Commerzbank, BNP Pariba dissolves EUR3.5 billion Commerz Finanz GmbH joint venture

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Germany’s Commerzbank said it has dissolved a joint venture called Commerz Finanz GmbH through a split-off of the business division holding the instalment loans.

The loans were brokered by Commerzbank from their Munich-based joint venture “Commerz Finanz GmbH”. The joint venture is being terminated with the split-off. An instalment loan portfolio of about 300,000 customer contracts with a volume of approximately EUR 3.5 billion is transferred from Commerz Finanz to Commerzbank in the framework of a partial transfer of business.

The transaction is being implemented in close cooperation with the responsible supervisory authorities, effective 18 August 2017. It has been previously approved by the Federal Cartel Office.

The bank said in a statement that “We have always enjoyed a very good, trusting cooperation with BNP. However, instalment loans are an important growth area for us – which we intend to digitalise, expand, and operate ourselves,” said Michael Mandel, member of the Board of Managing Directors of Commerzbank responsible for Private and Small Business Customers. “This is why we have introduced our own digital instalment loan, which customers can conclude within just a few minutes, in the first half of the year,” added Mandel.

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