To this result, core activities (intermediation and market making) contributed RON7.9 million, the activity of managing the own account brought RON16.2 million and an expense of RON0.9 million with the profit tax also contributed.
“We could look at the result from 3 angles: (i) by comparison with the result of 2020 (which was RON1.9 million) (ii) by comparison with the budget projection which provided an initial tax result of RON16 million (iii) through the evolution of the quarterly results, with a result of RON3.9M in the fourth quarter of 2021, BRK is in line with the last 6 consecutive quarters, in which it comfortably fulfils its financial and operational objectives”, Monica Ivan, CEO at BRK, said in a letter to the shareholders, included in the company’s annual preliminary report.
Revenues from the activity of intermediation of transactions stood at RON10.77 million, increasing by 68% versus 2020 on the background of tripling the volumes traded on the shares segment (from RON855M to RON2.4 billion), which translates into an increase of the market share from 3.5% to 10.9% and a jump of three spots in a ranking of intermediaries at the Bucharest Stock Exchange, from the 7th spot to the 4th place.
The revenues from corporate services reached RON8.4 million, compared to RON1.04M in 2020, bringing a consistent contribution to the annual result. “2021 was the busiest year for the IPO market in the last 20 years, with global volumes up 64%. This trend was favorable for such operations in the local market as well, so BRK was a major player. on this segment. BRK was the intermediary of the IPO carried out by One United Proprieties, marking in this sense a premiere, being the first retail broker to close a large IPO (over EUR50 million) on the regulated market. BRK was also very active on the AeRo market, where BRK brokered 8 listings, where Arobs Transilvania Software stands out through its private placement size (EUR15 million)”, as per the report.
The operations of issuing structured products and providing liquidity brought the company a net profit from transactions of RON4 million, up 19% from 2020, due to doubling the traded volume (to RON699 million in 2021 from RON346 million in 2020) and they also brought the status of market leader.
The market making services provided to issuers, a business segment launched in 2019 with a first client, brought the company total revenue of RON3.2 million in 2021 (versus RON0.59 million in 2020), amid an increase in the client portfolio at the end of 2020, to 13 clients at end-2021 from six issuers at end-2020. This performance was recognized at the Bucharest Stock Exchange Awards ceremony where BRK won the award for Most Active Intermediate for Increasing Liquidity in 2021.
Aggregating the results of the four segments, it results total revenues of RON27.7 million (versus RON12.24 million in 2020) and total expenditure of RON19.8 million (versus RON11.2 million in 2020) and a profit from the core activity of RON7.94 million (versus RON1.1 million in 2020).
The result of the own account administration activity was RON16.2 million and is composed of RON +4.9M marked result (including dividends received), RON11.4 million net result from the valuation of assets from the tradable portfolio, net expenses with provisions (RON800,000), interest income and exchange rate differences (net RON685,000) and other income or expenses with a total residual impact.
The share price of BRK increased by 245% to RON0.283 at end-2021 from RON0.082 at end-2020, making BRK Financial Group the winner of the section “The highest return for investors of a BET-XT company in 2021” at the Bucharest Stock Exchange Awards ceremony.
BRK Financial Group has a stock market capitalization of RON100.3 million. BRK shares have gained 4.2% in 2022, amid deals worth RON12.9 million, in line with stock market data.