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Postbank: Back to Traditional Strength in the Retail Banking Business with a Sharper Profile and Increased Efficiency
The further reduction in complexity associated with optimization of products, services and sales will be accompanied by more streamlined processes and further tangible improvements in efficiency. Despite the planned growth in volume, Postbank expects this to result in savings in administrative expenses of approx. €145 million or around five percent compared with the level of 2008. These savings are to be generated in full by 2012. To achieve this target, property, plant and equipment costs will be reduced, and the efficiency-oriented measures will also lead to lower personnel costs. The resultant moderate job cuts of around 500 to 700 per year by the end of 2012 will be carried out in line with social criteria and predominantly by utilizing natural fluctuation.
The program will make a sustained contribution to improving Postbank’s earnings situation, which has been impaired by the effects of the crisis on the financial markets. In addition, the bank is continuing the reduction in capital market-oriented holdings, which was started in mid-2008. The aim is to significantly reduce the volume of these assets from the current level of €79 billion by the end of 2012. At the same time, the bank’s Tier I capital ratio is to be increased from the current eight percent to around ten percent, partly through the introduction of improved risk models and retention of profits, and the leverage ratio is to be reduced to below 30.
Stefan Jütte, Chairman of the Management Board, explained: “The overall strategy of Postbank with the Retail, Corporate Banking, Transaction Banking and Financial Markets divisions remains the right one. However, our strategy must particularly take into account the changed context resulting from the financial markets crisis in our core business with retail banking clients. With our extensive program, we are making Postbank fit for the future. We are creating added value for our customers by fulfilling their requirements in terms of clarity, comprehensibility and attractiveness even more rigorously, thus conforming to the demand patterns changed by the financial requirements. In addition, we are creating added value for shareholders because we are making a major step towards our old earnings strength with this program. Consequently, we are also making jobs more secure in the long term at Postbank.”
Sharpening of the Profile as a Customer-oriented Product Bank
A core element of the planned changes in the retail banking business is a more streamlined and transparent product range. It is planned to reduce the number of products and variants by around a quarter. In future, with its product range, Postbank will concentrate even more on the basic requirements of its customers and structure the individual products in a less complex manner. In doing this, it is going back to its roots as a provider of clear, transparent and cost-effective banking products. Jütte: “Simple and profitable savings products and a free current account were the basis for our success with customers in the recent past. We will pick this up again.” As one of the first specific measures, Postbank intends to launch a revamped, more attractive current account in the near future. The number of savings products and variants is to be decreased significantly.
With this alignment of its product range and the scope that it provides, Postbank will expand its service and advice functions. This also includes regenerating the role allocation in the sales departments: the customers should be able to cover their basic financial services requirements in the branches – as well as the availability of postal services and new services (e.g. telecommunications and power). Mobile Sales will again concentrate on its traditional strengths – mortgage lending, home savings and provision. As supplementary direct banking channels, call centers and the Internet round off the outlets and ensure that existing and new Postbank customers have unique and uncomplicated access to their bank. More efficient process are intended to improve the service and therefore customer satisfaction. This will be supplemented by an increased number of ATMs, shorter processing times and optimized complaint management.
Stefan Jütte, head of Postbank: “Postbank wants to be an even more attractive partner for its customers in future – with simple products and attractive conditions, with diversity and density of access channels and support options without equal in Germany, and with outstanding service. We also expect this to deliver tangible growth impetus in customer business in the medium term. The changes will not happen overnight. However, customers will see us getting better every day.”
Implementing the Increase in Efficiency in Line with Social Criteria
More streamlined product ranges and processes naturally present opportunities to cut administrative expenses. On the personnel side, Postbank will primarily utilize natural fluctuation and the willingness of employees to move within the Group. In addition, severance and early retirement programs will be used to a limited extent. In this way, the plans are to be implemented in line with social criteria. The bank intends to set up initial reserves of €28 million for this in the fourth quarter of 2009. Overall, the workforce within the Postbank Group will be reduced from around 21,000 at the end of the current fiscal year to 19,000 by the end of 2012. The job cuts will be centered on administrative and back-office functions.
Chairman of the Board of Management, Stefan Jütte: “By implementing our program, we will become even more efficient whilst enhancing our sales and earnings power. “Postbank4Future” is therefore a key factor in achieving our target of a sustainable return on equity after taxes of around 13 percent and further improving our capital base.”
