Czech lender MONETA 2024 above outlook, raises dividend

Moneta Money Bank, A.s

02/02/2024 06:40

PRAGUE, Feb 2 (Reuters) - Czech lender MONETA Money Bank
 MONETA.PR  on Friday reported net profit of 5.2 billion crowns
($227.70 million) in 2023, beating its full-year outlook as it
forecast similar earnings in 2024 and proposed a higher
dividend.
    Net profit was above the lender's own outlook of 5.0 billion
crowns, a level it had guided after the third quarter.
    MONETA proposed a 9 crown per share dividend for 2023, an
88% pay-out ratio and up from 8 crowns the previous year.
    The bank, which had also earned a 5.2 billion crown profit
in 2022, had originally expected its earnings to drop last year
after the government introduced a windfall tax.
    MONETA said on Friday its effective tax rate fell in 2023
mainly due to investments in Czech government bonds, which
generate tax-exempt income.
    The bank, the country's sixth largest, said lending volumes
decreased in 2023 amid subdued demand as interest rates stayed
high. High rates also boosted the bank's financing costs last
year as clients sought higher-yielding deposits amid elevated
inflation.
    Net interest income, though, grew year-on-year in the fourth
quarter, boosting quarterly profit, which came in at 1.23
billion crowns, above Reuters poll forecasts.
    The bank said it expected net profit to reach at least 5.2
billion crowns in 2024 and rise in the coming years after that.
    
    
($1 = 22.8370 Czech crowns)

 (Reporting by Jason Hovet; Editing by Michael Perry)
 ((jason.hovet@thomsonreuters.com;))