Erste Group’s agreement to acquire a controlling stake in Santander Polska in May 2025 was a watershed moment for the Vienna-based group. It was the first time Erste has embarked on a major M&A deal for decades. More importantly, it fills a Poland-sized gap in its otherwise almost comprehensive universal banking network in the eastern part of the Europe Union.
The strategic rationale is obvious, including on the corporate side. Erste says around 2,000 business from elsewhere in central and eastern Europe operate in Poland and around 800 Polish businesses operate elsewhere in central and eastern Europe. But the deal was also appealing for investors, as excess capital – thanks in part to strong efficiency and capital generation – removed the need for a capital increase, facilitating an estimated 20% jump in earnings per share after the deal closed in early 2026.
From a geographic point of view, we are now where we always wanted to be in the region
Peter Bosek
Peter Bosek, group CEO, points out that the former Santander business is the third largest bank in Poland, and the biggest 100% privately owned bank.
“From a geographic point of view, we are now where we always wanted to be in the region,” says Bosek in an interview with Euromoney. “We always wanted to operate a bank in Poland. And the hidden treasure in this acquisition is corporate banking. We have an opportunity to leverage our corporate know-how in Poland in our other markets too. That’s very important as we see more economic flows within central and eastern Europe, rather than to and from western Europe.”
Retail expansion plans
In retail, meanwhile, the acquisition plays into Bosek’s strategy of seeking to grow in investments in the region, as Erste has also acquired Santander’s Polish mutual fund company as part of the deal. That then plays into his wider strategy of doing more around digital advice and financial health promotion for retail banking customers.
The strategy elsewhere in the region has included the development of a more user-friendly digital investment platform under George Invest, starting in Czech Republic. It is orientated largely to the next generation of asset owners who elsewhere are increasingly turning to fintech players offering both banking and investments.
“Asset management is a core competence of a bank, both for its own balance sheet and that of our clients,” says Bosek.
Other aspects of the bank’s digital advice and financial health strategy include the rollout of its AI chatbot Hey George in countries including Czech Republic and Romania, in partnership with OpenAI.
“Ten years ago, we gained significant momentum when we launched our online banking proposition, George,” Bosek says. “While others have since caught up, our focus is now on taking it to the next level. We are enhancing George with AI-supported digital advice. This represents a major opportunity, as it enables us to deliver more proactive and deeper financial advice to all our retail customers – including those who prefer not to engage with a personal adviser.”
