A deal between HSBC and Eurobank could bolster Polbank Roberto Galea/WBJ

Since HSBC reportedly pulled out of the running to buy a stake in BZ WBK, speculation has risen that HSBC could increase its presence in the Polish market by taking over a stake in Polbank.

Eurobank EFG, the Greek owner of Polbank, said in July that it was considering finding a partner to speed up the development of its Polish arm.

Although Eurobank says that it is not currently in talks with any potential partners, Bloomberg cited Greek newspaper Naftemporiki as reporting that HSBC and Eurobank were expected to announce an agreement to cooperate in the Polish market. HSBC has declined to comment.

Currently Polbank operates under Greek law as a branch of Eurobank. It focuses on retail clients and small entrepreneurs. Eurobank stresses that it wants to transform Polbank into a separate bank operating under Polish law, probably by the end of H1 next year. Polbank registered a net loss of zł.170 million last year, but plans to gain a profit this year.