Mandatory Disclosure PUBLIC DISCLOSURE OF INSIDE INFORMATION

MONETA Money Bank, a.s.

Consolidated interim financial report as of and for the six months ended 30 June 2023

1	Disclaimer 3
2	Letter from the CEO 4
3	Key Performance Indicators 9
4	Macroeconomic Environment 10
5	Group Performance 11
	5.1 Business Performance 11
	5.2 Financial Performance 11
	5.3 Outlook for 2023 and Risks 12
6	Basic Information about MONETA Money Bank, a.s. 13
7	Condensed Consolidated Interim Financial
	Statements for the Three and Six-month Period Ended 30 June 2023 (Unaudited) 15
	7.1 Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income for the Three and Six-month Period Ended 30 June 2023 (Unaudited) 15
	7.2 Condensed Consolidated Statement of Financial Position as at 30 June 2023 (Unaudited) 16
	7.3 Condensed Consolidated Statement of Changes in Equity for the Half-year Ended 30 June 2023 (Unaudited) 17
	7.4 Condensed Consolidated Statement of Cash Flows for the Half-year Ended 30 June 2023 (Unaudited)

8	…………………………………………………………………….18 Notes to Unaudited Condensed Consolidated
	Interim Financial Statements 20
	8.1 Reporting Entity 20
	8.2 Basis of Preparation and Presentation 20
	8.3 Use of Judgements and Estimates 20
	8.4 Significant Accounting Policies 20
	8.5 Consolidation Group 21
	8.6 Dividends Paid 21
	8.7 Net Interest Income 22
	8.7.1 Analysis of deferred costs and fees directly attributable to origination of new loan products that are integral part of the effective interest rate for a three and six-month period
	………………………………………………………….23
	8.8 Net Fee and Commission Income 25
	8.9 Total Operating Expenses 25
	8.10Investment Securities 25
	8.11Loans and Receivables to Banks 26
	8.12Loans and Receivables to Customers 26
	8.13Due to Banks and Due to Customers 27
	8.14Issued Bonds 28
	8.15Subordinated Liabilities 29
	8.16Legal Risks 29 8.16.1 Legal disputes 29

		8.17Segment Reporting 30
		8.18Related Parties 32
		8.19Risk Management 34
	8.19.1	Capital management 34
	8.19.2	Loans and receivables to banks and customers according to their categorisation . 36
	8.19.3	Walk of allowances to Loans and receivables to customers 37
	8.19.4	Break-down of allowances according to loan type and stages 39
	8.19.5	Coverage of non-performing loans and receivables 40
	8.19.6	Net impairment of financial assets 40
	8.19.7	Maximum credit risk exposures 41
		8.20Fair Values of Financial Assets and Liabilities 43
		8.21Subsequent Events 44
9		Management Affidavit 45
10		Alternative Performance Measures 46
11		Glossary 47

1 Disclaimer

Forward-looking statements

This report may contain projections, estimates, forecasts, targets, opinions, prospects, results, returns and forward-looking statements with respect to, the financial guidance, profitability, costs, assets, capital position, financial condition, results of operations, dividend and business (together, "forward-looking statements") of MONETA Money Bank, a.s. and its consolidated subsidiaries (the "Group" or "MONETA").

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 report is made as at the date of this report. The Bank 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.

Dividend Guidance

Subject to corporate, regulatory and regulator's limitations, the Bank's target is to distribute the Group's excess capital above that required to meet the Group's internal target of the capital adequacy ratio, which is currently 16.35% (effective since 1 July 2023). However, the internal capital adequacy ratio target is not legally binding upon the Group and is subject to change on the basis of the ongoing re-assessment by the Management Board of the Bank based on the business results and development.

