BCP €428 million Polish bank buyout could raise bank’s profits by 5% says BPI

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BCP’s purchase of Polish bank Sociéte Générale could increase the bank’s overall profits by 5%.

According to investment bank BPI’s analysis, it believes that in the medium-term the acquisition should contribute towards an increase in BPC’s profits per share of around 5%.

“This deal is no surprise since BCP has warned various times that it intended to purchase the bank” states BPI.

“Our estimation is that through this purchase BCP profits per share will climb to around 4% to 5% in the medium term” states the BPI analysis of the €428 million purchase announced by BCP while, “The negative 40 point CET1 capital base ratio impact is manageable”.

Overall, BPI considers that the bank headed by Miguel Maya is, through this purchase, “Increasing its capacity to generate profits and consolidating its position in the Polish market with a manageable impact in terms of capital ratio while in terms of investment return, this deal looks interesting.”

BCP announced the purchase of the bank Société Générale in Poland via Bank Millennium. The purchase was made in cash and totally financed by Bank Millennium own capital.

The transaction should be completed by the second quarter of 2019 and should bring increased profits to the bank from 2020.

BPI, which is owned by the Spanish bank holding La Caixa, offered a merger proposal with Millennium BCP, then the third largest private bank in Portugal in 2007. However, the BCP board rejected the proposal.