Banco Santander completes the sale of 49% of its Polish subsidiary in Erste Group

Banco Santander and the Austrian entity Erste Group Bank announced this Friday the completion of the sale of the Spanish bank's subsidiary in Poland, Santander Bank Polska. announced in May 2025Once the corresponding regulatory approvals have been obtained and the transaction completed, Erste has acquired 49% of Santander Bank Polska's share capital and a 50% stake in its Polish asset management business (TFI), which the Polish bank did not previously control, for a total cash amount of approximately €7 billion. The transaction, priced at 584 zlotys (€138 at the current exchange rate) per share, values the bank at 2.2 times its tangible book value per share for the first quarter of 2025 and represents a 7.5% premium over Santander Bank Polska's closing share price on May 2, 2023. The acquisition is valued at €1.9 billion for Banco Santander. The bank explains that the financial impacts of this transaction, both on earnings and capital, will be recorded in the first quarter of 2026. Banco Santander reaffirmed on Friday its intention to allocate approximately 50% of the funds obtained from this transaction to accelerate the execution of the corresponding extraordinary share buyback programs. Furthermore, it expects the transaction in Poland to have a positive impact on earnings per share in 2027-2028, through capital reinvestment, and to strengthen its strategic and financial flexibility. In this regard, it notes that this Polish transaction will also support the announced acquisition of TSB in the UK from Sabadell, subject to the corresponding regulatory approvals. Banco Santander maintains its presence in Poland with consumer credit.

With the closing of the transaction, Erste becomes the main shareholder of Santander Bank Polska, marking a "new stage" for the institution. In fact, Banco Santander explains that the Austrian group plans to change the name and brand of Santander Bank Polska to Erste Bank Polska in the second quarter of 2026. Following the closing of the sale, and the accelerated placement of approximately 3.5% of Santander Bank Polska's capital completed in December, Banco Santander now holds a stake. Finally, as previously announced, Banco Santander has become the sole owner of Santander Consumer Bank in Poland after acquiring the remaining 60% stake it did not already own. The Spanish banking group indicates that it will maintain its presence in Poland through its consumer finance business.