Material assumptions for forward-looking statements

When preparing updated Guidance for 2023–2027¹ MONETA has made several economic, market, operational, regulatory and other assumptions of both quantitative and judgemental nature. These assumptions include the following:

GDP growth in 2023 by 0.5% and then accelerate to growth of around 2.5%–3.0% annually.
1M PRIBOR assumed to decrease from 7.1% in 2023 to 2.9% in 2026 and 2027² .
Gross performing loan balance is expected to grow at 1.0% CAGR in the 5 years until 2027.
Customer deposits balance is expected to grow at 7.8% CAGR in the 5 years until 2027.

Third parties' data

Certain industry and market information in this report has been obtained by the Bank from third party sources. The Bank has not independently verified such information and the Bank does not provide any assurance as to the accuracy, fairness or completeness of such information or opinions contained in this report.

¹ Updated five-year guidance published on 27th July 2023.

² Internal forecast derived from macroeconomic forecast from CNB published on May 2023 https://www.cnb.cz/en/monetarypolicy/monetary-policy-reports/Monetary-Policy-Report-Spring-2023/

2 Letter from the CEO

Dear Shareholders,

I am pleased to report our results for the first semester of the year. We continued to successfully gather customer deposits, which grew by 10.2 per cent to reach CZK 368 billion as of the end of June. Retail and commercial deposits rose by 10.2 per cent and 10.3 per cent respectively compared to year-end 2022. We attribute this deposit growth to our pricing policy, marketing strategy and the solid performance of both our digital channels and our branch network.

In June, we introduced a subordinated deposit product with a fixed five-year term and an interest rate of 7 per cent. This was launched in order to help us meet the minimum regulatory requirement set by the Czech National Bank (CNB) for own funds and eligible liabilities, or MREL. It requires us to carry capital or similar instruments at a minimum level of 22.95 per cent against risk weighted assets, effective 31 December 2023.

As we previously communicated, our plan was to raise the necessary funds from our clients. The subordinated deposit was offered to our retail clients in early June and the demand far exceeded our expectations. Within three weeks we successfully raised CZK 2.8 billion. Thus, we are now fully compliant with the requirement. Regarding our dividend policy and future dividend distributions, we are confident that our capacity to continue with such is unchanged.

Thanks to the growth in our deposit base and our successful distribution of subordinated deposits, we continue to have an excellent liquidity position, with a Liquidity Coverage Ratio (LCR) of 285 per cent. Our balance sheet stood at CZK 424 billion as of 30 June.

With respect to interest rate risk management, we continue to hold a higher proportion of our assets on floating rates, assuming that rate cuts will come in early 2024. At the same time, we retain our ability to reprice a majority of our deposit base within three months.

Overall, our financial performance so far this year has exceeded our operating plan and our market guidance. The better than expected performance was positively impacted by several factors.

Firstly, our cost of risk remained low thanks to good repayment discipline across our portfolios and successful non-performing loan (NPL) recoveries. In

fact, we did not see a deterioration in our lending portfolio. Additionally, we successfully disposed of NPLs in the nominal amount of CZK 828 million, which generated a gain of CZK 251 million.

Secondly, and in a continuation of a positive trend from the first quarter, we expanded our distribution capacity of third-party products. Our distribution of pension fund insurance products performed particularly well, increasing by a remarkable 219 per cent year-on-year. This success is largely attributable to the efforts of our staff in our nationwide branch network.

In April we held our Annual General Meeting, with the participation of 70.95 per cent of all shareholders. Our shareholders approved the 2022 financial statements, the remuneration report and the nomination of a new Supervisory Board member. Mrs. Kateřina Jirásková was elected to the Supervisory Board by 82.9 per cent of the votes of the shareholders present at the General Meeting. And lastly, shareholders approved management's proposal to pay a 2022 dividend of CZK 8 per share, which was distributed on 25 May.

Based on the above developments, we are able to increase our minimum performance targets for years 2023-2027. Specifically, our minimum profit target for 2023 was adjusted upwards, from CZK 4.3 billion to CZK 4.7 billion.

