BT Financial Group, through Transilvania Bank and BT Investments, has reached an agreement with BRD-Groupe Societe Generale and Societe Generale Insurance for the acquisition BRD Pensions (BRD Private Pension Fund Management Company), company operating in Romania, in the field of mandatory private pensions (Pillar II) and voluntary pensions (Pillar III).

The private pension system in Romania, including mandatory and voluntary pension funds, means total assets of over 131 billion lei, at the end of 2023, and compared to GDP, it represented 8.48% of the annual GDP, registering positive net nominal returns in the last 15 years. Private pension funds have over 8.8 million participants, and their main objective is prudent investment in quality assets to obtain additional value for them after retirement age.

BRD Pensions:

• Manages both the fund from Pillar II (FPAP BRD), and the fund from Pillar III (FPF BRD Medio).
• Over 560,000 participants contribute to the private pension fund managed by BRD Pensions.
• BRD Medio voluntary pension fund has over 37,500 participants and records one of the highest average contributions per participant.
• The net asset value of the privately managed pension fund BRD Pensii was over 5.4 billion lei, and the total asset value of the optional pension fund BRD Medio recorded over 232 million lei, as of December 31, 2023. The annualized return from inception until the end of 2023 is 6.65% for the privately managed pension fund BRD Pensii, and 4.7% for the optional pension fund BRD Medio.

The acquisition is a strategic step of the Banca Transilvania Financial Group, through which we develop the voluntary pension funds - Pillar III, already existing in our offer, and we enter a new market, the privately managed pension funds - Pillar II, creating synergies between the companies of the Banca Transilvania Group. After bank deposits, private pensions are the second most important financial asset of the population, a historical accumulation of capital for Romania. That is why the private pensions system represents a stable source of capital that contributes to the financing of the state, but also of the private sector, having a long-term investment perspective. We believe that, through our capabilities, we can contribute rapidly to the development of this fundamental pillar of our economy, offering customers a diversified range of saving products.

Ӧmer Tetik, General Director, Transilvania Bank.

For acquisition, the approval of the Financial Supervisory Authority is required in Romania.

Group Banca Transilvania, through the fund My Pension, managed by BT Pensions, has been on the voluntary pensions market since 2019, a debut also made through a purchase. Since the completion of the transaction, BT Pensions has managed to double the number of participants in the optional pension fund My Pension. Currently, My Pension has almost 57,000 participants, and assets under management have increased by 7.4% in the first three months of this year.