Gradual Increase in the Tier I Capital Ratio Targeted
The measures taken by Postbank during the financial markets crisis to strengthen the capital position, improve the risk profile and reduce volatility have already played a key role in increasing and stabilizing the Tier I capital ratio. Despite the ongoing impacts of the crisis, this ratio has increased by 2.5 percentage points to 8.0 percent since September 30, 2008. Postbank has therefore exceeded the target of 7.5 percent originally set for 2009. Taking into account the special features of its business model, this level was appropriate. It is characterized by the very high quality of the lending business and the investment securities as well as a very strong liquidity situation due to the sound customer deposits base. In the crisis, Postbank has shown that it can operate successfully compared with other business models whilst expanding its credit volume. It is one of the banks that coped without any government aid.
Even so, Postbank aims to gradually strengthen its capitalization rate in the medium term. This is being done with a view to the current discussions on the new regulatory framework in the banking sector, such as increased requirements in terms of equity, liquidity and leverage.
One important step towards improving the Tier I capital ratio is the planned introduction of more refined risk models from 2010. This will be accompanied by rising contributions to earnings in connection with the implementation of “Postbank4Future” and the resultant opportunities to retain profits in order to strengthen regulatory own funds. Assuming no unexpected deterioration of the macroeconomic environment, Postbank aims to increase its Tier I capital ratio from the current level of 8.0 to around 10 percent by 2012 in line with the applicable definition.
Consequently, the bank also plans to reduce its leverage ratio from the present figure of over 40 to below 30. An adjusted total assets figure and the capital on hand according to current regulations will be put in relation to each other. The reduction is to be chiefly carried out through the reduction in investment securities that was announced back in mid-2008 and has been rigorously pursued since then. Above and beyond the natural reduction in total assets through maturities, the bank will assess additional potential to further reduce investment securities and other assets where appropriate. Some of these assets are no longer essential to the bank’s business model due to the significant expansion of the customer lending business, and will not be renewed on maturity. This will result in a lower total assets figure.
Bo,fino ad oggi non mi era mai capitato di vedere un ' emittente in Utile togliere il Dvd x 3 anni,oltretutto un 'emittente che Non ha ricevuto aiuti di Stato.
- Rigorous alignment as a retail bank for the essentials – positive impact on income expected in the medium term
- More streamlined processes lead to job cuts in line with social criteria
- Savings in administrative expenses of around five percent by 2012 despite growth in volume
- Tier I capital ratio to rise to approx. 10 percent by 2012 through strengthening of the equity base and further reduction in capital market-specific holdings; leverage to be reduced
- Chairman of the Board of Management, Stefan Jütte: We are making Postbank fit for the future
The further reduction in complexity associated with optimization of products, services and sales will be accompanied by more streamlined processes and further tangible improvements in efficiency. Despite the planned growth in volume, Postbank expects this to result in savings in administrative expenses of approx. €145 million or around five percent compared with the level of 2008. These savings are to be generated in full by 2012. To achieve this target, property, plant and equipment costs will be reduced, and the efficiency-oriented measures will also lead to lower personnel costs. The resultant moderate job cuts of around 500 to 700 per year by the end of 2012 will be carried out in line with social criteria and predominantly by utilizing natural fluctuation.
The program will make a sustained contribution to improving Postbank’s earnings situation, which has been impaired by the effects of the crisis on the financial markets. In addition, the bank is continuing the reduction in capital market-oriented holdings, which was started in mid-2008. The aim is to significantly reduce the volume of these assets from the current level of €79 billion by the end of 2012. At the same time, the bank’s Tier I capital ratio is to be increased from the current eight percent to around ten percent, partly through the introduction of improved risk models and retention of profits, and the leverage ratio is to be reduced to below 30.
Stefan Jütte, Chairman of the Management Board, explained: “The overall strategy of Postbank with the Retail, Corporate Banking, Transaction Banking and Financial Markets divisions remains the right one. However, our strategy must particularly take into account the changed context resulting from the financial markets crisis in our core business with retail banking clients. With our extensive program, we are making Postbank fit for the future. We are creating added value for our customers by fulfilling their requirements in terms of clarity, comprehensibility and attractiveness even more rigorously, thus conforming to the demand patterns changed by the financial requirements. In addition, we are creating added value for shareholders because we are making a major step towards our old earnings strength with this program. Consequently, we are also making jobs more secure in the long term at Postbank.”
