BPH and PBK merging three years earlier than planned

The merger of Bank Przemyslowo-Handlowy (BPH) and Powszechny Bank Kredytowy (PBK) will take place next year, two or three years earlier than originally planned. The two banks' strategic investors, Bank Austria Creditanstalt (BA/CA) and Hypo-Vereinsbank (HVB), are also currently in the process of merging. "In this region of Europe, Poland is a strategic market for both Germans and Austrians, where they are able to earn large profits. Economies of scale will be felt very easily so [Polish banks] have decided not to delay the consolidation," claimed a well-placed source. "Success of the new institution will mostly depend on the shares' exchange parity," said investment advisor from Credit Suisse Asset Management Tomasz Stadnik. "The merger of BPH and PBK will create an institution competitive with everyone," said investment advisor of WBK AIB Asset Management Roman Sosnowski. "I think BPH will dominate this merger," said Stadnik. On the basis of the balance sheet, the new institution will become the third largest financial institution on the Polish market and the third largest retail bank. (Puls Biznesu, pp.1, 9)