...Established Franchise: La Banque Postale's (LBP) ratings reflect its established franchise in deposit collection and housing loans in France. It also reflects fairly conservative risk appetite, good asset quality, modest operating efficiency, sound capitalisation and strong liquidity. Rise in Business Diversification: LBP's franchise benefits from its historically strong position in regulated savings in France and nationwide presence through post offices. This enabled the bank to build a well-positioned housing loans franchise. Further development of the loan book into consumer finance, local authorities financing and corporate lending and the expansion of LBP's insurance and asset management businesses are increasing diversification. Challenges of developing a corporate lending franchise nevertheless constrain LBP's strategy. Progressive Increase in Risk Profile: Fitch Ratings expects a further increase in LBP's risk profile in the medium term as it continues to diversify into corporate...
