Romania's Banca Transilvania to acquire BRD Pensions

The transaction, whose value was not disclosed, will allow BT Financial Group to expand its offer in the Pillar III sector of voluntary pension funds and to enter the Pillar II sector of mandatory private pensions, the bank said in a statement filed with the Bucharest Stock Exchange, BVB, on Tuesday.

Romania has a three-pillar pension system, comprising a government-run pension fund, privately-run pension funds with mandatory contribution, and privately-held voluntary funds that can provide supplementary pensions.

At the end of 2023, BRD Pensions' privately administered pension fund had a net asset value of 5.4 billion lei ($1.178 billion/1.085 billion euro) and an annualised return rate of 6.65%, while its voluntary pension fund amounted to 232 million lei, with an annualised rate of return of 4.7%.

The acquisition is awaiting the approval of the Financial Supervisory Authority (ASF) of Romania.

In a separate statement filed with the BVB, BRD said it expects to close the transaction in the first half of 2025.

BT Financial Group entered the privately-held voluntary pension funds market in 2019, through the acquisition of Certinvest Pensii.

In January of this year, BT Financial Group, through Moldovan lender Victoriabank, acquired BCR Chisinau, the Moldovan unit of Romania’s Banca Comerciala Romana (BCR) for 224 million Moldovan lei.

In February, Banca Transilvania announced it will fully acquire OTP Bank Romania for 347.5 million euro. Last month, Romania’s competition authority said it was looking into the agreed takeover.

Banca Transilvania's net profit jumped by an annual 35% the first three months of 2024, reaching 913.2 million lei.

BRD's consolidated net profit decreased to 326.3 million lei in the first quarter, from 342.1 million lei in the comparable prior-year period.

Banca Transilvania shares traded 1.58% lower at 31.2 lei as at 1201 CET on May 29 on the Bucharest bourse.

Shares in BRD changed hands 0.42% lower at 19.14 lei as at 1204 CET on May 29 on the BVB.

(1 euro=4.9762 lei)