Banco Santander completes the sale of 49% of its Polish subsidiary and achieves a capital gain of 1.9 billion

Banco Santander completes the sale of 49% of Santander Bank Polska -its Polish subsidiary- to Erste Group Bank once all regulatory authorizations have been obtained. The agreement, which also includes a 50% participation in the asset management business which it did not control, has been formalized for a cash amount of 7,000 million, equivalent to 584 zlotys per share. The transaction values ​​the bank at 2.2 times the tangible book value per share for the third quarter of 2025 and represents a 7.5% premium to the closing price of Santander Bank Polska on May 2, 2025, excluding the dividend paid in May 2025, when said agreement was announced.

Banco Santander has obtained an approximate capital gain of 1,900 million, which increases its ratio of CET1 capital around 95 basis pointsequivalent to approximately 6,000 million. The financial impact of this operation, both in results and capital, will be recorded in the first quarter of 2026 and is expected to have a positive impact on earnings per share in 2027 and 2028 through capital reinvestment. The Cantabrian entity will allocate around 50% of the funds obtained to accelerate the implementation of extraordinary share buyback programs.

Erste becomes in the main shareholder of Santander Bank Polskawhich marks a new stage for the entity, which will change its name and brand before next summer. The Cantabrian entity currently maintains a 9.7% stake in the entity, a percentage that has been reduced as a result of the accelerated placement of 3.5% of the capital last December. The plans of the group chaired by Ana Botín In the Polish country, they plan to maintain their long-term presence through their consumer financing business, Santander Consumer Bank, of which they have just acquired the remaining 60% that they did not own.

“We are convinced that Erste is the right owner for the business, at a time when we reallocate capital to the markets with greater connectivity to reinforce the group’s strength and support sustainable growth and higher returns,” explained the president, Ana Botín.

In parallel, Banco Santander and Erste have established a new strategic alliance in Corporate and Investment Banking to take advantage of the strengths, geographical presence and complementary capabilities of both groups. The first will make it easier for the second to access their platforms products and its international network in the United Kingdom, Europe and America, while Erste will contribute their market knowledge and its coverage in Central and Eastern Europe.

As explained in a note, the collaboration aims to “facilitate seamless interactions with customersexpand the product offering and support clients’ cross-border growth strategies.” In terms of payments, they will also explore opportunities to leverage this activity, which includes PagoNxt.

Weeks after learning of the disinvestment in this country, Santander announced an agreement with Banco Sabadell for the purchase of TSBits business in the United Kingdom, for 2.65 billion pounds, about 3.1 billion euros at the exchange rate. If everything goes according to schedule, the transaction will be effective at the end of March.