MONETA Money Bank raises 2023 profit outlook

Moneta Money Bank, A.s

26/10/2023 06:48

PRAGUE, Oct 26 (Reuters) - MONETA Money Bank  MONET.PR 
aims to deliver net profit of at least 5 billion crowns ($213.51
million) this year, higher than its previous outlook, the Czech
lender said on Thursday after reporting higher-than-expected
quarterly earnings.
    MONETA's third-quarter profit reached 1.49 billion crowns,
above a Reuters poll estimate of 1.25 billion crowns, and was at
4 billion crowns in the first nine months of the year.
    Third-quarter net banking income reached 3.18 billion
crowns, beating an average estimate of 3.01 billion crowns as
fee income rose 26% to compensate for falling net interest
income.
    Net impairments at the bank were in line with forecasts.
    "I am pleased that our strategy to increase ... deposits
have been successful and we are also able to maintain our cost
discipline," MONETA Chief Executive Tomas Spurny said.
    "In addition, so far, our concerns over deteriorating
quality of assets have not materialised and we were able to
successfully execute non-performing assets disposals."
    MONETA's 2023 profit outlook is above a previous forecast of
4.7 billion crowns provided in July.
    The Czech economy has sputtered in 2023 as inflationary
pressures hammered consumers' spending power, and firms see
falling order books. Markets are betting the Czech central bank
will begin cutting interest rates that are at more than
two-decade highs from November.
    The central bank discontinued interest payments and
mandatory minimum reserves, and MONETA reiterated on Thursday
that it estimated a negative impact of 120 million crowns in the
fourth quarter.
    
    ($1 = 23.4180 Czech crowns)

 (Reporting by Jason Hovet; Editing by Sherry Jacob-Phillips)
 ((jason.hovet@thomsonreuters.com;))