Santander Bank Polska is the third-largest bank in Poland by assets, with a market share >8 percent (based on transaction perimeter as of December 2024), and is also one of the most profitable in the country. It offers a full suite of commercial banking products to retail, SME and corporate clients. Santander TFI is an asset management company with 6 billion euros in assets under management as of December 2024.
The proposed transaction is expected to increase Erste Group’s earnings per share (EPS) by >20 percent and its return on tangible equity (ROTE) to ~19 percent in 2026, versus the current market consensus of ~15 percent.
Peter Bosek, Erste Group CEO, commented: “With the proposed acquisition of a controlling stake in Santander Bank Polska we are fulfilling a long-standing strategic goal: as the leading lender in Central and Eastern Europe we continue to broaden our presence in the region and expand into one of Europe’s most dynamic and profitable banking markets. Erste Group was founded with a clear purpose: to foster prosperity and financial health. Today’s announcement, including the new strategic cooperation we have inked with Santander Group to leverage our respective strengths for our clients across our key geographies, paves the way for us to help millions more people to prosper.”
Stefan Dörfler, Erste Group CFO, commented: “The acquisition of a controlling share in Santander Bank Polska will enable us to generate profitable and value-creating growth. In doing so, we are deploying our capital effectively to generate favourable returns for our investors. The strength of our capital position means that we can fund this acquisition entirely from Erste Group’s internal resources.”
Santander Bank Polska provides Erste Group with the necessary critical mass in Poland immediately on entry, strengthening its position as the leading lender in CEE by increasing its loan book in the region from €94 billion to €131 billion based on December 2024 data.
By adding Santander Bank Polska to its footprint, Erste Group would increase its total client base by ~36 percent, to ~23 million customers, and its CEE client base by ~50 percent, allowing it to reach ~18 million customers outside Austria. Erste Group’s potential bankable population in CEE would increase by approximately 66 percent to 78 million.
Poland has exhibited one of the highest real GDP growths in Europe over the last 25 years, and its banking sector remains underpenetrated compared to most other European countries. The proposed acquisition would provide Erste Group with exposure to one of the fastest-growing and most profitable banking markets in Europe, with an attractive long-term growth trajectory.
