Moneta's net profit up 9.1 percent to CZK 2.7 billion in the first half of the year

Moneta Money Bank's net profit in the first half of 2024 rose 9.1 percent year-on-year to CZK 2.7 billion. The bank's operating income rose six percent year-on-year to CZK 6.2 billion. Operating expenses remained stable at CZK 2.8 billion.

Moneta's net interest income remained stable at CZK 4.2 billion at the end of the half-year. Net fee and commission income rose 16.7 percent year-on-year to CZK 1.5 billion. The number of Moneta Group's clients increased by 2.8 percent year-on-year to 1.6 million.

"The net profit of CZK 2.7 billion represents a return on tangible equity of 20 per cent. This result is in line with the market outlook published on February 2, 2024. It was mainly driven by stabilisation of net interest income due to continued recovery in loan demand, growth in client deposits, as well as net fee and commission income which exceeded the business plan," the bank said.

Demand for new loans persisted in the first half of the year, supported by a decline in interest rates. Moneta extended new loans worth CZK 28.9 billion, up 42.7 per cent year-on-year. Demand from retail customers was particularly strong, with new mortgage loans up 57.2 per cent year-on-year and new unsecured consumer loans up 38.6 per cent.

The volume of credit card and overdraft loans fell to CZK 2.2 billion, while the volume of loans for car purchases rose by 3.7 per cent year-on-year to CZK 2.6 billion.

Volumes also rose for loans to sole traders and small businesses, up 65.1 per cent year-on-year. New volumes of investment loans rose by 41.8 per cent to CZK 46.7 billion. The portfolio of operating loans grew by 14 per cent to CZK 18.6 billion. Commercial loans for car purchases reached CZK 8.1 billion, an increase of 11.2 per cent year-on-year. Overall, commercial loans rose by 5.6 per cent to CZK 90.1 billion as at 30 June.

Commission income from investment funds amounted to CZK 334 million and income related to insurance products reached CZK 611 million. Commissions on sales of investment funds grew mainly due to greater investor interest in products that offer higher appreciation than term and savings accounts. The volume of money in investment funds increased by 54.5 per cent year-on-year to CZK 48.7 billion.

"Moneta's second quarter ended below market estimates, yet the bank is on track to achieve its full-year net profit target," XTB analyst Tomáš Cverna told ČTK. He said Moneta was gaining market share in the customer deposit market as in previous quarters, but was underperforming in the loan market as its portfolio growth rate was below the market growth rate.

The results were slightly below estimates as investor expectations were significantly inflated, added Cyrrus portfolio manager Tomas Pfeiler. He said the bank's CEO's comment that the finance house is likely to beat its net profit guidance is encouraging news. Moneta's shares were losing 1.6 percent to 109.6 CZK per share before 11:00.

Moneta Money Bank is one of the largest companies traded on the Prague Stock Exchange. Moneta's largest shareholder is financial group PPF, specifically Tanemo. PPF was seeking to merge Moneta with its Air Bank group. However, the plan fell through the spring before last.

Source: Moneta and CTK