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• Net Profit: CZK4.2 billion, up 6.6% year-on-year.

• Return on Tangible Equity: 19.8%.

• Operating Income: CZK9.5 billion, increased by nearly 5% year-on-year.

• Total Assets: CZK448 billion, up nearly 9%.

• Funding Base: CZK444 billion, increased by 8.6%.

• Capital Adequacy Ratio: 19.2%.

• Excess Capital: CZK7.2 billion.

• Net Interest Margin: 194 basis points in Q3.

• Net Fee and Commission Income Growth: 14.5% year-on-year.

• Cost-to-Income Ratio: 44%.

• Cost of Risk: CZK351 million, 18 basis points of the average loan portfolio.

• Loan Portfolio Growth: 0.5% year-on-year, 2.8% growth from the beginning of the year.

• Customer Base: 1.6 million, growth of 2%.

• Branch Network: 134 outlets, with 11 closures planned by year-end.

• Digital Channel Growth: 8% increase in registered users, 13% growth in mobile banking registrations.

• Loan-to-Deposit Ratio: 64%.

• Liquidity Coverage Ratio: 340%.

• Net Stable Funding Ratio: 178%.

• Projected Full-Year Net Profit: CZK5.6 billion.

• Extraordinary Dividend Proposal: CZK3 per share.

• Warning! GuruFocus has detected 7 Warning Signs with XPRA:MONET.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Moneta Money Bank AS (XPRA:MONET) reported a year-to-date profit of CZK4.2 billion, marking a 6.6% increase year-on-year.

• The bank's return on tangible equity is nearly 20%, indicating strong profitability.

• Operating income increased by nearly 5% to CZK9.5 billion, driven by a 14.5% growth in net fee and commission income.

• The bank's capital adequacy ratio stands at a solid 19.2%, with a surplus capital of CZK7.2 billion.

• Moneta Money Bank AS (XPRA:MONET) plans to propose an extraordinary dividend of CZK3 per share, reflecting strong capital position and profitability.

Negative Points

• The bank is underperforming in the lending market, with a growth of only 0.5% against the market's 4.6%.

• There is a notable decline in branch visits by nearly 15%, indicating a shift away from physical banking.

• Personnel costs increased by 6.3%, driven by higher sales incentives and increased average salaries.

• The bank's treasury income decreased by 21% year-on-year, reflecting a declining 2-week repo rate.

• The commercial loan book yields have not reduced despite rate cuts, indicating potential challenges in adjusting to market conditions.

Q & A Highlights

Q: Despite strong new lending momentum this year, net loans didn't grow in 3Q, which partly seems to be related to your cautious stance on the mortgages. How do you anticipate net loan growth in Q4 '24 and into 2025? A: Tomas Spurny, CEO: We expect growth if we maintain stable balances and current growth. October performance was stronger than September, especially in mortgages, with a pipeline of CZK8 billion, the highest since 2022. Commercial pipeline is also strong with 800 transactions worth CZK9 billion. We have commitments exceeding CZK10 billion, indicating optimism for growth.