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ER - MONETA Money Bank – prezent...

Company: Moneta Money Bank A.S. Date: 2024-10-24 Language: English Register to download
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# **3Q 2024 Results**

Published on 24 October 2024 at 07:00 CET According to IFRS, Consolidated, Unaudited

![](_page_0_Picture_2.jpeg)

MANDATORY DISCLOSURE / PUBLIC DISCLOSURE OF MANDATORY INFORMATION

## **3Q 2024 YTD KEY HIGHLIGHTS**

#### (in CZK)

- **Operating income of CZK 9.5 billion** (**+4.6%**) supported by growth in net interest income (**+1.5%**) and net fee and commission income (**+14.5%**)
- **Net profit of CZK 4.2 billion** (**+6.6%**) in line with expectations and on track to exceed a full-year minimum profitability target of **CZK 5.2 billion**  by at least **CZK 0.4 billion** or **+7.7%**
- **Total assets reached CZK 488 billion** (**+8.7%**)**,**  driven by expansion of client deposits (**+7.3%**) and successful issuance of MREL eligible bonds. Overall funding base grew by **8.6%**

![](_page_1_Figure_5.jpeg)

## **3Q 2024 YTD KEY HIGHLIGHTS**

#### (in CZK)

- **Capital adequacy ratio at 19.2%**, which is **4.2%** above management target and corresponding to **excess capital** of **CZK 7.2 billion**<sup>1</sup>
- **Extraordinary dividend** proposal of **CZK 3 per share** (**CZK 1.5 billion**)3 to be decided by shareholders on 19 November 2024
- Reduced **Pillar II** capital requirement by **30bps**<sup>2</sup> to **200bps** from 1 January 2025 as a result of annual SREP process
- **MREL ratio of 28.1%** reinforced by **EUR 300 million** senior preferred bond issuance

| Capital                    | Excess                        | MREL                     |  |  |
|----------------------------|-------------------------------|--------------------------|--|--|
| adequacy ratio             | capital1                      | ratio                    |  |  |
| 19.2<br>%<br>Excess 4.2%   | 7.2<br>bn                     | 28.1<br>%<br>Excess 6.1% |  |  |
| Pillar II                  | Extraordinary                 | MREL bond                |  |  |
| requirement2               | dividend3                     | issuance (EUR)           |  |  |
| 2.0<br>%<br>Decrease 30bps | 3<br>per share<br>Total 1.5bn | 300<br>m                 |  |  |

3

![](_page_2_Picture_7.jpeg)

Note: (1) Excess capital above the capital management target of 15.05% as at 30 September 2024; (2) Effective from 1 January 2025, change in basis points represents movement between 2024 and 2025; (3) Subject to corporate, regulatory and regulator´s limitations and shareholders' approval at the General Meeting to be held on 19 November 2024.

#### **Q CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_3_Picture_12.jpeg)

### **Czech economy grew by 0.6%; unemployment remains stable; interim state budget deficit at CZK 182 billion as at September 2024**

![](_page_4_Figure_2.jpeg)

Note: (1) Source: GDP at constant prices of 2020 based on the Czech Statistical Office (CZSO); GDP at current prices – 2Q 2023: CZK 1,908bn, 3Q 2023: CZK 1,913bn, 4Q 2023: CZK 1,926bn, 1Q 2024: CZK 1,965bn, 2Q 2024: CZK 2,000bn; GDP Y/Y % change: 2Q 2023 – 2Q 2024 actuals based on the CZSO seasonally adjusted and FY 2024 CNB forecast; (2) Euro area data: www.ec.europa.eu/eurostat as of 22 July 2024; (3) ILO methodology, 2024F based on the CNB forecast issued in August 2024; (4) Source: www.mfcr.cz.

5

### **Inflation on a descending trajectory towards the CNB inflation target of 2%; the key rate decreased to 4.25%**

![](_page_5_Figure_2.jpeg)

#### **Contribution to inflation by item**<sup>1</sup>

|                                | Dec'2023 %<br>contribution | Sep'2024 %<br>contribution | Sep'2024 Y/Y price<br>change % |
|--------------------------------|----------------------------|----------------------------|--------------------------------|
| Food and beverages             | 0.4                        | 0.5                        | 1.9                            |
| Clothing and footwear          | 0.2                        | 0.0                        | 1.2                            |
| Housing, energy                | 4.7                        | 1.1                        | 3.2                            |
| Health                         | 0.2                        | 0.1                        | 3.8                            |
| Transport, telecommunication   | 0.1                        | (0.2)                      | (1.2)                          |
| Recreation, culture, education | 0.5                        | 0.4                        | (1.8)                          |
| Restaurants and hotels         | 0.5                        | 0.5                        | 7.1                            |
| Other                          | 0.3                        | 0.2                        | 3.6                            |
| Total                          | 6.9                        | 2.6                        | 2.6                            |

![](_page_5_Figure_5.jpeg)

6

![](_page_5_Picture_6.jpeg)

Source: CZSO, Bloomberg. Note: (1) Inflation rate as an increase in the average annual Consumer price index; (2) Consumer price index calculated as an increase in the CPI compared with the corresponding month of the preceding year; (3) Composed of short-term PRIBOR and swap market indication from 1 year and longer maturity.

#### CZECH DEPOSIT MARKET

#### **We continued to grow broadly in line with the deposit market**

![](_page_6_Figure_2.jpeg)

![](_page_6_Picture_3.jpeg)

Note: Source: Market: Czech National Bank ARAD; Deposits include building savings deposits and further deposits of residents only, i.e. excluding nonresidents, MONETA: Deposits include residents and non-residents including building savings deposits, excluding CSA and repo operations. <sup>7</sup>

#### CZECH LENDING MARKET

#### **We underperformed the lending market growth due to deposit gathering focus during 2022 and 2023**

![](_page_7_Figure_2.jpeg)

Source: Market: Czech National Bank ARAD; Market gross loans include building savings loans and further residents' loans only, i.e. excluding nonresidents; MONETA: gross loans include residents and non-residents including building savings loans, principal, interests and fees. <sup>8</sup>

2023 2024

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_8_Picture_11.jpeg)

![](_page_8_Picture_12.jpeg)

## **OVERALL BUSINESS PLATFORM**

consists of three service and sales distribution pillars:

- Digital presence
- Branch network
- Contact centre

supported by own and shared ATM network, enabling deposits, withdrawals and service operations

| Total number<br>of clients            | Branch<br>network                              | Own<br>&<br>shared<br>ATM network1<br>1,981 |  |  |
|---------------------------------------|------------------------------------------------|---------------------------------------------|--|--|
| 1.6<br>m                              | 134                                            |                                             |  |  |
| +2.1%<br>Total number of<br>employees | (4.3)%<br>Number of front<br>line<br>employees | (1.4)%<br>Number of other<br>employees2     |  |  |
| 2,525<br>+0.2%                        | 1,386<br>(1.6)%                                | 1,139<br>+2.5%                              |  |  |

![](_page_9_Picture_7.jpeg)

Note: Numbers as of 30 September 2024. The percentage represents the year-on-year change. (1) Out of which 794 ATMs have deposit function; (2) Includes control and enabling functions.

#### **DIGITAL**  is a critical distribution and service channel consisting of four key pillars: • Web: www.moneta.cz • Web: www.hypoteka.cz • Mobile: Smart Banka • Internet: Internet Banka Additionally, it is supported by its presence on social media platforms: **Loan applications Sales transactions Digital platform users**<sup>1</sup> **Payment transactions Average daily visits**<sup>1</sup> **Servicing transactions 16.97m +25.3% 53.80m +14.3% 676ths 0.53m +5.9% 265ths 1.49m +8.0% +33.8% +13.4%**

Note: Payment transactions, servicing transactions and sales transactions during 1Q–3Q 2024. All numbers in units. The percentage represents the year-on-year change. (1) Combination of Smart Banka and Internet Banka.

## **BRANCH NETWORK**

continues to play an important role in product distribution and client service. The network is organised into six distinct front-office units:

- Retail banking
- Wealth management distribution
- Mortgage distribution
- Small business banking
- SME banking
- Structured finance for corporate clients

![](_page_11_Picture_8.jpeg)

![](_page_11_Picture_9.jpeg)

Note: Visits, cash transactions and loan applications during 1Q–3Q 2024. Cash transactions and loan applications in number of units. The percentage represents the year-on-year change. (1) Cash and non-cash visits; (2) As of 30 September 2024; (3) Includes retail, SME and small business bankers.

## **CONTACT CENTRE**

complements the service and sales of both the digital and physical branch network through a range of communication channels:

- Telephone
- Email
- Web
- Chats
- Social media

![](_page_12_Figure_7.jpeg)

![](_page_12_Picture_8.jpeg)

Note: Number of staff as of 30 September 2024, rest data cumulative during 1Q–3Q 2024 for retail and commercial clients. The percentage and percentage points represent the year-on-year change. (1) Inbound traffic = number of answered incoming calls; (2) Monthly average; (3) Email communication = number of answered emails or messages from Internet Banka, web forms, chats or social media; (4) Percentage of clients served out of total incoming calls; (5) Abandon rate = % of missed calls out of total incoming calls; (6) Lifetime income estimate of all insurance units sold. 13

## **ATM NETWORK**

provides 24/7 access to withdrawals, deposits and miscellaneous services through its own and shared network. ATM alliance partnership includes four banks:

- MONETA Money Bank
- Komerční banka
- Air Bank
- UniCredit Bank

![](_page_13_Figure_6.jpeg)

![](_page_13_Picture_7.jpeg)

Note: Withdrawals, deposits and service transactions on MONETAs' ATMs in a number of units during 1Q–3Q 2024. The percentage represents the year-onyear change.