CURRENT ECONOMIC ENVIRONMENT

The Czech Republic's state budget deficit reached CZK 215 billion at the end of June, which was an improvement on the CZK 271 billion recorded in May, thanks in part to the collection of corporate taxes. Nonetheless, the budget deficit continues to be one of the highest ever incurred. The government has been seeking agreement on measures to consolidate public finances and reduce the deficit. In June the government introduced a set of measures designed to accomplish this aim. If implemented, the government estimates a positive impact of CZK 151 billion in 2024 and 2025. The consolidation package is currently being considered by parliament, where opposition parties are seeking to prevent or to postpone its approval through obstructive behaviour. Therefore, we cannot report success or failure concerning the approval of these measures.

The consolidation measures include an increase in the corporate income tax rate to 21 per cent from 2024, cuts in state subsidies for businesses, changes in the pension system, changes to VAT rates, and higher taxes on tobacco and gambling. Additionally, the measures also envisage the taxation of employee benefits which, if passed, will increase the cost base of the private sector.

The scourge of high inflation remains, albeit with a positive downward trend. Year-on year inflation fell to single digits of 9.7 per cent in June, down from its peak of 18 per cent some nine months ago. The CNB expects full-year 2023 inflation to be around 11 per cent. It is therefore no surprise that the key rates remain unchanged. The market expectation is that interest rate cuts will come in early 2024. The CNB foresees a return towards its 2 per cent inflation target in the second quarter of 2024.

Economic growth is neutral: GDP remained unchanged quarter-on-quarter, and the expectation for the full year is growth of around 0.5 per cent. Unemployment remains low, at 2.6 per cent, and is expected to remain stable for 2023. Nominal wage growth was running at 9 per cent in the first quarter, but due to inflation real wage growth is negative, at -7 per cent. Retail sales are declining and reflect increasing inflationary pressures on household expenses.

The value of the Koruna remained strong at around 23.7 CZK/EUR during the first six months, with the central bank expecting a gradual weakening to 24 CZK/EUR in the coming quarters.

From the regulatory perspective, the CNB decreased the countercyclical capital buffer by 25 bps to 2.25 per cent. The CNB also removed mortgage-related limits. Specifically, the maximum Debt Service to Income ratio (DSTI) has been abandoned for the time being and higher Loan to Value (LtV) volumes are now allowed. In its latest financial stability report, the regulator confirmed the resilience and stability of the Czech banking sector.

I will now turn to MONETA's financial performance.

1H 2023 FINANCIAL PERFORMANCE

As already mentioned, our financial results met and exceeded our current plan. So far, we have benefitted from better than anticipated cost of risk and a reduced tax liability. The reduction in our tax liability arises from our investments in government bonds, the income from which is tax-exempt. These investments were made due to lower market demand for our credit products. At mid-year, we therefore report a net profit of CZK 2.5 billion, with a 18.9 per cent Return on Tangible Equity.

Our operating income reached CZK 5.9 billion and is in line with our expectations and business plan. If we break down the composition of our operating income, then net interest income decreased by 14 per cent to CZK 4.2 billion. Net interest income was weaker due to the repricing of deposits across our product portfolios. On the other hand, our net fee and commission income reached CZK 1.3 billion, up by more than 20 per cent and attributable to a significant strengthening in our ability to distribute third-party products.

Sales of pension insurance products increased by 219.2 per cent, with more than 18,000 new contracts signed during the first half of this year. We also recorded a material increase in foreign-exchange income, by 15 per cent, due to competitive exchangerate pricing offered through our digital channels and branch network, and a higher level of transactional activity by our clients abroad.

Our operating expenditures increased by 4.4 per cent and reached CZK 2.9 billion. Nonetheless, we are pleased that our cost base remains under control despite high inflation and continued pressure on wages. The chief cause of the cost increase was

a significantly higher level of mandatory, regulatory contributions, which rose by 34.1 per cent due to our growth in deposits, and the higher level of deposit insurance charges mandated by the regulator in May 2023. Within this context, we continue to exercise cost discipline and to focus on productivity improvements.

