Erste lifts 2026 targets, to start tender for Polish unit shares Monday

By Emanuele Berro

Oct 30 (Reuters) - Austria's Erste Group ERST.VI raised its 2026 loan volume and interest income targets on Friday, and said it would launch the previously announced tender offer to increase its stake in Erste Bank Polska EBP.WA to more than 50% on Monday.

Erste Group currently holds a 49% stake in its Polish subsidiary — one of the country's most profitable lenders — which it bought from Santander SAN.MC and rebranded earlier in 2026 as part of a push to expand in Central and Eastern Europe.

Poland has become a key part of that strategy, as the acquisition gave Erste access to one of the region's largest banking markets and contributed significantly to the group's loan and deposit base.

CEO Peter Bosek said it would be great if the offer lifted the stake to slightly above 50%, as majority ownership would give Erste greater flexibility to increase its holding over time. The group had said in September it planned to take a further stake of up to 26% through the tender.

Depending on the outcome of the offer, Erste could use the added capital flexibility to either increase its stake further or make larger shareholder distributions, Bosek added.

CUSTOMER GROWTH BOOSTS 2026 VIEW

Erste Group is targeting 2026 loan volumes above €290 billion ($324 billion) and net interest income growth of more than 6% excluding Poland, up from about 5% previously, after it saw strong customer growth in the first nine months of the year.

Its third-quarter net profit rose to €1.12 billion, beating analysts' average forecast of €1.08 billion, as higher lending and deposit volumes boosted net interest and fee income.

In a separate statement, Erste Bank Polska said its quarterly profit fell 21% but met market expectations, supported by its growing mortgage portfolio and resilient net interest income.

($1 = 0.8957 euros)