Historic Agreement Unveiled

In a groundbreaking move, Erste Group Bank AG has finalized a monumental €7.0 billion agreement with Banco Santander. This deal grants Erste a 49% stake in Santander Bank Polska Group and a 50% stake in Santander Towarzystwo Funduszy Inwestycyjnych, marking a significant expansion into the Polish market.

Financial Implications and Future Prospects

The acquisition is poised to enhance Erste Group's earnings per share (EPS) by an impressive 20% and elevate its return on tangible equity (ROTE) to approximately 19% by 2026, a substantial leap from the current 15%.

Strategic Collaboration for Growth

"This partnership with Santander Group is a testament to our commitment to fostering prosperity for millions more across our key geographies," stated Peter Bosek, CEO of Erste Group, highlighting the strategic cooperation aimed at leveraging mutual strengths for client benefit.

The announcement spurred a notable 6.88% surge in Erste Group's shares, reflecting investor confidence in this strategic expansion.