French banking group BNP Paribas is planning to divest its consumer finance businesses in some central and eastern European markets, Bloomberg reported citing sources.
The potential divestitures, which are aimed at streamlining portfolio to raise funds, may include BNP Paribas Personal Finance operations in Bulgaria, Romania, Hungary, and the Czech Republic.
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The sale may help the lender to raise more than $500m, they further told the publication.
The plans are at an early stage and a final decision is yet to be made, the sources said adding that the French lender could also drop the plans.
According to the company’s website, BNP Paribas Personal Finance has operations in 30 nations and caters to over 20 million clients.
It employs over 20,000 and offers a range of credit, savings, and insurance products.
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By GlobalDataIn December 2021, BNP Paribas signed a definitive agreement with Canada’s BMO Financial Group to sell its retail and commercial banking operations in the US.
The deal, valued at nearly $16.3bn, will see BMO to acquire BNP Paribas’ Bank of the West and its subsidiaries that reported nearly $105bn in assets as of 30 September 2021.
At the time, the French lender said it plans to use the proceeds to fund its share buyback programme and invest the remaining in technology and acquisitions with a focus on European operations.
Earlier this week, the lender announced plans to return 60% of net income to investors through 2025.
