The Bank of Portugal’s Annual Report – Activities and Financial Statements 2018 shows that total dividends and income tax (taken to the Profit and loss account) for 2018 amounted to €1,003 million, an amount delivered to the state on 9 May.

In 2017, the bank delivered €796 million, of which €525 million of dividends and the year before €561 million, of which €352 of dividends.

The bank’s report shows that over the last five years, Portugal’s central bank delivered a total of €3 billion to the state in dividends and taxes.

The main components of Banco de Portugal’s net profit include net interest income, which came to €1,065 million, a year-on-year increase of €55 million; gains/losses arising from financial operations, at €68 million; and the net result of pooling of monetary income, at €73 million, down €54 million from 2017.

The decrease in the general risk provision in 2018 was primarily the result of the structural reduction of the exposure to foreign exchange risk, pursuant to the aforementioned decision to change long-term investment policies, leading to the reduction in the number of foreign currency assets in the asset management portfolios.

Total administrative expenses came to €206 million, a €2 million fall year-on-year (-0.8%). This reduction results from the €4 million decrease in Supplies and services from third parties (-7.7%), largely due to lower advisory expenses relating to the sale of Novo Banco (-€6 million), which were partly offset by a €2 million increase in staff costs (+1.8%).

Banco de Portugal took on functions of authorisation, registration and supervision of the activity of credit intermediaries, as well as the certification and monitoring of training entities of credit intermediaries and of employees of the institutions involved in offering loans for house purchase.

The Bank oversaw the conduct of the supervised entities offering retail banking products and services, monitoring the entry into force of new regulations on mortgage credit, payment accounts, structured deposits and payment services.

With retail banking products and services increasingly being offered through digital channels, the Bank sought to ensure that supervised institutions comply with the duties of information and assistance also in these channels.

Following the supervisory work carried out on several fronts, the Bank initiated 113 administrative offence proceedings and concluded 195. To prevent and repress illicit financial activity, it conducted inquiries in 218 proceedings.