Cooperation with Poczta Polska S.A.

Bank Pocztowy carries out strategic partnership with Poczta Polska based on a plan determining its key objectives and how to achieve them.

The strategic partnership assumes that the Bank plays a crucial role in implementing the strategy of developing financial services in the Poczta Polska Group and of the network of own outlets based on the infrastructure of Poczta Polska na dedicated to distribution of products and services. According to the adopted plan, a new model of managing financial services has been introduced with a new and efficient model of selling them, based on the network of outlets and employees of Poczta Polska.

Bank Pocztowy has a unique opportunity to use the network of Poczta Polska including approx. 7.3 thousand outlets (post offices, agencies and branches) countrywide. Since the Bank’s own network is mostly located within the infrastructure of Poczta Polska, its extension does not require high capital expenditure. Capital expenditure for greenfield outlets (without access to Poczta Polska infrastructure and network) would be much higher than when developing a network based on existing post offices.

Thanks to access to Poczta Polska outlets countrywide, also in small towns and villages, where no competition of other banks exists, the Bank has successfully acquired clients from its target segments. With regard to development of financial services, strategic plans assume further improvement of sales efficiency of Postal Financial Zones with business ratios close to the levels achieved in Microbranches.

The sales of Bank’s products and services are based on an agency agreement. According to the agreement, Poczta Polska outlets sell current accounts, corporate and saving accounts, term deposits, cash loans for consumers, credit facilities for microenterprises, credit cards and the related services. Access to the network of sales outlets and postal infrastructure allows the Bank providing institutional clients with the following services: ordering payments to counterparties (among others, through Money Gram), over-the-counter and sealed cash deposits and cash processing services.

Further, Poczta Polska is the Bank's client provided with comprehensive financial services. Including cash payments accepted in Poczta Polska network addressed to a variety of counterparties, to include Social Insurance Institution and tax offices (transfer funds) and cash receipts from Poczta Polska network to third parties indicated by Bank’s clients into interbank settlements is a significant source of commission income generated by the Bank.

Cooperation of the Bank and Poczta Polska is regulated by a series of arrangement addressing its key aspects. They have been concluded on arm’s length terms and concluded for an indefinite period.

Annual Report 2014 - Bank Pocztowy