2005

Postbank has a new branch structure

Press release of Dec. 20, 2005

Deutsche Postbank AG will take over 850 branches from Deutsche Post AG as planned on January 1, 2006. This was resolved by the supervisory bodies of both companies on Tuesday in Bonn. The purchase price for the branches is EUR 986 million, reflecting the future positive contribution to earnings of this unit. Postbank's profit before tax will rise by around EUR 150 million a year. The transaction will be settled purely in cash.

Along with the change in ownership, around 9,600 employees will also switch employer. In future, they will work directly for Postbank. In the other branches of Deutsche Post which Postbank uses – of which there are currently around 8,100 – everything remains as it is.

In addition, Postbank announced on October 25 that it wanted to acquire the BHW-Group, based in Hamelin. This will provide it with a unique sales network. 4,200 BHW financial advisors and 800 Service Centers will be added to the branches. Postbank also has its own mobile sales arm with just under 500 asset managers.

This step does not change anything for the customers of Deutsche Post in terms of offering. They can also use the Deutsche Post services in the new Postbank branches. The aim of the measure is to further strengthen the sales effectiveness of Postbank which has developed into Germany's leading retail bank over the past few years. Deutsche Post's long-term majority interest in Postbank is not affected by the transaction.

The branches in question are mainly today's Postbank Centers. They can be found in inner-city locations and were already the flagships to date in the branch network. 87 percent of Postbank's new business is currently conducted here. This indicator has increased by more than 20 percentage points over the last three years.

Postbank previously made variable, i.e. performance-related, payments for the services in the branches of Deutsche Post. In 2004, it paid EUR 496 million and in the year before that EUR 454 million. In future, only approx. EUR 150 million will be incurred. In taking over the branches, Postbank is remunerated by Deutsche Post for the postal services it performs, with the result that net profit before taxes of EUR 150 million can be expected below the line at Postbank.

Contact

Hartmut Schlegel
Press officer
hartmut.schlegel@postbank.de