The Banco de Portugal (BdP) delivered a record amount of 1,003 million euros to the State in dividends and tax on profits related to the fiscal year of last year. The public coffers received 645 million euros in net dividends and 358 million in profits tax, according to the accounts of the institution led by Carlos Costa, disclosed this Friday.
Last year, the central bank had already seen an increase in dividends paid to the state for 2017. The BOP paid 525 million euros in gross dividends and 272 million euros in profits tax, totaling 796 million euros.
In the State Budget for 2019, the Government already included the expectation of an increase in the contribution of the dividends delivered by the BOP to the public accounts. "The prospect of dividends from Caixa Geral de Depósitos, and an increase in dividends paid by Banco de Portugal, contributed to a 9.5% increase in other current revenue," it said in the document.
The increase in dividends, which settled on Thursday, May 9, after the accounts were due on March 29, was the result of increased central bank profits. According to the activity and accounts report for 2018, the BoP profited in 2018, 806 million euros, 149 million more than in the previous one.
Contributing to the increase in the net result of the central bank was the increase in the contribution of interest and similar expenses and income, which totaled EUR 1 065 million, corresponding to an increase of EUR 55 million compared to 2017. But still the 68 million euros from financial operations and net income from the breakdown of monetary income of € 73 million – down from € 547 million from € 54 million.
"The movement of the provision for general risks in 2018 resulted essentially from the structural reduction of exposure to exchange rate risk, following the aforementioned decision to change, in a long-term perspective, investment policies, leading to a decrease in the amount of assets denominated in foreign currency in the asset management portfolios, "explains the central bank.
According to the BOP's accounts, administrative expenses totaled 206 million euros, which represents a reduction of two million euros compared to 2017.
"This decrease is a result of a decrease of EUR 4 million in third-party supplies and services (-7.7%), due in large part to lower expenses with advice on the sale of the New Bank (-6 million euros), and was partially offset by an increase of 2 million euros in personnel expenses (+ 1.8%), "he adds.