Joint venture with PO could net BoI up to £1bn

BANK of Ireland's financial services joint venture with the British Post Office could be worth between stg£800m and stg£1 billion in four to five years, according to Davy Stockbrokers.

Davy analyst Scott Rankin said the Bank of Ireland/post office (PO) joint venture is expected to break even after 30 months He said the bank expects payback after five years.

The joint venture product range will include personal loans, savings accounts, credit cards, personal insurance and mortgages targeted at the PO's massive customer base through its 16,900 branches. The initial contract is for ten years.