VeloBank SA, the Polish retail lender backed by US private equity giant Cerberus Capital Management, is eyeing further consolidation opportunities in Poland’s banking sector following its recent agreement to acquire Citigroup’s local retail banking operations, according to a report by Bloomberg.
The transaction, announced last month, will see VeloBank acquire the consumer banking arm of Bank Handlowy SA for up to PLN532m (approx. $142m). The deal includes PLN8.9bn in assets, more than 500,000 clients, and 1,650 employees, and will mark VeloBank’s entry into private banking once completed, expected by mid-2025.
“Any assets that will help our strategy to expand our scale may be potentially interesting for us and our investors,” VeloBank Chief Executive Officer Adam Marciniak said in an interview. While he declined to specify potential targets, he described the bank’s collaboration with Cerberus as “optimal.”
The move positions VeloBank to capitalise on a buoyant M&A environment in Poland, where improving sentiment in the financial sector is drawing increased interest from strategic and financial buyers. Notably, Erste Group’s recent €7bn bid for Banco Santander’s Polish unit highlights growing investor confidence in the local banking market.
Marciniak cited stabilising regulatory conditions, the winding down of Swiss-franc loan litigation, and the tapering of mortgage moratoriums as key factors underpinning the sector’s resilience. Polish bank profits have surged to record highs in 2024, supported by a prudent monetary policy stance from the central bank. The WIG-Bank index has climbed 25% year-to-date.
“It seems that Polish banks are now able to mitigate fresh challenges, and there isn’t any new systemic risk for them,” Marciniak said. He declined to comment on political proposals for a windfall tax on banking profits, which recently sparked investor concerns.
Cerberus entered the Polish market in 2023 through its acquisition of VeloBank – formed from the resolution of Getin Noble Bank SA – for PLN1.08bn, including recapitalisation commitments. Since then, the PE-backed lender has moved swiftly to expand, acquiring Noble Funds TFI and leasing business Noble Finance.
Marciniak said the bank aims to become Poland’s sixth-largest by assets. In parallel, it is also building out its SME lending proposition, with a strategic focus on sectors such as real estate development and renewable energy – leveraging the sectoral expertise of minority shareholders including the World Bank’s IFC and the European Bank for Reconstruction and Development (EBRD).
Despite its growth ambitions, VeloBank remains focused on select verticals and has no plans to compete for large corporate banking mandates, Marciniak said.
