The regime of deferred tax assets allows the state to convert tax credits that a bank receives into shares in that bank, making it a shareholder. To avoid this, shareholders can purchase the rights, which the mutualist Montepio intends to do while owning Banco Montepio.
“We confirm the intention of Montepio Geral Associação Mutualista to exercise the mandatory right to acquire conversion rights within the current framework of REAID [Special Regime Applicable to Deferred Tax Assets]. Regarding the amount, we estimate it to be approximately 4.8 million euros,” said an official source to Lusa.
Banco Montepio has scheduled a general meeting for July 31 to deliberate on “the increase of Banco Montepio’s share capital” and the conditions for shareholders to exercise the “mandatory right to acquire the conversion rights held by the state.”
Associação Mutualista Montepio Geral is at the top of the Montepio Group, which owns several companies, most notably the bank. The mutualist currently has over 600,000 members and in 2024 reported profits of 210 million euros (an increase of 87.5% compared to 2023).
Banco Montepio’s profits reached a historic 109.9 million euros in 2024, nearly four times more than in 2023.
