Fortis and An Post have signed a final agreement for the creation of a new retail bank that aims to offer a broad range of financial products and services to the Irish market, including daily banking, savings products, insurance, mortgages and credit cards.
The new bank will be a 50/50 partnership between An Post and Fortis, with initial capital of €112 million. Fortis will pay €56 million in cash and An Post will contribute the balance, representing the value of One Direct and of PostPoint, a distribution network comprising 2,800 agents. An Post will also provide access to its network of 1,400 post office branches.
The joint venture is hoped to deliver straightforward, value-for-money retail banking products and services targeting a number of segments. The new bank’s products and services will be gradually made available in the course of 2007 and will include telephone and internet banking. The joint venture will commence operations with a workforce of 250, but aims to employ 500 people within five years.
“We are delighted to be welcoming such an internationally successful financial services partner as Fortis to this joint venture and the establishment of this new banking service,” says Donal Connell, the Chief Executive of An Post. “This deal is of significant importance to An Post, its customers, its staff and contractors and gives the company a new relevance in the economic, business and social life of the nation. We look forward to delivering a range of outstanding products and services to our thousands of existing customers and the thousands more who can access our post offices throughout the country.”
“The values and objectives shared by An Post and Fortis could only lead to successful negotiations and the signing of a promising joint venture agreement,” adds Jos Clijsters, the CEO of Fortis Retail Banking. “The complementary contributions of the two partners plus their strong reputations will be key to the success of the new banking operation. The Irish market, which offers immense potential yet shares many similarities with Belgium, should benefit from the entrance of a new, forward-looking bank offering transparent and straightforward products at competitive prices. We are looking forward to a lasting and fruitful partnership with An Post.”