MONETA Money Bank : Interim report for 3Q 2023, consolidated

MONETA Money Bank, a.s. Consolidated interim financial report

as of and for the nine months ended 30 September 2023 (All amounts in CZK millions unless otherwise stated)

Contents

1. Basic Information about MONETA Money Bank, a.s.
   ............................................................................... 14
2. Consolidated Interim Financial Statements for the

7.1 Consolidated Interim Statements of Profit or Loss and Other Comprehensive Income for the Three

7.4 Consolidated Interim Statement of Cash Flows for the Nine months Ended 30 September 2023

8.7.1 Analysis of deferred costs and fees directly attributable to origination of new loan products that are integral part of the effective interest rate for a three and nine-month period

………………………………………………………….24

1. Loans and receivables to banks and customers according to their categorisation . 37
2. Walk of allowances to Loans and

8.19.4 Break-down of allowances according to

8.19.5 Coverage of non-performing loans and

1. Updated five-year guidance published on 27th July 2023.
2. Internal forecast derived from macroeconomic forecast from CNB published on May 2023 https://www.cnb.cz/en/monetary- policy/monetary-policy-reports/Monetary-Policy-Report-Spring-2023/

3

MONETA Money Bank, a.s. Consolidated interim financial report

as of and for the nine months ended 30 September 2023 (All amounts in CZK millions unless otherwise stated)

2 Letter from the CEO

Dear Shareholders,

It is pleasing to report that MONETA had another very successful quarter. Let me summarise the key highlights of the period.

Concerning deposits and liquidity, we continued to attract new customer deposits to achieve total core customer deposits of CZK 393 billion by the end of the quarter. Retail deposit growth was 16.3 per cent in the year-to-date, and commercial deposits were up

21.9 per cent. The attractive interest rate proposition across our deposit product portfolio continues to attract both volumes and new clients. We maintained and further improved our excellent liquidity position, and our liquidity ratios are at their highest ever level.

Additionally, we successfully implemented a mortgage- backed securities programme, which enables us to obtain from the Czech National Bank (CNB) additional liquidity, if needed, in the amount of up to CZK 70 billion. A first tranche of these securities is held by the Bank in the amount of CZK 15 billion.

Our balance sheet increased to CZK 449 billion as a result of the successful marketing of our deposit products. The overall core customer deposit base increased by CZK 59 billion in the year-to-date, deriving marginal profitability against the current CNB key rate (repo) and supporting the overall stability of our operating income as well as reinforcing MONETA's liquidity.

I am also delighted to report that our third quarter financial performance delivered a solid net profit of CZK 1.5 billion, meeting our year-to-date targets. In fact, we generated a strong quarterly operating income of CZK 3.2 billion, up 5.2 per cent on the third quarter of previous year. This improvement was achieved due to strong fee and commission income, thanks to our successful distribution of third-party, commission- based products.

Cost of risk remained low at 9 bps thanks to the continuing good re-payment discipline of our clients across all segments. This was supported by the continued and successful disposals of non-performing loans (NPL). These disposals reduced our cost of risk by nearly CZK 300 million. The benign risk charge is accompanied by our ability to maintain a low ratio of non-performing loans and our strong loan loss provisioning.

As you are aware, MONETA is focused on cost management discipline. Our total operating costs are nearly identical compared to the previous year despite the strong inflationary headwinds and a near 35 per cent increase in our mandatory contributions to regulatory funds during the current year. In line with our cost optimisation strategy, I am pleased to report that we are in the process of reducing our overall headquarters office space by 25 per cent and have successfully executed a lease commitment with a triple A-rated corporate sub-tenant. This will bring considerable cost benefits during the coming year.

On the regulatory front, we will face headwinds that will impact our net interest earning capability during the fourth quarter and next year. The CNB decided to discontinue interest payments on mandatory minimum reserves. Typically, we hold a balance of CZK 7 billion of such reserves, and we currently estimate a negative impact of approximately CZK 120 million during the fourth quarter of the current year. Despite this, we will do our utmost to fulfil commitments made concerning key components of our net profit guidance.

