LISBON, May 8 (Reuters) - Millennium bcp is likely to resume dividend payouts from next year based on its 2018 results, its chief financial officer said on Tuesday, a day after Portugal’s largest listed lender posted a 71 percent rise in first quarter profit.
BCP stopped paying dividends in 2011 at the height of the country’s economic and debt crisis. Portugal has since returned to economic growth and cut its budget deficit to below the -European Union threshold.
“As we approach a level of 12 percent of CET1 (solvency ratio) with a low single digit growth in terms of risk weighted assets, we are generating organic capital and what makes sense is to distribute this capital to shareholders,” Miguel Braganca said on a call with analysts.
Shares in the bank closed 4.9 percent higher on Tuesday boosted by the strong results, including the CET1 ratio of 11.8 percent, which is up from 11.1 percent a year ago.
“By the end of this year we should be in a position to start to distribute (a) dividend,” he said, adding that the decision also depends on other opportunities and what solvency ratio levels can be considered as adequate.
“I think a bank such (as) ours should have a ratio of CET1 between 11 pct and 12 pct and the remaining capital should be distributed to shareholders,” Braganca said. (Reporting by Sergio Goncalves, writing by Andrei Khalip, editing by Alexander Smith)