Our operating profit was CZK 3 billion in the period under review, a decrease of 10.3 per cent year-onyear. The erosion of our operating profit is also attributable to the absence of one-off gains realised during the first half of 2022, namely the refund of M&A costs. Additionally, last year we benefitted from a low cost of funding prior to the repricing of our deposit base, which began during the third quarter of 2022. Neither of these impacts recur this year. Nonetheless, we remain confident in our ability to meet the maximum cost target for the full year.

Concerning our cost of risk, during the first half of 2023 we incurred a net charge CZK 30 million, or 2 basis points. This result was materially and positively impacted by successful NPL disposals that, year-todate, brought a gain of CZK 251 million and decreased the level of NPL portfolio. Our cost of risk was further helped by a satisfactory portfolio performance concerning repayments and a stable level of loan arrears. From the balance sheet perspective, we finished the first half of the year carrying non-performing receivables in the amount of CZK 3.6 billion, which translates into an NPL ratio of 1.3 per cent, the lowest level ever.

Additionally, we continued in our anticipatory creation of loan loss provisions. We strengthened our so-called "management overlays" to a level of CZK 931 million by charging an additional CZK 84 million into this category in the first half of the year. Overall provisioning of our loan portfolio stands at 1.7 per cent and constitutes CZK 4.8 billion.

In the period under review, our investment securities portfolio grew to CZK 80.5 billion, up 38.9 per cent compared to year-end 2022. This portfolio also includes a benefit of tax-exempt revenue stream and the ability to obtain liquidity if and when necessary.

MONETA's effective tax rate is 15.3 per cent thanks to income from government bonds as explained above.

Our consolidated capital adequacy ratio is strong, standing at 19.7 per cent, and exceeding our current regulatory capital management target of 16.35 per cent. Additionally, we continue to have an excellent liquidity position with an LCR of 285 per cent.

Lastly, our client base increased during the first half by 1.6 per cent to 1.5 million clients. The increase is attributable to our price-winning current accounts, savings accounts and term deposits. The Bank once again received prestigious accolade from its clients and as a result obtained winning position in market wide competition "Zlatá koruna".

UPGRADED GUIDANCE FOR 2023–2027

Our minimum cumulative net profit target for 2023 had been increased from CZK 4.3 billion to CZK 4.7 billion. The main drivers behind our higher profit target are an expected lower cost of risk and the updated effective tax rate. Additionally, the minimum target is supported by our confidence to meet and potentially slightly exceed our operating income target and to maintain costs below the maximum level.

We have also increased our medium-term targets. Specifically, we now aim to deliver a minimum cumulative five-year net profit of CZK 25.4 billion. The increased minimum target compares favourably to our previously communicated CZK 23.6 billion.

The upgraded targets are contained in our quarterly financial results presentation, which provides a more detailed view of changes related to specific performance metrics as well as an updated view on the evolution of key balance sheet categories.

1H 2023 BUSINESS PERFORMANCE

MONETA's overall core customer deposit base grew by 10.2 per cent from year-end 2022. As of 30 June, customer deposits reached CZK 368 billion, which is the highest balance ever. Retail core customer deposits grew by 10.2 per cent to CZK 282 billion and core commercial customer deposits grew by 10.3 per cent to CZK 85 billion. Our savings accounts and term deposits grew by 20.3 per cent, while current account deposits decreased by 4.6 per cent as clients continued to transfer their funds to higher yielding deposit products.

I am pleased to report that, overall, our retail and commercial portfolios were stable and in line with the guidance we provided. New lending volumes are decreasing across majority of the loan products, which reflects generally lower demand across the market, and in particular MONETA's adoption of a more conservative stance on new originations. We have built into our underwriting criteria the increased cost of living and inflationary pressures so as to ensure responsible and affordable lending. MONETA will not take advantage of the deactivation of the DSTI as announced by the CNB. In the first half of the year, we did see a sharp increase in new units of commercial credit cards, which rose by 111.1 per cent, this was largely thanks to online approvals and our programme of bonuses on purchases.

