Overall, pawnbrokers ended 2013 with revenue of around RON700 million (EUR170 million).
The central bank includes 2,700 pawnbrokers in its registers, but around 500 of those reported zero revenue and zero employees last year.
The 20 largest pawnbrokers had an average number of 2,400 employees last year. Pawnbrokers’ average profit margin revolves around 9%, but in some cases can go as high as 40%. Of the 20 largest pawnbrokers by revenue, only two posted losses last year.
Pawnbrokers make a lucrative business as they levy high interest rates, of as much as 10% per month. They saw their revenue surge rapidly during the crisis period, as banks turned off the funding tap by tightening lending conditions.
Unlike banks and consumer lenders, pawnbrokers do not ask for income certificates, but just an identity card and a guarantee.
The three largest pawnbrokers saw their revenue go up five times during the crisis period, from around RON25 million in 2008 to RON144 million last year.
Bertus company, headquartered in Baia Mare, which owns a network of 100 agencies in northern and western Romania and in Bucharest, leads on pawnbroking market, and in 2013 generated revenue of RON69 million (EUR15 million). Bertus is held by Cozma Viorel, 39, with a 99% stake.
Tezaur, which has opened 40 agencies in Bucharest in the past four years, ranks second, with revenue of RON41 million (EUR9 million) and profit of RON7 million. Tezaur, owned by Iordachescu Bogdan (95%) and Petcu Raluca (5%), reported one of the highest profit margins on the market, of 18%.
The third position in pawnbrokers’ ranking in 2013 was held by Rocri Trade of Piata-Neamt, owned by Diaconu Paul-Robert, 39. The company was set up in 1997 and ended 2013 with revenue of RON34 million and net profit of RON4.6 million.
Next in the ranking comes Express Credit Amanet of Iasi, set up in 1999 by Bogdan and Ioana Gheorghiu and taken over in 2013 by US Dollar Financial Group. The deal was valued at several million euros. Express Credit reached revenue of RON30 million and net profit of RON3.4 million last year.
The ten largest pawnbrokers also include Invest Intermed, Inter Big-Deal, Digital Sale, Techno Vest, Beta Management and Amanet Gold Services, with revenue ranging between RON22 million and RON15 million.
(English version by Catalina Apostoiu)