MONETA Money Bank maintains 2024 profit target after Q1 gain

Moneta Money Bank, A.s

25/04/2024 08:10

PRAGUE, April 25 (Reuters) - Czech lender MONETA Money
Bank  MONET.PR  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)
 ((jason.hovet@thomsonreuters.com;))