IBOS members Banco Santander and Bank Zachodni WBK (BZ WBK), Santander’s Polish subsidiary, recently announced that they have agreed to acquire the retail and private banking businesses from Deutshe Bank Polska, S.A.
The acquisition will enhance BZ WBK’s position as the third largest financial institution in Poland, with 6.8 million customers and market share of more than 11.7% in loans and 11% in deposits. Furthermore, BZ WBK will become the leading private banking services provider in Poland.
The acquisition includes Deutsche Bank Polska’s retail and private banking business, SME business, asset management arm, and sales networks, with 113 branches and approximately 1,500 employees. The acquired business has €4,350 million in assets, with total loans of €4,300 million and customer deposits €2.505 million (at 30 June 2017).
Banco Santander’s Executive Chairman, Ana Botín, said:
“We have an outstanding business in Poland with the best mobile banking platform in the country. The Polish economy has been among the strongest in Europe and we see significant potential to grow our business further in the coming years. The acquisition enhances our position in important customer segments, such as private banking and SMEs, while also delivering strong returns for our shareholders.”
The deal, which is subject to regulatory and other approvals, is expected to close by the end of 2018. It is expected to deliver a return on investment of 15% by 2021 and have a positive impact on Santander’s earnings per share, with no material impact on Santander’s capital ratios.
Read the full press release, via Banco Santander, here.