Retail segment

Our retail loan portfolio stood at CZK 183.9 billion as of 30 June. Gross performing mortgage receivables were stable at CZK 131.2 billion, but new volumes continued to decline sharply, by 69.7 per cent year-on-year. Other retail portfolios also remained stable with consumer loans at CZK 47.8 billion, and the auto loan portfolio at CZK 2.5 billion. Credit card and overdraft receivables decreased by 5.3 per cent to CZK 2.3 billion.

MONETA's investment funds portfolio increased to CZK 31.6 billion and recorded a fee income of CZK 147 million, up 4.7 per cent on the same period in 2022. MONETA currently offers 36 investment funds.

Commercial segment

Our commercial business was broadly stable at CZK 85.3 billion, up 2.3 per cent compared to year end. New volumes decreased, just as we saw in the retail portfolio and also reflecting our prudent lending criteria. The investment loan portfolio remained stable at CZK 46 billion, with new volumes down 32.7 per cent. Working capital lending receivables were CZK 16.3 billion, up by 14.6 per cent. Our small business portfolio increased by 4.4 per cent to CZK 12.9 billion, however new volumes of small business instalment lending were also down 26.8 per cent year-on-year. Commercial auto loans increased by 5.6 per cent to CZK 7.3 billion.

MONETA Money Bank held the following marketshares as of June 30: consumer lending at 15 per cent; mortgage lending at 8 per cent, and asset management at 4 per cent.

DIGITAL STRATEGY PROGRESS REVIEW

Our number of digital users continues to grow. Smart Banka users reached 987,000 which is 18.4 per cent higher than at the end of 2022. MONETA has enjoyed success in the cross-selling of products via our digital channels, and the share of digital originations during the period under review was 48 per cent for consumer loans and 27 per cent for small business loans. The share of deposit products opened through digital channels is also increasing with 44 per cent of retail current deposits and 57 per cent of retail savings and term accounts originated online.

The Czech Republic is a world leader in the use of tokenised card technology, which increases transaction security. The number of MONETA's tokenised cards increased by 49.9 per cent year-on-year to 480,000, confirming this trend. MONETA this year expanded its offer in this area to offer clients virtual cards, where all data are in digital form only, without a physical card. This helps to save costs, is environmentally friendly and reduces theft and forgery.

CAPITAL POSITION

MONETA is well capitalised. Our regulatory capital stood at CZK 33.8 billion as of 30 June 2023. Our consolidated capital adequacy ratio is a healthy 19.7 per cent and significantly above the management capital target of 16.35 per cent (including the management buffer and the updated countercyclical buffer of 2.25 per cent). Tier 1 ratio reached 15.38 per cent with an excess of 1.93 per cent or CZK 3.3 billion above the Tier 1 management capital target of 13.45 per cent.

As I wrote earlier, we successfully raised subordinated deposits in the amount of CZK 2.8 billion in June, which enabled us to comfortably meet our total MREL requirement of 21.95 per cent, or 22.95 per cent including a management buffer which becomes effective 31 December 2023. Our MREL ratio was 23.7 per cent as of 30 June.

ESG

We continue to successfully reduce our CO² emissions. Since 2016, when MONETA was one of the first companies in the Czech Republic to start calculating its carbon footprint, we have achieved a significant reduction by 81.3 per cent in our direct carbon dioxide production. In our total carbon footprint i.e., the so-called Scope 1, 2 and 3, the reduction over the past five years amounts to 51.2 per cent. This calculation was verified by an independent auditor according to international ISO standards. The decrease in direct emissions is mainly achieved by energy and fuel savings, as well as the switch to all-green electricity in all of our branches and the increasing share of electric vehicles in our fleet of company cars.

MONETA launched a "green" lending programme for both small business and retail clients in the first half of the year, under which it will lend up to CZK 2.5 million to sole traders and small businesses to help them finance energy-saving projects and sustainability measures. For retail clients, MONETA will lend up to CZK 1.5 million for energy-saving projects.

