Romania’s leading financial group Banca Transilvania reportedly takes over BRD Pensii

By bne IntelliNews February 15, 2024

Banca Transilvania, the leading financial group in Romania by assets, has reportedly reached the stage of agreeing technical and legal details for the takeover of BRD Pensii division from BRD-SocGen, according to sources familiar with the deal.

The takeover would allow Banca Transilvania to enter the Pillar II pensions market, at a time when the individual contribution increased to 4.75% of the gross wage from 3.75% previously. It is only active on the voluntary pension market (Pillar III) – a market ten times smaller and not so predictable as that of the mandatory pensions – as of this moment.

Also in the race for BRD’s pension management division was Vienna Insurance Group (VIG).

BRD Pensii is the smallest of the pension funds on the Romanian market, with modest performances.

BRD Pensii operates both in the Pillar II scheme, where its fund is the smallest in terms of contributors and assets, and the Pillar III scheme.

Both of BRD Pensii’s funds, mandatory and voluntary, posted the weakest performances as of the end of 2023. Altogether, the two funds sum up to almost 600,000 contributors – 6.8% of the total number of contributors to the seven Pillar II and ten Pillar III funds. Their combined assets are RON5.67bn (€1.14bn) – 4.3% of the total combined assets of Pillar II and III funds. 

BRD decided in the middle of last year to sell BRD Pensii, especially since the company was at the centre of a fraud scandal of RON23mn in the summer of 2022. Failure to reach a critical mass in terms of contributors is another reason.

The disappointing performances posted by BRD Pensii’s funds are currently pushing contributors towards other fund managers on the market.

Related Articles

Romania’s BRD bank reports smaller profit but strong lending in Q1

BRD Groupe Société Generale group, which operates Romania's fourth-largest bank by assets, reported its net profit dropped by 4.6% y/y in Q1, but said ... more

APS, EBRD buy €400mn sub-performing Romanian loans from Piraeus

The European Bank for Reconstruction and Development (EBRD) announced that alongside debt recovery specialist APS it is taking over a ... more

Moldova’s largest lender maib puts Bucharest exchange listing on hold

The largest bank in Moldova, Moldova Agroind Bank (main), announced it is postponing its plan to list on the Bucharest Stock Exchange (BVB) because certain provisions in Moldovan legislation make the ... more