Wirecard shares tank another 40% as two Philippines banks allege it of forging documents

Wirecard AG (ETR: WDI) shares tanked another 40% on Friday as 2 Philippines banks, BDO and BPI, declined that the payments company was ever a client. The banks alleged the German firm of forging documents that claim its accounts at the two banks. The announcement added to Wirecard’s ongoing struggles ascribed to a massive £1.70 billion discrepancy in its accounts.

Provided that its in-house auditor, Ernst & Young, does not sign off on Wirecard’s accounts by Friday, the payments company will be liable to repay £1.8 billion worth of bank loans. Wirecard had already plunged by around 65% in the stock market on Thursday as EY declined to approve its accounts due to the missing money.

At the time of writing, shares of the company are exchanging hands at £19 per share that represents roughly 85% decline year to date in the stock market. The firm is now valued at £2.37 billion and has a price to earnings ratio of 5.25. Learn more about stocks and the stock market.

Philippines banks say Wirecard was never a client

The two Philippines banks highlighted in a joint statement on Friday that the matter has already been brought to the attention of the central bank of the Philippines.

“Wire card is not a client of the bank. The document claiming the existence of a Wirecard account with BDO is a falsified document and carries forged signatures of bank officers,” said BDO in a statement on Friday.

BPI also released a similar statement and remarked:

“Wirecard is not a client. Their external auditor presented to us a document that claimed that they are a client. We have determined that the document is spurious. We continue to investigate this matter.”

CEO Markus Braun contradicts the banks’ statements

Without naming any suspects, CEO Markus Braun of Wirecard commented on Friday:

“It cannot be ruled out that Wirecard AG has become the aggrieved party in a case of fraud of considerable proportions.”

Braun, however, maintained the stance that Wirecard’s trust accounts were under the management of the two Philippines banks since 2019.  

“It is currently unclear why the two banks have stated to the auditor that the confirmations are spurious. The trustee has announced to Wirecard AG that he will clarify the facts of the matter with the two banks managing the trust accounts at short notice.”

Founded in 1999, Wirecard has always been lauded as Germany’s success in fintech. The firm earned a place in the German blue-chip index, DAX, in 2018.