PKO Bank Polski Group to acquire KBC TFI

The announced transaction is subject to customary regulatory conditions. Obtaining the clearance from the President of the Office of Competition and Consumer Protection and the no-objection statement from the Polish Financial Supervision Authority are required for the closing of the transaction which is expected in the first quarter of 2018.

PKO TFI, with assets of a total value of PLN23.2bn, operating within the PKO Bank Polski Group, is already the leader of the Polish retail funds market, whereas KBC TFI managed assets worth PLN4bn as of the end of July 2017. Ultimately, the investment fund companies operating within the PKO Bank Polski Group are going to be merged.

- The PKO Bank Polski Group's strategy envisages growth both organically and through mergers and acquisitions. We carefully follow the market developments and try to make the most of the opportunities for strengthening our subsidiaries' positions in particular segments of the financial market. The acquisition of KBC TFI will further strengthen our ability to offer our clients varied and attractive forms of investing. On the other hand, the customers of the acquired TFI, while continuing to receive services of the current quality, will gain access to the comprehensive offer of the PKO Group - says Zbigniew Jagiełło, President of the Management Board of PKO Bank Polski.

The planned merger with KBC TFI will further accelerate the current dynamic growth of PKO TFI, which is already the largest retail fund management company in Poland with a market share close to 15%. The number of its clients is rapidly growing by more than 35,000 in the first 8 months of 2017, and reached 482,000, thus making PKO TFI the largest investment fund company in Poland by the number of clients.

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PKO Bank Polski is the indisputable leader in the Polish banking sector. In the half of 2016, its consolidated net profit amounted to PLN 827 million, whereas the balance sheet sum reached PLN 286,4 billion. In 2016, its net profit amounted to PLN 2.87 billion, what was the best result in the Polish financial sector. The bank is the basic supplier of financial services for all client segments and has highest share in the deposit market (17.3%) and loans (17.7%), including mortgage loans; every third mortgage loan is granted by PKO Bank Polski and PKO Bank Hipoteczny. Having 8 million pay cards, the Bank is the largest issuer of debit and credit cards in Poland with a share in the market on the level of 22%. Thanks to the development of digital tools, including the IKO app, which was already activated 1.2 million times, PKO Bank Polski has become the most mobile bank in Poland. The Bank’s strong position is reinforced by companies from the Capital Group. Dom Maklerski (Brokerage House) of PKO Bank Polski is the leader with respect to the number and the value of IPO and SPO transactions at the capital market. After the take-over of Raiffeisen-Leasing Polska, the Capital Group became a leader at the lease market, with a share on the level of 13%. Efficient implementation of growth strategy made PKO Bank Polski the highest positioned domestic financial company in the Forbes Global 2000 ranking, including largest listed companies in the world. In 2016, The Banker monthly magazine that belongs to Financial Times, awarded PKO Bank Polski with the “Bank of the Year in Poland” prize for the third time.