In 2005, Postbank is celebrating its tenth birthday. On January 1, 1995, the Federal Minister of Post of the day, Wolfgang Bötsch, launched Postbank as an independent successor company to Deutsche Bundespost Postbank. More importantly: at the same time the Bonn-based bank acquired a full banking license. Only as a result of this was it able to tap new operating areas in the fields of loans and securities. To date, the highlight and most important milestone in Postbank's short history was its IPO on June 23, 2004.

Privatization marked the start of a new chapter in the Company's history. Thanks to its determined focus on retail banking, Postbank has become a key player on the German banking market. The balance after ten years – with around twelve million customers, total assets of €133 billion and around 10,000 employees, Postbank is one of Germany's largest retail banks. In 2003, it achieved its best result so far, with a profit before tax of €497 million. At the same time, it reduced its staff numbers in a socially compatible manner from 18,500 employees in 1995 to currently 10,200 (including the acquisition of DSL Bank and Deutsche Bank/Dresdner Bank Payments).

1995 to 1998: Step by step

From a checking account to an investment fund

As Postbank was privatized and received its full banking license, it tapped new operating areas. Whereas it was previously only possible for Postbank to conduct payment and deposit banking business, it gradually went on to prove its expertise in other areas.

In 1995, Deutsche Postbank International S.A. in Luxemburg, which was formed in 1993, was now also permitted to offer equity funds. In the same year, Postbank granted loans to its customers for the first time. Since October 1996, people wanting to build their own homes throughout Germany have been able to finance their property with Postbank. In 1997, Postbank agreed a home savings cooperation with the building and loan association Wüstenrot. In December of the sane year, Postbank entered the insurance market, with the Hanover-based HDI on board as its partner.

Postbank has also had a long-term influence on developments in checking account banking. In April 1998, Postbank launched the free checking account "Giro plus". Thus, it systematically continued its strategy of offering its customers a full range of banking products, from payments through loans to financial investments, while at the same time restricting itself to financial products that are fundamental, sound and comprehensible for its customers – all of which are "simple and economical".

Germany's number one savings bank

Even in a difficult market environment, Postbank succeeded in maintaining its position as Germany's No. 1 savings bank. Since 1995, it has increased the volume of its savings deposits by over €10 billion. In 1998, the Postbank Sparbuch 3000 plus – a runaway success with customers since its launch in 1992 – was joined by the Postbank SparCard. With this savings book in the form of a check card, Postbank became the first and only bank in Germany and the world to offer its customers four free withdrawals per year.

1999 to 2004: A strong bank in a strong group – the journey to the stock exchange

All channels – one bank: the multi-channel bank

Over this period, Postbank positioned itself as a multi-channel bank, accessible to its customers on all relevant channels. Already established as a mail and branch bank, it concentrated its efforts on telephone and online banking. In 1983, long before the invention of the internet, Postbank was one of the first banks in Germany to introduce home banking via btx. In January 1998, it offered its customers online banking for the first time on the internet as well.

Development of retail banking strategy

From 1999, Postbank completed its conversion under the corporate banner of Deutsche Post. On January 1, it became the owner of Postbank. Both companies resolved a joint sales strategy. Branch business was expanded further. As a result, Postbank had far more branches than any other single German bank. Postbank currently offers its services in over 9,000 branches of Deutsche Post. Its crowning glory: around 780 Postbank Centers, where customers can reach over 2,000 specially trained financial services advisors. And: since the founding of Postbank Vermögensberatung AG at the end of 2002, Postbank is targeting customers who, in addition to the internet, branch and telephone sales channels, seek more individual support in their financial transactions.

Strong online banking

Over the last five years, Postbank has increased its efforts in online banking to become the number one on the German market. The number of accounts managed online increased from 400,000 in 1995 to more than two million in October 2004. In addition to better terms for online offerings for loans to private customers, brokerage and savings, Postbank developed special online products for financial investments. In 2003, a new financial portal was launched with "Postbank direkt". In addition to numerous improvements for online customers, it was the first portal in Germany to offer real-time transfers and the option of having transaction numbers sent to cell phones.

In September 2000, Postbank introduced brokerage with Postbank Easytrade, and now offered shares and investment funds via the internet, telephone and branches of Deutsche Post. Thanks to its rapid development, by the end of 2000, Easytrade was already one of the largest brokers in Germany. Postbank now manages over 500,000 securities deposit accounts.

Successful DSL Bank brand

As a result of the merger with DSL Bank in January 2000, Postbank strengthened its loans business and tapped a network of agents in what is known as third-party sales. The expertise contributed by DSL Bank, particularly as a specialist for private and commercial mortgage lending, as well as in the treasury area, allowed Postbank to take a decisive step forwards. DSL Bank was developed as a partner bank for financial service providers in mortgage lending, and recently also for loans to private customers. In recent years, it achieved above-average growth rates, even though the market for mortgage loans as a whole is stagnating.

Corporate banking

Postbank's positioning as a retail bank is supplemented by its activities for corporate customers. Here, Postbank made a name for itself in its core competence of payments and its associated operating areas; it also achieved success with logistics financing, leveraging synergies with Deutsche Post World Net. Thus, in 2003, Postbank was the first bank in Europe to put an internet transaction platform for foreign operations on the market. The tool offered in cooperation with TradeCard Inc., New York, automates dataflow and payment processes for international transactions by corporations. PB Firmenkunden AG was formed in January 2004.

New division: Transaction Banking

In 2003, Postbank introduced accounting software for checking accounts developed with SAP. Thus it has the most state-of-the-art transaction platform of any bank in Germany. The successful launch of the new SAP banking software was a key component for the future development of the bank as it allowed it to establish a new operating area – transaction banking. Since 2004, Postbank has been processing payments for both Deutsche Bank and Dresdner Bank.

Streamlined organization, new structures

With systematic restructuring and the reorientation of all its divisions, Postbank has gained market share in many sectors since 1999. At the same time, Postbank has streamlined its organization. At the start of 1995, there were still 14 branch offices throughout Germany, by 2002 this number had been reduced to 10 locations.

Of these, in 2004, only three locations still handle the traditional back office activities of a bank. This centralization was one of the requirements needed to be able to offer such services at other third-party locations, such as other banks. Other Postbank locations now specialize in call center activities, foreign payments and securities.

Going public

On June 23, Postbank shares were listed on the stock exchange at Frankfurt am Main for the first time. Postbank's IPO was the largest flotation in Germany in the past four years. Together with a bond issue of almost €1 billion, the placement of 55 million shares at €28.50 per share generated a total volume of €2.53 billion. Less than three months after its initial listing, Postbank shares had already been included in the MDax on September 20. Today, Postbank shares are up more than ten percent.

2004 was the most successful year in Postbank's history. In 2001 and 2002 in particular, which were difficult years for banks, Postbank's earnings situation improved, bucking the sector trend. Thus, from 1999 to 2003, profit before tax rose from €234 million to €497 million. Since 1999, Postbank has gained almost two million new customers. It welcomed 770,000 new customers in 2003 alone.