Our drive towards full digitalisation has reduced paper consumption by 194 tonnes over the last three years with the growing use of electronic contractual documents, marketing materials and even cash register receipts. This move away from printed material has helped to reduce electricity consumption by 46 per cent. Clients and bankers alike praise the quicker and more efficient digital contract process. Discarded printers and other IT equipment are donated to non-profit organisations as part of our MON HELP programme.

I also would like to inform you that in 2Q 2023, MONETA organised an employee satisfaction survey through an external company. The response rate was 88% of all employees. The main index reached 78 points, which is comparable to the financial sector. Detailed results were shared with all staff. The Management Board together with MON FAIR committee, its advisory body, are working together to define the concrete set of actions to reinforce engagement and staff satisfaction.

Lastly, I would like to thank to all my colleagues across the bank and subsidiaries for their effort and endurance showed in these past six months.

Sincerely,

Tomáš Spurný Chairman of the Management Board and CEO of MONETA Money Bank, a.s.

3 Key Performance Indicators

	Half-year ended 30 Jun 2023	Year ended 31 Dec 2022	Change
Profitability
NIM (% Avg. Int Earning Assets)3,4,5	2.1%	2.6%	(50)bps
Yield (% Avg. Net Customer Loans)	4.5%	4.2%	30bps
Cost of Funds (% Avg. Deposits and Received Loans)6	3.06%	1.66%	140bps
Cost of Funds on Core Customer Deposits (% Avg. Deposits)	3.05%	1.62%	143bps
Cost of Risk (% Avg. Net Customer Loans)	0.02%	0.03%	(1)bps
Risk-adj. Yield (% Avg. Net Customer Loans)	4.5%	4.2%	30bps
Net Fee & Commission Income / Operating Income (%)	21.8%	19.0%	280bps
Net Non-Interest Income / Operating Income (%)	28.5%	23.2%	530bps
RoTE	18.9%	18.7%	20bps
RoE	16.8%	16.7%	10bps
RoAA4	1.2%	1.4%	(20)bps
Liquidity / Leverage
Core Loan to Deposit Ratio	72.9%	80.5%	(760)bps
Net Loan to Deposit Ratio4	72.8%	80.4%	(760)bps
Total Equity / Total Assets	7.0%	8.0%	(100)bps
Liquid Assets3,4/ Total Assets	34.4%	27.9%	650bps
LCR	284.8%	213.7%	7,110bps
Equity
Total Equity (CZK m)	29,481	31,091	(5.2)%
Tangible Equity (CZK m)	26,201	27,712	(5.5)%
Capital Adequacy
RWA Density	39.9%	43.4%	(350)bps
Regulatory Leverage	6.1%	6.7%	(60)bps
CAR Ratio (%)	19.7%	18.0%	170bps
Tier 1 Ratio (%)	15.4%	15.3%	10bps
Asset Quality
Non-Performing Loan Ratio (%)	1.3%	1.4%	(10)bps
NPL Ratio Retail (%)	1.5%	1.5%	-
NPL Ratio Commercial (%)	0.9%	1.1%	(20)bps
Core Non-Performing Loan Coverage (%)	49.7%	53.4%	(370)bps
Core NPL Coverage Retail (%)	47.3%	51.4%	(410)bps
Core NPL Coverage Commercial (%)	58.1%	59.5%	(140)bps
Total NPL Coverage (%)	133.4%	134.8%	(140)bps
Efficiency
Cost to Income Ratio	49.7%	46.2%	350bps
FTEs (at the end of the period)7	2,511	2,699	(188)
Branches	140	153	(13)
Tied agents offices	29	31	(2)
ATMs8	2,058	1,413	645

All ratios are annualised.

³ Interest earning assets include encumbered assets.

⁴ Including opportunistic repo operations.

⁵ Hedging derivatives are excluded from calculation of interest earning assets.

