The French national post office, La Poste, has officially launched its new 100 per cent bankingsubsidiary, La Banque Postale. The postal group has also disclosed its financial targets for 2006,
including 5-6 per cent growth for its express and parcels businesses.La Poste transferred its “Financial Services” business into the new, fully-fledged bank witheffect from January 1, 2006. The launch was officially celebrated on January 4 by French economicsand finances minister Thierry Breton and La Poste president Jean-Paul Bailly at a ceremony at theParis Bienvenue post office. French post offices have been decked out this week in the colours ofthe new Banque Postale while three million leaflets have been handed out to customers.
The Banque Postale will primarily operate as a “shop-in-shop” service within French postoffices, staffed by some 7,800 financial advisers. It also has 23 financial centres in keylocations. The Financial Services business had some 28 million customers, including 600,000corporate customers, in 2004 with 45 million current and savings accounts. The key change is thatwhile the former Financial Services division was restricted to offering simple products such assavings accounts, the Banque Postale is entitled to make property loans, sell insurance policiesand offer other premium financial products. This puts it into competition with the leading Frenchretail banks.
La Poste has also disclosed its financial targets for 2006 after good results in 2005. TheFrench postal group expects an operating profit margin of 3.5 per cent for 2005 compared to thebudgeted 3 per cent and the 2.8 per cent achieved in 2004. Net profit is likely to top 400 millioneuros compared to the 374 million euros earned in 2004, it announced after a December boardmeeting.
The budget figures for 2006 include a 2.7 per cent rise in group turnover excludingacquisitions, a slight rise in mail revenues and growth of more than five per cent for parcelsturnover thanks to new products and e-commerce sales. The express business, driven by higherinternational sales through the GeoPost network, is expected to generate organic growth of over sixper cent. Group operating profit is budgeted at about 3.5 per cent in 2006, like in 2005.
La Poste will invest some 1.2 billion euros in 2006, primarily in modernisation of mail sorting,some 1,200 post office branches, a new parcels hub in France, and upgraded express handling centresand depots.
