Montepio bank to post zero profits in 2023

 In Banks, Divestments, News

Portugal’s mutualist bank Banco Montepio is expected to post zero profits for 2023 because of the cost of selling its assets in Angola.

The bank posted a loss of €50 million for H1, 2023 and says it will not be able to distribute “great dividends” to shareholders unlike other banks in the sector.
The bank’s CEO, Pedro Leitão said in an interview with Expresso that it will return to pay dividends next year.
“Our desire is that based on this year’s results, we will be able to return to “a healthy practice” adding “no shareholder in their right mind would invest if they don’t get a return”, said Leitão who has ran the bank since 2020.
Banco Montepio recently went through a major restructuring plan which foresaw 650 staff leaving the company and 90 branches being closed. Up to 900 staff could well have left by the time the revamp is completed.
The bank’s results by the end of 2023 are expected to be in the red, but will be close to zero according to the president of the Associação Mutualista Montepio Geral (AMMG) who spoke with the institution’s advisors and representatives at a meeting recently.
The results will wipe out losses from the sale of Finibanco Angola that left a €100 million dent in the bank’s results. Therefore, the bank will end the year with a practically zero result, but will not present losses.