MONETA Money Bank posts quarterly profit jump, stands by 2025 profit target

Moneta Money Bank, A.s

25/04/2025 08:54

PRAGUE, April 25 (Reuters) - Czech lender MONETA Money Bank MONET.PR said on Friday first-quarter profit climbed 14% from a year earlier, as funding costs fell and loan volumes rose.

Funding costs have declined on the back of a steady drop in central bank rates, and markets are pricing in the likelihood of up to three standard 25-basis-point cuts to the policy rate in the next 12 months.

Net profit came in at 1.47 billion crowns, in line with a Reuters poll estimate. Net interest income grew 12.6% to 2.34 billion crowns.

Chief Executive Tomas Spurny said the results gave the bank confidence in its 2025 profit target of 6.0 billion crowns, up from 5.8 billion last year.

"Based on the first quarter, we are committed to the minimum target," he told reporters.

Spurny noted the potential spread of foot & mouth disease - which has been detected in Slovakia and Hungary - was a risk, adding that a fifth of the bank's commercial loan portfolio was exposed to agriculture.

He also said global tariff tensions would not have a material impact this year but higher Czech unemployment could become a factor later in 2025 and next year. Lower-than-expected economic growth was also a risk.

"We have a good chance to have a solid year this year, and we will contend with the impacts of these negatives in 2026. I don't dare to say what is the level of risk to our guidance," he said.

MONETA shares rose over 2% in early trade to 145 crowns, taking its gains for the past year to 41%.

Shareholders approved a 10 crown per share dividend from last year's earnings on Thursday.

The bank paid an extraordinary 3 crown a share dividend last October. Asked about the potential to repeat that, Spurny said the bank would evaluate its capital position over the next two quarters.

 (Reporting by Jason Hovet; Editing by Edwina Gibbs)

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