Owner of Banco Montepio achieves a consolidated profit of 92.6 million euros in 2023 and will receive dividends from the bank and insurance companies
The consolidated profit of the Montepio group amounted to 92.6 million euros in 2023. The individual accounts of the Montepio association were included in the consolidated results, and among the group’s main assets, those of Banco Montepio and the insurance companies Lusitania and Lusitania Vida.
The insurance companies, Lusitania and Lusitania Vida, saw their profits more than triple to 17 million euros and 17.9 million euros respectively in 2023. Banco Montepio’s profit fell 15.9% to 28.4 million euros, but even so, after covering the negative retained earnings, it managed to distribute dividends.
The group’s operating result amounted to 245 million euros, which after taxes (49.2 million euros) and results from discontinued operations of 102.5 million euros (Finibanco Angola) amounted to to 92.6 million euros (discounting the minority interests of other shareholder entities of the bank and group companies), says the Montepio association, this Monday, at the presentation press conference of results.
The number of members fell from 606,483 to 604,799.
The president of the Montepio Association, VirgÃlio Lima, highlighted in the conference with journalists that these three years of positive results reveal that “the group’s companies are increasing in value and correcting their value†, even referring to that around 60 million deferred tax assets have already been released compared to 2017, when the association switched from the exemption regime to the payment of taxes.
The group’s equity amounts to 392.7 million, which shows an improvement compared to 2022 (253.1 million).
The group’s financial margin amounted to 460.8 million euros, 55.2% more compared to 2022, due to the increase in interest rates and the bank’s gains in revenue from interest charged on housing loans O.
Income from members and insurance premiums grew 2.4% to 1,131.9 million euros, of which 869.5 million came from mutual activity and 262.4 million euros from insurance activity. Both grew by 2.5% and 2%, respectively, compared to 2022.
Operating expenses increased by 4.5% to 369.9 million euros, with growth in all costs: administrative expenses increased from 102.8 million to 110.6 million; Personnel costs went from 208.7 million euros to 213.7 million euros, and amortizations went from 42.4 million euros to 45.6 million.
The number of workers fell from 4691 in 2022 to 4492 in 2023, which corresponds to 4.2% less. Fall explained due to the restructuring of Banco Montepio, which laid off around 190 workers in 2023.
Impairments and provisions increased to 58.2 million euros, 14.3% more, due to credit impairments that increased from 13.3 million to 49.6 million euros in 2023. Impairments with others assets fell from 33.5 million to 17.1 million euros.
Regarding the sale of Banco de Empresas Montepio, which is under the jurisdiction of Banco Montepio, VirgÃlio Lima states that the process runs on its “normal†terms and that the sale to fintech Rauva will be “soon” when asked about the reason for the delay, as the deal has been agreed since September 2023. This is “a normal deadline for this type of activity.” These are imperative queries that this type of operations determines,” he adds. At issue is the sale of the BEM license, a deal worth around 30 million euros that will be part of Banco Montepio.
20 million euros in dividends
For the first time in years, the Montepio association did not receive dividends and according to the 2023 accounts, it will receive around 20 million euros, of which 6 million will come from the bank. VirgÃlio Lima is pleased to point out that in 2023 the entities, namely Banco Montepio, the main asset, distributed dividends.
To achieve this, the Association had to, in the case of Lusitania, proceed with a restructuring at the capital level, similar to what it did with the bank, but for the insurance company there was an injection that of more than 110 million euros to cover negative retained earnings. Only in this way was it possible to distribute dividends. The insurance company went from 24 branches to 5.
At Banco Montepio there was also an intervention in terms of negative retained earnings, absorbed by capital. It is worth remembering that in 2023 the bank recorded a profit of 28.4 million, a reduction compared to the 33.8 million obtained in 2022.
Association wants to build and rent houses
The president of the Montepio group stated in a results presentation conference that he considers the measures to help young people to buy a house to be positive and took the opportunity to announce that the association has a project to help young members in the face of the crisis in the dwelling.
The association wants to buy houses or even build to reduce this need.
To achieve this, VirgÃlio Lima estimates an investment of between 25 million euros and 100 million euros, with the group being able to move forward with this project until the end of the year, however, having to talk to the supervisory authority and approve it in the Assembly General, for approval.
VirgÃlio Lima states that this solution will not respond to all members throughout the country, which is why he adds that the association will be able to buy houses and then rent them out. “We DO NOT have the capacity to build,†he says, although he considers being able to build in the future.
