Virgílio Lima discussed the upcoming elections for the governing bodies of Associação Mutualista Montepio Geral, scheduled for December, where he is running again for president (List A).
Regarding the financial situation of the Montepio group, Lima highlighted that all the group’s companies have become profitable and are now able to pay dividends to the mutual association. This change has enhanced the group’s equity and resulted in a “simplification and strengthening of the group.”
“After simplifying the group—selling non-essential companies, merging, and liquidating some unnecessary entities—we strengthened and capitalized the group through the results obtained across various entities and the parent company. All companies are now generating results and are well-capitalized,” Lima stated, indicating expectations for continued improved outcomes in the coming years.
When asked about Banco Montepio’s profit contribution to the mutual association, Lima noted, “The bank has a greater potential for remuneration.” He expressed anticipation that dividends will increase in future years.
“There’s still a greater remuneration potential. We hadn’t received dividends since 2012. In the past two years, we received dividends. Given the bank’s improved performance, it’s expected that dividends will continue to rise. Considering the capital invested, we anticipate a significant and progressive increase in dividend volumes shortly,” Lima elaborated.
In 2024, Banco Montepio paid dividends amounting to 6.0 million euros.
Discussing the bank’s profits of 109.9 million euros in 2024, Lima acknowledged the bank began its transformation and restructuring later than others, but profitability should improve: “The bank is aligning itself with the average sector profitability,” he noted.
Associação Mutualista Montepio Geral, with over 600,000 members, is at the helm of the Montepio group, which includes various companies such as insurers and Banco Montepio.
The mutual association recorded profits of 210 million euros in 2024, marking an 87.5% increase from 2023.
At the end of 2024, the mutual association recorded deferred tax assets of 944 million euros, a 3.7% increase from 2023.
These tax credits have been part of the records since 2017, following a clarification request to tax authorities. While the mutual association ceased to benefit from corporate income tax exemption, it began benefiting from deferred tax assets, thereby improving earnings and equity. The tax credits of Montepio sparked political controversy.
Lima explained that the deferred tax assets increased because they stem from the non-fiscal deduction of technical provisions for association-related charges. These charges can only be deducted when actually used, resulting in temporal differences manifesting as tax credits.
When asked if the mutual association might consider returning to the former corporate tax exemption system, Lima admitted it might be considered: “Given that several entities in our social area benefit from tax exemptions, it’s something we may consider in the future,” he said.
Lima indicated that the mutual association is comfortable with the supervision by the Insurance and Pension Funds Supervisory Authority but suggested adapting the solvency model due to the unique technical balance of large mutual associations.
