William Malcolm

Moneta Sees Profits Fall 35% In 2020

Moneta Money Bank’s net profit fell to 2.6 billion crowns last year from four billion in 2019. Its operating revenues rose by 15 percent year-on-year to 12.1 billion crowns, mainly due to the acquisition of Wüstenrot. The bank’s financial results were affected by higher risk costs and lower returns due to the current covid-19 epidemic. The cost of risk in connection with this epidemic reached 3.6 billion crowns.

“Despite this unexpected crisis, we continue to meet our strategic goals, and I have no doubt that it will continue to do so in the coming year,” said Tomáš Spurný, the CEO of the bank, about the bank’s financial results.

The acquisition of Wüstenrot stavební spořitelna and Wüstenrot mortgage bank, which Moneta completed last April, also affected the previous year’s increase in the bank’s operating costs. They rose by 10.1 percent year on year to 5.5 billion crowns. Excluding the acquisition’s impact, costs would remain slightly below last year’s level, the bank said.

Moneta gained over 400,000 new clients through acquisitions and strengthened its deposit base by more than 55 billion and its loan portfolio by 56 billion crowns. Wüstenrot stavební spořitelna now operates under the name Moneta Stavební Spořitelna, has terminated the sale of Wüstenrot Moneta mortgages and offers only mortgage products of its line.

Last year, retail loans rose by 68.1 percent, while mortgages rose by 124 percent year-on-year and unsecured consumer loans by 20.3 percent. However, according to the bank, the new volume of consumer loans fell by 31.3 percent due to the epidemic.

The volume of client deposits with the bank increased by 47.4 percent year to 257.1 billion crowns and increased client investments in mutual funds by 37.3 percent to 17.6 billion crowns.

Moneta Money Bank has been operating under its current name since 2016. At that time, the bank’s name was changed from the former GE Money Bank to its listing on the stock exchange in May of the same year. Moneta is one of the largest companies traded on the Prague Stock Exchange.

Two weeks ago, Moneta received a proposal from PPF for the second time to start negotiations on unification with Air Bank, the Czech and Slovak Home Credit, and this time with Benxy (the Zonky brand). Moneta and Air Bank’s merger may create the third-largest bank in the Czech market, depending on the number of clients. PPF also made a voluntary proposal to buy Moneta shares from its shareholders up to 20 percent.

Moneta’s Board of Directors has unanimously concluded that PPF’s proposal to repurchase part of Moneta’s shares is in line with the bank’s interests and shareholders. According to Moneta, the commencement of negotiations on a possible unification with PPF banking companies depends on shareholders’ due diligence and consideration.