Italian banking group UniCredit has confirmed that it is in negotiations with Polish insurer PZU and state fund Polski Fundusz Rozwoju on the stake sale in its Polish subsidiary Bank Pekao.

“However there can be no certainty that these discussions will lead to any transaction nor any certainty as to the terms upon which any such transaction might potentially proceed,” the bank added.

The sale is part of the group’s strategy to improve capital position and boost profitability. The talks between PZU and UniCredit for the stake sale in Pekao were reported by Retail Banker International in August 2016.

In July 2016, the bank offloaded 10% of Bank Pekao as part of this strategy, selling 26.2 million ordinary shares in Bank Pekao to institutional investors for PLN3.3bn ($842.5m). UniCredit holds a 40% stake in the Polish subsidiary following the sale.

UniCredit has also sold minority stake in its online bank FinecoBank in July 2016 as part of this strategy.