Commerzbank has reached an agreement with BNP Paribas Personal Finance on the split-off of the business division holding the instalment loans brokered by Commerzbank from their Munich-based joint venture Commerz Finanz.
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 € 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.
“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.