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_14_Picture_12.jpeg)

## **Net profit of CZK 4.2 billion, driven by growth in operating income and by lower cost base; cost of risk as projected**

| PROFIT AND LOSS (CZK m, YtD)  | 3Q<br>2023<br>YtD | 3Q 2024<br>YtD | CHANGE  |
|-------------------------------|-------------------|----------------|---------|
| Net interest income           | 6,396             | 6,490          | 1.5%    |
| Net fee and commission income | 1,961             | 2,246          | 14.5%   |
| Other income                  | 695               | 731            | 5.2%    |
| OPERATING INCOME              | 9,052             | 9,467          | 4.6%    |
| Operating expenses            | (4,193)           | (4,169)        | (0.6)%  |
| OPERATING PROFIT              | 4,859             | 5,298          | 9.0%    |
| Cost of risk                  | (172)             | (351)          | 104.1%  |
| PROFIT BEFORE TAX             | 4,687             | 4,947          | 5.5%    |
| Income tax                    | (715)             | (711)          | (0.6)%  |
| NET PROFIT                    | 3,972             | 4,236          | 6.6%    |
| Earnings per share            | 7.8               | 8.3            | 6.6%    |
|                               |                   |                |         |
| Return on Tangible Equity     | 19.1%             | 19.8%          | 0.7pp   |
| Effective tax rate            | 15.3%             | 14.4%          | (0.9)pp |

**Net interest income stabilisation** driven by balance sheet expansion; repricing activity translated into improved NIM at **1.9%** in 3Q 2024 YtD compared to **1.8%** in 1H 2024 YtD (3Q 2023 YtD: **2.1%**)

**Net fee and commission income growth** driven mainly by strong distribution of wealth management products (up by **CZK 282 million**).

**Other income growth** driven by client FX margin and extraordinary gain on a minor bond sale in 1Q 2024.

**Cost base decreased** due to lower contribution to regulatory funds (down by **29.6%**) and lower administrative expenses partially offset by higher personnel expenses. Cost to income ratio at **44.0%**.

**Cost of risk** of **CZK 351 million** or **18bps** in line with provided guidance **10-30bps**.

![](_page_15_Picture_9.jpeg)

## **NII impacted by an increase in lending income and a decrease in deposit expense, offsetting lower treasury income**

![](_page_16_Figure_2.jpeg)

![](_page_16_Figure_3.jpeg)

![](_page_16_Picture_4.jpeg)

Note: (1) Treasury and other net interest income composed of money market operations, investment portfolio, wholesale funding and issued bonds. <sup>17</sup>

### **Commission income significantly improved due to strong performance in wealth management product distribution**

![](_page_17_Figure_2.jpeg)

![](_page_17_Figure_3.jpeg)

![](_page_17_Picture_4.jpeg)

### **Cross-selling of wealth management products more than doubled income originated from this category**

![](_page_18_Figure_2.jpeg)

## **Overall income from insurance distribution commissions stable and growing on a recurrent basis (adjusting for a one-off bonus in 2023)**

![](_page_19_Figure_2.jpeg)

![](_page_19_Picture_3.jpeg)

Note: (1) As at 30 September of the relevant year; (2) All insurance products. Bonuses in 2023 were supported by a one-off bonus for exclusivity granted to NN. <sup>20</sup>

## **Gain from bond sale and improved client FX margin contributed to financial operations performance**

#### **Net income from financial operations** (CZK m)

![](_page_20_Figure_3.jpeg)

![](_page_20_Picture_4.jpeg)

## **Stable cost base driven primarily by lower regulatory charges, partially offset by wage inflation**

#### **Operating expenses** (CZK m)

![](_page_21_Figure_3.jpeg)

![](_page_21_Picture_4.jpeg)

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_22_Picture_11.jpeg)

![](_page_22_Picture_12.jpeg)

**Branch office: Praha**

#### KEY BALANCE SHEET METRICS

### **Lending returned to growth; funding base growth supported by EUR 300m MREL bond issuance; deposit repricing resulted in lower cost of funding**

![](_page_23_Figure_2.jpeg)

### **The balance sheet expanded to CZK 488 billion, driven by retail deposit base growth and accompanied by MREL bond issuance**

![](_page_24_Figure_2.jpeg)

![](_page_24_Figure_3.jpeg)

![](_page_24_Picture_4.jpeg)

Notes: (1) Including reverse repo operations with the CNB; (2) Including CSA from Due to customers in the amount of CZK 398m at the end of 3Q 2023, CZK 270m at the end of 4Q 2023, CZK 253m at the end of 1Q 2024, CZK 253m at the end of 2Q 2024 and CZK 197m at the end of 3Q 2024. <sup>25</sup>

#### NEW LENDING VOLUMES

### **Lending activity substantially increased in both retail and commercial segments**

![](_page_25_Figure_2.jpeg)

1-3Q 2023

1-3Q 2024

## **Loan portfolio stabilised and grew substantially in small business and SME; retail growth was hampered by cautious approach to mortgage lending**

**Gross performing loan portfolio** (CZK bn)

![](_page_26_Figure_3.jpeg)

![](_page_26_Picture_4.jpeg)

Note: (1) Includes investment loans, working capital and commercial auto loans and leasing portfolio. <sup>27</sup>

### **Retail loan book remained stable year-on-year and returned to growth since the beginning of the year**

![](_page_27_Figure_2.jpeg)

![](_page_27_Picture_3.jpeg)

Notes: (1) Loan to value ratio on the performing mortgage portfolio at 56.1% as of 30 September 2024; (2) Consumer loan portfolio also includes supplementary housing loans, which represent 21% of the balance as at the end of 3Q'24. <sup>28</sup>

### **Commercial loan book produced fairly strong growth across all product categories**

![](_page_28_Figure_2.jpeg)

![](_page_28_Picture_3.jpeg)

Notes: (1) Commercial loan portfolio includes leasing portfolio in the amount of CZK 2.5bn as at the end of 3Q'23, CZK 2.2bn as at the end of 4Q'23, CZK 1.9bn as at the end of 1Q'24, CZK 1.6bn as at the end of 2Q'24 and CZK 1.4bn as at the end of 3Q'24; (2) Investment loan portfolio includes supplementary housing loans; (3) Includes gross performing receivables and undrawn working capital limits.

## **Loan portfolio yield remained stable, hedged yield declined in line with short-term interest rate reduction**

![](_page_29_Figure_2.jpeg)

![](_page_29_Picture_3.jpeg)

Note: For more details, please see the explanation in the glossary. (1) A significant portion of the commercial loan portfolio bears interest at floating rates and only longer maturities with fixed interest rates are hedged; therefore, the impact of the hedging results on the yield of the commercial loan portfolio is only marginal.

#### FUNDING BASE

## **Repricing of the deposit base reflects itself in lower growth and an overall stable funding base**

**Customer deposits and wholesale funding**<sup>1</sup> (CZK bn)

![](_page_30_Figure_3.jpeg)

![](_page_30_Picture_4.jpeg)

Notes: (1) Excludes opportunistic repo operations and CSA (CZK 2.9bn at the end of 3Q'23, CZK 0.8bn at the end of 4Q'23, CZK 0.7bn at the end of 1Q'24 and CZK 0.9bn at the end of 2Q'24, CZK 0.4bn at the end of 3Q'24); wholesale funding includes Issued bonds, Subordinated liabilities and Due to banks balances.

31

## **Repricing of deposits manifests itself in more than 100bps decrease of funding costs, a trend expected to continue into 4Q 2024**

**Monthly development of costs and balances of customer deposits** (%, CZK bn)

![](_page_31_Figure_3.jpeg)

![](_page_31_Picture_4.jpeg)

### **Retail deposit growth continued in 3Q 2024 mainly through savings and term deposit accounts**

![](_page_32_Figure_2.jpeg)

![](_page_32_Figure_3.jpeg)

![](_page_32_Figure_4.jpeg)

![](_page_32_Picture_5.jpeg)

### **Growth in commercial savings and term deposits mirrors trend in the retail segment**

![](_page_33_Figure_2.jpeg)

![](_page_33_Figure_3.jpeg)

![](_page_33_Picture_4.jpeg)

#### WHOLESALE FUNDING DEVELOPMENT

## **Wholesale funding strengthened by EUR 300 million bond issuance in September 2024**

![](_page_34_Figure_2.jpeg)

![](_page_34_Figure_3.jpeg)

![](_page_34_Picture_4.jpeg)

Notes: (1) Excluding opportunistic repo operations and CSA in the amount of CZK 2.5bn as at the end of 3Q'23, CZK 0.6bn as at the end of 4Q'23, CZK 0.5bn as at the end of 1Q'24, CZK 0.6bn as at the end of 2Q'24 and CZK 0.2bn as at the end of 3Q'24. 35

#### COST OF FUNDS

### **Likewise, quarterly average cost of funding decreased from the peak of 3.6% to 2.7%, supporting improvement in net interest income**

![](_page_35_Figure_2.jpeg)

![](_page_35_Picture_3.jpeg)

Notes: (1) Excluding opportunistic repo operations and CSA; (2) Wholesale includes Issued bonds, Subordinated liabilities and Due to banks balances and excludes opportunistic repo operations and CSA. <sup>36</sup>

## **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_36_Picture_11.jpeg)

#### KEY LIQUIDITY RATIOS

#### **Liquidity related ratios remained solid and strong**

![](_page_37_Figure_2.jpeg)

![](_page_37_Figure_3.jpeg)

![](_page_37_Figure_4.jpeg)

![](_page_37_Figure_5.jpeg)

## **High-quality liquid assets constitute approximately 40% of the balance sheet and are at the highest level since the IPO in 2016**

#### **High-quality liquid assets** (CZK bn)

![](_page_38_Figure_3.jpeg)

![](_page_38_Picture_4.jpeg)

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_39_Picture_11.jpeg)

![](_page_39_Picture_12.jpeg)

### **Capital position remains solid and sufficient to accommodate future growth as well as dividend distribution**

![](_page_40_Figure_2.jpeg)

Note: (1) Including 100bps of management buffer; (2) Including 75bps of management buffer, which is covered by Tier 1 capital; (3) Proposed dividend is subject to corporate, regulatory and regulator's limitation and subject to shareholders' approval at the General Meeting to be held on 19 November 2024; (4) Excess capital over management capital target of 16.1% as at 31 December 2023 and 15.05% as at 30 September 2024, 2023 excess capital does not include 2023 dividend in the amount of CZK 4.6bn (which was approved at the General Meeting on 23 April 2024 and paid on 21 May 2024); 2024 excess capital does not include 2024 accrued dividend of CZK 3.8bn; (5) Excess capital over Tier 1 management capital target of 13.20% as at 31 December 2023 and 12.23% as at 30 September 2024. 41 ## **We carry dividend accrual of CZK 3.8 billion and proposed an extraordinary dividend of CZK 1.5 billion (to be paid from retained earnings of prior years)**

![](_page_41_Figure_2.jpeg)

Note: (1) Including 100bps of management buffer; (2) Excess capital and proposed extraordinary dividend as of 30 September 2024 are subject to corporate, regulatory and regulator´s limitations; (3) Based on Article 473a of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No. 648/2012; (4) 90% of 1Q–3Q 2024 net profit.

