MONETA Money Bank (MONET) Q2 2024 earnings summary

Executive summary

• Net profit for H1 2024 reached CZK 2.7 billion, up 9.1% year-over-year, with a return on tangible equity of 20% and operating income of CZK 6.2 billion, up 6%.

• Operating expenses decreased by 2.7% to CZK 2.8 billion, supporting profitability despite a higher cost of risk.

• Balance sheet expanded to CZK 483 billion, a 14% increase year-on-year, with funding base and deposits both growing at similar rates.

• Loan portfolio returned to growth, with new lending volumes up 42.7% year-over-year and strong performance in small business and commercial lending.

• Digital distribution channels contributed significantly, with digital loan applications up 34% and 51% of consumer loans originated digitally.

Financial highlights

• Net interest income was CZK 4.2 billion, stable year-over-year; net fee and commission income rose 16.7% to CZK 1.5 billion, led by strong wealth management commissions.

• Operating profit increased 14.5% year-over-year to CZK 3.4 billion.

• Cost of risk was 18bps (CZK 237 million), within the guided range.

• Return on Tangible Equity (ROTE) reached 20%, and Return on Equity (ROE) was 17.8%.

• Non-performing loan (NPL) ratio stable at 1.4%, with total NPL coverage at 116.1%.

Outlook and guidance

• Management targets full-year 2024 net profit of at least CZK 5.2 billion, with potential upside of CZK 100–200 million and operating income of at least CZK 12.4 billion.

• Cost of risk for 2024 projected at 10–30bps; effective tax rate expected at 14%.

• Aspirational year-end loan portfolio target set at CZK 280 billion, above the original conservative target.

• Management reaffirms guidance for cumulative net profit of CZK 27.7 billion for 2024–2028, targeting ROTE ≥17% annually.

• Macroeconomic assumptions: GDP growth 1.2–1.4% in 2024, inflation 2.3–2.6%, repo rate 4.75–5.2%.