THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, August 25, 1995 TAG: 9508250643
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY TOM SHEAN, STAFF WRITER
LENGTH: Short : 38 lines
The Defense Department has chosen NationsBank Corp. to manage 125 bank branches at military bases in Europe, Asia and Central America.
The five-year contract calls for NationsBank to handle 275,000 savings and checking accounts with $875 million in deposits, the Charlotte-based banking company said Thursday.
NationsBank declined to disclose the value of the cost-plus contract or how much the contract will contribute to its earnings.
The Defense Department said the cost of providing banking services to overseas military will likely total $502 million over five years and that NationsBank will be paid a fee in addition to these costs.
NationsBank, which managed 17 branches at military bases in Japan and Okinawa under an earlier contract, has become the sole supplier of overseas banking services for the Defense Department.
The company said the 17 branches that it already managed had 35,000 accounts with about $100 million of deposits.
Under the new contract, NationsBank will take over management of banking services at 108 overseas branches from National City Corp., a Cleveland-based banking company. The new contract takes effect in October.
NationsBank said it will be limited to providing basic banking services to branch customers and will not be able to offer investment services, such as mutual funds.
The branches that NationsBank will manage are at U.S. installations in Germany, the Netherlands, the United Kingdom, Iceland, Japan, Okinawa, Korea, Diego Garcia, and Panama. by CNB