PZU aims to become banking giant

PZU has said it is in talks with two banks and could buy a third as part of a plan to create a major domestic bank able to compete with foreign-owned Polish banks.

PZU, the largest insurer in the CEE region, said it is buying a 25 percent stake in Polish medium-sized Alior Bank and could reportedly add Austrian-owned Raiffeisen Polbank, as well as BPH, the local unit of the US group GE, to its shopping list.

The latter two banks are also for sale.

If it were to take over all three banks, PZU would have combined assets of PLN 130 billion (USD 35 billion). This would put into fourth spot in terms of assets, not far behind BZ WBK. Poland's biggest lender by assets is state-controlled PKO BP.

PZU would create a bank with around four million clients and 1,700 branches. It would aim to build on Alior Bank's success in winning customers through internet banking and Raiffeisen Polbank's strong position in leasing and factoring.

With prospects for growth in the insurance market, where PZU is the dominant player, limited, banking appears to offer a new avenue for growth, analysts quoted by Reuters said.

The acquisition-based strategy also plays into an ongoing debate about so-called “re-polonisation” of the banking sector. Calls to support domestic banks are growing as Law and Justice (PiS), the centre-right opposition party, leads in opinion polls before parliamentary elections in October.

Many Polish banks are owned by major foreign banks, such as Santander of Spain (owner of BZ WBK), Unicredit of Italy (owner of Pekao) and Germany's Commerzbank (owner of mBank).

Wojciech Sobieraj, who launched Alior in 2008, will head up the new banking group. (jh/rg)

Source: Reuters