4

MONETA Money Bank, a.s. Consolidated interim financial report

as of and for the nine months ended 30 September 2023 (All amounts in CZK millions unless otherwise stated)

On a more positive note, the regulator decided to lower the countercyclical capital buffer rate from 2.25 per cent to 2 per cent. This will decrease our regulatory capital requirement to 16.1 per cent (including the management capital buffer) effective from 1 October 2023. Regarding the capital requirement, I am very pleased to announce that the CNB decreased the Pillar II requirement for MONETA from 2.6 per cent to 2.3 per cent effective 1 January 2024. This positive decision comes as a result of the regular Supervisory Review and Evaluation Process conducted by the CNB. We believe it is a proof that the regulator sees MONETA as a well-capitalised and managed Bank. As a result, the overall capital requirement will decline to 15.8 per cent (including the management capital buffer) with effect from 1 January 2024.

Finally, on the regulatory front, I am pleased to report that we have successfully completed two regulatory inspections. The CNB inspected two aspects of our operations - operational risk management and our information technology management. The result of these inspections produced, in our view, a positive assessment of our processes, practices and overall management capabilities as well as corporate governance standards. We have received a list of findings that we will not contest or otherwise dispute, and will implement the recommendations of the regulator.

CURRENT ECONOMIC SITUATION

Our government has been preoccupied by the need to consolidate the public budget. As I write this, the government's consolidation measures were approved by the Chamber of Deputies and the related legislation is headed for the approval by the upper chamber of the Parliament and the president.

In parallel, the public deficit has improved and now stands at CZK 180.7 billion after three successive months of improvement, including the receipt of a CZK 54 billion dividend payment from the national energy producer. The state budget has also benefitted from higher corporate income tax receipts.

The CNB continues in its efforts to subdue inflation, which have been succeeding. The last reported annual inflation was 6.9 per cent in September, meaning that the rate fallen successively over the last 8 months. Despite this, the CNB expects 2023 full-year inflation of 11 per cent. The central bank expects that inflation should reach the target level of 2 per cent during the first half of 2024.

The Governor of the CNB has indicated that the key two-week repo rate will remain at its current 7 per cent until inflation is subdued, consolidation of the state budget is on the right path, and the targeted inflation rate is reachable and sustainable.

The Czech economy is likely to remain stagnant in 2023, suggest the latest key indicators. GDP declined by 0.6 per cent in the second quarter of 2023 and the CNB has forecast negligible growth of just

0.1 per cent for the full year. In its September statement, the CNB noted that "household consumption rose slightly in the second quarter following six quarters of decline but was 9 per cent below the pre-Covid level," and that "tight monetary policy, high energy and food prices, and negative sentiment," were the cause. Despite this relatively negative economic landscape, the labour market remains tight, with unemployment at 2.6 per cent, the lowest in the European union.

Given the recent set of geopolitical and regional events we sense risks to commodity prices, potential pressures on the value of the Czech crown, and continued erosion of domestic consumption. On balance we continue to take a cautionary posture in our commercial activities. We believe that there are risks of a return of inflationary pressures during the fourth quarter of this year.

3Q FINANCIAL PERFORMANCE

Our net profit in the year-to-date is CZK 4 billion, which exceeds our operating plan. If we look at our Return on Equity, we have so far generated 17.1 per cent and are on the way to successfully outperforming our market guidance. So far this year we have been able to achieve stability in both our operating income and our operating cost base. As already mentioned, we recorded a positive performance concerning our cost of risk. All in all, I am pleased to report a favourable net profit performance and I believe that we will be able to successfully close this year despite the negative headwinds already mentioned.

If we take a closer look at our operating income structure, our net interest income stands at CZK 6.4 billion, down 11.3 per cent year-on-year. The decline was caused by the increased cost of funding as a result of the current high market rates and our desire to continue growing our deposit base and overall client base.

