Santander completes stake sale in Polish unit to Austria’s Erste

Core Insights - Banco Santander has sold a 49% stake in Santander Bank Polska to Erste Group for approximately €7 billion ($8.2 billion), resulting in a net capital gain of around €1.9 billion for Santander [1][2] - The transaction is expected to enhance Santander's CET1 ratio by about 95 basis points, equating to an estimated €6 billion [1] - Following the deal, Erste Group will become the main shareholder of Santander Bank Polska, which will be rebranded as Erste Bank Polska in Q2 2026 [2] Financial Implications - Santander plans to allocate around half of the proceeds from the sale to its shareholder buyback program, pending regulatory approval [2] - After the transaction, Santander's ownership in its Polish banking business will decrease to 9.7% [2] - Erste Group anticipates a return on tangible equity of approximately 19% and expects earnings per share to rise by over 20% by 2026 [3] Strategic Developments - Santander has acquired the remaining 60% stake in Santander Consumer Bank in Poland, becoming its full owner and continuing operations in the consumer finance sector [3] - A partnership has been established between Santander and Erste Group focused on Corporate & Investment Banking, facilitating client referrals and collaboration on specific products [4] - The alliance may extend to collaboration through PagoNxt, Santander's global payments platform, starting with cloud-based payments infrastructure in Poland [5] Future Initiatives - The increased capital flexibility from this transaction is expected to support other initiatives, including the proposed acquisition of TSB in the UK, which is pending regulatory approval [6] - Santander's executive chair emphasized the strategic partnership with Erste Group to leverage complementary strengths for better client service across markets [6]