PKO BP lender open for acquisitions in region, may complete one transaction in 2026

"We are only a year away from announcing our new strategy. We have entered a period of very high growth on the Polish market, which was historically unattainable for the entire PKO group. We have achieved 30 percent sales growth while maintaining margins and without taking on higher credit risk in key segments or business lines. We are consistently implementing a mega-ambitious plan to increase PKO's share in Poland," Szymon Midera told reporters on the sidelines of the debut of mortgage bonds issued by PKO Bank Hipoteczny.

"A year ago, we were fully focused on unlocking this potential within the group and showing that PKO BP still has opportunities for organic growth. After a year, we can see that we are on track, the train has picked up speed and is heading in the right direction. And today, we have decided within the management board that we want to supplement our organic strategy with an M&A strategy that also goes beyond Poland," he added.

CEO Midera stressed that this is not about one large transaction, but several smaller ones that will accelerate the implementation of PKO BP's strategy.

"It is not our perspective to flex our muscles today and make one giant transaction. The point is to accelerate the implementation of the strategy through acquisitions. So, whether it is 1, 2, 3 or 10 transactions, does not matter. What is more important is how they fit in with what we want to do, i.e. grow our customer base to 15 million and build new business models," he said.

PKO BP's CEO added that the lender is actively looking for acquisition targets that fit its strategy.

"We are looking strictly in the financial area, but we do not want to participate in traditional M&A. Today, if you look at the region, to put it bluntly, there is not much to buy that would have any material dimension. And that is why we approached this process differently," he said.

"We have chosen market segments that are growing rapidly, in the retail or corporate area, so to speak, which do not require large amounts of capital and where there is still room to consolidate these businesses within the Central and Eastern European region," he added.

The CEO told journalists that PKO BP is seeking unconventional businesses that will be consistent and coherent with the lender's strategy.

"For us, M&A is not a side or parallel stream, but an element that is supposed to complement our strategy and help us achieve our strategic goals faster. This is consistent with the seven strategic pillars we announced a year ago," he pointed out.

When asked when the first transaction might take place, Midera replied that PKO BP would like to start building its presence in the region next year by closing the first transactions.

He added that the lender does not only consider countries where it already has branches.

"The markets of Central and Eastern Europe are small, as a rule. From a financial services perspective, Poland accounts for roughly half of the volume in these markets. So, very often these projects overlap across several markets. Some are focused on local markets, but others operate cross-border," the CEO said.

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