42

## **On an individual basis, we improved the MREL ratio by more than four percentage points through the EUR 300 million bond issuance**

![](_page_42_Figure_2.jpeg)

Note: (1) Consists of a total MREL requirement and a management buffer of 1%. <sup>43</sup>

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_43_Picture_11.jpeg)

#### KEY RISK RATIOS

### **Cost of risk evolved according to expectations and remained at 18bps, NPL ratio continues to stay at a low level**

![](_page_44_Figure_2.jpeg)

![](_page_44_Figure_3.jpeg)

![](_page_44_Figure_4.jpeg)

![](_page_44_Figure_5.jpeg)

#### COST OF RISK

### **Repayment performance and NPL disposals supported the overall cost of risk together with update of macro outlook**

![](_page_45_Figure_2.jpeg)

• **1Q–3Q 2024 cost of risk at CZK 351m or 18 bps** (1Q–3Q 2023: CZK 172m or 9bps), **supported by a gain on NPL disposals of CZK 91 million** (1Q–3Q 2023: CZK 291 million).1

![](_page_45_Picture_4.jpeg)

Note: Figures in the chart may not add up due to rounding differences; (1) 1Q–3Q 2024: impact into the cost of risk line at CZK 87m and into other operating income line at CZK 3m; 1Q–3Q 2023: impact into the cost of risk line at CZK 288m and into other operating income line at CZK 3m. <sup>46</sup>

### **NPL portfolio remains stable in absolute and relative terms; robust loan loss provision coverage maintained**

![](_page_46_Figure_2.jpeg)

Note: (1) Management overlays on expected credit losses reflecting potential risks associated with an environment of high inflation and high interest rates; (2) NPLs include gross loan portfolio balance in Stage 3 and non-performing gross loan portfolio balance in Stage POCI.

47

### **2024 NPL stocks remain unchanged relative to 2Q thanks to NPL disposals, repayments and write-offs**

#### **NPL balance and net formation** (CZK m)

![](_page_47_Figure_3.jpeg)

![](_page_47_Picture_4.jpeg)

Note: NPL balance excluding loan loss provision. (1) Includes also repayment and classification upgrades of loans where the concessions were provided; (2) Write-off includes the unrecovered part of sold receivables. The recovered part obtained within the debt sale is included in Cured. <sup>48</sup>

### **Delinquency rates remained low and stable, supported by solid core performance and an efficient collection strategy**

**Share of past due exposures on total gross portfolio balance** (%)

![](_page_48_Figure_3.jpeg)

![](_page_48_Picture_4.jpeg)

Note: 30+ delinquency represents due exposures in the range between 30 and 60 days past due, 60+ delinquency represents due exposures in the range between 60 and 90 days past due, 90+ delinquency represents due exposures more than 90 days past due, 2Q 2020 - 3Q 2024 data includes the Acquired entities.

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_49_Picture_11.jpeg)

![](_page_49_Picture_12.jpeg)

#### **Based on the results of 3Q 2024 and the number of material assumptions, we are targeting to deliver a minimum net profit of CZK 5.6 billion for 2024**

#### **2024 market guidance versus targeted results (subject to a number of assumptions)**

| Metrics                           | 2024<br>original guidance1 | 2024<br>targeted results | Expected variance<br>against guidance |                                                                                             |
|-----------------------------------|----------------------------|--------------------------|---------------------------------------|---------------------------------------------------------------------------------------------|
| Total operating income (CZK bn)   | 12.4                       | 12.8                     | +0.4                                  | Improvement driven by better net fee and<br>commission income                               |
| Total operating expenses (CZK bn) | (5.8)                      | (5.7)                    | +0.1                                  | According to original expectations and impacted<br>by increased personnel costs             |
| Operating profit (CZK bn)         | 6.6                        | 7.1                      | +0.5                                  | Combination of better operating income and<br>stable operating expenses                     |
| Cost of risk (bps)                | (10-30)                    | (15-20)                  |                                       | Assuming steady performance without any<br>significant commercial defaults during 4Q 2024   |
| NET PROFIT (CZK bn)               | ≥5.2                       | ≥5.6                     | +0.4                                  | Combination of better operating income, stable<br>operating expenses and lower cost of risk |
| Earnings per share (CZK)          | ≥10.2                      | ≥11.0                    | +0.8                                  | Continuing to accrue 90% of net profit on dividend<br>accrual account                       |
| Return on Tangible Equity         | ≥17.0%                     | ≥19.5%                   | +2.5pp                                | Supported by higher profit and assumed<br>extraordinary dividend payment in 20242           |

![](_page_50_Picture_4.jpeg)

Note: Please see pages 52, 53, 54 and 76 of this presentation for limitations of forward-looking statements and their assumptions. (1) Market guidance as published on 2 February 2024; (2) Subject to corporate, regulatory and regulator´s limitations and shareholders' approval at the General Meeting to be held on 19 November 2024.

## **We remain committed to minimum targets for 2025 and beyond, irrespective of the CNB's decision to double the minimum required reserves**

#### **2024 – 2028 guidance as published on 2 February 2024**

| Metrics                           | 2024     | 2025     | 2026     | 2027     | 2028     | CAGR<br>2024-2028 |
|-----------------------------------|----------|----------|----------|----------|----------|-------------------|
| Total operating income (CZK bn)   | 12.4     | 12.8     | 13.5     | 14.0     | 14.5     | 4.0%              |
| Total operating expenses (CZK bn) | (5.8)    | (5.9)    | (6.0)    | (6.2)    | (6.3)    | 2.1%              |
| Operating profit (CZK bn)         | 6.6      | 6.9      | 7.5      | 7.8      | 8.2      | 5.6%              |
| Cost of risk (bps)                | (10-30)  | (15-35)  | (25-45)  | (25-45)  | (25-45)  | n/a               |
| Effective tax rate1               | ~(14.0)% | ~(15.0)% | ~(15.0)% | ~(15.0)% | ~(15.0)% | n/a               |
| NET PROFIT (CZK bn)               | ≥5.2     | ≥5.3     | ≥5.5     | ≥5.7     | ≥6.0     | 3.6%              |
| Earnings per share (CZK)          | ≥10.2    | ≥10.4    | ≥10.8    | ≥11.2    | ≥11.7    | 3.6%              |
| Return on Tangible Equity         | ≥17.0%   | ≥17.0%   | ≥17.0%   | ≥17.0%   | ≥17.0%   | n/a               |

![](_page_51_Picture_4.jpeg)

Note: Please see pages 53, 54 and 76 of this presentation for limitations of forward-looking statements and their assumptions. (1) Assuming no changes in current tax regulation.

#### **Macroeconomic assumptions for medium-term guidance**

**Assumptions for medium-term guidance published on 2 February 2024 – macroeconomic environment outlook**

|                               | 2024 | 2025 | 2026 | 2027 | 2028 |
|-------------------------------|------|------|------|------|------|
| GDP growth                    | 1.2% | 2.8% | 2.8% | 2.7% | 2.5% |
| Unemployment                  | 3.0% | 3.0% | 2.9% | 2.7% | 2.5% |
| Inflation                     | 2.6% | 2.1% | 2.0% | 2.0% | 2.0% |
| 2W repo rate (annual average) | 5.2% | 3.3% | 3.0% | 3.0% | 3.0% |
| 1M Pribor<br>(annual average) | 5.4% | 3.4% | 3.1% | 3.1% | 3.1% |
| CZK/EUR                       | 24.6 | 24.1 | 24.0 | 24.0 | 24.0 |

![](_page_52_Picture_4.jpeg)

Note: Please see also pages 54 and 76 for limitations of forward-looking statements and their assumptions. Source 2024-2025: GDP, unemployment and inflation rates based on the CNB Forecast issued in autumn 2023; 2W repo rate and 1M Pribor based on internal assumptions. 2026 – 2028: all data based on internal assumptions.

## **Projected loans and deposits growth**

**Assumptions for medium-term guidance published on 2 February 2024 – loans and deposits projection** (CZK bn)

|                                    | 2023  | 2024  | 2025  | 2026  | 2027  | 2028  | CAGR<br>2023-2028 |
|------------------------------------|-------|-------|-------|-------|-------|-------|-------------------|
| Gross performing loans development | 263.9 | 266.4 | 272.2 | 278.9 | 293.8 | 311.9 | 3.4%              |
| Retail                             | 179.5 | 178.8 | 180.9 | 183.2 | 192.1 | 206.1 | 2.8%              |
| Commercial                         | 84.4  | 87.5  | 91.3  | 95.7  | 101.7 | 105.9 | 4.6%              |
| Customer deposits development      | 399.2 | 415.3 | 431.5 | 454.9 | 476.7 | 499.4 | 4.6%              |
| Retail                             | 313.2 | 321.3 | 333.9 | 353.7 | 372.1 | 391.1 | 4.5%              |
| Commercial                         | 86.1  | 94.0  | 97.6  | 101.1 | 104.7 | 108.3 | 4.7%              |

![](_page_53_Picture_4.jpeg)

Note: Please see also pages 53 and 76 for limitations of forward-looking statements and their assumptions.

