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Santander Sells Bulk of Polish Banking Business for $7.9 Billion
SANBanco Santander(SAN) PYMNTS.com·2025-05-05 15:48

Group 1: Santander's Sale and Partnership - Santander is selling approximately 49% of Santander Polska's share capital and 50% of its Polish asset management business to Erste Group for 7.9billion[1][2]−ThedealincludesapartnershipwhereSantanderwillprovideErsteaccesstoitspaymentsystem,allowingbothbankstoexploreopportunitiesinpayments,particularlywithSantanderPolskapost−completion[1][2]Group2:CorporateandInvestmentBankingCollaboration−SantanderandErsteareformingacorporateandinvestmentbankingpartnershiptoleverageeachother′sregionalstrengths,offeringlocalsolutionsandmarketinsightstocorporateandinstitutionalclientsthroughareferralmodel[3]−Thispartnershipaimstofacilitateseamlessclientinteractionsandserviceofferings[3]Group3:EconomicOutlookandStrategicFocus−Santander′sExecutiveChair,AnaBotıˊn,highlightedthebank′sfocusonhelpingclientsmanagevolatilityrelatedtoU.S.tariffsandgeopoliticaluncertainty,whichhascontributedtoadeclineinthefive−yeargrowthforecastfortheworldeconomyto3.17.9 billion [1][2] - The deal includes a partnership where Santander will provide Erste access to its payment system, allowing both banks to explore opportunities in payments, particularly with Santander Polska post-completion [1][2] Group 2: Corporate and Investment Banking Collaboration - Santander and Erste are forming a corporate and investment banking partnership to leverage each other's regional strengths, offering local solutions and market insights to corporate and institutional clients through a referral model [3] - This partnership aims to facilitate seamless client interactions and service offerings [3] Group 3: Economic Outlook and Strategic Focus - Santander's Executive Chair, Ana Botín, highlighted the bank's focus on helping clients manage volatility related to U.S. tariffs and geopolitical uncertainty, which has contributed to a decline in the five-year growth forecast for the world economy to 3.1%, the lowest in 16 years [4] - The bank is leveraging its global scale and diversification as stabilizers in the current economic environment, anticipating continued profitability growth by 2025 [5] Group 4: Importance of Real-Time Payments - Research indicates that offering real-time payments is crucial for banks to attract and retain small and medium-sized business (SMB) clients, with many SMBs willing to pay fees for instant payment advantages [6][7] - Specifically, 88% of the smallest SMBs, those with annual revenues of less than 100,000, would be willing to pay a percentage fee for instant payments [7]