STAFF AT Dún Laoghaire-based Postbank were assured yesterday that it would not be affected by the problems being experienced by its co-owner, Benelux financial services group Fortis.
In a note circulated to staff yesterday, management said Postbank was one of the "strongest and most stable banks" in Europe.
Staff were reassured that Postbank would not be affected by events at Fortis, which received an €11.2 billion bailout from the governments of Belgium, the Netherlands and Luxembourg.
Postbank was set up in April 2007 as a 50-50 joint venture between An Post and Fortis, which invested €56 million in cash in the business at launch. An Post folded its PostPoint and One Direct businesses into the venture.
Postbank chief executive Margaret Sweeney was not available for comment yesterday. In a statement to The Irish Times, the bank said: "Deposits are very healthy and growing strongly. Postbank is principally in the savings market and not in the credit market. It has a low level of overdrafts. The bank has no loan book, and does not have exposure to subprime loans, property or bad debts. The need for additional capital would only arise in relation to expansion into loan products in due course.
"Fortis has kept Postbank advised of developments as they have arisen over the past week. In the shareholders' agreement, Fortis has committed to remaining a shareholder for a minimum of 10 years. The current speculation regarding Fortis does not affect Postbank as it is an independently managed and funded financial institution that has no exposure to current market turmoil."
Postbank employs 250 staff at offices in Athlone and Dún Laoghaire. Its products are available through 980 post offices. It offers current accounts and savings and investment products, but does not sell mortgages. It plans to launch a credit card this year.
Earlier this year it emerged that Postbank lost €25 million in 2007.
An Post's annual report showed that Postbank contributed €8.4 million in turnover to the group's top line last year.
The postal group booked a €12.5 million loss in relation to its half-share in the bank.
