Dividends payout of 2022 Net Income
BNDES’ Board of Directors, through BoD Decision 18/2023-BNDES, of March 7, 2023, in the exercise of its functions set forth in Article 36 of BNDES’ Bylaws decided to ratify the terms of Executive Board Decision 17/2023 – BNDES, of March 02,2023, authorizing the payout of mandatory minimum dividends referring to BNDES’ 2022 net income, in the proportion of 25% of adjusted net income.
On May 26, 2023, a payment of BRL 10.4 billion was made, of which: BRL 3.4 billion as interest on equity (IoE) and BRL 7.0 billion as dividends.
the values in the graph are in R$ bi
The BNDES has historically distributed high dividends to the National Treasury. Between 2009 and 2013, the dividends distributed reached 100% of adjusted net income (net income after the legal reserve).
Since 2015, following the amendment to the BNDES’s Bylaws, it was determined that 40% of adjusted net income would be incorporated into the share capital in order to strengthen the Bank’s capital structure after approval by the BNDES’s Shareholders’ Meeting. Likewise, the payment of dividends to the sole shareholder would be limited to 60% of adjusted net income (25% – minimum mandatory dividends and 35% – additional dividends); said payment of additional dividends is subject to the preservation of minimum prudential and corporate capital indicators in a three-year horizon.
* Additional dividends may only be paid when the minimum capital requirements and other operational limits provided for in the banking regulation are met, in addition to an additional margin established by the BNDES for the next three years (ICAAP Report).
In 2020, the National Monetary Council (CMN), through CMN Resolution 4,820, has temporarily limited the distribution of dividends on 2020 net income of financial institutions to the minimum mandatory dividends defined in their Bylaws or Articles of Incorporation, limited to 30% of net income, as part of the package of measures adopted to face the coronavirus pandemic crisis.
See the updated chart of distribution of dividends and interest on equity related to net income as of fiscal year 2000: PDF.
The BNDES also receives dividends and interest on equity from its subsidiaries BNDESPAR and FINAME.
In sum, BNDESPAR’s Bylaws provide for the payment to the BNDES, its sole shareholder, of minimum dividends equivalent to 25% of net income, plus any retained earnings balance, less accumulated losses and adjusted by the following reserves:
- Legal Reserve: 5%, up to the limit of 20% of the share capital
- Recognition of the Reserves set forth in articles 195, 195-A and 197 of Law 6,404, of 1976, if applicable.
- Recognition of Accounting Practices Compatibility Reserve: on the amount of profits or adjustments from previous years arising from the application of accounting standards different from those used by its sole shareholder – BNDES, limited to the Share Capital, pursuant to Article 199 of Law 6,404/76.
FINAME regulations provide for the payment to the BNDES, its sole shareholder, of minimum dividends also equivalent to 25% of net income, less accumulated losses and adjusted by the Legal Reserve (equivalent to 5%, up to the limit of 20% of the share capital).
Last update: June 5, 2023