Bank Millennium bought Euro Bank

- We want to build the new organisation on the basis of unique strengths of both banks - an innovative approach to business and a culture of entrepreneurship. Customer-centricity will remain the essence of success - customers’ needs and satisfaction come first. At this time we are focusing on further dynamic growth. Maintaining and even increasing the pace of organic growth, keeping the position of innovation leader as well as taking advantage of the opportunities, which the merger with Euro Bank brings, are our goals - Joao Bras Jorge, Chairman of the Management Board of Bank Millennium, said.

The final purchase price will still be subject to adjustment according to mechanism agreed in the share purchase agreement signed in relation to the acquisition of Euro Bank. Additionally today the Bank repaid the senior financing granted to Euro Bank by Société Générale in the amount of approx. 3 800 mln PLN. The Bank made the payment and purchased Euro Bank without raising additional equity capital.

The ownership change does not require any additional actions on part of customers of Euro Bank or customers of Bank Millennium. All agreements remain unchanged.

Events planned for 2019

June – the new Supervisory Board of Euro Bank shall appoint a new Management Board, which shall remain valid until the day of the legal merger; Bank Millennium shall apply to KNF for merger of the banks together with main assumptions of the merger plan

September – legal merger (the banks shall become one legal entity)

November - operational merger (migration of customers, start of day-to-day operation of the merged banks with a common product offering and customer service in one IT system)

- During preparation for the merger we have already created a detailed action plan for the operational merger day, containing more than 3 000 tasks. We have also completed work on business specifications in all areas of the bank’s activity. Work began on preparing a detailed list of tasks essential to carry out migration tests, integration of IT systems, processes and products. In order to understand the needs of customers of Euro Bank we conducted a number of interviews and surveys, during which we made tests to see what they think of Bank Millennium’s products and services. Their reactions were very positive – Joao Bras Jorge added.

Bank Millennium and Société Générale on 5 November 2018 signed an agreement on Euro Bank acquisition by Bank Millennium. On 3 January 2019 the Bank received the Polish Office of Competition and Consumer Protection UOKiK approval of the acquisition of Euro Bank and on 28 May 2019 – the Polish Financial Supervision Authority KNF issued no objections to the deal.

• The acquisition of Euro Bank is consistent with the 2018-2020 Strategy and it should result in reaching ROE at a level among top three banks in Poland.
• Thanks to the merger a bigger and more competitive bank will emerge, with a marked seventh place on the market in terms of value of assets, deposits and loans, with a particularly strong place in consumer finance.
• The transaction will bring 1.4 million new customers, which will allow the Bank to move to the 6th place in number of retail clients in Poland and will greatly increase geographic coverage by improving the Bank’s presence in smaller towns.
• The Bank’s position in consumer finance will improve and competencies will be maintained in the franchise model functioning in Euro Bank.
• The transaction represents profitable utilisation of the Bank’s capital and liquidity surplus.
• The acquisition will reduce the share of FX mortgages in total consolidated loans portfolio by over 3 percentage points.