HSBC Holdings, through its wholly owned subsidiary HSBC Asia Pacific Holdings (UK), has entered into agreements to acquire 88.89 per cent of PT Bank Ekonomi Raharja for a consideration of $607.5 million to be paid in cash from HSBC’s own resources.

The acquisition will enhance HSBC’s commercial banking business in Indonesia, extend the group’s presence in the retail banking sector and almost double HSBC’s network to over 190 outlets in 24 cities across the country.

Bank Ekonomi was established in 1989 and is listed on the Indonesian Stock Exchange. It has 2,200 staff and 86 outlets across Indonesia and assets of approximately $1.8 billion at the end of September. In addition to its retail banking operations, Bank Ekonomi is one of Indonesia’s largest providers of commercial banking services. At 17 October, Bank Ekonomi had a market capitalisation of approximately $482 million and reported profit before tax for the nine months to 30 September of approximately $24 million.