MONETA Money Bank maintains 2024 profit target after Q1 gain

PRAGUE, April 25 (Reuters) – Czech lender MONETA Money Bank on Thursday said it was on track to hit its 2024 profit target after posting a better-than-expected first-quarter result, leaving space for an increased dividend.

MONETA has forecast its 2024 net profit to reach at least 5.2 billion Czech crowns ($220.98 million), on par with its result in 2023, from which it is paying out 88% in dividends.

The bank, which has capital adequacy ratios well above target, said on Thursday it was accruing 90% of profit for a future dividend.

“We are well positioned to pay 90% unless something dramatically changes. And we have sufficient capital to support growth of the bank on the lending side,” Chief Executive Tomas Spurny told reporters, adding the bank’s capacity for dividend was even higher.

“If the lending side does not materialise, we would discuss with shareholders whether they want that capital returned to them or not.”

MONETA’s biggest shareholder is Czech investment group PPF, with a nearly 30% stake.

MONETA, the sixth largest in the Czech Republic, where most banks are foreign owned, reported its first quarter net profit rose 5.8% year-on-year to 1.29 billion crowns, above a Reuters poll estimate of 1.16 billion crowns.

Net interest income was up a touch in the quarter, to 2.08 billion crowns.

MONETA said around 30% of its loan book would be repaid or re-priced in the coming year, which left upside room as Spurny said he expected a yield improvement of around 25-50 basis points.

($1 = 23.5320 Czech crowns) (Reporting by Jason Hovet Editing by Tomasz Janowski)

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