BRD-SocGen is not closing down but changing the business model

The consumer financing arm of BRD-SocGen, the Romanian financial group controlled by French Societe Generale, has phased out the activity of extending loans at the point of sale (retailers' premises), but this is only a change in strategy and the activity of BRD Finance will continue, according to a statement issued by the financial group.

Ziarul Financiar daily, based on sources familiar with the developments, previously speculated about BRD Finance preparing to exit the market.

"BRD Finance is developing a plan to transform its business model, which aims to improve profitability, by outsourcing certain business lines and developing others, with very good potential. In this regard, the company decided to leave the lending business at the point of sale. The good financial results obtained by BRD Finance in 2021 (pretax profit increasing by 20% compared to previous years) show the first positive impact of this transformation plan. In 2022, the company will continue its transformation, focusing on reducing non-performing loans and continuing to develop profitable activities, in line with the trends of the Romanian market," BRD representatives explained.

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