Turning to our net fee and commission income of CZK 2 billion, we saw growth of 22.3 per cent, or CZK 357 million, year-on-year, which contributed

5

MONETA Money Bank, a.s. Consolidated interim financial report

as of and for the nine months ended 30 September 2023 (All amounts in CZK millions unless otherwise stated)

greatly to our operating income stability. This growth was achieved through the re-negotiation of commission terms and related volume bonuses. In addition, the growth was supported through significant performance improvements in the number and volume of third-party products such as pension, life and payment protection insurance and also collective investment funds. With respect to fee expenses, we successfully decreased fees charged by card payment systems through securing bonuses and additional forms of support.

Our operating expenses remained stable at CZK 4.2 billion despite higher regulatory contributions, which increased due to the recent failure of a competitor and the robust growth of our insured deposit base. Our level of personnel expenses remains stable, with a slightly decreasing trend due to restructuring undertaken in the second half of 2022. Concurrently, our administrative expenses are under pressure because the majority of our suppliers require contractual and inflation-based adjustments.

Concerning our cost of risk, we incurred a net charge of CZK 172 million, or 9 bps. We continued to benefit from the consistently good repayment discipline of our clients. Furthermore, as already mentioned, we were able to conduct non-performing loan disposals to realise a total accounting gain of CZK 291 million, which supported the better-than-expected performance in this cost category. Repayment discipline combined with successful portfolio sales enabled us to maintain a low non-performing loan ratio of 1.3 per cent - the lowest level since our IPO in 2016.

And lastly, we have invested part of our free liquidity into government bonds which indirectly lower our effective tax rate. Our effective tax rate stands at

15.3 per cent and we believe that it will remain stable throughout the upcoming quarter. I would like to mention that our contributions to the state treasury concerning direct and indirect taxes continue to increase, by more than 60 per cent in 2022 and by nearly 40 per cent so far this year.

If we now look at key ratios, our capital adequacy ratio stands at 19.9 per cent and well exceeds regulatory requirements. Currently, our regulatory capital base stands at CZK 34 billion, and we have a significant amount of excess capital for future growth. It is further reinforced by the recent decision on part of the CNB to decrease the countercyclical buffer by 0.25 per cent and to decrease the Pillar II capital requirement for MONETA by 0.30 per cent. In addition, as of the third quarter end, we have accrued CZK 3.2 billion for future dividend distributions. Both, our capital position and

profitability give credence to our long-term 80 per cent dividend pay-out capacity.

Aside from our solid capital position, we continue to have a robust and much improved liquidity position. Our high-quality liquid assets improved significantly and reached CZK 143 billion at the end of the quarter. Our liquidity coverage ratio has also significantly improved to reach 312 per cent. In September we received regulatory approval to issue up to CZK 90 billion in mortgage-backed securities. This programme is designed to provide an additional liquidity buffer in the amount of CZK 70 billion if required in the future. We have successfully conducted liquidity tests with the CNB to ensure preparedness for any potential stress to our deposit base and future liquidity.

Our client base continues to grow and has reached

1.6 million, up 2.8 per cent on the year-end.Year-on- year we attracted 154 000 new clients. So far this year MONETA has recorded a 14 per cent increase in the number of new clients opening a business account.

Compared to previous years, the number of commercial clients under the age of 30 is also increasing, and they currently account for more than a quarter of our commercial clients.

3Q2023 BUSINESS PERFORMANCE

At the end of the third quarter our core customer deposits had grown to CZK 393 billion. Overall, our customer deposits grew by 17.6 per cent compared to the previous year-end. Retail deposits grew by 16.3 per cent and commercial balances by 21.9 per cent. In both segments, growth has been concentrated in attractive savings products. Specifically, savings accounts and term deposits rose by 31.5 per cent. And as our clients continue to seek interest rate bearing products, current accounts remained broadly stable.

