BCP Plans Largest Dividend in Its History — Half a Billion Euros for Shareholders as Bank Posts Record Profit
Millennium BCP, Portugal's largest privately owned bank, has proposed distributing EUR 509.3 million in dividends to shareholders — equivalent to EUR 0.0344 per share — and raising the ceiling on its share buyback programme from 25 to 40 per cent of...
Millennium BCP, Portugal's largest privately owned bank, has proposed distributing EUR 509.3 million in dividends to shareholders — equivalent to EUR 0.0344 per share — and raising the ceiling on its share buyback programme from 25 to 40 per cent of annual consolidated net profits. Both proposals will be put to a vote at the bank's annual general meeting on 7 May.
Record Profits Behind the Payout
The dividend is backed by a consolidated net profit of EUR 1,018.6 million in 2025 and an individual net profit of EUR 814.65 million. If both the dividend and the maximum buyback are approved, BCP could return up to 90 per cent of its annual profits to shareholders — a dramatic shift for a bank that was bailed out by the Portuguese state in 2012 and only fully repaid its public recapitalisation in 2021.
The proposed payout is the latest in a series of increasingly generous shareholder returns from Portuguese banks, which have benefited from years of high interest rates that widened net interest margins across the European banking sector.
Tiered Buyback Based on Capital Strength
The new buyback policy is not a blank cheque. BCP has proposed a tiered structure that ties the maximum repurchase to the bank's Common Equity Tier 1 (CET1) capital ratio:
- Up to 40 per cent of profits if CET1 is at or above 17.5 per cent
- Up to 30 per cent if CET1 is between 16 and 17.5 per cent
- Up to 25 per cent (the current cap) if CET1 falls below 16 per cent
The mechanism is designed to ensure that buybacks only accelerate when the bank has a comfortable capital buffer above regulatory minimums. Execution also requires separate shareholder approval, regulatory authorisation, and consistency with the bank's strategic plan, as well as a minimum fully loaded CET1 ratio of 13.5 per cent.
Board Continuity
The shareholder meeting will also confirm the reappointment of CEO Miguel Maya and chairman Nuno Amado through to 2029. Madalena Tomé, the former president of SIBS — the company that operates Portugal's interbank network and the MB WAY mobile payments system — will join the board, bringing experience in digital payments infrastructure at a time when Portuguese banks are under pressure to modernise.
What This Means for Expats
BCP is the bank where many expats in Portugal hold their accounts. The record profits and generous dividend are a sign that the bank is financially healthy, which is reassuring for depositors. However, the flip side of those profits is that Portuguese banks have been criticised for not passing higher interest rates through to savers — deposit rates in Portugal remain among the lowest in the eurozone, even as the bank earns record margins on lending.
For expats who hold BCP shares — whether through direct purchase or through Portuguese investment funds — the combined dividend and potential buyback represent one of the most generous shareholder return policies in the Portuguese market. The 7 May general meeting is worth watching for anyone with a financial stake in the country's banking sector.
Related reading: Filing Your IRS Tax Return in Portugal: Deadlines, Tax Brackets, Deductions, and a Step-by-Step Guide for 2026
