Banrisul approves BRL90M interest on equity payment

Banrisul’s Annual Shareholders’ Meeting (ASM), held on April 25, 2024, approved the distribution of interest on equity and/or dividends equivalent to 40% of the company’s net income for 2024, excluding the Legal Reserve. This payout, amounting to approximately BRL90 million, exceeds the 25% mandatory dividend requirement under Brazilian Corporate Law, reflecting the board’s discretion to distribute higher returns when aligned with regulatory and capital adequacy standards. The decision adheres to the company’s dividend policy, which prioritizes transparency and corporate governance while maintaining a minimum capital level 4 percentage points above the Central Bank of Brazil’s Basel III requirements.

Under Brazilian law, dividends and interest on equity (IoE) must be paid within 60 days of declaration unless otherwise specified, with shareholders having three years to claim unpaid amounts before they revert to the company. The IoE payment is subject to a 15% income tax for most shareholders, increasing to 25% for individuals in tax havens. Banrisul’s bylaws permit flexibility in distributing dividends or IoE, including interim payments based on audited financial statements, provided they do not exceed reserves or regulatory limits.

Historical data shows variability in payout ratios, influenced by earnings performance and capital management priorities. Investors can access detailed records of past distributions through Banrisul’s investor relations portal. The 2024 approval underscores the company’s commitment to balancing shareholder returns with prudential financial practices.