Moneta Money Bank’s Net Profit Slides

Prague, Aug 8 (CTK) – The first-half net profit of Moneta Money Bank sank by 3.4 percent yr/yr to Kc2.121bn and its loan portfolio grew, with mortgages adding 42.3 percent, the bank said in a press release today.

 

The bank sold non-performing loans, with a pre-tax income from the sale amounting to Kc648m.

 

Based on its performance, the bank improved a full-year outlook, with the net profit target at Kc3.7bn, rising by Kc300m from its previous estimate, the bank said.

 

Loan portfolio saw an annual rise of 13.4 percent, with retail loans being 18.4 percent higher and commercial loans rising by 8.5 percent.

 

Loans provided online increased by 37.9 percent for consumer loans and by 211 percent for businesses.

 

The strategy produces positive results, which is why the bank raised estimates of many key indicators including the consolidated net profit, said Tomas Spurny, CEO and board chairman of Moneta Money Bank.

 

Total operating revenues are projected to rise to Kc9.7bn from Kc9.5bn.

 

“We see the earnings report as slightly positive,” said Fio banka analyst Michal Krikava. The bank’s discipline regarding administrative expenses and personnel costs is a positive surprise, and positive is also a strong growth in loan volumes and an improved net profit outlook for this year, said Krikava.

 

Moneta Money Bank shares appreciated by 0.8 percent to Kc76.50 per unit on the Prague bourse after 11:00.

 

H1 operating revenues fell by an annual rate of 10 percent to Kc4.8bn.

 

Net interest income reached Kc3.6bn. The figure returned to growth in qtr/qtr terms thanks to rising portfolio and interest rates, the bank said.

 

Total operating costs rose by 3.1 percent to Kc2.4bn, with personnel costs staying unchanged in spite of wage inflation. Write-off costs soared by 57.6 percent annually.

 

Moneta Money Bank, formerly GE Money Bank, has been operating on the market under the current name since 2016. Its name changed because the company entered the Prague Stock Exchange in May 2016. It is one of the largest companies traded on the Prague bourse.