## **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

#### **Information about upcoming shareholder meeting and dividend payment**

![](_page_55_Figure_2.jpeg)

![](_page_55_Picture_3.jpeg)

Note: (1) Subject to corporate, regulatory and regulator´s limitations and shareholders' approval at the General Meeting to be held on 19 November 2024; (2) Subject to shareholders' approval at the General Meeting to be held on 19 November 2024. <sup>56</sup>

# **CONTENT**

- **Macroeconomic Environment**
- **Operating Platform**
- **Profit and Loss Development**
- **Balance Sheet Development**
- **Liquidity Development**
- **Capital Management**
- **Risk Metrics & Asset Quality**
- **2024 – 2028 Market Guidance**
- **Shareholder Meeting**
- **Appendix**

![](_page_56_Picture_11.jpeg)

# **APPENDIX**

#### Events with Investors

- Capital Requirements
- Distributed Dividends and Total Shareholder Return
- Financial Statements & Key Performance Ratios
- Glossary of Terms

REPORTING DATES AND INVESTOR MEETINGS

#### **Calendar for 4Q 2024**

**WOOD's Winter Wonderland EMEA Conference, Prague**

3 - 6 December 2024

**FY 2024 Earnings**

31 January 2025

![](_page_58_Picture_6.jpeg)

# **APPENDIX**

Events with Investors

#### Capital Requirements

- Distributed Dividends and Total Shareholder Return
- Financial Statements & Key Performance Ratios
- Glossary of Terms

### **2025 capital requirement will increase by 20bps due to introduction of a systemic risk buffer of 50pbs offset by lower SREP requirement by 30bps**

| 31/12<br>2023 | 01/01<br>2024 | 30/06<br>2024 | 01/07<br>2024 | 01/01<br>2025 |
|---------------|---------------|---------------|---------------|---------------|
| 8.0%          | 8.0%          | 8.0%          | 8.0%          | 8.0%          |
| 2.6%          | 2.3%          | 2.3%          | 2.3%          | 2.0%          |
| 2.5%          | 2.5%          | 2.5%          | 2.5%          | 2.5%          |
| 2.0%          | 2.0%          | 1.75%         | 1.25%         | 1.25%         |
| -             | -             | -             | -             | 0.5%          |
| 15.1%         | 14.8%         | 14.55%        | 14.05%        | 14.25%        |
| 1.0%          | 1.0%          | 1.0%          | 1.0%          | 1.0%          |
| 16.1%         | 15.8%         | 15.55%        | 15.05%        | 15.25%        |
|               |               |               |               |               |

| Capital requirement on a consolidated basis |               |               |               |               | Capital requirement on an individual basis |                                   |               |               |               |               |               |  |
|---------------------------------------------|---------------|---------------|---------------|---------------|--------------------------------------------|-----------------------------------|---------------|---------------|---------------|---------------|---------------|--|
|                                             | 31/12<br>2023 | 01/01<br>2024 | 30/06<br>2024 | 01/07<br>2024 | 01/01<br>2025                              |                                   | 31/12<br>2023 | 31/03<br>2024 | 30/06<br>2024 | 01/07<br>2024 | 01/01<br>2025 |  |
| Pillar I –<br>CRR requirement               | 8.0%          | 8.0%          | 8.0%          | 8.0%          | 8.0%                                       | MREL –<br>loss absorption amount  | 10.6%         | 10.3%         | 10.3%         | 10.3%         | 10.3%         |  |
| SREP requirement1<br>Pillar II –            | 2.6%          | 2.3%          | 2.3%          | 2.3%          | 2.0%                                       | MREL -<br>recapitalisation amount | 6.6%          | 6.9%          | 6.9%          | 6.9%          | 6.9%          |  |
| CRR capital conservation buffer             | 2.5%          | 2.5%          | 2.5%          | 2.5%          | 2.5%                                       | CRR capital conservation buffer   | 2.5%          | 2.5%          | 2.5%          | 2.5%          | 2.5%          |  |
| CRR countercyclical buffer                  | 2.0%          | 2.0%          | 1.75%         | 1.25%         | 1.25%                                      | CRR countercyclical buffer        | 2.0%          | 2.0%          | 1.75%         | 1.25%         | 1.25%         |  |
| Systemic<br>risk buffer                     | -             | -             | -             | -             | 0.5%                                       | Systemic<br>risk buffer           | -             | -             | -             | -             | 0.5%          |  |
| Total requirement                           | 15.1%         | 14.8%         | 14.55%        | 14.05%        | 14.25%                                     | Total requirement                 | 21.7%         | 21.7%         | 21.45%        | 20.95%        | 21.45%        |  |
| Management capital buffer                   | 1.0%          | 1.0%          | 1.0%          | 1.0%          | 1.0%                                       | Management capital buffer         | 1.0%          | 1.0%          | 1.0%          | 1.0%          | 1.0%          |  |
| MANAGEMENT TARGET                           | 16.1%         | 15.8%         | 15.55%        | 15.05%        | 15.25%                                     | MANAGEMENT TARGET                 | 22.7%         | 22.7%         | 22.45%        | 21.95%        | 22.45%        |  |

![](_page_60_Picture_4.jpeg)

Note: The CNB usually re-assesses the above SREP capital requirements annually. The CNB may also launch an ad-hoc extraordinary SREP process, for example, in case of a change of the Bank's consolidated unit. (1) Although Pillar II capital requirement was set only on a consolidated basis, its value is used with a delay in setting the MREL requirement on an individual basis.

# **APPENDIX**

- Events with Investors
- Capital Requirements
- Distributed Dividends and Total Shareholder Return
- Financial Statements & Key Performance Ratios
- Glossary of Terms

### **Between 2016 and 2023, we generated a cumulative net profit of CZK 33.2 billion with a pay-out ratio at 84%**

![](_page_62_Figure_2.jpeg)

**Net profit and dividend distribution** (CZK m)

![](_page_62_Picture_4.jpeg)

Note: Dividend policy remains valid as long as MONETA operates at a capital adequacy ratio at a minimum of 100bps above the regulatory capital requirement and is subject to variety of other factors and conditions. (1) In March 2020, the CNB instructed the banking sector to suspend their dividend policies. This recommendation stayed in place until 30 September 2021; (2) CZK 3.30 per share represents the interim dividend distributed on 17 December 2019; (3) Calculated as the ratio of cumulative dividend for the years 2016-2023 and an average share price during the same period. 63

## **MONETA delivered a total shareholder return of 76%, above average European banks**

**Total shareholders return1 as of 30 September 2024** (%)

![](_page_63_Figure_3.jpeg)

![](_page_63_Picture_4.jpeg)

Source: Company information, Bloomberg as of 30 September 2024; Note: (1) Calculated as the sum of share price performance as of 30 September 2024 vs 31 December 2022 and reinvested dividends paid in 2023 and 2024; (2) EuroStoxx incl. 42 banks from the SX7P STOXX Europe 600 Banks Index.

# **APPENDIX**

- Events with Investors
- Capital Requirements
- Distributed Dividends and Total Shareholder Return
- Financial Statements & Key Performance Ratios
- Glossary of Terms

### **Consolidated statement of financial position**

| CZK m                                                      | 30/09/2024 | 31/12/20231 | % Change |
|------------------------------------------------------------|------------|-------------|----------|
| Cash and cash balances at<br>central bank                  | 11,816     | 10,871      | 8.7%     |
| Derivative financial instruments with positive fair values | 504        | 544         | (7.4)%   |
| Investment securities                                      | 106,040    | 104,353     | 1.6%     |
| Hedging derivatives with positive fair values              | 2,011      | 2,701       | (25.5)%  |
| Change in fair value of items hedged on portfolio basis    | 864        | 122         | 608.2%   |
| Loans and receivables to banks                             | 89,755     | 69,632      | 28.9%    |
| Loans and receivables to customers                         | 270,364    | 263,064     | 2.8%     |
| Intangible assets                                          | 3,287      | 3,332       | (1.4)%   |
| Property and equipment                                     | 2,236      | 2,400       | (6.8)%   |
| Investments in associates                                  | 2          | 3           | (33.3)%  |
| Current tax assets                                         | 92         | 76          | 21.1%    |
| Deferred<br>tax assets                                     | 7          | 0           | n/a      |
| Other assets                                               | 1,241      | 1,086       | 14.3%    |
| TOTAL ASSETS                                               | 488,219    | 458,184     | 6.6%     |
| Due to banks                                               | 3,740      | 5,423       | (31.0)%  |
| Due to customers                                           | 421,621    | 399,497     | 5.5%     |
| Derivative financial instruments with negative fair values | 467        | 523         | (10.7)%  |
| Hedging derivatives with negative fair values              | 5,964      | 4,548       | 31.1%    |
| Change in fair value of items hedged on portfolio basis    | 135        | 63          | 114.3%   |
| Issued bonds                                               | 11,545     | 3,808       | 203.2%   |
| Subordinated liabilities                                   | 7,568      | 7,604       | (0.5)%   |
| Provisions                                                 | 266        | 266         | 0.0%     |
| Current tax liabilities                                    | 63         | 54          | 16.7%    |
| Deferred tax liabilities                                   | 418        | 462         | (9.5)%   |
| Other liabilities                                          | 4,592      | 3,733       | 23.0%    |
| Total Liabilities                                          | 456,379    | 425,981     | 7.1%     |
| Share capital                                              | 10,220     | 10,220      | 0.0%     |
| Statutory reserve                                          | 102        | 102         | 0.0%     |
| Other reserves                                             | 1          | 1           | 0.0%     |
| Retained earnings                                          | 21,517     | 21,880      | (1.7)%   |
| Total Equity                                               | 31,840     | 32,203      | (1.1)%   |
| TOTAL LIABILITIES & EQUITY                                 | 488,219    | 458,184     | 6.6%     |

![](_page_65_Picture_3.jpeg)

