Major takeover in Polish banking sector possible: report

ING Bank Śląski (ING BSK), the fifth-largest lender and fourth-largest bank in terms of assets, is interested in taking over mBank, the Polish “Rzeczpospolita” daily reports.

Markets calm on election poll predictions

see more

“ING Bank Śląski is organising a team of advisors, whose task will be to analyse and take over mBank,” the newspaper wrote on Tuesday. The press officer of ING Bank refused to comment on the issue.

The value of mBank assets at the end of June 2019 was PLN 152 bn (EUR 35.36 bn), which was 7.8 percent of the banking market share in Poland.

If this transaction takes place, ING BSK will be the second-largest bank in Poland, with assets valued at PLN 290 bn (EUR 67.5 bn). The leader is PKO BP, a bank in which the State Treasury has a controlling stake of around 30 percent.

The Polish-Dutch ING was valued in June at PLN 151 bn (EUR 35 bn), while its profit in 2018 was at PLN 1.53 bn (EUR 356 mln).

The majority of shareholding (69.3 percent of shares) of mBank which is up for grabs is currently in the possession of the German Commerzbank, which has been trying to improve its asset position since the 2008 financial crisis when it ended up in state hands.

The consolidation of the Polish bank market has been going for nearly a decade. At least 15 mergers and takeovers took place in years 2011-2018.