Our gross performing loan portfolio remains stable, in line with our current strategy previously communicated through our market guidance. The retail loan portfolio contracted by 2.7 per cent due to our targeted trimming of the mortgage book and more cautious approach to unsecured retail lending. The commercial loan book grew by 6.1 per cent, largely driven through the successful distribution of small business-related lending products. We have also acquired new opportunities to support our clients through working capital financing and have completed the financing of certain investments projects. In this respect, we have effectively discontinued the new financing of

6

MONETA Money Bank, a.s. Consolidated interim financial report

as of and for the nine months ended 30 September 2023 (All amounts in CZK millions unless otherwise stated)

commercial real estate projects and are focusing on supporting our traditional long-term clients. Regarding innovations, we are successfully developing dealer-based financing of agricultural equipment such as harvesters and tractors. This financing provides flexible repayment schedules, includes the ability to incorporate interest rate subsidies, and most importantly enables equipment to be procured through the sellers of such equipment. The platform enabling these transactions is fully digital and easy to use by the staff of various equipment vendors.

Retail business performance

The overall gross performing retail loan book stands at CZK 182 billion, constituting a reduction of 2.7 per cent compared to the year-end. With respect to mortgages, the overall book decreased by 2.8 per cent to CZK 129 billion. New volumes declined by 70.1 per cent year-on-year, in line with market trends and reflecting higher requirements for approvals. Likewise, our consumer lending generates lower new volumes due to decreased demand, higher underwriting requirements, and the higher level of interest rates. New volumes of consumer lending contracted to CZK 10.8 billion. Our retail unsecured loan balance stands at CZK 52 billion, which comprises instalment loans, auto loans, revolving loans and bridging loans.

We continue to develop our distribution of collective investment products. So far this year, our clients successfully executed CZK 7.9 billion of new investments into third-party funds. The level of new investments increased by 7.6 per cent during the year. The overall portfolio of invested funds into such third- party products reached CZK 33.3 billion, an increase of 18.6 per cent compared to the year-end.

Additionally, MONETA successfully distributed almost 28,000 pension fund insurance contracts and 9,000 life insurance policies. We continue to protect our borrowers and account holders with payment protection products and identity-theft insurance coverage. We placed over 31,000 identity-theft insurance units, approximately the same level as in the previous year.

Our branch network has 140 outlets and 28 independently managed distribution offices. We are planning to close seven branches and are reviewing our strategy concerning the independently managed offices. We manage 566 of our own ATMs, and this year we have relocated 35 ATMs to optimise our network in light of our shared network agreement with three competitors.

It is notable that our key weekly branch performance indicators remain stable: branch visits are around 20,000, with loan applications around 2,500. There is a declining trend in cash withdrawals and deposits. Gradually, we see the growing importance of our digital platform taking an ever higher portion of our distribution.

Commercial business performance

The overall gross performing commercial loan book stands at CZK 89 billion, an increase of 6.1 per cent compared to the year-end.

Our portfolio of investment loans was stable at CZK 46 billion, however we recorded a decrease in new volumes, down by 30.1 per cent compared to last year. Working capital lending was CZK 19 billion, a 33.8 per cent increase. Our small business portfolio

25.1 per cent. Auto lending was up by 7.1 per cent at CZK 7.4 billion.

Overall, as evidenced by our volumes, we see a notable slowdown in demand to finance investments due to the current economic conditions. On the other hand, we see that SMEs and our larger commercial clients required higher levels of working capital due to inflationary adjustments. In our small business franchise, we experienced solid demand continuing into the third quarter. However, the current demand is somewhat below our business plan expectations. Overall, we end the quarter with a lending opportunities pipeline that is broadly stable with relative to previous quarters.

Our staffing of front office positions servicing both SME and small business clients decreased by approximately 10 per cent against the end of 2022. Nonetheless, we accomplished stability in overall balances.

DIGITAL PLATFORM

The number of our digital users continues to grow. The award-winning Smart Banka application was serving more than 1 million clients as of 30 September 2023, an increase of 23.8 per cent compared to the year-end. Smart Banka receives one of the highest ratings, 4.8, for banking apps from AppStore and Google Play.

