3Q 2023 Results

Published on 26 October 2023 at 07:00 CET

According to IFRS, Consolidated, Unaudited

MANDATORY DISCLOSURE / PUBLIC DISCLOSURE OF MANDATORY INFORMATION

3Q'23 vs 2Q'23

HIGHLIGHTS

(in CZK)

  • Operating income of CZK 3.18 billion

(up by 5%) supported by continued growth in both net interest income and fee and commission income.

  • Operating expenses of CZK 1.28 billion,

decreased by 7% due to continued cost discipline and additional regulatory charge paid in 2Q 2023.

  • Cost of risk of CZK 142 million, stable

quarter-on-quarter thanks to continued good portfolio performance.

Net interest income

2.20bn

+1.4%

Operating expenses

(1.28)bn

(7.0)%

Net fee & commission income

0.68bn

+2.9%

Cost of risk

(0.14)bn

(2.7)%

Other income

0.30bn

+51.5%

Net profit

1.49bn

+18.3%

Note: Percentage change represents movement compared to 2Q'23.

2

YTD 3Q'23 vs 3Q'22
HIGHLIGHTS
(in CZK)
• Operating income stable (down 0.7%) thanks
to increasing NII during 2023, strong growth in net fees and commission income and solid performance in other income.
  • Operating expenses flat (up 1.0%) despite

higher regulatory contributions, increased by CZK 78 million, and inflationary pressure.

  • Net profit of CZK 4 billion (down 3.7%)

above operating plan due to better-than-expected performance on operating income, cost of risk and lower effective tax rate.

Operating

Operating

Operating

income

expenses

profit

9.1bn

(4.2)bn

4.9bn

stable

stable

(2.1)%

Cost of

Income

Net

risk

tax

profit

(0.17)bn

(0.7)bn

4.0bn

net creation

(25.8)%

(3.7)%

Note: Percentage represents year-on-year change.

3

YTD 3Q'23 vs 3Q'22

HIGHLIGHTS

(in CZK)

  • Deposit base up by 23%, representing an

additional CZK 73 billion year-on-year and more than doubled market growth.1

  • Strong liquidity position demonstrated

by 312% LCR and 157% NSFR, accompanied

by the lowest loan to deposit ratio at 69%, high- quality liquid assets reached CZK 143 billion and doubled year-on-year.

  • Stable loan portfolio reflecting persistent low demand for loans, predominantly on the mortgage market.

Deposit

High-quality

Liquidity

base2

liquid assets

coverage ratio

393bn 143bn 312%

+22.7%

+101.4%

+114pp

Loan

Loan to

Investment

portfolio3

deposit ratio

securities

270bn

69%

88bn

stable

(15.5)pp

+63.6%

Note: Percentage or percentage points represent year-on-year change. (1) MONETA's growth was more than 13% above the retail market growth rate and

4

more than 2% above the commercial market growth rate as of 31 August 2023; (2) Core customer deposits; (3) Gross performing loan portfolio.

accompanied by 9.5% lower

OPERATING

PLATFORM

  • Branch network reduction by 14

units

employment contributed to stable costs year- on-year.

  • Shared network of 2,009 ATMs1 with

MONETA's contribution of 566 ATMs.

  • Employment base 2,533 FTEs,

reduced by 9.5% during the last 12 months, enabling containment of inflationary pressure on wages.

Branch

Own &

network

shared ATMs1

140

2,009

(9.1)%

+42.0%

Total

Internet

clients

banking users

1.6m

1.4m

+3.0%

+13.1%

Total employees2

2,533

(9.5)%

Mobile banking users3

1.0m

+43.4%

Note: Percentage represents year-on-year change. (1) ATM network including 566 MONETA ATMs, 817 Komercni banka ATMs, 368 Air Bank ATMs

5

and 258 UniCredit Bank ATMs as of 30 September 2023; (2) FTEs in September 2023, excluding members of the Supervisory Board and the Audit

Committee; (3) Smart Banka application.

CONTENT

  • Macroeconomic Environment
  • Digital and Physical Distribution Update
  • Profit and Loss Development
  • Balance Sheet Development
  • Risk Metrics & Asset Quality
  • Liquidity and Interest Rate Management
  • Capital Management
  • 2023 - 2027 Market Guidance
  • Appendix

MACROECONOMIC ENVIRONMENT

For 2023, the economy is expected to stagnate, unemployment remains low, the state budget deficit projected at CZK 295 billion

GDP evolution (CZK bn)1

GDP Nominal

GDP Y/Y % change

1,354

1,349

1,349

1,261

4.7%

3.4%

1.4%

0.1%

1Q 2022

2Q 2022

3Q 2022

4Q 2022

2022: 2.4%

Government debt in % of GDP2

1Q'23 EU: 91.2%

2023F: 0.0%

Czech Republic

Euro area (20 countries)

