BPI posts record profits of €588 million with possible 75% shareholder payout

 In Banks, News

Bank BPI, which is controlled by Caixabank, posted profits of €588 million for 2024, up 12% compared to the previous year.

“It was the best year ever” announced the CEO João Pedro Oliveira e Costa on Thursday at a press conference, adding that between 55% and 75% of the result will go to its shareholder Caixabank.

“It was a result that was above expectations. It was the result of more business and a slower fall in interest rates than we had forecast”, he said.

“Although the topic of dividends has not yet been discussed, it will be decided at the general shareholders meeting. I would say that we expect between 55% and 75% of the profits will be distributed”, he said, meaning a payout of between €320 million and €440 million will go to the Spanish shareholder.

Portugal contributed with €556 million with a 15% increase like-for-like on 2023.

BPI’s operations in Angola and Mozambique were less profitable: BFA made €39 million, 5% less than the year before, and BCI had slightly under 3%. João Pedro e Costa said he was concerned about what was happening in Mozambique.

Despite the drop in interest rates throughout 2024, net interest income rose 4% to €977Bn, but the bank already felt a strong brake at the end of last year that should be felt more this year. Bank charges increased by 12% to €327Bn, helping the banking product to exceed €1.3Bn (12% year-on-year).

Operating costs fell 1% to €490 million, which allowed the results to be sustained and the efficiency ratio improved to 37%, three percentage points below the end of 2023.

The increase in revenue contributed to the increase in turnover. The bank’s loan portfolio grew 3% to €31.1Bn, with home loans rising 5% to €15.2Bn (offsetting the drop in personal credit). Credit to companies increased by 4% to €12Bn.