Dividends payout for 2023 Net Income
On April 25, 2024, the allocation of BNDES´ financial results for the year 2023 was approved as follows: a) BRL 5,202 million as minimum mandatory dividends and BRL 5,276 million as complementary dividends, totaling BRL 10,478 million, to be paid in the form of dividends or interest on equity (IoE); and b) BRL 8,323 million as Reserve for Future Capital Increase and, consequently, reducing the portion to be allocated to the Dividend Equalization Reserve to BRL 2,007 million.
BNDES’ Board of Directors, through BoD Decision 07/2024-BNDES, of March 4th, 2024, in the exercise of its functions set forth in Article 36 of BNDES’ Bylaws decided to ratify the terms of Executive Board Decision 39/2024-BNDES, of February 29th, 2024, authorizing the payout of mandatory minimum dividends referring to BNDES’ 2023 net income, in the proportion of 25% of adjusted net income after constitution of the Legal Reserve.
The payment was made on May 8th, 2024, in the amount of BRL 5,394 million, of which BRL 4,657 million in the form of interest on equity (IoE) and BRL 737 million in the form of dividends.
The distribution of complementary dividends for 2023, in the amount of BRL 5,276 million, was approved by the Board of Directors on May 9th, 2024, in accordance with Decision CA 27/2024-BNDES. Payment of these supplementary dividends must occur by the penultimate business day of December 2024.
Amounts are in BRL millions
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 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 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 of fiscal years from 2000 to 2019 and from 2020 to 2023.
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).
See the updated charts of distribution of dividends by BNDESPAR and distribution of dividends by FINAME for net income recorded as of fiscal year 2006.
Last update: June 20, 2024