Post Office reaches credit deal with UBS
The Post Office has announced a deal with UBS that will allow it to provide credit services to its clients.
In a statement, the Post Office said the agreement would let it stick to its core activity of payment transactions via post cheques and payment cards, but at the same time offer credit to private and business clients. The state-owned company has more than two million retail clients.
From May 2003, UBS will become responsible for risk and capital management as well as for refinancing.
The Post Office said it expected the agreement with UBS to boost profits by up to SFr30 million ($17.64 million) a year.
Analysts say the extra income may help maintain threatened rural branches.
The Post Office had originally planned to set up its own Postbank but abandoned the idea after it ran into stiff opposition in parliament.
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