Closing of the Acquisition of the Core Banking Operations of Raiffeisen Bank Polska

Closing of the Acquisition of the Core Banking Operations of Raiffeisen Bank Polska

Closing of the Acquisition of the Core Banking Operations of Raiffeisen Bank Polska

The FINANCIAL -- BNP Paribas Group announces the closing of the acquisition of the core banking operations of Raiffeisen Bank Polska, merged with the subsidiary of BNP Paribas in Poland, BGZ BNP Paribas.

The Core Bank consists of the business of Raiffeisen Bank Polska, excluding the foreign currency retail mortgage loan portfolio and excluding a limited amount of other assets. Corporate and retail gross loans of the Core Bank amount to PLN 19 billion (cv EUR 4.4 billion*) and customer deposits to PLN 34 billion (cv EUR 7.9 billion*) at year-end 2017.

Thanks to the complementarity of the activities of the two banks, the transaction further strengthens BGZ BNP Paribas’ position as the #6 bank in the Polish market with an over 6% pro forma market share in loans and deposits at end 2017. The expertise of the teams of the Core Bank, in particular in SME, Corporate banking and Factoring, in affluent/private banking, as well as its retail network, reinforce the role of BGZ BNP Paribas as a key player in the Polish banking sector and its ability to support the growth of the Polish economy.

With new cross selling opportunities, the transaction will also enhance the position of all the other BNP Paribas Group subsidiaries operating in Poland (BNP Paribas Securities Services, BNP Paribas Leasing Solutions, BNP Paribas Cardif, Arval, …) in accordance with the Group's integrated model.

Moreover, the integration of the Core Bank within the BNP Paribas Group will provide its clients with access to the BNP Paribas international network and expertise.

The transaction price is set at PLN 3.25 billion (EUR 756 million*), corresponding to ~87% of the Core Bank book value at closing and ~95% of its tangible book value.

The transaction will have an impact of -10bp on the CET1 ratio of the BNP Paribas Group in the fourth quarter 2018 and will improve its earnings per share by ~1.0% in 2020.