Jean Marie Dragon, director of marketing – means of payments at France’s La Banque Postale, spoke to the Mail & Express Review about challenges in the postal sector, the bank’s remittance business and how it is responding to pressure from new payments legislation.
Read MoreFrench Prime Minister François Fillon ruled out the possibility of La Poste’s privatisation in an interview with the French newspaper Les Echos.
“I am convinced that La Poste will need financial resources to develop further if it doesn’t want to see other European companies take its place. This will not happen through privatisation,” Fillon told the newspaper in an interview. To ensure the financing of La Poste, Fillon considers among other options the possibility of the French savings bank “la Caisse des depôts” becoming a strategic partner of La Poste.
The French postal unions including CGT, Sud-PTT, FO, CFDT and CFTC, which took nationwide strike action last week against government plans to change the legal status of the public postal operator, expressed their doubts about Fillon’s statement.
In late August, La Poste unveiled plans to restructure into a limited company in 2010 and to float a minority holding on the stock exchange in 2011 in order to raise EUR 2.5 – EUR 3.5 billion for growth, including acquisitions. French media have referred to a possible IPO involving a 10-20 pct stake. La Poste had already signed a four-year public service contract with the French government in July, covering commitments to mail deliveries six days a week and mail delivery quality targets, and the maintenance of 17,000 postal service points across France.
Read MoreThe banking arm of the French postal service, La Banque Postale, is to provide consumer credit by the end of next year in partnership with Societe Generale, French daily Les Echos reported on Tuesday.
The proposal was reported as the French government mulls a partial privatisation of the French postal service.
The daily said the joint-venture, which involves SocGen unit Franfinance, is to be approved by La Banque Postale’s board on Thursday. One option being considered would see La Poste contribute to the venture in paper and Societe Generale in cash.
Read MorePatrick Werner, Chairman of the Executive Board of La Banque Postale, today submitted the report and accounts of La Banque Postale for 2006 and traced the prospects 2007.
In 2006, Net Banking Income of La Banque Postale increased by 6.5%, ending
at 4,613 million euros; assets under management, which rose to 239,8 thousand million euros, increased by 3.8% in comparison with late 2005. The Gross Operating Profit amounted to 378.5 million euros and the net profit group share was 372.4 million euros.
La Banque Postale’s activity represents 23% of the La Poste group’s consolidated turnover which amounted to 20.1 thousand million euros.
In a highly competitive environment, marked by strong pressure on margins with respect to property loans and long-term interest rates that are still very low, La Banque Postale’s net banking income rose to 4,613 million euros in 2006, a 6.5% increase in comparison with the pro forma net banking income figures for 2005.
This has produced a Gross Operating Profit of 378.5 million euros. The current pre-tax profit, which takes account of the CNP Assurances contribution, amounting to 143 million euros, amounts to 513.7 million euros. The Net Profit Group’s share amounts to 372.4 million euros. La Banque Postale’s profits are better than those of the business plan giv en to the CECEI for the approval with a cost income ratio of 91.8% as against the more than 93% expected.
> Sales for 2006 were marked by successful life insurance and provident plan selling, par an increase in the number of active customers of La Banque Postale and the growth in actual customers’ number especially those opening new accounts.
With 11.2 million post office current accounts, La Banque Postale has proved its dynamism in retail banking. The year 2006 is thus marked by strong commercial performances in terms of account opening– more than 750,000 new accounts, plus 175,000 net – as well as in terms of number of products per customer- more than 900,000 packages subscribed this year.
Read MoreThe Western Union Company announced that it has renewed its relationship with La Banque Postale. The new agreement will enable Western Union to pursue a successful business strategy as it continues to create rich opportunities by strengthening the Western Union brand and its relationships with Agents.
With approximately 29 million customers, La Banque Postale operates one of France’s largest financial services networks. They have a bank license that allows them to offer a wide range of financial services. In October 2006, Western Union and La Banque Postale celebrated 10 years of working together. The agreement with La Banque Postale promises to increase Western Union’s reach throughout France. Presently, Western Union and its agents operate more than 3,000 locations across France, and customers carry out millions of Western Union Money Transfers annually with La Banque Postale.
Both organizations also manage a successful joint venture “La Societe Financiere de Paiements” (SFdP) which, along with its correspondents, manages a network of 46 branches located in France’s major cities. This joint venture was created in 2003 to complement the Western Union service offering within La Banque Postale and endeavor to meet the wide-ranging needs of customers — primarily immigrants who have left home to seek a better life in France and who continue to send money home to the families they have left behind. These remittances provide support for everyday necessities like education, food and health.
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