Petre Szel, SIF4: It's more profitable to keep money in the bank than in BRD shares

Petre Szel, chairman Muntenia Invest, the company that manages the assets of financial investment company SIF Muntenia (SIF 4) explains the sale of BRD shares through the need to meet the budgeted profit indicators, as well as the need to secure cash for other investments.
"We need money for other investments, but things on the market have changed somewhat from other years. Transactions with banks' shares are feasible and even necessary. The yield on BRD dividends is lower than the deposit interest. So, it is more profitable to keep the money in the bank than in shares," explained Szel.
Currently, the yield on the BRD dividend is around 2-3% a year, while the bank pays 5.5% interest on one-year RON deposits of corporate entities.
SIF Muntenia yesterday sold 5 million BRD shares in two special transactions, accounting for 0.71% of the bank's shares, for which it collected 60 million RON (14 million euros). The buyers were foreign investors, advised by UniCredit CA IB Securities, with several foreign investors believing BRD shares are currently some of the most attractive in the financial sector in the region. Broker Cluj was the seller's adviser.