## **Consolidated statement of financial position – quarterly development**

| CZK m                                                      | 30/09/2022 | 31/12/20221 | 31/03/2023 | 30/06/2023 | 30/09/2023 | 31/12/20231 | 31/03/2024 | 30/06/2024 | 30/09/2024 |
|------------------------------------------------------------|------------|-------------|------------|------------|------------|-------------|------------|------------|------------|
| Cash and cash balances at<br>central bank                  | 10,035     | 12,467      | 7,441      | 10,303     | 13,365     | 10,871      | 12,226     | 9,468      | 11,816     |
| Derivative financial instruments with positive fair values | 768        | 761         | 726        | 652        | 690        | 544         | 560        | 575        | 504        |
| Investment securities                                      | 53,808     | 57,951      | 80,195     | 80,483     | 88,056     | 104,353     | 103,215    | 101,967    | 106,040    |
| Hedging derivatives with positive fair values              | 5,380      | 4,942       | 4,345      | 3,731      | 3,991      | 2,701       | 2,681      | 2,669      | 2,011      |
| Change in fair value of items hedged on portfolio basis    | (2,484)    | (2,090)     | (1,597)    | (1,147)    | (989)      | 122         | 244        | 74         | 864        |
| Loans and receivables to banks                             | 28,495     | 37,886      | 40,638     | 55,109     | 68,120     | 69,632      | 75,327     | 90,581     | 89,755     |
| Loans and receivables to customers                         | 268,766    | 268,752     | 266,012    | 268,027    | 268,987    | 263,064     | 266,731    | 271,010    | 270,364    |
| Intangible assets                                          | 3,315      | 3,379       | 3,324      | 3,280      | 3,252      | 3,332       | 3,323      | 3,285      | 3,287      |
| Property and equipment                                     | 2,297      | 2,318       | 2,360      | 2,361      | 2,443      | 2,400       | 2,392      | 2,315      | 2,236      |
| Investments in associates                                  | 2          | 3           | 4          | 4          | 2          | 3           | 3          | 4          | 2          |
| Current tax assets                                         | 14         | 6           | 8          | 23         | 33         | 76          | 66         | 184        | 92         |
| Deferred<br>tax assets                                     | 0          | 0           | 0          | 0          | 0          | 0           | 8          | 8          | 7          |
| Other assets                                               | 940        | 1,135       | 1,129      | 1,003      | 1,113      | 1,086       | 1,250      | 1,123      | 1,241      |
| TOTAL ASSETS                                               | 371,336    | 387,510     | 404,585    | 423,829    | 449,063    | 458,184     | 468,026    | 483,263    | 488,219    |
| Due to banks                                               | 6,569      | 5,953       | 5,439      | 7,707      | 7,379      | 5,423       | 6,441      | 6,427      | 3,740      |
| Due to customers                                           | 320,610    | 334,251     | 350,329    | 368,177    | 393,012    | 399,497     | 405,920    | 426,073    | 421,621    |
| Derivative financial instruments with negative fair values | 747        | 747         | 719        | 631        | 674        | 523         | 516        | 528        | 467        |
| Hedging derivatives with negative fair values              | 934        | 845         | 935        | 1,545      | 1,502      | 4,548       | 4,497      | 3,691      | 5,964      |
| Change in fair value of items hedged on portfolio basis    | (595)      | (438)       | (287)      | (169)      | (113)      | 63          | 81         | 66         | 135        |
| Issued bonds                                               | 4,096      | 5,520       | 5,479      | 4,909      | 3,740      | 3,808       | 3,856      | 3,874      | 11,545     |
| Subordinated liabilities                                   | 4,645      | 4,687       | 4,630      | 7,501      | 7,561      | 7,604       | 7,548      | 7,591      | 7,568      |
| Provisions                                                 | 267        | 306         | 250        | 238        | 308        | 266         | 263        | 260        | 266        |
| Current tax liabilities                                    | 490        | 482         | 515        | 163        | 146        | 54          | 79         | 48         | 63         |
| Deferred tax liabilities                                   | 406        | 496         | 476        | 408        | 418        | 462         | 357        | 394        | 418        |
| Other liabilities                                          | 3,140      | 3,570       | 3,794      | 3,238      | 3,461      | 3,733       | 4,979      | 4,003      | 4,592      |
| Total Liabilities                                          | 341,309    | 356,419     | 372,279    | 394,348    | 418,088    | 425,981     | 434,537    | 452,955    | 456,379    |
| Share capital                                              | 10,220     | 10,220      | 10,220     | 10,220     | 10,220     | 10,220      | 10,220     | 10,220     | 10,220     |
| Statutory reserve                                          | 102        | 102         | 102        | 102        | 102        | 102         | 102        | 102        | 102        |
| Other reserves                                             | 1          | 1           | 1          | 1          | 1          | 1           | 1          | 1          | 1          |
| Retained earnings                                          | 19,704     | 20,768      | 21,983     | 19,158     | 20,652     | 21,880      | 23,166     | 19,985     | 21,517     |
| Total Equity                                               | 30,027     | 31,091      | 32,306     | 29,481     | 30,975     | 32,203      | 33,489     | 30,308     | 31,840     |
| TOTAL LIABILITIES & EQUITY                                 | 371,336    | 387,510     | 404,585    | 423,829    | 449,063    | 458,184     | 468,026    | 483,263    | 488,219    |

![](_page_66_Picture_3.jpeg)

#### FINANCIAL STATEMENTS

## **Consolidated statement of profit or loss and other comprehensive income**

| CZK m                                                                   | 3Q 2024 YtD | 3Q 2023 YtD | % Change |
|-------------------------------------------------------------------------|-------------|-------------|----------|
| Interest and similar income                                             | 17,060      | 15,998      | 6.6%     |
| Interest expense and similar charges                                    | (10,570)    | (9,602)     | 10.1%    |
| Net interest income                                                     | 6,490       | 6,396       | 1.5%     |
| Fee and commission income                                               | 2,717       | 2,395       | 13.4%    |
| Fee and commission expense                                              | (471)       | (434)       | 8.5%     |
| Net fee and commission income                                           | 2,246       | 1,961       | 14.5%    |
| Dividend income                                                         | 0           | 2           | (100)%   |
| Net income from financial operations                                    | 678         | 649         | 4.5%     |
| Other operating income                                                  | 53          | 44          | 20.5%    |
| Total operating income                                                  | 9,467       | 9,052       | 4.6%     |
| Personnel expenses                                                      | (1,877)     | (1,766)     | 6.3%     |
| Administrative expenses                                                 | (1,115)     | (1,147)     | (2.8%)   |
| Depreciation and amortisation                                           | (911)       | (939)       | (3.0%)   |
| Regulatory charges                                                      | (216)       | (307)       | (29.6%)  |
| Other operating expenses                                                | (50)        | (34)        | 47.1%    |
| Total operating expenses                                                | (4,169)     | (4,193)     | (0.6%)   |
| Profit for the period before tax and net impairment of financial assets | 5,298       | 4,859       | 9.0%     |
| Net impairment of financial assets                                      | (351)       | (172)       | 104.1%   |
| Profit for the period before tax                                        | 4,947       | 4,687       | 5.5%     |
| Taxes on income                                                         | (711)       | (715)       | (0.6%)   |
| Profit for the period after tax                                         | 4,236       | 3,972       | 6.6%     |
| Total comprehensive income attributable to the equity holders           | 4,236       | 3,972       | 6.6%     |

![](_page_67_Picture_3.jpeg)

## **Consolidated statement of profit or loss and other comprehensive income - quarterly development**

| CZK m                                                                   | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | 3Q 2024 |
|-------------------------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| Interest and similar income                                             | 4,002   | 4,534   | 4,855   | 5,374   | 5,769   | 6,048   | 5,964   | 5,751   | 5,345   |
| Interest expense and similar charges                                    | (1,675) | (2,431) | (2,824) | (3,207) | (3,571) | (3,867) | (3,889) | (3,641) | (3,040) |
| Net interest income                                                     | 2,327   | 2,103   | 2,031   | 2,167   | 2,198   | 2,181   | 2,075   | 2,110   | 2,305   |
| Fee and commission income                                               | 675     | 753     | 760     | 799     | 836     | 822     | 881     | 917     | 919     |
| Fee and commission expense                                              | (132)   | (59)    | (144)   | (136)   | (154)   | (159)   | (141)   | (165)   | (165)   |
| Net fee and commission income                                           | 543     | 694     | 616     | 663     | 682     | 663     | 740     | 752     | 754     |
| Dividend income                                                         | 1       | 1       | 1       | 0       | 1       | 1       | 0       | 0       | 0       |
| Net income from financial operations                                    | 139     | 134     | 183     | 188     | 278     | 240     | 285     | 229     | 164     |
| Other operating income                                                  | 12      | 72      | 13      | 10      | 21      | 10      | 17      | 14      | 22      |
| Total operating income                                                  | 3,022   | 3,004   | 2,844   | 3,028   | 3,180   | 3,095   | 3,117   | 3,105   | 3,245   |
| Personnel expenses                                                      | (657)   | (674)   | (578)   | (595)   | (593)   | (738)   | (620)   | (625)   | (632)   |
| Administrative expenses                                                 | (378)   | (429)   | (365)   | (415)   | (367)   | (486)   | (330)   | (405)   | (380)   |
| Depreciation and amortisation                                           | (311)   | (315)   | (323)   | (312)   | (304)   | (294)   | (301)   | (303)   | (307)   |
| Regulatory charges                                                      | 0       | 0       | (267)   | (40)    | 0       | 0       | (228)   | 12      | 0       |
| Other operating expenses                                                | (10)    | (25)    | (12)    | (10)    | (12)    | (19)    | (7)     | (32)    | (11)    |
| Total operating expenses                                                | (1,356) | (1,443) | (1,545) | (1,372) | (1,276) | (1,537) | (1,486) | (1,353) | (1,330) |
| Profit for the period before tax and net impairment of financial assets | 1,666   | 1,561   | 1,299   | 1,656   | 1,904   | 1,558   | 1,631   | 1,752   | 1,915   |
| Net impairment of financial assets                                      | (124)   | (216)   | 116     | (146)   | (142)   | (133)   | (135)   | (102)   | (114)   |
| Profit for the period before tax                                        | 1,542   | 1,345   | 1,415   | 1,510   | 1,762   | 1,425   | 1,496   | 1,650   | 1,801   |
| Taxes on income                                                         | (291)   | (281)   | (200)   | (247)   | (268)   | (197)   | (210)   | (232)   | (269)   |
| Profit for the period after tax                                         | 1,251   | 1,064   | 1,215   | 1,263   | 1,494   | 1,228   | 1,286   | 1,418   | 1,532   |
| Total comprehensive income attributable to the equity holders           | 1,251   | 1,064   | 1,215   | 1,263   | 1,494   | 1,228   | 1,286   | 1,418   | 1,532   |

![](_page_68_Picture_3.jpeg)

