HSBC acquires 88.89% in Indonesian bank

22nd May 2009 08:52

Bank HSBC doubled its exposure in Indonesia after completing its acquisition of 88.89% of PT Bank Ekonomi Raharja Tbk (Bank Ekonomi) for $607.5m in cash.The acquisition of Bank Ekonomi, one of the largest providers of SME banking services in Indonesia, will almost double HSBC's presence in the country to 207 outlets in 26 cities. Bank Ekonomi will operate as a separate entity to HSBC's existing Indonesian business and remain listed on the Indonesian stock exchange. "This acquisition is further evidence that HSBC can continue to execute its strategy even in a time of significant economic turmoil. Together with recent investments in Vietnam, Taiwan and India, Bank Ekonomi will increase our presence in the world's fastest growing markets," said Sandy Flockhart, Chief Executive Officer of HSBC Asia Pacific.