Romanian Banks: That’s how to play the macro story (BRD-GSG and Banca Transilvania stay BUY)
The two Romanian banks (BRD-GSG and Banca Transilvania) have delivered an average 2% price appreciation over the past 12 months, as well as an average 9% dividend yield, for a cumulated performance in line with our cost of equity estimates. The price has been supported by some strong quarters, with provision reversals, but also affected negatively by the possibility of a tax on banking assets and the unclear situation of the future of the second pillar pension funds. We believe that the two banks remain a good play (and the only more liquid possible investment) on the economic development of the country, and we expect to see some more upside and another high dividend this year, despite the ongoing background risk.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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