#### **Key performance ratios**

| Yield (% avg net customer<br>loans)<br>4.9%<br>4.7%<br>0.2<br>1<br>Cost of funds<br>(% avg deposits<br>and received<br>loans)<br>3.20%<br>3.33%<br>(0.13)<br>Cost of funds<br>on customer<br>deposits<br>(% avg deposits)<br>3.17%<br>3.30%<br>(0.13)<br>2,3,4<br>NIM (% avg int<br>earning<br>assets)<br>1.9%<br>2.1%<br>(0.2)<br>Cost of risk<br>(% avg net customer<br>loans)<br>0.18%<br>0.11%<br>0.07<br>Risk-adj. yield<br>(% avg net customer<br>loans)<br>4.8%<br>4.6%<br>0.2<br>Net fee<br>& commission<br>income<br>/ Operating income<br>(%)<br>23.7%<br>21.6%<br>2.1<br>Net non-interest<br>income<br>/ Operating income<br>(%)<br>31.4%<br>29.4%<br>2.0<br>Cost to income<br>ratio<br>44.0%<br>47.2%<br>(3.2)<br>RoTE<br>19.8%<br>18.0%<br>1.8<br>RoE<br>17.7%<br>16.1%<br>1.6<br>RoAA2<br>1.2%<br>1.2%<br>0.0<br>Liquidity / Leverage<br>Loan to deposit<br>ratio<br>64.2%<br>65.9%<br>(1.7)<br>Total equity<br>/ Total assets<br>6.5%<br>7.0%<br>(0.5)<br>High-quality<br>liquid<br>assets<br>/ Customer<br>deposits<br>43.5%<br>40.0%<br>3.5 |
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| Liquidity coverage ratio<br>354.4%<br>340.1%<br>(14.3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Capital Adequacy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| RWA density<br>35.6%<br>36.4%<br>(0.8)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Regulatory leverage<br>5.5%<br>5.7%<br>(0.2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Total CAR (%)<br>19.2%<br>20.1%<br>(0.9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Tier 1 ratio<br>(%)<br>15.3%<br>15.7%<br>(0.4)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Asset Quality                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Non-performing<br>loan<br>ratio<br>(%)<br>1.4%<br>1.4%<br>0.0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Core non-performing<br>loan<br>coverage (%)<br>46.4%<br>47.9%<br>(1.5)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (9.6)<br>Total NPL coverage (%)<br>112.0%<br>121.6%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Loan to value ratio (%)5<br>56.1%<br>58.8%<br>(2.7)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Loan to value ratio on new volumes (%, weighted average)<br>58.5%<br>58.4%<br>0.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Operating<br>platform                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Branch network<br>134<br>134<br>0.0%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| ATMs6<br>Own<br>& shared<br>1,981<br>1,971<br>0.5%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Total employees7<br>2,525<br>2,511<br>0.6%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

![](_page_69_Picture_3.jpeg)

Note: (1) Deposits include issued bonds and exclude opportunistic repo transactions and CSA; (2) Including opportunistic repo operations; (3) Interest earning assets include encumbered assets; (4) Hedging derivatives are excluded from the calculation of interest earning assets; (5) On performing retail mortgage loans only; (6) ATM network including MONETA ATMs, Komercni banka ATMs, Air Bank ATMs and UniCredit Bank ATMs; (7) Number of employees as of the last day of the reported period, excluding members of the Supervisory Board and the Audit Committee. Data restated due to change of methodology calculation.

#### **Key performance ratios – quarterly development**

| Profitability                                                | 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | 3Q 2024 |
|--------------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| Yield (% Avg Net Customer Loans)                             | 4.3%    | 4.4%    | 4.4%    | 4.6%    | 4.7%    | 4.9%    | 4.9%    | 4.9%    | 4.9%    |
| 1<br>Cost of Funds (% Avg Deposits<br>and Received<br>Loans) | 1.81%   | 2.65%   | 2.94%   | 3.21%   | 3.42%   | 3.58%   | 3.60%   | 3.31%   | 2.74%   |
| Cost of Funds on Customer Deposits (% Avg Deposits)          | 1.76%   | 2.63%   | 2.91%   | 3.19%   | 3.39%   | 3.55%   | 3.58%   | 3.24%   | 2.63%   |
| 2,3,4<br>NIM (% Avg Int Earning Assets)                      | 2.6%    | 2.3%    | 2.1%    | 2.1%    | 2.1%    | 2.0%    | 1.8%    | 1.8%    | 1.9%    |
| Cost of Risk (% Avg Net Customer Loans)                      | 0.19%   | 0.32%   | (0.17)% | 0.22%   | 0.21%   | 0.20%   | 0.20%   | 0.15%   | 0.17%   |
| Risk-adj. Yield<br>(% Avg Net Customer Loans)                | 4.1%    | 4.1%    | 4.6%    | 4.4%    | 4.5%    | 4.7%    | 4.7%    | 4.8%    | 4.7%    |
| Net Fee & Commission Income / Operating Income (%)           | 18.0%   | 23.1%   | 21.7%   | 21.9%   | 21.4%   | 21.4%   | 23.7%   | 24.2%   | 23.2%   |
| Net Non-Interest Income / Operating Income (%)               | 23.0%   | 30.0%   | 28.6%   | 28.4%   | 30.9%   | 29.5%   | 33.4%   | 32.0%   | 29.0%   |
| Cost to Income Ratio                                         | 44.9%   | 48.0%   | 54.3%   | 45.3%   | 40.1%   | 49.7%   | 47.7%   | 43.6%   | 41.0%   |
| RoTE                                                         | 18.7%   | 15.4%   | 16.8%   | 19.3%   | 21.6%   | 17.0%   | 17.1%   | 21.0%   | 21.5%   |
| RoE                                                          | 16.7%   | 13.7%   | 15.0%   | 17.1%   | 19.3%   | 15.3%   | 15.4%   | 18.7%   | 19.2%   |
| RoAA2                                                        | 1.4%    | 1.1%    | 1.2%    | 1.2%    | 1.4%    | 1.1%    | 1.1%    | 1.2%    | 1.3%    |
| Liquidity / Leverage                                         |         |         |         |         |         |         |         |         |         |
| Loan to Deposit ratio                                        | 84.0%   | 80.5%   | 76.0%   | 72.9%   | 68.5%   | 65.9%   | 65.8%   | 63.6%   | 64.2%   |
| Total Equity / Total Assets                                  | 8.1%    | 8.0%    | 8.0%    | 7.0%    | 6.9%    | 7.0%    | 7.2%    | 6.3%    | 6.5%    |
| High-Quality<br>Liquid Assets<br>/ Customer Deposits         | 22.1%   | 25.7%   | 30.8%   | 32.7%   | 36.3%   | 40.0%   | 40.5%   | 41.9%   | 43.5%   |
| Liquidity Coverage Ratio                                     | 197.7%  | 213.7%  | 273.9%  | 284.8%  | 312.1%  | 354.4%  | 359.5%  | 339.5%  | 340.1%  |
| Capital Adequacy                                             |         |         |         |         |         |         |         |         |         |
| RWA density                                                  | 45.4%   | 43.4%   | 41.4%   | 39.9%   | 37.6%   | 36.4%   | 36.3%   | 35.4%   | 35.6%   |
| Regulatory leverage                                          | 6.5%    | 6.7%    | 6.4%    | 6.1%    | 5.8%    | 5.7%    | 5.6%    | 5.4%    | 5.5%    |
| Total CAR (%)                                                | 17.0%   | 18.0%   | 18.1%   | 19.7%   | 19.9%   | 20.1%   | 19.6%   | 19.4%   | 19.2%   |
| Tier 1 Ratio<br>(%)                                          | 14.3%   | 15.3%   | 15.4%   | 15.4%   | 15.5%   | 15.7%   | 15.4%   | 15.4%   | 15.3%   |
| Asset Quality                                                |         |         |         |         |         |         |         |         |         |
| Non-Performing<br>Loan Ratio (%)                             | 1.4%    | 1.4%    | 1.3%    | 1.3%    | 1.3%    | 1.4%    | 1.4%    | 1.4%    | 1.4%    |
| Core Non-Performing<br>Loan Coverage (%)                     | 56.8%   | 53.4%   | 51.4%   | 49.7%   | 48.2%   | 47.9%   | 46.6%   | 47.2%   | 46.4%   |
| Total NPL Coverage (%)                                       | 137.3%  | 134.8%  | 137.1%  | 133.4%  | 130.8%  | 121.6%  | 118.5%  | 116.1%  | 112.0%  |
| Loan to value ratio (%)5                                     | 61.0%   | 60.4%   | 60.1%   | 59.8%   | 59.5%   | 58.8%   | 57.8%   | 57.5%   | 56.1%   |
| Loan to value ratio on new volumes (%, weighted average)     | 61.2%   | 55.6%   | 59.3%   | 60.0%   | 57.2%   | 57.8%   | 59.5%   | 60.3%   | 56.0%   |
| Operating<br>platform                                        |         |         |         |         |         |         |         |         |         |
| Branch network                                               | 154     | 153     | 140     | 140     | 140     | 134     | 134     | 134     | 134     |
| ATMs6<br>Own<br>& shared                                     | 1,415   | 1,413   | 2,047   | 2,058   | 2,009   | 1,971   | 1,976   | 1,978   | 1,981   |
| Total employees7                                             | 2,794   | 2,689   | 2,550   | 2,510   | 2,520   | 2,511   | 2,510   | 2,498   | 2,525   |

![](_page_70_Picture_3.jpeg)

Note: (1) Deposits include issued bonds and exclude opportunistic repo operations and CSA; (2) Including opportunistic repo operations; (3) Interest earning assets include encumbered assets; (4) Hedging derivatives are excluded from the calculation of interest earning assets; (5) On performing retail mortgage loans only; (6) ATM network including MONETA ATMs, Komercni banka ATMs since 2Q'22, Air Bank ATMs and UniCredit Bank ATMs since 1Q'23; (7) Number of employees as of the last day of the reported period, excluding members of the Supervisory Board and the Audit Committee. Data restated due to change of methodology calculation. 71

# **APPENDIX**

- Events with Investors
- Capital Requirements
- Distributed Dividends and Total Shareholder Return
- Financial Statements & Key Performance Ratios
- Glossary of Terms

