Czech lender MONETA expects to exceed 2025 profit outlook (updated)

Moneta Money Bank, A.s

24/07/2025 08:35

Adds share reaction, CEO comments on lending, funding costs, cost of risk; paragraphs 2, 6-8, 11

PRAGUE, July 24 (Reuters) - Czech lender MONETA Money Bank MONET.PR said on Thursday it was on track to exceed its 2025 earnings outlook after reporting a record second-quarter net profit, driven by lower funding costs.

Net profit reached 1.63 billion crowns ($78.10 million), meeting analysts' expectations. It was the bank's most profitable quarter in its history, Chief Executive Tomas Spurny said.

Net interest income grew nearly 15% year-on-year to 2.42 billion crowns, above a Reuters poll estimate of 2.38 billion crowns. The country's sixth-biggest bank said the rise was mainly due to lower cost of funding.

Banks such as MONETA have benefited from falling funding costs compensating for pressure on interest income as interest rates come down. The Czech National Bank is near the end of a more than year-and-a-half easing cycle, with inflation pressures persisting.

MONETA said it was on track to meet its full-year profit outlook of at least 6.0 billion crowns and will likely exceed that by 300 million to 400 million crowns, supported by higher sales of wealth management products and accelerated lending growth, which rose by 4% in the first half of the year.

   Spurny said funding costs, which fell year-on-year to 2.08% in the first half from 3.38%, are expected to decline further, with repricing anticipated in August and another potential interest rate cut.

The bank's cost of risk was improving and MONETA said it aimed to dispose of 300 million to 600 million crowns in non-performing loans in the second half.

        "I am confident that we are on course to deliver and outperform the levels of profitability that we outlined in our guidance at the beginning of this year," Spurny said.

If that upside was met, MONETA said it would represent a dividend of 11.1-11.3 crowns per share for 2025, at least half a crown higher than the original guidance.

MONETA shares, which are up more than 30% in the past year, edged down 0.1% at the Prague open to 145.20 crowns.

($1 = 20.8700 Czech crowns)

 (Reporting by Jason Hovet; Editing by Eileen Soreng and Louise Heavens)

 ((jason.hovet@thomsonreuters.com;))