The time of the merger of banks is coming. Are they just waiting for a signal from the MPC?

Financial entities in Poland and in the region still have a relatively small scale and increasing it would help them compete better with financial institutions from Western Europe. Forecast interest rate discounts can be an additional impulse for bank consolidation – according to the EY report.

It was stated that in the region of Central and Eastern Europe in 2024, the activity in the field of mergers and acquisitions in the banking and capital markets sector increased-a total of 28 such transactions compared to 25 in 2023.

“2024 stands out in terms of the disclosed transaction value (USD 2.7 billion) – better than in all previous analogous periods, including in 2022. Banks, especially medium -sized ones, consolidate to create more powerful entities, ready to conquer the world thanks to increased market and deepened sector knowledge” Trends for Financial Services in CEE.

It was stated that one of the largest last year's transactions was the takeover of Velobank by Cerberus Capital Management worth USD 270 billion.

“The activity in the field of mergers and acquisitions is the largest in the banking sector among the financial institutions we examined because the ankle increase in scale and acquiring new competences by taking over the competitor directly affects their competitive position. This process will accelerate, among others, thanks to technological progress, powered by the dissemination of generative applications of artificial intelligence increasing productivity and innovativeness of the offer. Forecast interest rates can give an additional impulse for consolidation in the region.

The report shows that the insurance market is also very active in the field of fusion and acquisitions, with 18 transactions in 2024 with a disclosed value of USD 332 million, noting 13 percent. Increase in the number of mergers and acquisitions compared to 2023. In Poland, transactions occurred primarily in the broker sector.

“In 2024, the estate and assets management sector in Central and Eastern Europe struggled with difficult conditions, which results in ten transactions (an increase of 100 % compared to 2023) – remaining behind the banking sectors and insurance in terms of the number of transactions and their value disclosed” – the report was discussed. (PAP Biznes)

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