#### GLOSSARY 1/3

| Acquired entities                                 | Means MONETA Stavební Spořitelna, a.s. (formerly Wüstenrot – stavební spořitelna, a.s.) and<br>Wüstenrot hypoteční banka, a.s.                                                                                                                                                                    | Cost of Funds on Customer Deposits                                | Interest expense and similar charges on customer deposits for the period divided by the<br>average balance of customer deposits                                                                                            |  |  |
|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| Acquisition                                       | Means the purchase of the Acquired entities                                                                                                                                                                                                                                                       | (% Avg Deposits)                                                  |                                                                                                                                                                                                                            |  |  |
| Annualised                                        | Adjusted so as to reflect the relevant rate on the full-year basis                                                                                                                                                                                                                                |                                                                   | Net impairment of financial assets divided by the average balance of net loans to customers<br>since 2018 based on IFRS 9. If cost of risk is shown in CZK, then it corresponds to "Net<br>impairment of financial assets" |  |  |
| ARAD                                              | ARAD is a public database that is part of the information service of the Czech National Bank. It is<br>a uniform system of presenting time series of aggregated data for individual statistics and<br>financial market areas                                                                      | CoR or cost of risk or cost of risk (%<br>Avg Net Customer Loans) |                                                                                                                                                                                                                            |  |  |
| Auto                                              | MONETA Auto, s.r.o.                                                                                                                                                                                                                                                                               | Cost to income ratio (C/I)                                        | Ratio (expressed as a percentage) of total operating expenses for the period to total operating<br>income for the period                                                                                                   |  |  |
| Average balance of net interest<br>earning assets | Two-point average of the beginning and ending balances of Net Interest Earning Assets for the<br>period                                                                                                                                                                                           | CRR                                                               | Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on<br>prudential requirements for credit institutions and investment firms and amending Regulation                              |  |  |
| Average balance of net loans to<br>customers      | Average of the beginning and ending balances of Loans and receivables to customers for the<br>period                                                                                                                                                                                              |                                                                   | (EU) No. 648/2012, as amended                                                                                                                                                                                              |  |  |
| Average balance of total assets                   | Two-point average of the beginning and ending balances of Total Assets for the period                                                                                                                                                                                                             | CSA                                                               | Credit Support Annex is a legal document which regulates credit support (collateral) for<br>derivative transactions                                                                                                        |  |  |
| Bank                                              | MONETA Money Bank, a.s.                                                                                                                                                                                                                                                                           | Customer deposits                                                 | Due to customers excluding repo operations, subordinated liabilities and CSA                                                                                                                                               |  |  |
| bn                                                | Billions                                                                                                                                                                                                                                                                                          |                                                                   | Czech Statistical Office                                                                                                                                                                                                   |  |  |
| bps                                               | Basis points                                                                                                                                                                                                                                                                                      | CZSO                                                              |                                                                                                                                                                                                                            |  |  |
| Building savings/Building savings<br>deposits     | Saving product, typical for building savings banks. The Bank undertakes clients' deposits<br>determined for housing financing. This act is supported by a financial contribution from the<br>state.                                                                                               | Drawn limit / Overdraft drawn                                     | Loans and receivables to customer balance                                                                                                                                                                                  |  |  |
| Building saving loans/Bridging loans              | Building savings loan provided based on a building savings product. The bridging loan is<br>exclusively in the area of  building savings, tied only to housing needs. Bridging loans are used to<br>bridge the period during which the conditions for negotiating a building savings loan are not | ETR / Effective Tax Rate                                          | Effective Tax Rate – calculated as taxes on income divided by profit for the period before tax                                                                                                                             |  |  |
|                                                   | met.                                                                                                                                                                                                                                                                                              |                                                                   | The impairment model that measures credit loss allowances using a three-stage approach                                                                                                                                     |  |  |
| CAR / Capital Adequacy Ratio                      | Ratio calculated as regulatory capital as a percentage of risk-weighted assets                                                                                                                                                                                                                    | Expected credit loss model                                        | based on the extent of credit deterioration of financial assets since origination; Stage 1 –<br>financial assets with no significant increase in credit risk since initial recognition, Stage 2 -                          |  |  |
| CET1 ratio                                        | CET 1 capital as a percentage of RWA (calculated pursuant to CRR)                                                                                                                                                                                                                                 |                                                                   | financial assets with significant increase in credit risk since initial recognition but not in default,<br>Stage 3 – financial assets in default                                                                           |  |  |
| CNB                                               | Czech National Bank                                                                                                                                                                                                                                                                               |                                                                   |                                                                                                                                                                                                                            |  |  |
| Cost Base / OPEX                                  | Total operating expenses                                                                                                                                                                                                                                                                          | FTE                                                               | Figure states full time equivalents in the last month of the quarter                                                                                                                                                       |  |  |
|                                                   | Interest expense and similar charges for the period (excl. deposit interest rate swaps and                                                                                                                                                                                                        | FVTOCI                                                            | Financial assets measured at Fair Value Through Other Comprehensive Income                                                                                                                                                 |  |  |
| Cost of Funds (% Avg Deposits)                    | opportunistic repo interest expenses) divided by the average balance of Due to banks, Due to<br>customers and issued bonds and subordinated liabilities, excl. opportunistic repo operations<br>and CSA                                                                                           |                                                                   | Financial assets measured at Fair Value Through Profit or Loss                                                                                                                                                             |  |  |

![](_page_72_Picture_2.jpeg)

#### GLOSSARY 2/3

| Funding Base                       | Sum of Due to customers, Due to Banks, Issued Bonds and subordinated liabilities and excluding<br>opportunistic repo operations and CSA                                                                                                                                                                              |                                                 | Instalment products: model output of yield expected to be generated on newly originated loans<br>based on inputs combining actual contractual terms and expected behaviour of the loan for the                                                                                                                                             |  |  |
|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| FY                                 | Financial year                                                                                                                                                                                                                                                                                                       | New volume yield / New production<br>yield      | specific type of the loan product. Revolving products (credit cards and working capital):<br>weighted average of contractual rate on newly originated loans (credit limit)                                                                                                                                                                 |  |  |
| GDP                                | Gross domestic product                                                                                                                                                                                                                                                                                               |                                                 |                                                                                                                                                                                                                                                                                                                                            |  |  |
| Group                              | The Bank and its subsidiaries                                                                                                                                                                                                                                                                                        | NPL / Non-performing loans                      | Non-performing loans as determined in accordance with the MONETA´s loan receivables<br>categorisation rules (substandard, doubtful, loss), Stage 3 according to IFRS 9                                                                                                                                                                     |  |  |
| Gross performing loans             | Performing loans and receivables to customers as determined in accordance with the<br>MONETA's loan receivables categorisation rules (Standard, Watch)                                                                                                                                                               | NPL Ratio                                       | Ratio (expressed as a percentage) of NPL to gross loans and receivables to customers                                                                                                                                                                                                                                                       |  |  |
| IFRS                               | International Financial Reporting Standards                                                                                                                                                                                                                                                                          | NPL Coverage / Coverage / Total NPL<br>Coverage | Ratio (expressed as a percentage) of loss allowances for loans and advances to customers to<br>NPL                                                                                                                                                                                                                                         |  |  |
|                                    | Equity and debt securities in the Group´s portfolio, consist of securities measured at amortised                                                                                                                                                                                                                     | Operating profit                                | Operating profit represents profit for the period before tax and Cost of Risk                                                                                                                                                                                                                                                              |  |  |
| Investment securities              | cost, fair value through other comprehensive income (FVTOCI) and fair value through profit or<br>Opportunistic repo operations<br>loss (FVTPL)                                                                                                                                                                       |                                                 | Repo transactions with counterparties which are closed on a back-to-back basis by reverse repo<br>transactions with the CNB                                                                                                                                                                                                                |  |  |
| k/ths                              | Thousands                                                                                                                                                                                                                                                                                                            |                                                 | POCI means purchased or originated financial asset(s) that are credit-impaired on initial                                                                                                                                                                                                                                                  |  |  |
| Leasing                            | MONETA Leasing, s.r.o.                                                                                                                                                                                                                                                                                               | POCI                                            | recognition and indicates that a financial asset is credit-impaired when one or more events that<br>have a detrimental impact on the estimated future cash flows of that financial asset have<br>occurred                                                                                                                                  |  |  |
| Liquid Assets                      | Liquid assets comprise cash and balances with central banks, investment securities (not<br>transferred as collateral in repurchase agreements), loans and receivables to banks                                                                                                                                       | Portfolio yield                                 | Please refer to the definition of yield                                                                                                                                                                                                                                                                                                    |  |  |
|                                    | Liquidity Coverage Ratio measures the ratio (expressed as a percentage) of MONETA's buffer of                                                                                                                                                                                                                        | pp                                              | Percentage points                                                                                                                                                                                                                                                                                                                          |  |  |
| LCR/Liquidity Coverage Ratio       | high quality liquid assets to its projected net liquidity outflows over a 30-day stress period, as                                                                                                                                                                                                                   | Q                                               | Quarter                                                                                                                                                                                                                                                                                                                                    |  |  |
|                                    | calculated in accordance with EU Regulation 2015/61<br>QtD                                                                                                                                                                                                                                                           |                                                 | Quarter-to-date                                                                                                                                                                                                                                                                                                                            |  |  |
| LtD ratio or Loan to Deposit ratio | Loan to deposit ratio calculated as net loans and receivables to customers divided by customer<br>deposits, excluding subordinated liabilities, CSA and repos                                                                                                                                                        | QtQ                                             | Quarter-to-quarter                                                                                                                                                                                                                                                                                                                         |  |  |
| M / m                              | Millions                                                                                                                                                                                                                                                                                                             | RAOI                                            | All interest and non-interest income generated by each lending product within the segment,<br>minus Cost of Funds allocated to each lending product (by using average Group core Cost of<br>Funds and leverage), minus cost of IR hedging allocated to each lending product and minus                                                      |  |  |
| Management overlay                 | Increment to expected credit loss estimate which compensates insufficient sensitivity of core<br>IFRS 9 model to specific macroeconomic conditions                                                                                                                                                                   |                                                 | credit losses booked on each lending product for the period                                                                                                                                                                                                                                                                                |  |  |
| MONETA                             | MONETA has the same meaning as the Group                                                                                                                                                                                                                                                                             | Regulatory Capital                              | Mainly consists of paid-up registered share capital, share premium, retained profits, disclosed<br>reserves and reserves for general banking risks, which must be netted off against accumulated<br>losses, certain deferred tax assets, certain intangible assets and treasury shares held by the<br>Company (calculated pursuant to CRR) |  |  |
| MREL                               | Minimum Requirement of Own Funds and Eligible Liabilities                                                                                                                                                                                                                                                            |                                                 |                                                                                                                                                                                                                                                                                                                                            |  |  |
| MSS                                | MONETA Stavební Spořitelna, a.s. (formerly Wüstenrot – stavební spořitelna, a.s.)                                                                                                                                                                                                                                    |                                                 | Relative size of an institution's assets, off-balance sheet obligations and contingent obligations<br>to pay or to deliver or to provide collateral, including obligations from received funding, made                                                                                                                                     |  |  |
| Net Income/Net Profit              | Profit for the period after tax                                                                                                                                                                                                                                                                                      | Regulatory Leverage                             | commitments, derivates or repurchase agreements, but excluding obligations which can only be<br>enforced during the liquidation of an institution, compared to that institution's own funds                                                                                                                                                |  |  |
| Net Interest Earning Assets        | Cash and balances with the central bank, investment securities, loans and receivables to banks,<br>loans and receivables to customers and prior to the transition to IFRS 9 also financial assets at<br>fair value through profit or loss, financial assets available for sale, financial assets held to<br>maturity | Return on Tangible Equity or RoTE               | Return on tangible equity calculated as annualised profit after tax for the period divided by<br>tangible equity                                                                                                                                                                                                                           |  |  |
| Net Interest Margin or NIM         | Net interest and similar income divided by the average balance of net interest earning assets                                                                                                                                                                                                                        |                                                 |                                                                                                                                                                                                                                                                                                                                            |  |  |
| Net Non-Interest Income            | Total operating income less net interest and similar income for the period                                                                                                                                                                                                                                           | Retail clients                                  | Clients/individuals who have their product signed using their personal identification number                                                                                                                                                                                                                                               |  |  |
| New volume / New production        | Aggregate of loan principal disbursed in the period for non-revolving loans                                                                                                                                                                                                                                          |                                                 |                                                                                                                                                                                                                                                                                                                                            |  |  |