Sharpening of the Profile as a Customer-oriented Product Bank
A core element of the planned changes in the retail banking business is a more streamlined and transparent product range. It is planned to reduce the number of products and variants by around a quarter. In future, with its product range, Postbank will concentrate even more on the basic requirements of its customers and structure the individual products in a less complex manner. In doing this, it is going back to its roots as a provider of clear, transparent and cost-effective banking products. Jütte: “Simple and profitable savings products and a free current account were the basis for our success with customers in the recent past. We will pick this up again.” As one of the first specific measures, Postbank intends to launch a revamped, more attractive current account in the near future. The number of savings products and variants is to be decreased significantly.
With this alignment of its product range and the scope that it provides, Postbank will expand its service and advice functions. This also includes regenerating the role allocation in the sales departments: the customers should be able to cover their basic financial services requirements in the branches – as well as the availability of postal services and new services (e.g. telecommunications and power). Mobile Sales will again concentrate on its traditional strengths – mortgage lending, home savings and provision. As supplementary direct banking channels, call centers and the Internet round off the outlets and ensure that existing and new Postbank customers have unique and uncomplicated access to their bank. More efficient process are intended to improve the service and therefore customer satisfaction. This will be supplemented by an increased number of ATMs, shorter processing times and optimized complaint management.
Stefan Jütte, head of Postbank: “Postbank wants to be an even more attractive partner for its customers in future – with simple products and attractive conditions, with diversity and density of access channels and support options without equal in Germany, and with outstanding service. We also expect this to deliver tangible growth impetus in customer business in the medium term. The changes will not happen overnight. However, customers will see us getting better every day.”
Implementing the Increase in Efficiency in Line with Social Criteria
More streamlined product ranges and processes naturally present opportunities to cut administrative expenses. On the personnel side, Postbank will primarily utilize natural fluctuation and the willingness of employees to move within the Group. In addition, severance and early retirement programs will be used to a limited extent. In this way, the plans are to be implemented in line with social criteria. The bank intends to set up initial reserves of €28 million for this in the fourth quarter of 2009. Overall, the workforce within the Postbank Group will be reduced from around 21,000 at the end of the current fiscal year to 19,000 by the end of 2012. The job cuts will be centered on administrative and back-office functions.
Chairman of the Board of Management, Stefan Jütte: “By implementing our program, we will become even more efficient whilst enhancing our sales and earnings power. “Postbank4Future” is therefore a key factor in achieving our target of a sustainable return on equity after taxes of around 13 percent and further improving our capital base.”
Gradual Increase in the Tier I Capital Ratio Targeted
The measures taken by Postbank during the financial markets crisis to strengthen the capital position, improve the risk profile and reduce volatility have already played a key role in increasing and stabilizing the Tier I capital ratio. Despite the ongoing impacts of the crisis, this ratio has increased by 2.5 percentage points to 8.0 percent since September 30, 2008. Postbank has therefore exceeded the target of 7.5 percent originally set for 2009. Taking into account the special features of its business model, this level was appropriate. It is characterized by the very high quality of the lending business and the investment securities as well as a very strong liquidity situation due to the sound customer deposits base. In the crisis, Postbank has shown that it can operate successfully compared with other business models whilst expanding its credit volume. It is one of the banks that coped without any government aid.
Even so, Postbank aims to gradually strengthen its capitalization rate in the medium term. This is being done with a view to the current discussions on the new regulatory framework in the banking sector, such as increased requirements in terms of equity, liquidity and leverage.
One important step towards improving the Tier I capital ratio is the planned introduction of more refined risk models from 2010. This will be accompanied by rising contributions to earnings in connection with the implementation of “Postbank4Future” and the resultant opportunities to retain profits in order to strengthen regulatory own funds. Assuming no unexpected deterioration of the macroeconomic environment, Postbank aims to increase its Tier I capital ratio from the current level of 8.0 to around 10 percent by 2012 in line with the applicable definition.
Consequently, the bank also plans to reduce its leverage ratio from the present figure of over 40 to below 30. An adjusted total assets figure and the capital on hand according to current regulations will be put in relation to each other. The reduction is to be chiefly carried out through the reduction in investment securities that was announced back in mid-2008 and has been rigorously pursued since then. Above and beyond the natural reduction in total assets through maturities, the bank will assess additional potential to further reduce investment securities and other assets where appropriate. Some of these assets are no longer essential to the bank’s business model due to the significant expansion of the customer lending business, and will not be renewed on maturity. This will result in a lower total assets figure.
Bo,fino ad oggi non mi era mai capitato di vedere un ' emittente in Utile togliere il Dvd x 3 anni,oltretutto un 'emittente che Non ha ricevuto aiuti di Stato.
