Romanian brokerage firm buys 10% stake in local bank

BRK Financial Group (BRK), one of the biggest independent brokerage and fund management companies in Romania, has bought a 9.86% stake in local lender TechVentures Bank. The company said it made the investment from its own funds but didn't disclose the price paid for the stake.

Through this acquisition, BRK intends to form a partnership with TechVentures Bank to develop mixed products such as linking the balance of the trading account with the bank account and card or offering credit lines for trading on the capital market. The partnership would also help BRK distribute its financial products, including fund units, products with protected capital, through the bank.

"This partnership will facilitate BRK's access to financial instruments specific to the intrabank market (advanced hedging solutions), and at the same time TechVentures Bank may consider providing services to investors and capital market intermediaries (custody services, settlement bank)," BRK Financial Group said in a note to its investors.

The brokerage group recorded a net profit of RON 14.8 mln (EUR 3 mln) in the first half of this year, compared with losses of RON 6.4 mln in the same period of 2020.

BRK is listed on the Bucharest Stock Exchange, and its market capitalization has increased five times in the last 12 months to RON 127 mln (EUR 25.9 mln).

TechVentures Bank is one of the smallest banks in Romania. Founded by local railway wagon mogul Valer Blidar, the bank changed shareholders at the end of last year when an IT investor bought it.

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