Montepio posts €40M profits
The Portuguese mutual association Montepio Geral has posted a profit of €40 million for 2021.
The financial institution presented its annual financial report for 2021 to its Representative Assembly. Yesterday was the date limit to approve the 2021 accounts to be presented to the Board of Directors led by Virgílio Lima.
According to Jornal Económico the Mutualist’s net results were €40 million in profit which compares to €17.9 million in losses in 2020.
The institution’s results – it owns 99% of Banco Montepio and Montepio Seguros – are explained by various factors. One of them is the increase in interest rates which enabled a freeing up of technical provisions in mutualist arrangements due to liabilities compliance.
Then there was a recognition of more assets from deferred taxes, because the amount of capitalisation subscriptions was greater than the amount of amortisations. The increase of assets from deferred taxes is associated with the technical provisions set up through subscriptions to different asset categories.
On the other hand, there was no need to take on more impairments to the same value of Banco Montepio and Montepio Seguros. According to JE, the value of financial affiliates on the mutual institution’s balance remains the same with no further impairments registered.
In 2020, the value of the Montepio Geral Mutualist Association share in the share capital of Banco Montepio totalled €1,500 million, corresponding to a gross investment value of €2,375 million of which the total impairments were €875 million.
Montepio Seguros (an insurer) under the brand name Lusitânia reported a profit of €120.3 million — the same as in 2020.
In 2020, the Mutual Montepio institution posted a loss in its consolidated accounts of €86 million after a €9 million profit in 2019, a loss which was explained by the €81 million losses posted by Banco Montepio.