15th December 2017

Santander, with Bank Zachodni WBK, acquires Polish retail banking business

Banco Santander and its Polish subsidiary, Bank Zachodni WBK have agreed to acquire the retail and private banking businesses from Deutsche Bank Polska, SA (excluding its foreign currency mortgage portfolio and including the shares of DB Securities, S.A. (Poland)) for an estimated total consideration of EUR305m.

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 EUR4,350m in assets, with total loans of EUR4,300m and customer deposits EUR2.505m (at 30th June, 2017). Based on current figures, the integrated bank will have total assets of approximately EUR39.8bn, with EUR30.3bn in loans and EUR28.3bn 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.”

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 per cent by 2021 and have a positive impact on Santander’s earnings per share, with no material impact on Santander’s capital ratios.