⁶ Deposits include issued bonds and exclude opportunistic repo transactions and CSA.

⁷ Members of the Supervisory Board and the Audit Committee are excluded.

⁸ ATM network including 847 KB ATMs, 369 Air Bank ATMs and 263 UniCredit Bank ATMs as of 30 June 2023.

4 Macroeconomic Environment

In the second quarter of 2023, the Czech economy was still influenced by the impact of the ongoing Russian invasion of Ukraine. A period of high inflation and high interest rates resulted in a shallow economic recession in the second half of 2022, characterised by a decline in retail sales, which turned into an economic stagnation in the first half of 2023. Although the situation is slowly improving, a visible economic recovery is likely to be seen only in the second half of the year.

In the first quarter of 2023, the gross domestic product of the Czech economy was flat quarter on quarter, while the annual result fell to (0.5)%⁹ . The economy was supported mainly by the manufacturing sector, with demand side economic performance driven mainly by foreign demand and government expenditures. Household spending keeps recording a decline.

According to sectoral indicators, the economic situation continued to be challenging also in the second quarter of the year. Retail sales continued to decline year-on-year, falling by 6.1%¹⁰ in May. This was influenced by weak consumer economic confidence and continued high inflation. Despite the difficulties on the consumer side, industry managed to maintain year-on-year growth, with production up by 1.4%¹¹ year-on-year in May. Industrial growth comes mainly from manufacturing, where car production still maintains an upward trend and supports the whole economy.

Year-on-year consumer price growth reached 9.7%¹² in June, with housing and food prices remaining the main inflation drivers. Inflation has been slowing in recent months and reached for the first time since December 2021 a single digit number, mainly due to food, energy and fuel prices, which have stabilised. With no further acceleration in inflation, interest rates have remained stable throughout the second quarter, with the Czech National Bank still maintaining its main monetary policy rate at 7%¹³ .

The economic issues of last quarters have not had a significant impact on the labour market. The unemployment rate, as measured by the ILO methodology, reached 2.5%¹⁴ in May and was at the same level as in May 2022. On the other hand, the average nominal gross wages grew only by 8.6%¹⁵ year-on-year in the first quarter, lagging far behind inflation. Thus, real wages kept falling by 6.7%.

The Czech economy recorded stabilization and moved from a mild recession into stagnation. The recovery of domestic economy should continue in the second half of the year and, if no further escalation of economic problems occurs, the economy should return to growth and record a mild increase by 0.5% in 2023, according to the latest macroeconomic forecast of the Czech National Bank.¹⁶

The banking sector's total operating income decreased by 6% year-on-year in the first quarter of 202317. Net interest income declined by 4% year-onyear¹⁷ , same as Net non-interest income (-10% yearon-year)¹⁷ . The Czech banking sector's net profit decreased by 10% year-on-year to CZK 21.1 billion¹⁷ . Operating expenses grew by 1% year-on-year, cost of risk decreased by 75% year-on-year¹⁷ . The annualised return on equity measured by net profit to Tier 1 capital declined to 13.4% in the first quarter of 2023¹⁷ compared to the same period of the previous year.

Market net loans continued in growth by 5% year-onyear in the first quarter of 2023¹⁷ , same as Total assets (+3% year-on-year)¹⁷ . Total assets to Tier 1 ratio progressed to 15.5%¹⁷ . NPL balances declined by 13% year-on-year¹⁷ . Core coverage developed to 52.0%¹⁷ level. Tier 1 capital increased by 4% year-onyear to CZK 628.1 billion¹⁷ in the first quarter of 2023. Regulatory Tier 1 capital to risk weighted assets declined to 19.5%¹⁸ .

¹⁵ Source: Czech Statistical Office, Average wages – 1st quarter of 2023.

⁹ Source: Czech Statistical Office, Quarterly Sector Accounts – 1st quarter of 2023.

¹⁰ Source: Czech Statistical Office, Retail trade – May 2023.

