OCBC launches its private banking unit in Indonesia

It will be run by OCBC NISP.

OCBC Bank has launched onshore private banking in Indonesia through its 85%-owned subsidiary, OCBC NISP, further entrenching its leading position in wealth management in Asia.

According to the group, OCBC NISP has obtained regulatory approval to establish the Private Banking unit to manage the wealth of Indonesians with Assets Under Management (AUM) of more than US$1m with a comprehensive range of wealth management solutions.
The unit will leverage OCBC Bank’s uniquely integrated wealth management platform that draws on the combined product expertise of the Bank and its subsidiaries - market-leading insurance products from Great Eastern Holdings, equities and bond funds from Lion Global Investors, brokerage services from OCBC Securities and private banking services from fast-expanding Bank of Singapore.

Here's more from the group's announcement:

OCBC NISP has hired an industry veteran, formerly with a global private bank, to lead the team. This individual has more than 20 years of experience in advising high net worth private clients, family offices and business owners in Southeast Asia. The launch team includes four other private bankers who have an average of 18 years of onshore and offshore private banking experience and deep knowledge of regional markets. The team is expected to double in size by the end of the year.

OCBC NISP Private Banking clients who are business owners will be able to draw on the commercial banking solutions offered by OCBC NISP and leverage OCBC Bank’s global network of more than 610 branches and offices across 18 countries and regions.

Indonesia’s contribution to OCBC Bank’s group earnings has been growing over the past few years. In 2016, the market accounted for 5% of the group’s profit before tax compared to 2% in 2010. OCBC NISP has been outperforming the Indonesian banking industry in terms of its pre-tax profit (5-year CAGR of 29% versus the industry average of 13%) and loans growth (5-year CAGR of 22% versus industry average of 18%).

In September 2016, it was appointed as a gateway bank authorised to receive and manage repatriated funds under Indonesia’s tax amnesty programme that concluded recently. Adding private banking services to its existing strengths in retail and commercial banking enhances OCBC NISP’s franchise and better positions the bank to capture rising growth opportunities in this market.