PRAGUE, Feb 3 (Reuters) - Czech lender MONETA Money Bank reported an almost 12% rise in 2025 net profit on Tuesday and proposed a dividend increase, as it also forecast earnings growth over the next
MONETA Money Bank Surpasses 2025 Profit Forecast, Plans Dividend Boost
MONETA Money Bank Financial Performance
PRAGUE, Feb 3 (Reuters) - Czech lender MONETA Money Bank reported an almost 12% rise in 2025 net profit on Tuesday and proposed a dividend increase, as it also forecast earnings growth over the next few years.
Profit and Dividend Overview
Net profit totalled 6.5 billion crowns ($316.16 million), above the bank's most recent guidance for 6.3 billion crowns, MONETA said. It forecast a slight rise to 6.6 billion crowns in 2026.
Future Earnings Forecast
In its updated outlook, MONETA said it expected to earn a cumulative net profit of 37.1 billion crowns in the 2026-2030 period, a 39% rise over the 2021-2025 period.
Dividend Policy and Strategy
MONETA shares were up 0.7% at 208 crowns at 0932 GMT, after hitting a record high of 219 crowns last week ahead of its annual results.
Czech banks like MONETA, the country's sixth biggest lender, have reported earnings growth as falling funding costs offset pressure on interest income when interest rates fell last year.
DIVIDEND POLICY STAYS
Chief Financial Officer Jan Fricek said drivers for the outlook were rising yields on the mortgage book as a large share of the portfolio comes up for refixing in the next few years; growing loans to small businesses; and increased distribution of wealth management products.
At the same time, the cost of risk is expected to stay around normalised levels, he said.
MONETA expects to keep its dividend payout ratio at 90% of net profit in the coming period. It proposed an 11.5 crown per share dividend from 2025 profits - a 5.6% yield to Monday's close - and up from 10.0 crowns for 2024.
The bank has paid out an extraordinary dividend in the past two years as part of a strategy to distribute excess capital.
Fricek said it was too early to discuss another interim dividend this year, which will be up for discussion in the third quarter, as in previous years. Last year's extra dividend amounted to 4 crowns per share.
He also said the bank was considering loan portfolio securitisation which would lead to a capital release.
"We are in the early stages," he said.
($1 = 20.5590 Czech crowns)
(Reporting by Jason Hovet; Editing by Susan Fenton)
