Santander Bank Polska SA: Erste Group Acquires Controlling Stake

On May 5, 2025, Erste Group announced a significant investment in Central and Eastern Europe (CEE) by acquiring a 49% controlling stake in Santander Bank Polska SA and a 50% stake in Santander Towarzystwo Funduszy Inwestycyjnych S.A. (Santander TFI). This strategic move involves a total cash consideration of 7 billion euros, marking a substantial expansion for Erste Group into one of Europe’s fastest-growing and most profitable banking markets.

Key Details of the Acquisition

  • Stake Acquisition: Erste Group will acquire a 49% controlling stake in Santander Bank Polska Group S.A. and a 50% stake in Santander TFI from Banco Santander S.A.
  • Financial Commitment: The acquisition is valued at 7 billion euros, fully financed by Erste Group.
  • Funding Strategy: To finance this acquisition, Erste Group will cancel its 700 million euro share buyback program and temporarily reduce its 2025 dividend payout ratio.
  • Impact on Financial Metrics: The transaction is expected to be significantly accretive to Erste Group’s earnings per share (EPS) and return on tangible equity (ROTE).

Strategic Implications

  • Market Position: By acquiring these stakes, Erste Group strengthens its presence in Poland, a key market in the CEE region. Santander Bank Polska, Poland’s third-largest bank, offers a robust platform for retail and corporate banking services.
  • Financial Targets: Erste Group aims to achieve a Common Equity Tier 1 (CET1) ratio exceeding 14.25% by 2026, setting a new target level for the group.

Background on Santander Bank Polska SA

Santander Bank Polska SA, formerly known as Bank Zachodni WBK S.A., is a prominent financial institution in Poland, operating in both retail and commercial banking sectors. The bank offers a comprehensive range of products and services, including savings, loans, credit and debit cards, insurance, investment products, and online banking services. With approximately 1,000 branches and partner outlets, it serves a vast customer base across Poland. The bank is a subsidiary of Banco Santander S.A. and is listed on the Warsaw Stock Exchange.

This acquisition underscores Erste Group’s commitment to expanding its footprint in the CEE region, leveraging the growth potential of the Polish banking market to enhance its overall market position and financial performance.