BPI closes branches and looks for buyer for Angolan business

Portuguese high street bank Banco Português de Investimento (BPI) is to close 25 further branches at the end of September as part a cost reduction drive

The Portuguese bank is run by Fernando Ulrich who said at the presentation of the half year results that costs were an issue. 

In late June, BPI had a total of 5,952 workers in Portugal at 623 points of contact with customers including traditional branches, investment centres and mortgage shops.

The 100 staff from those branches due to close will be integrated into other of the bank's operations so the cost savings will be branch running costs rather than a reduced headcount.

Customers of those branches due to close will receive letters to inform them of where their accounts will be handled from October onwards.

Angolan squillionairess Isabel dos Santos is a major shareholder in BPI which was the subject of a thwarted takeover bid launched by Spain’s CaixaBank. The bank is said still to be in merger talks with BCP.

The European Central Bank is keen that BPI sells off its 50.1% holding in Banco de Fomento Angola, a move that may be welcomed by Ulrich's board due to the unpredictability of any bank doing business in Angola.

José Cabrita from the BPI works council said that some employees may elect to retire early.

Branches closing in the Algarve are at Armação de Pêra and Patacão near Faro.

On the positive side, Portugal soon may have a new bank within Post Office (CTT) branches.

CTT Bank is still waiting for approval from the Bank of Portugal before it can start trading but it has been registered and the president of CTT Francisco de Lacerda has said today that he hopes the bank will open by the end of the year.

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