Austrian Post and BAWAG P.S.K launch banking strategy
Austrian Post and BAWAG P.S.K. have launched a collective strategy to create a sustainable network of postal and banking branches throughout Austria.
Read MoreTag: BAWAG P.S.K.
Austrian Post to Keep Branches to Support Bawag Bank's Business
Austria Post will refrain from closing more branches to support the sales of Bawag P.S.K. Bank, the country’s biggest by customer outlets.
Austrian Post, which last year bought a 5 percent stake in Bawag, serves the bank’s customers through its post offices and earned 92 million euros (USD 135 million) from the business in 2007. The Vienna-based postal service has reduced its network by 44 percent since 2001 to make itself more profitable.
“Bawag has 240 branches, we have 1,300,” Chief Executive Officer Anton Wais said during a press briefing in Alpbach, Austria, last night. “If we close branches, we hurt Bawag’s sales, and therefore our investment of about 80 million euros in the bank.”
A group led by New York-based private equity firm Cerberus Capital Management LP bought Vienna-based Bawag in May 2007 for 3.2 billion euros. The group includes the Austrian unit of Italian insurer Assicurazioni Generali SpA, Austrian Post and private investors.
“Cerberus is likely to sell its stake in Bawag in 2012,” Wais said. “As we are a minority shareholder we will probably have no choice but to sell as well. It makes no sense to close branches and diminish the profitability of our investment.”
Ties between Post and Bawag date from 2000, when Bawag bought P.S.K., the bank that belonged to the postal service.
Austrian Post Wants to Invest in Bulgaria
Austrian postal operator ‘Oesterreichische Post’ wants to get into Romanian, Bulgarian and Bosnian market in the coming 15 months, Reuters informed, cited by money.bg.
We want to set up a network in the fragmented South-Eastern European market, company’s Chief Financial Officer Rudolf Jettmar said on Tuesday.
We want to fill in our blank spots in Bosnia, Bulgaria and Romania, Jettmar added.
He also specified that the postal operator is aiming to take over private operators working in parcel delivery or distribution of advertising.
‘Oesterreichische Post’ has spent 210 million EUR on takeovers in the first 3 quarters of 2007. The Austrian Post is already present in Slovakia, Croatia, Hungary and Serbia.
Osterreichische Post AG was founded on March 3, 1999 as a subsidiary of Post and Telekom Austria. Its core business activities are provision of postal and parcel services as well as handling of financial business in cooperation with BAWAG P.S.K., a partner of many years.
The Austrian Post has a sales network that is unique in Austria. With comprehensive investments in modernization of post offices and the entire logistics, the business will continue to focus on customer needs and consistently move forward on its way from a public agency to a modern service company.
New products and services will not only help ensure national market leadership in future, but shall also pave the way to international activities.
Read MoreThe new bank in the post office: P.S.K. turns into PSK BANK
P.S.K. has now assumed a new role as a separate brand within the context of the new positioning of BAWAG P.S.K. The new addition to the company name, using the word “Bank”, underlines the core competence of PSK Bank in the banking business. As a result, PSK Bank has become “the bank in the post office“, offering a maximum level of comfort and ease of use to private customers. The new strategy and advertising approach of PSK Bank will be presented today in the newly designed post office in Vienna, Fleischmarkt 19.
In order to more effectively fulfill customer demands, the PSK BANK has set new priorities for its future operations, which will be supported by its business strategy, a new logo, newly designed branch offices and innovative products. The clear-cut strategic goal of the new BAWAG PSK in Austria is to concentrate on business with private customers.
Due to its extensive network of branch offices, Austrian Post represents one of the most important distribution channels for the banking products provided by BAWAG PSK. As a result of the new positioning of PSK BANK, the sale of banking products is being expanded to become a core competency of the post offices. “The distribution of financial products and services comprises 25% of total revenues achieved in our branches, thus contributing to the successful business development of our branch network. In the upcoming years, we are striving for a solid growth path of 7% – 7.5%”, says Herbert Götz, Member of the Management Board of Austrian Post with responsibility for its Branch Network Division.
The level of consulting competence in the post offices will be expanded by mg additional financial consultants available for customer services, as well as by expanding the professional training and continuing education of employees in the banking segment. By the end of 2007, the total number of financial consultants will rise from 150 to 650. In Vienna alone, an additional 50 financial advisors will provide advisory services on financial products. In rural areas, a total of 100 mobile consultants will each be responsible for supporting several smaller-sized post offices simultaneously in providing high quality banking products and services. Moreover, approximately 200 service centres will be established and successively modernised.
Read MoreSupervisory Board Unanimously Authorises Management Board to Enter Into Final Negotiations to Acquire Minority Stake in BAWAG P.S.K.
Supervisory Board Unanimously Authorises Management Board to Enter Into Final Negotiations to Acquire Minority Stake in BAWAG P.S.K.
In a meeting held on April 17, 2007, the Supervisory Board of Austrian Post unanimously authorised the Management Board to enter into final negotiations regarding the acquisition of a minority stake in BAWAG P.S.K.
In December 2006, Austrian Post was invited by the bidder group led by Cerberus to acquire a minority stake in BAWAG P.S.K., and considers this invitation as an opportunity to make a profitable and value enhancing investment, as well as to proactively promote a jointly developed offensive business strategy in the field of financial services.
At present, Austrian Post currently offers financial services products of BAWAG P.S.K. via its own branch network, for which Austrian Post derived an income amounting to EUR 97min the year 2006. Austrian Post is pursuing the goal of further expanding the financial services offered at its 1,334 company operated branches and 608 post partner offices in Austria.
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