Moneta Money Bank lifts profit forecast but opts against extra dividend (updated)

MONETA Money Bank

Yesterday 09:13

Adds CEO comments, shares, analyst
PRAGUE, Oct 23 (Reuters) - Czech lender Moneta Money Bank MONET.PR raised its profit outlook for 2026 on Friday after posting a 20% year-on-year rise in third-quarter earnings, but opted against paying an extraordinary dividend the market had anticipated.
The bank had made an extraordinary dividend payment, alongside its regular dividend, in the previous two years but decided against it this year amid geopolitical uncertainty and renewed inflationary pressures
Moneta Chairman Tomas Spurny told news agencies the bank wanted to keep strong liquidity amid the government's drive to sell retail bonds and the central bank's offer of deposits to municipalities, which both lure away depositors
Moneta is also channelling deposits to investment products, and there is strong competition for deposits too, due to growing lending and rising interest rates
Liquidity will also be needed for calling bonds worth 2.6 billion crowns ($119.9 million) in January, Spurny said
The government has also raised the possibility of a banking sector tax
Moneta said it expected full-year net profit to rise to 7.1 billion crowns from the 6.6 billion expected in initial guidance and 6.5 billion posted in 2025. It continues to accrue 90% of net earnings for future dividend distribution
Shares in Moneta were down 0.7% in mid-morning trade and are up over 7% in the past 12 months
"Overall, we assess both the results and the outlook positively," Erste Bank analysts said. "However, Moneta remains the most expensive stock in our covered banking sector in Central and Eastern Europe"
Moneta's loan portfolio grew 10.4% in the first nine months of 2026, and Spurny said lending growth in the economy was high and expected to normalise in the coming quarters 
On a quarterly basis, net profit rose 20% to 2.18 billion crowns, above a Reuters poll forecast of 1.95 billion crowns, as loan provision creation was much lower than expected at 74 million crowns

($1 = 21.6480 Czech crowns)

 (Reporting by Jason Hovet and Jan Lopatka. Editing by Ronojoy Mazumdar and Mark Potter)
 ((jason.hovet@thomsonreuters.com;))