Moneta Money Bank increased its net profit by 53 percent year on year to CZK 3.98 billion last year. The bank’s operating income fell about eight percent to CZK 11.17 billion but rose 4.6 percent after adjusting for one-off effects from 2020. The bank’s results improved due to higher net interest income, stable operating expenses, and a lower cost of risk, it said in a press release.
Moneta stated that it exceeded its original net profit target of 42%. According to the bank, the 53% year-on-year increase equates to 7.8 crowns per-share earnings.
Operating expenses remained almost unchanged, at CZK 5.54 billion last year. Net interest income rose four percent year-on-year to CZK 8.61 billion, while the cost of risk fell 80 percent to CZK 695 million.
Cyrrus analyst Tomas Pfeiler said that Moneta’s net profit beat analyst estimates. He stated the growth was mainly related to a dramatic drop in the cost of risk. He sees the development of operating expenses, which showed only a minimal increase. Moneta is thus maintaining admirable cost discipline in the current inflationary environment. The increase in the outlook for net profit this year by CZK 600 million is also optimistic news, he added.
Moneta Money Bank is one of the largest companies traded on the Prague Stock Exchange. It has been operating under its current name since 2016 when the name was changed from the former GE Money Bank in connection with its listing.
Last December, Moneta’s shareholders agreed to merge with the banking arm of PPF, which includes Air Bank, Czech and Slovak Home Credit, and Benxy (Zonky). The general meeting also approved the transaction’s financing, i.e., an increase in the bank’s share capital to subscribe for new shares.