CGD expects biggest dividend in its history

State bank Caixa Geral de Depósitos posted a €692 million profit for the first nine months of the year, up 61% on the same period last year, and expects to pay out the biggest dividend to the State in its entire history.

The institution led by Paulo Macedo highlights the increase in the profitability of its own capital to its highest value in 14 years, with a Return on Equity (ROE) of 10.8% by the end of September.
The bank explains the increase in profits on a reduction of impairments built up because of the Covid-19 crisis, as well as international business. Activity in Portugal contributed €537 million, while overseas business in Angola and Mozambique brought in €155 million.
“It is a string of healthy results in line with cost of capital expectations”, said Maria João Carioca, the bank’s financial director.
According to the bank, which will distribute 40% of its profits (€286 million), the Government will receive €350 million in bank dividends — the largest dividend payout in the bank’s history which will have a positive impact on the State Budget for 2023”.
Core business grew by double digits, while the net financial margin was up 25% to €930 million, “an increase of €185 million with a strong International contribution from international activity (+28%) and cash operations (including the ECB TLTRO programme) and portfolio management of €60 million.
All in all, the total activity of the bank grew 21.7% to €1.594Bn. But the Portuguese banking sector overall almost doubled its collective net profits to €1.9Bn.
The six main Portuguese banks – Novobanco, Caixa Geral, BPI, BPC, Santander Totta, and Banco Montepio – raked in profits of €1.912Bn to September, an increase of 83.4% on the €1.042Bn that these banks had posted in September 2021.