Financial services – Swiss Post’s banking subsidiary writes high initial losses
“Bank99”, which was launched by the Austrian Post in the previous year, did not make any profits for the group in its first financial year. The bottom line was that the bank had a deficit of 30.7 million euros because of the high start-up costs. However, the bank developed well in the Corona year and will continue to focus on growth in 2021 despite an expected loss, the Post announced on Monday.
According to the broadcast, Bernhard Achberger, head of the back office of “bank99”, had expected that the launch of a new bank including a restructuring in the customer segment and in the sales focus would be a major investment. Accordingly, the current key figures do not reflect the actual course of business or the actual income and cost structure.
The bank currently has around 70,000 customers “and the influx is unbroken,” according to the Post. To reach the break-even point, you need around three to four times as many customers, said Post boss Georg Pölzl last week at the annual press conference of the Post. That should be achieved in about three years.
603 million euros balance sheet total
The bank’s total assets grew to EUR 603.0 million in the 2020 financial year. The business volume – the receivables from and liabilities to customers – rose to 521.14 million euros.
For the current financial year, the developments are difficult to forecast due to the ongoing corona pandemic. However, growth is to be driven further, above all new customers are to be won and the product portfolio is to be further expanded. This year, more advice-intensive products are to be introduced, after the focus in the starting year was on giro products. The bank will accordingly also make a loss in 2021, according to the company. (apa)