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#### GLOSSARY 3/3

| Retail unsecured instalment loans/<br>Consumer loans/Unsecured<br>consumer loans | Non-purpose, unsecured and revolving loans to retail clients; including building savings and<br>bridging loans                                                                                                                                                                                    | Stage 1, Stage 2, Stage 3         | Stage 1 – financial assets with no significant increase in credit risk since initial recognition, Stage<br>2 - financial assets with significant increase in credit risk since initial recognition but not in<br>default, Stage 3 – financial assets in default |
|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Return on Average Assets or RoAA                                                 | Return on average assets calculated as annualised profit after tax for the period divided by the<br>average balance of total assets                                                                                                                                                               | Supplementary housing loans       | MSS portfolio – retail bridging loans and building savings loans.                                                                                                                                                                                               |
| Return on Equity or RoE                                                          | Return on equity calculated as annualised profit after tax for the period divided by total equity                                                                                                                                                                                                 | Tangible Equity                   | Calculated as total equity less intangible assets and goodwill                                                                                                                                                                                                  |
| RWA                                                                              | Risk-Weighted Assets calculated pursuant to CRR                                                                                                                                                                                                                                                   | Tier 1 Capital                    | The aggregate of Common equity tier 1 (CET1 Capital) and Additional Tier 1 which mainly<br>consists of capital instruments and other items (including certain unsecured subordinated debt<br>instruments without a maturity date) provided in Art. 51 of CRR    |
| RWA density                                                                      | Calculates the weighted average risk weight for the entire banking and trading book (incl. Off<br>balance & On-balance sheet) plus considering also Operational Risk, Market Risk and                                                                                                             | Tier 1 Capital Ratio              | Tier 1 Capital as a percentage of risk-weighted assets                                                                                                                                                                                                          |
| RWA portfolio density                                                            | Counterparty Credit Risk RWA. It is defined as the Leverage Ratio to the Tier 1 Adequacy Ratio<br>Calculates the weighted average risk weight of the loan portfolio only (incl. Off-balance & On<br>balance sheet) considering credit conversion factor effects per unit of exposure (zero credit | Tier 2 Capital, T2                | Regulatory Capital which consists of capital instruments, subordinated loans and other items<br>(including certain unsecured subordinated debt obligations with payment restrictions) provided<br>in Art. 62 of CRR                                             |
|                                                                                  | conversion factors are substituted by 10%). It is defined as the ratio of RWA to the Net<br>Financing Receivables, i.e. utilising Specific Credit Risk Adjustments                                                                                                                                | Total Capital Ratio               | Tier 1 Capital and Tier 2 Capital as a percentage of risk-weighted assets                                                                                                                                                                                       |
| Small Business clients                                                           | Clients or enterprises with an annual turnover of up to CZK 60 million                                                                                                                                                                                                                            | Total NPL Coverage                | Ratio (expressed as a percentage) of individual and portfolio provisions for loans and<br>receivables to total non-performing loans and receivables                                                                                                             |
| Small Business loan portfolio                                                    | Loans and receivables of unsecured instalment loans, commercial credit cards and unsecured<br>overdrafts provided to an enterprise with an annual turnover of up to CZK 60 million                                                                                                                | Total Shareholder Return/TSR      | Total Shareholder Return based on the Bloomberg methodology including reinvested dividend                                                                                                                                                                       |
| Small Business (new) production                                                  | New volume of unsecured instalment loans and receivables to Small Business customers                                                                                                                                                                                                              | Wealth management                 | Distributed wealth management products                                                                                                                                                                                                                          |
|                                                                                  |                                                                                                                                                                                                                                                                                                   | Y                                 | Year                                                                                                                                                                                                                                                            |
| SME / SME clients                                                                | Clients or enterprises who have their product on an identification number with an annual<br>turnover above CZK 60 million                                                                                                                                                                         | Yield (% Avg. Net Customer Loans) | Interest and similar income from loans to customers divided by the average balance of net<br>loans to customers                                                                                                                                                 |
| SREP                                                                             | Supervisory Review and Evaluation Process, when the supervisor regularly assesses and<br>measures the risks for each bank                                                                                                                                                                         | YoY                               | Year-on-year                                                                                                                                                                                                                                                    |
|                                                                                  |                                                                                                                                                                                                                                                                                                   | YtD                               | Year to date                                                                                                                                                                                                                                                    |

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## **Disclaimer and other information**

- THIS PRESENTATION IS NOT AN OFFER OR A SOLICITATION OF OFFERS TO SELL, PURCHASE OR SUBSCRIBE FOR SHARES OF MONETA MONEY BANK, A.S. (THE "COMPANY"), OTHER SECURITIES OR OTHER FINANCIAL INSTRUMENTS.
- Copies of this presentation may not be sent to countries, or distributed in or sent from countries, in which this is barred or prohibited by law. Persons into whose possession this presentation comes should inform themselves about and observe all such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction. This document does not constitute a recommendation regarding any securities.
- The Company is under no obligation to update or keep current the information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein, except to the extent it would be required to do so under applicable law or regulation.
- Certain industry and market information in this presentation has been obtained by the Company from third-party sources. The Company has not independently verified such information and neither the Company nor any of its representatives provide any assurance as to and shall not be liable in any respect whatsoever (whether in negligence or otherwise) for the correctness, accuracy, fairness or completeness of such information or opinions contained in this presentation.
- The Company was rated A2 with a stable outlook by Moody's Deutschland GmbH ("Moody's"). Moody's was established in the European Union and is registered under Regulation (EC) No. 1060/2009, as amended (the "CRA Regulation"). As such, Moody's is included in the list of credit rating agencies published by the European Securities and Markets Authority on its website (https://www.esma.europa.eu/supervision/credit-rating-agencies/risk) in accordance with the CRA Regulation. When selecting the rating agency, the Company proceeded in accordance with the obligations laid down in Article 8d of the CRA Regulation.
- Figures in charts and tables may not add up due to rounding differences.

#### **Forward-looking statements**

- This presentation and subsequent discussion may contain projections, estimates, forecasts, targets, opinions, prospects, results, returns and forward-looking statements with respect to the management's medium-term guidance, profitability, costs, assets, capital position, financial condition, results of operations, dividend and business of the Group (together, "forward-looking statements"). The forward-looking statements assume purely organic growth without regard to any potential acquisition.
- Any forward-looking statements involve material assumptions and subjective judgements which may or may not prove to be correct and there can be no assurance that any of the matters set out in forward-looking statements will actually occur or will be realised or that such matters are complete or accurate. The assumptions may prove to be incorrect and involve known and unknown risks, uncertainties, contingencies and other important factors, many of which are outside the control of the Group. Actual achievements, results, performance or other future events or conditions may differ materially from those stated, implied and/or reflected in any forward-looking statements due to a variety of risks, uncertainties and other factors. Any forward-looking statement contained in this presentation is made as of the date of this presentation. MONETA Money Bank, a.s. does not assume, and hereby disclaims, any obligation or duty to update forward-looking statements if circumstances or management's assumptions, beliefs, expectations or opinions should change, unless it would be required to do so under applicable law or regulation. For these reasons, recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements.

#### **Material assumptions for forward-looking statements**

• See slide "Material assumptions for medium-term guidance" on pages 53 and 54.

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INVESTOR RELATIONS

#### **Contacts**

**Linda Kavanová Jarmila Valentová Dana Laštovková**

*MONETA Money Bank, a.s. BB Centrum, Vyskočilova 1442/1b 140 28 Praha 4 – Michle Tel: +420 224 442 549 [investors@moneta.cz](mailto:Investors@moneta.cz) [www.moneta.cz](http://www.moneta.cz/) Identification number: 25672720* 

*Bloomberg: MONET CP ISIN: CZ0008040318*

*Reuters: MONET.PR SEDOL: BD3CQ16*

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**www.moneta.cz**