Montepio sees €409 million in losses

An audit into the mutual bank Montepio’s annual accounts for 2019 has found a €408.8 million loss.

The audit by PwC has also concluded that a tax bonus validated by the Government was overvalued which could mean that the bank will have to make another capital call on its members.

The amount that the mutual bank had accounted for has therefore been corrected to €1.499Bn. The main asset of the Mutual Association of Montepio Geral had been put at €1.877Bn.

The correction of this amount, together with impairments of €15 million, related to the holding Montepio Seguros – an insurance arm – has therefore led to losses of €408.8 million in 2019 which compares to the profit of €1.6Bn in 2018.

PwC also left a note suggesting that the Montepio business plan should be reevaluated. The members of the General Council will study the balance from 2019 and discuss the accounts at their next meeting tomorrow (12 June).

The results will then have to be approved at the next General Assembly of Associate Members at the end of this month.