1Q'23 CR: 44.5%

1,339

84.0%

97.1%

95.3%

91.4%

89.0%

1,258

37.7%

42.0%

44.2%

44.7%

30.0%

(0.5)%

(0.6)%

1Q 2023

2Q 2023

2019

2020

2021

2022

2023F

Unemployment rate: Czech Statistical Office3

State budget deficit of the Czech Republic4 (CZK bn)

2022: 2.4%

CZK (180.7)bn

2023F: 2.7%

in 3Q 2023 YtD

2.4%2.5%

1Q 2022

2Q 2022

2.6%

2.4%

(28.5)

2.2%

(360.4)

(295.0)

(367.4)

(419.7)

3Q 2022

4Q 2022

Aug 2023

2019

2020

2021

2022

2023F

Note: (1) Source: Nominal GDP at fixed prices of 2015 based on the Ministry of Finance (www.mfcr.cz); 2Q 2023 estimate, 2023 forecast; GDP at current

prices - 1Q 2022: CZK 1,637bn, 2Q 2022: CZK 1,675bn, 3Q 2022: CZK 1,729bn, 4Q 2022: CZK 1,743bn, 1Q 2023: CZK 1,815bn, 2Q 2023: CZK 1,836bn; GDP Y/Y 7

  • change: 1Q 2022 - 2Q 2023 actuals based on the CZSO seasonally adjusted; (2) GDP at current prices, source: Czech Republic data source: www.mfcr.cz, Euro area data: www.ec.europa.eu/eurostat; (3) ILO methodology, 2023F based on the CNB forecast issued in summer 2023; (4) Source: www.mfcr.cz.

MACROECONOMIC ENVIRONMENT

Inflation in September decreased to 6.9%; the 2W repo rate remains stable; the probability of interest rate cut is increasing

Consumer price index1 (year-over-year % change)

End of period

3.2%

2.3%

6.6%

15.8%

change2

16.0%

15.1%

14.0%

12.0%

10.0%

8.0%

2.8%

3.2%

3.8%

6.0%

4.0%

2.0%

2% the CNB inflation target

0.0%

2019

2020

2021

2022

2W limit repo rate (end of period)

6.9%

12.7%

7.00%

7.00%

7.00%

7.00%

7.00%

7.00%

3.75% 4.50%

2.00%

0.25%

2019

2020

2021

1Q 2022

2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

3Q 2023

Sep'23

Contribution to inflation1 by item

Swap and bond yield curve3

FY 2022 %

Sep 2023 %

Sep 2023 Y/Y price

Swap

Government bond

contribution

contribution

change %

Food and beverages

5.0

1.7

6.3

8.0%

Clothing and footwear

0.7

0.4

9.2

7.0%

Housing, energy

5.2

2.8

8.0

6.0%

Health

0.3

0.2

8.8

5.0%

Transport, telecommunication

1.1

0.1

1.2

4.0%

Recreation, culture, education

1.2

0.7

8.6

3.0%

Restaurants and hotels

1.5

0.6

10.3

1D

1M

6M

2Y

5Y

8Y

12Y

30Y

Other

0.8

0.4

6.9

Total

15.8

6.9

6.9

Source: CZSO, Bloomberg. (1) Inflation rate as an increase in the average annual Consumer price index; (2) Consumer price index calculated as an

8

increase in the CPI compared with the corresponding month of the preceding year; (3) Data as of 30 September 2023.

CONTENT

  • Macroeconomic Environment
  • Digital and Physical Distribution Update
  • Profit and Loss Development
  • Balance Sheet Development
  • Risk Metrics & Asset Quality
  • Liquidity and Interest Rate Management
  • Capital Management
  • 2023 - 2027 Market Guidance
  • Appendix

USAGE OF DIGITAL PLATFORM

Mobile banking grows rapidly, attracting 313 thousand new users YoY, and has become the predominant channel, capturing 75% of all transactions

Digital platform users1 (in m)

+13.1%

1.38

1.30

1.34

1.26

1.22

0.34

Internet

0.35

0.36

banking

0.42

0.50

0.93

0.99

1.03

Mobile

banking

0.83

0.72

Digital transactions2 (in m)

+18.6%

20.9

20.6

19.5

19.6

Internet

17.4

25%

28%

banking

37%

33%

42%

72%

75%

Mobile

banking

63%

67%

58%

3Q

4Q

1Q

2Q

3Q

3Q

4Q

1Q

2Q

3Q

2022

2023

2022

2023

Note: Mobile banking = Smart Banka application. (1) Mobile banking users are also internet banking users; (2)

Includes payment, service and sales

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transactions.

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Disclaimer

Moneta Money Bank a.s. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 05:03:00 UTC.