"The Board of Directors of Banco de Portugal agreed on November 27th to authorise the establishment of a Post Office Bank," reads an addendum to the privatisation prospectus released today to the stock exchange authorities.
The new bank is aimed at using the wide geographic coverage of CTT outlets and the existing skilled workforce to create the new Post Office Bank. The project will affect the economic and financial forecasts for CTT which itself is being sold this year.
CTT asked for a banking license in August as part of the privatisation process and now hopes to target existing customers with a range of financial services, particularly pensioners, savers and business customers, as well as an "additional universe of natural customers and the younger market segment."
In addition, the bank must be "oriented towards a low cost logic" and will have easy to understand products and procedures for savings products, mortgages and consumer loans, and maybe later some loans to small businesses.
The privatisation of CTT will be by sale of shares to the public, fixed at between €4.10 and €5.52. The final price will be known on December 3.
