State-owned insurer PZU denied media reports that it will merge its banking units Pekao and Alior. “It’s pure media speculation,” PZU CEO Paweł Surówka, told the Polish Press Agency (PAP). PZU will instead seek revenue and cost synergies among the two lenders
According to Puls Biznesu daily, state-owned insurer PZU is mulling merging Pekao and Alior into one entity, keeping both brands separate. In this scenario, Pekao would be focused on corporate and investment clients, while Alior will cover the retail branch. Such move might be dictated by the Financial Supervision Authority (KNF) which is not keen when one entity owns more than one bank. It does, however, allow the scenario when different banks with the same owners cater to different customers.
PZU sees opportunities in merging two banks. Alior could use Pekao’s capital to develop its services, while Pekao would upgrade its outdated IT infrastructure, using Alior’s modern technology, according to the daily.