Until shortly before Wirecard's billion-euro bankruptcy, even one of the financial services provider's largest lenders still had doubts about the validity of the allegations against the company.

Marcus Chromik, Commerzbank's Chief Risk Officer responsible for the loans at the time, said on Thursday as a witness in the fraud trial against former Wirecard CEO Markus Braun that the bank had ultimately wanted to terminate the business relationship due to inconsistencies at Wirecard. "At the time, we still had the risk that we were completely wrong," the current Unicredit manager told the Munich Regional Court. "We didn't know whether we were completely wrong and would make fools of ourselves in the market."

The Wirecard Group, which had been booming for years, was once considered a star in the online payment business and had even ousted Commerzbank from the DAX in 2018. However, Wirecard collapsed in 2020 when it was discovered that 1.9 billion euros were missing from escrow accounts in Asia. It is one of the biggest financial scandals in German post-war history. In addition to numerous investors, Commerzbank is also among the victims. Together with other banks, it had lent Wirecard 1.75 billion euros. Its share amounted to 200 million euros. According to the public prosecutor's office, Wirecard had fabricated sales and profits on a large scale. They speak of fraud, balance sheet falsification, market manipulation and breach of trust. Former CEO Braun, who is in the dock with two other ex-managers, rejects the accusations.

Chromik said on Thursday that Wirecard had appeared to be an attractive customer. The business relationship had developed well over the years. "On the one hand, this means that the company is growing. And therefore what the bank can earn from it grows," said the manager. "And secondly, as far as I know, there have been no negative experiences." Commerzbank had trusted that the auditors had audited the balance sheets. It was only when suspicions of money laundering at Wirecard became more concrete following media reports of increasing inconsistencies that Commerzbank decided. "We have to end the business relationship," said Chromik. The intention was to gradually reduce the loans. "Ultimately, however, there was no significant reduction until insolvency."

(Report by Jörn Poltz, edited by Myria Mildenberger; if you have any questions, please contact our editorial team at frankfurt.newsroom@thomsonreuters.com)