We also continued to innovate payments. Our offering was expanded by including the SwatchPAY! payment service alongside Apple Pay, Google Pay, Fitbit and Garmin Pay. SwatchPAY! enables contactless payment

7

MONETA Money Bank, a.s. Consolidated interim financial report

as of and for the nine months ended 30 September 2023 (All amounts in CZK millions unless otherwise stated)

via Swatch wristwatches. We are the second bank in the Czech market providing this payment capability.

Concerning digital platform security, we are moving away from SMS confirmation codes sent to clients to verify their digital transactions. This is based on our experience over the last 12 months, where 95 per cent of all cyber-attacks involved stolen SMS confirmation codes. Hence, we have been implementing a robust communication strategy concerning cyber security and have elected to implement fees for SMS based authorisations to motivate our clients to utilise the safer "push button" authorisation generated through our application.

Regarding digital security, approximately 5 per cent of our clients prefer simple devices and refuse to migrate onto sophisticated smart phones. For a temporary period, we have implemented a policy of exceptions to accommodate older clients. However, we will pursue the course of innovations to further solidify the strength of our platforms and ensure best-in-class client protection.

Our digital channels play increasing role in both client service and the distribution of our product offering. Our mobile banking application offers 27 products and constantly increasing functionalities to manage and service products. The online channels originated 48 per cent of consumer lending and 32 per cent of small business volumes. Digital channels also play a significant role in the distribution of deposit and transactional products. Specifically, the share of on-line openings of retail current account, and retail savings products is 43 per cent and 58 per cent, respectively.

CAPITAL POSITION

MONETA continues to report a strong capital position. Our regulatory capital stands at CZK 34 billion, and we currently have CZK 4 billion of excess capital above the Tier 1 requirement. Our capital adequacy ratio is

1. per cent, with a Tier 1 ratio of 15.5 per cent. The Capital requirement stands at 15.1 per cent, or

1. per cent including the management buffer and the decrease in the countercyclical buffer to 2 per cent effective from 1 October 2023.

Our total requirement for capital and eligible liabilities (MREL) stands at 19.6 per cent, or 20.6 per cent including the management buffer, and our MREL ratio stood at 23.8 per cent as of 30 September 2023.

As already mentioned above, I am also pleased to inform that the Czech National Bank updated our

capital requirement for 2024 following its Supervisory Review and Evaluation Process (SREP). Based on the SREP, the CNB reduced our capital requirement by 30 bps. As a result, our total capital management target on consolidated level will therefore decline from 16.1 to 15.8 per cent effective from 1 January 2024.

AWARDS

I am proud to report that, once again, MONETA was widely recognised at the prestigious Zlatá koruna (Golden Crown) annual banking awards. Our bank took 12 awards, equalling its record haul from last year. Our Smart Banka mobile banking app won most popular banking product of the year - for the third year in a row

• in the Public Choice Award. MONETA also won Gold Crowns in the Entrepreneurs' Choice Award and Newcomer of the Year categories, and also took gold for its Savings Account and MONETA Stavební Spořitelna building savings product.

Silver Crowns were awarded in the Business Accounts category to our Konto PRO podnikání, and in the Business Loans category for our product responding to the current energy crisis, the so-called green loan for small business. Bronze Crowns were awarded for our Savings Account for Sole Traders and Small Business, our Loan for Women Entrepreneurs, and the Tom Plus current account.

The Zlatá koruna is a respected benchmark for financial products on the Czech market. Products and services are evaluated by a commission of independent economic experts and academics from the Financial Academy which has around 350 members. Besides that, the Public Choice Award is decided by members of the general public, 30,000 of whom participated in this year's vote. This mix of professional and client evaluation is what makes the awards so unique, and so meaningful to our industry.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

I often use my quarterly letters to provide you with updates on how we, as a bank, strive to make our business and its operations more sustainable. I would like to take this opportunity to share some examples of how our commitment to sustainability feeds into our products.

For example, MONETA is doing its bit to nudge motorists towards electric cars by expanding its offer of 'green loans' to clients wishing to purchase new or used electric and hybrid cars. These loans carry a favourable interest rate. In the same spirit and over the past

8