Response to Postbank statement
An Post fully committed to expanding its financial services business
Postbank joint venture shareholders, An Post and BNP Paribas have taken the decision to continue the joint venture until the end of 2010 but not beyond that date.
Post office customers responded well to Postbank since its launch in May 2007, and Postbank achieved a significant business foothold within the An Post network. However the current harsh reality of the Irish banking environment and the fact that Postbank continues to be loss-making with no prospect of breaking even has led to this decision by the joint venture partners.
The expansion of its Financial Services business is central to An Post’s corporate strategy and plans for the future and there is significant potential to be realised across a broad range of retail product options.
An Post is now in active discussions with other parties regarding the development and provision of such services.
An Post Chief Executive Donal Connell said “It is most regrettable that this business will not be developed through the Postbank model but we are confident that customers will have the opportunity to avail of a similar range of financial products and services through Post Offices in the near future.
“The current economic and retail banking environment is extremely difficult but by taking this step, I believe we are better positioned to serve customers and develop the potential of our unique 1,200 strong network” he added.
Postbank’s One Direct insurance business and PostPoint payment channel continue to trade profitably and successfully.
All Postbank customer deposits are covered by the Deposit Protection Scheme and the Government Guarantee Scheme.