By Patryk Wasilewski
WARSAW--Poland's PZU SA (PZU.WA), Central Europe's largest
insurance company, said Wednesday it is interested in taking over
local lenders, a move that would reduce the role of eurozone
investors in the Polish banking system.
The company, controlled by the Polish government, said it has up
to 5 billion zlotys ($1.37 billion) to spend on acquisitions, after
it posted a 24% annual rise in first-quarter earnings to $258
million, supported by higher premiums and the rising value of its
financial assets.
Several small and medium-sized lenders in Poland are up for
sale, including the local operations of Austria's Raiffeisen
International and listed Alior Bank SA (ALR.WA), controlled by a
private French investor.
Poland has for years sought to reduce the share of the domestic
banking sector held by foreign companies amid concerns that the
debt problems of some eurozone members could affect local lending
and banking operations. Central bank Gov. Marek Belka has said the
National Bank of Poland is ready to assist any transaction that
would bring commercial banks with troubled parents back into
Poland's fold.
So far, efforts by Polish investors--who hold about 60% of local
banking sector assets--to gain more control have had limited
success. State-controlled bank PKO Bank Polski SA (PKO.WA), which
posted a 19% drop in first-quarter net profit on Wednesday, managed
to buy the Polish unit of Nordea Bank AB in 2013.
PZU, one of the largest Polish companies by revenue, has pursued
a policy of acquisitions in many industries and countries around
Central Europe, including rival insurers and healthcare providers.
By moving into the banking sector, it seeks a higher return on
capital in a low-interest-rate environment, Chief Financial Officer
Przemyslaw Dabrowski said Wednesday, adding "no official talks" are
taking place.
He said the insurer isn't interested in creating a combined
insurance-banking operation, but doesn't rule out bidding for a
majority stake in a bank.
PZU's shares were 1.9% higher on Wednesday afternoon,
outperforming the blue-chip WIG20 index, which was little changed.
The company's market value was $11.4 billion while its assets at
the end of the first quarter were worth the equivalent of $19.5
billion.
The Polish government holds 35.2% of PZU, which is on the list
of companies the state considers strategic and wishes to keep
control of.
Write to Patryk Wasilewski at patryk.wasilewski@wsj.com
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