Deutsche Postbank AG intends to continue to build on its leading role in German retail banking. To this end it has launched a “Next Step” program, which aims to reposition the bank’s overall strategy and to carry out detailed action programs for the individual divisions by the end of the year. Dr. Wolfgang Klein, CEO of Postbank, told journalists in London: “Postbank has set the pace for the renaissance of retail banking in Germany, and we wish to further expand this lead.”

Klein pointed to the historic strengths of Postbank, which has earned itself a good reputation and a clear profile among retail customers in Germany by means of simple products, a good price-performance ratio and a high level of quality. Thanks to its broad access to its approximately fifteen million customers, a multi-channel structure that is also technically advanced, innovative products and its back office cost leadership, Postbank is optimally prepared for further growth.

Amongst other things, Klein cited the increase in productivity and profitability of all sales channels, customer satisfaction as the benchmark for customer contact, the systematic acquisition of new customers and full utilization of existing customers, simple and easy-to-understand products, further industrialization of settlement procedures and ongoing strict cost discipline as the guidelines for the strategic repositioning. Postbank wishes to make further headway in retail banking in particular as a provider of pension products and as a partner for the self-employed, business persons and freelancers.

Klein confirmed Postbank’s targets for the next few years: In 2008 the bank wishes to achieve a pre-tax return on equity of over 20% and a cost-income ratio in the traditional banking business of under 63%. By 2009 Postbank aims to achieve a core capital ratio of 7.5%.