BCR Pensii: last year, 1 in 3 optional pension subscribers chose BCR Plus

In 2014, BCR Pensii saw a 41% rise in its own asset management portfolio (The Optional Pension Fund BCR Plus and the Privately Managed Pension Fund BCR), which was 4% over the market average, i.e. up to 1.3 billion lei.*

36.84% of the total clients who decided to save on an optional pension in 2014, chose BCR Plus, the optional retirement plan managed by BCR Pensii. They account for 12,196 out of the total 33,104 new clients drawn by the entire optional pension system (according to BCR’s calculations, based on the statistical data published by ASF (The Financial Supervisory Authority), representing a net increase in the number of clients, calculated by considering the total number of clients on 31 December 2014 and the total number of clients on 31 December 2013). Thus, in late December 2014, the total number of BCR Plus subscribers was 98,310, i.e. 14% higher YOY*.
The number of new clients attracted by the optional pension market rose by 56% in 2014 with respect to 2013, from 21,202 new clients on the entire market in 2013 to 33,104 new clients in 2014*; at the end of 2014, the optional pension market reached a total number of 346,452 subscribers and net assets whose total value amounted to 1.04 billion RON, according to ASF.
BCR Plus saw a 38% annual growth of gross contributions, more than 18% above market average; last year, the total amount of the contributions exceeded 27 million RON, as opposed to 20 million RON in 2013. The growth average of gross contributions at the level of the entire market exceeded 20%; last year, the total amount of contributions within the system exceeded 180 million lei, as opposed to 150 million RON in 2013**.
At the end of 2014, BCR Pensii was managing the private pension accounts of over half a million subscribers (606,379, according to ASF data available in December 2014) through the two managed funds - Fondul de Pensii Facultative BCR Plus (Optional Pension Fund BCR Plus) and Fondul de Pensii Administrat Privat (BCR Privately Managed Pension Fund BCR).

“2014 was a good year, with positive results for our clients. The optional pension fund managed by us BCR Plus (Pillar III) registered a 9.6672%annualized rate of return for the last 24 months, according to the ASF calculation methodology, above the average of the optional pension fund market with a similar risk degree; in December 2014, the optional private pension funds registered a 9.4695% weighted average rate of return of all the funds falling under the category of average risk; these results were clearly superior to inflation or other saving products currently available on the market”, according to Lucian Anghel, General Manager of BCR Pensii.

According to a GFK survey made in 2014 for BCR Pensii amongst corporate respondents, about 76% of them grant benefits to employees. The most frequent benefits are the following:

Training: 42%
Covering relocation expenses: 42%
Company car: 37%
Meal vouchers and gift vouchers: 18% each
Optional pensions: 10%

The remaining 24% often choose to raise the salaries or pay bonuses provided they have the required financial resources. According to the survey, 14% of the companies consider including the optional pension in the benefits package in the following period.

The survey was carried out last year on companies with less than 250 employees and whose turnover was below 50 million EUROS.

“The positive results achieved in 2014, as well as the share of the newly attracted clients and the increase of gross contributions made to BCR Plus (Pillar III) confirms that we have the adequate strategic direction and that the optional pension market has a potential for development. So, the positive development of BCR Plus in 2014 was due to: the awareness of the need for individual saving in order to receive a pension, the action taken to inform clients, potential clients and employers on the acute process of population ageing and the tax benefits attached to this saving product (tax deductibility of 400 Euros/year per participant respectively 400 Euros/year per employee (in the case of those employers who pay the contributions to the optional pension on behalf of their employees), so, tax deductibility may reach 800 Euros in the case of a mixed contribution to the optional pension – employer and employee),”, according to Lucian Anghel, General Manager of BCR Pensii.

“In the first part of 2015, we expect to exceed the threshold of 100,000 clients who have an optional pension (pillar III), managed by BCR Pensii” according to Melania Mirea, CEO of BCR Pensii.

The Optional Pension Fund BCR PLUS and the Privately Managed Pension Fund BCR are managed by BCR PENSII, SAFPP SA, website www.pensiibcr.ro

Previous performance is not a guarantee of future achievements.

*Source: the calculations of BCR Pensii based on the statistical data posted by ASF on the website www.asfromania.ro

** Source: the calculations of the company based on the data communicated by APAPR (The Romanian Administration of Privately Managed Pensions)

Banca Comercială Română (BCR), a member of Erste Group, is the most important financial group in Romania, providing universal banking operations (retail, corporate & investment banking, treasury and capital markets), and covering specialty companies working on the leasing market, private pensions and housing banks. BCR is Romania’s No. 1 bank in terms of asset value (over 14,4 €bn.), in terms of client base and in terms of savings and crediting. BCR is also Romania’s most important financial brand, judging by the client trust rate and by the number of persons who consider that BCR is their main banking partner.

BCR uses a network of 22 corporate business centres and 23 mobile offices dedicated to corporate clients, and 538 retails units located in most communities inhabited by at least 10,000 citizens to provide a full range of financial products and services. BCR is Romania’s No. 1 bank running on the banking transactions market, since BCR customers have the largest ATM network at their disposal – nearly 2,050 ATMs and 13,500 POS terminals enabling customers to use their cards for shopping purposes, as well as the complete Internet banking, mobile banking, phone-banking and e-commerce services.

Erste Group is one of the main suppliers of financial services in Eastern European Union. About 44,000 bank officers working in 2,800 branches in seven countries (Austria, the Czech Republic, Slovakia, Romania, Hungary, Croatia, and Serbia) assist 16.5 million customers. Erste Group reported a total asset pool worth €197.0 bn. and a 54.4% cost-to-income ratio at the end of Q3 2014. First-ranking common equity index (Basel 3 implemented partially) was maintained at 10.8%.

BCR – External Release

Cezar Marin, e-mail: cezar.marin@bcr.ro

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