail assets in Indonesia, according to people familiar with the matter, helping them to forge ahead in Southeast Asia’s largest economy.
The banks include Singapore-based DBS Group Holdings Ltd, Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank Ltd (UOB), as well as Malaysia’s CIMB Group Holdings Bhd. and Japan’s Sumitomo Mitsui Financial Group Inc, the people said, asking not to be identified because the deliberations are private.
HSBC has been working with advisers on a potential sale of its consumer business in Indonesia, the people said. A transaction may value the assets at more than US$200 million ($252.54 million), the people said.
Considerations are ongoing, with binding bids due mid-March, the people said.
HSBC has said it’s carrying out targeted strategic reviews of its retail businesses across Australia, Indonesia and Egypt, but no decisions have been made. HSBC Life Singapore is also being reviewed.
Since taking the reins in 2024, HSBC chief executive officer Georges Elhedery has undertaken a major overhaul, cutting management layers and thousands of jobs. The bank has reorganised into four new divisions and exited some businesses once considered key.
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Representatives of DBS, UOB, OCBC, CIMB and SMFG declined to comment. A spokesperson for HSBC declined to comment further on the ongoing strategic review for Indonesia.
Fast-growing markets such as Indonesia — where economic growth hit a three-year high last quarter — are attracting banks looking to expand, especially with the likes of HSBC and Citigroup Inc selling some non-core assets. ANZ Group Holdings Ltd has also considered selling its stake in PT Bank Pan Indonesia.
HSBC opened its first branch in Indonesia in 1884. A couple of decades ago, it acquired PT Bank Ekonomi Raharja, rebranding it as PT Bank HSBC Indonesia in 2016. HSBC Indonesia has about 2,300 employees and 28 branches serving corporate and institutional clients, and retail customers, its website shows.
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HSBC previously examined a potential initial public offering of the Indonesian business, people familiar with the matter said in 2022.
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