Integration of a part of Deutsche Bank Polska with BZ WBK
Bank Zachodni WBK S.A. and Banco Santander S.A., have made an agreement with Deutsche Bank AG, the owner of Deutsche Bank Polska S.A. to transfer a part of Deutsche Bank Polska S.A. business to Bank Zachodni WBK The carved-out part of Deutsche Bank Polska includes: retail banking, including the private banking function, business banking including SMEs, its branches, agents, intermediaries, vendors and DB Securities S.A brokerage house. The transaction will not include the portfolio of foreign currency mortgage-backed credit products. Bank Zachodni WBK intention is the continuation of agreements with partner companies to keep the open architecture of investment products. The transaction is to be closed in Q4 2018 subject to all the required regulatory and corporate consents. The transfer of assets making up the carved out part of Deutsche Bank Polska to Bank Zachodni WBK will be made under the law after registering the demerger of Deutsche Bank Polska S.A. The implementation and finalization of the transaction will not require any additional customer activity on the part of the clients in this respect and transferred account numbers will be preserved.
The Financial Supervision Authority (KNF) has approved the demerger of Deutsche Bank Polska through the integration of its carved-out part with Bank Zachodni WBK. This means closing another important stage on the way to finalizing the transaction in the fourth quarter of this year.
KNF’s consent is the key element of the approval procedure.
“Integration with the demerged part of Deutsche Bank Polska is a leverage for us in the pursuit of our strategy to be the best bank for our customers. The combination of our business models and competence will let us improve performance in the critical business areas, build competitive advantages and effectively utilise external distribution channels. This way, Bank Zachodni WBK will reinforce its position as the third largest financial institution and become the leading private banking services provider in Poland,”said Gerry Byrne, Chairman of the Supervisory Board of BZ WBK.
The planned transaction will be finalised as a universal succession, which means that Bank Zachodni WBK will assume all rights and obligations of the demerged part of Deutsche Bank Polska upon the official registration of the demerger of DB Polska. Operational integration, i.e. the migration of customers’ products, will take place along with the registration of changes with the National Court Register.
“We are the first bank in Poland to carry out a transaction with legal and operational merger running in parallel. This requires a considerable engagement of both teams, but we have chosen this approach with our customers in mind, so that they could have instant access to the target banking systems and full service. We want them to be positively surprised by our offer ¬- modern e-banking solutions, a mobile app, a wide array of mobile payment options or access to the database of foreign counterparties via Santander Trade. In the run-up for the integration, we have started a Wealth Management program to develop a new strategy and business model for the private banking segment,” said Michał Gajewski, President of Bank Zachodni WBK.
“The key aspect for both institutions is making the whole process smooth and fast, with as small impact on the customers as possible,” said Leszek Niemycki, Vice-President of Deutsche Bank Polska. “Over the past few years, we have been providing our ultra-demanding individual customers as well as small and medium-sized enterprises with a unique advisory model based on mutual relationship and special product offer, including investments and financing. We believe that after the transition to Santander Group, which also incorporates our experienced retail employees, the customers will still take advantage of the wide product offer, additionally gaining an omnichannel access to services.”
There will be no changes made to account numbers, card PINs or interest rates on the existing loans and deposits. Once the data migration process is completed, customers will be able to use BZ WBK e-banking systems. FX mortgage loans will stay at Deutsche Bank Polska and free-of-charge repayments will be possible from accounts migrated to BZ WBK.
The transaction, along with migration of customer products to BZ WBK, should be finalised by the end of Q4 2018. Banks will prepare all of the required information for customers (including a dedicated website) two months in advance. Customers will also receive additional information via the helpline of Deutsche Bank Polska.
BZ WBK also plans to expand the service model to include sales through external distribution channels, including an extended network of agents. In the Bank’s opinion, the model implemented by DB Polska is effective and will add high value to the existing branch network of BZ WBK. The product range of BZ WBK will also include selected products of Deutsche Bank Polska, including a loan for professionals or an account for private banking customers.
The transaction and migration of customer products to BZ WBK should be finalised in Q4 2018. Upon the integration of the demerged part of DB Polska, the branch signage will be changed accordingly.
The transaction including carved-out part of Deutsche Bank Polska: retail banking, including the private banking function, business banking including SMEs, its branches, agents, intermediaries, vendors and DB Securities S.A brokerage house. The transaction will not include the portfolio of foreign currency mortgage-backed credit products and investment and corporate banking.
Date of addition: 23.02.2018
Today the Management Boards of Bank Zachodni WBK and Deutsche Bank Polska have agreed on the Demerger Plan. A request will be submitted to the Polish Financial Supervision Authority (KNF) for approval of Deutsche Bank Polska demerger.
The intention of the Management Board of Bank Zachodni WBK is to incorporate the demerged part of Deutsche Bank Polska while respecting the interests of employees and customers, and the principles of corporate governance. Until the transaction is closed, both banks will operate as separate entities. The process is planned to be complete in Q4 2018 provided that all regulatory and corporate approvals are obtained.
-The consolidation will benefit customers of both banks through an extended proposition, larger distribution network, and modern and effective sales models. The consolidation process is an opportunity to maximise the benefit of the international support of Santander Group. Bank Zachodni WBK’s stable position, experience and good cooperation between the parties ensure that the transaction will be a success, says Gerry Byrne, Bank Zachodni WBK Supervisory Board Chairman.
Bank Zachodni WBK is a strong and stable financial institution. In 2017, Bank Zachodni WBK Group posted a profit after tax of PLN 2.2bn. Total assets amount to PLN 153bn. Capital ratio stood at 16.69%, i.e. above the required level, ensuring security of operations and stable growth.
The Management Board of Bank Zachodni WBK is convinced that the transaction will benefit both the customers and shareholders. This is how we will strengthen our competence in serving affluent and private banking, for whom we want to develop our offer and also, enhance our business model in the segments of SMEs and freelance professionals. The integration of global standards of Santander Group with the vast experience of Deutsche Bank Polska will allow us to boost customer satisfaction of working with us by offering modern financial solutions, says Michał Gajewski, President of the Management Board of Bank Zachodni WBK..
Our intention is to continue the agreements with partners so that we can retain the open architecture for investment products.
After obtaining regulatory and corporate approvals, based on the experience and competence of both banks, Bank Zachodni WBK will develop and deliver the best solutions for the customers, provide an enhance product offering and further increase the service quality.
- Bank Zachodni WBK and Banco Santander S.A. have signed an agreement with Deutsche Bank AG on the transfer of a part of Deutsche Bank Polska S.A. business to BZ WBK structures.
- The integrated part of Deutsche Bank Polska’s business includes its retail banking function, including private banking, its business banking segment, including small and medium-sized enterprises, its branches, agents, relationships with intermediaries, vendors and brokerage house DB Securities S.A.
- Brokerage house DB Securities S.A. will be incorporated into Bank Zachodni WBK Group structure
- A portfolio of retail currencies loan products secured by mortgages, is not a subject to the transaction and will remain in the Deutsche Bank Polska
- Bank Zachodni WBK intention is the continuation of agreements with partner companies to keep the open architecture of investment products.
- The transaction, i.e. the incorporation of the part of DB Polska business into Bank Zachodni WBK structures, is planned in IV Q 2018 subject to all the required regulatory and corporate consents.
- The integration of Deutsche Bank Polska’s business into Bank Zachodni WBK structures will not require customers to take any additional actions.
- The numbers of transferred bank accounts or card terms & conditions, including PINs, remain unchanged.