La Banque Postale and the remittance market Marie Cheval -Marketing Director 10 June 2008 1
Summary Overview of La Banque Postale The remittance market in France Our remittance solutions 2
Overview of La Banque Postale Values of La Banque Postale A bank like any other, professional, efficient and profitable and a bank unlike any other, driven by postal values, accessible and serving as many people as possible Patrick Werner 3
Overview of La Banque Postale Its raison d être Performance La Banque Postale is committed to dynamic commercial, operational and financial progress Accessibility Approachable and accessible, listening to the expectations of All customers Difference We design our range of simple and accessible products around the needs and expectations of our customers Cohesion At the La Poste group, we work together for the success of La Banque Postale Responsibility We perform our duties with the appropriate technical skill, rigour and seriousness. We comply fully with our objectives in the public domain and ensure access to financial services for all 4
Key figures Overview of La Banque Postale Credit 23% of turnover Part of the consolidated turnover of La Poste group is achieved by the Financial Services Savings schemes 163.5 Million euro Of Turnover in saving schemes 3 rd largest bank-insurer with + 1,200,000 policies 4 Billion euro Of loans granted Life Insurance 9 Billion euro Gross income from Life Insurance Up 13.5% Sale of nearly 500,000 policies 5
Key figures Overview of La Banque Postale 45 Million accounts 28.9 Million customers Including savings accounts Daily Money 11 Million current accounts Strong commercial performance: In accounts opened: + 650,000 new accounts In client equipment: + 730,000 grouped offer subscriptions 4,851 ATM 3rd French network 6
Overview of La Banque Postale Human ressources 1,100 collaborators (60% of which are at the bank s Head Office and 40% throughout the territory) 6,000 financial advisors 600 advisors specialised in property and 600 advisors specialised in assets 1 network of specialist business advisors organised into 20 regional teams 23 financial centres 17,025 points of contact 7
The remittance market in France Immigration context in France 4,9 Millions immigrants living in France Standard of living 26% lower than average French households 96% immigrants own current accounts high rate compared to national French average of 98% But poorly equipped customers (in terms of means of payment) Like learning the language or getting a job, owning banking accounts is one of the key elements leading to integration 8
The remittance market in France Immigration context in France Very high savings in order to send back funds to their native country The annual flow generated by these transfers has a value of about 8 Billion Euros (represent 0,5% of France s GBP) 41% of the immigrants send back money to their native country (rises up to 60% for continental African people) On the long term, these transfers count for 15 to 25% of the revenue of this population (up to 40% for continental African people) 75% of these transfers are dedicated to wealth costs or day to day spending in the native country 9
The remittance market in France Recommendations for this market To facilitate money transfers by lowering the costs while respecting anti money laundering and anti terrorism regulations To encourage transparency in money transfer fees To develop automatic transfers through the use of credit cards or mobile phones To improve access to loans in the native countries Better to develop the transfers by creating specific savings products (as «Plan d Epargne Projet Co-développement») To propose differentiated solutions according to the cultures in the native countries 10
Our remittance solutions International money transfers Represent a full range of products intended to meet all customer requirements Range of products of international money transfers Cash transfers Western Union Money transfer Cover: 200 countries International Express Money Order Cover: 15 countries (through system) International Ordinary Money Order Cover: 150 countries same day 2 days 5 days and more Credit transfers International Credit Transfer Cover: the world 11
Product positioning Execution time Issuing Payment Price Western Union Money Transfer J In cash In cash High International Express Money Order J+2 In cash In cash Medium International Ordinary Money Order J+5 and more In cash (in account) In cash (in account) Low International Credit Transfer J+3/5 Debit in account Credit in account Medium 12
Our remittance solutions A range of products adapted to all the needs, in term of speed as well as of price Tarifs des Transferts de Fonds Internationaux 45,00 40,00 35,00 30,00 25,00 20,00 15,00 MOI MEI WU VIR Example: transfer of 300 (tariff at July 1, 2007) WU: 29,00 MEI: 16,70 MOI: 10,90 VIR: 11,70 10,00 5,00 0,00 50 95 100 160 185 200 275 300 370 460 690 700 750 800 915 13
Our remittance solutions The 13 principal corridors (73 % of the funds sent) Countries Number of transfers Amounts (M of Euros) Morocco 1 175 649 293,2 Algeria 846 581 136,3 Senegal 539 123 123,9 Tunisia 424 462 125,2 Ivory Coast 313 309 96,2 Cameroon 270 159 67,8 Madagascar 205 925 67,9 Turkey 175 248 54,3 Spain 174 348 68,6 Haiti 151 050 35,8 Dem Rep of Congo 121 415 32,4 Portugal 117 842 39,9 Congo 108 413 31,2 Total 13 countries 4 623 524 1 172,7 14
Our remittance solutions Our position on this market La Banque Postale is very present on the market of cash transfers (especially on small amounts: 300 ) strongly dominates towards migrants with a market share of about 35%. North Africa represents the principal corridor and Morocco is the first destination country is highly present on the market of pension cash payments market La Banque Postale is improving its market share on the market of credit transfers (average amount: 2000 ) more and more corporate customers 15
Our remittance solutions The principal receiving countries Main corridors EUROPE Germany Spain Italy Poland Romania Turkey AMERICA Portugal ASIA AFRICA Kampuchea China Vietnam Cameroon Congo Ivory Coast Madagascar Mali Senegal Algeria Morocco Tunisia Western Union Money Transfer International Express Money Order International Ordinary Money Order Eurogiro International Ordinary Money Order UPU 16
La Banque Postale Our aim To be the leader in International Money Transfers in France 17