Spanish bank Santander has reached a €305m deal to acquire a majority stake in the Polish business of Deutsche Bank.
The acquisition – made through the Spanish bank’s Polish arm, Bank Zachodni WBK (BZ WBK) – includes some €4.4bn in assets, as well as Deutsche Bank’s Polska’s 113 branches and roughly 1,500 employees. However, it excludes a foreign currency mortgage portfolio from the German lender.
According to Santander, the transaction – still subject to regulatory approval and expected to close by the end of 2018 – is expected to deliver a 15% return on investment by 2021 and have a positive impact on Santander’s earnings per share, with no impact on Santander’s capital ratios.
Once the acquisition is complete, BZ WBK will become the third largest financial institution in Poland, with 6.8 million customers and market share of up to 11.7% in loans and 11% in deposits.
Based on current figures, the integrated bank will have total assets of some €39.8bn, with €30.3bn in loans and €28.3bn in customer deposits.
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.”
Bank Zachodni WBK, the third bank in the Polish banking sector, became part of the Santander Group in 2011, and includes – among others – Santander Consumer Bank, BZ WBK Leasing, BZ WBK Factor and BZ WBK TFI.