MONETA expects to beat 2022 profit forecast after strong quarter

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PRAGUE (Reuters) – MONETA Money Bank said on Thursday it expected to beat its 2022 profit forecast after posting strong third-quarter results, adding that a decision by the Czech government to cap energy prices for households should ease the pressure on lending.

While a sharp rise in interest rates on a year-long tightening cycle by the Czech National Bank boosted the country’s banks, that ended in June and soaring energy costs are expected to push the country into recession, hitting borrowers. At the same time, the government is pursuing a windfall tax on banks, energy companies and other sectors to help control a growing public deficit.

As the windfall tax is not expected to hit 2022 profits, MONETA said it is on track to meet and even exceed its forecast for this year’s net profit of at least $4.4 billion. crowns ($180.5 million).

“We believe that in terms of profitability, we have at least a 10% upside this year,” Chief Executive Tomas Spurny told reporters after the bank’s earnings release.

Some analysts were skeptical.

“The outlook for this year and beyond is no longer relevant in our view, and we expect an update based on current developments,” J&T Banka said.

The quarterly profit of 1.25 billion crowns, beating MONETA’s estimates, brought it to 94% of its full-year forecast after the first nine months of the year.

MONETA’s target for a total net profit of at least 18.7 billion crowns between 2022 and 2025 will be weighed by the additional tax envisaged by the Czech government, Spurny said, adding that it was difficult to make an estimate. exact before a final decision on this matter. is approved.

On the other hand, the government’s cap on energy prices for households should ease pressure on MONETA’s loan portfolio, Spurny said.

($1 = 24.3770 Czech crowns)

(Reporting by Robert Muller; Editing by Alexander Smith)

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