¹¹ Source: Czech Statistical Office, Industry – May 2023.

¹² Source: Czech Statistical Office, Consumer price indices – inflation – June 2023.

¹³ Source: Czech National Bank, CNB Board Decision 21 June 2023.

¹⁴ Source: Czech Statistical Office, Rates of employment, unemployment and economic activity – May 2023.

¹⁶ Source: Czech National Bank, CNB forecast – Spring 2023, published on 3 May 2023.

¹⁷ Source: Czech National Bank, ARAD quarterly mandatory disclosures, banking sector including building societies.

¹⁸ Source: IMF and CNB Core and additional FSIs to 31 December 2022

5 Group Performance

5.1 Business Performance

The Group generated consolidated Net profit of CZK 2,478 million in the first half of 2023.

The Group recorded a gross performing loan balance decline of 0.3% to CZK 269.2 billion as at 30 June 2023, compared to 31 December 2022.

The retail gross performing loan balance decreased by 1.5% when compared to 31 December 2022, standing at CZK 183.9 billion as at 30 June 2023. Majority of this decline was driven by drop of mortgages, declining by CZK 1.8 billion to CZK 131.2 billion, due to 69.7% decline in new mortgage production during the six months ended 30 June 2023. The gross performing consumer lending balance stood at CZK 47.8 billion and decreased by 1.6% when compared to 31 December 2022. MONETA Auto retail loans recorded a slight balance decline of 1.9% since 31 December 2022 and outstanding credit card and overdraft balances declined by 5.3% in the same period amid continuing trend of switching to instalment lending.

The commercial gross performing loan balance stood at CZK 85.3 billion as at 30 June 2023, a 2.3% increase compared to 31 December 2022 balance. Small business lending balances increased by 4.4% year-todate to CZK 12.9 billion as at 30 June 2023. The investment loan balance decreased by 0.6% with balance at CZK 46.0 billion as at 30 June 2023. Working capital balance increased by 14.6% to CZK 16.3 billion as at 30 June 2023. The combined balance of MONETA Auto commercial portfolio and MONETA Leasing fell to CZK 10.1 billion, down 4.2% compared to 31 December 2022.

The Group's core customer deposits increased in both retail and commercial segments, totaling CZK 367.8 billion as at 30 June 2023, increasing 10.2% from CZK 333.8 billion as at 31 December 2022. The Cost of Funds on core customer deposits amounted to 3.05% and the Group's overall Cost of Funds amounted to 3.06% for the six months ended 30 June 2023. The Core Loan to Deposit Ratio stood at 72.9%. The Due to banks balance stood at CZK 7.7 billion as at 30 June 2023, a CZK 1.8 billion increase when compared to 31 December 2022.

The Group maintained a highly liquid position, with Liquidity coverage ratio at 284.8% at the Group level, well above the regulatory requirement.

5.2 Financial Performance

Operating income in the first half of 2023 amounted to CZK 5.9 billion, down 3.6% year-on-year, primarily due to Net Interest Income decline.

Net interest income amounted to CZK 4.2 billion for the six months ended 30 June 2023, a 14.0% decrease year-on-year. The yield on loan portfolio increased to 4.5% for the six months of 2023, compared to 4.0% in the same period of 2022. The Group's Net interest margin fell to 2.1% in the six months ended 30 June 2023, compared to 2.8% in the first six months of 2022.

Net fee and commission income for the six months ended 30 June 2023 increased by 20.5% year-on-year to CZK 1.3 billion, driven by successful distribution of third-party products and transaction feesincrease. Net income from financial operations amounted to CZK 371 million in the first six months of 2023, compared to CZK 84 million in the same period of 2022.

Operating expenses for the six months of 2023 amounted to CZK 2,917 million, a 4.4% increase, compared to the same period of 2022, driven by higher regulatory charges, administrative and other operating expenses and higher depreciation and amortization. The Group incurred CZK 1,173 million of personnel expenses, representing a 2.0% year-on-year decline. Administrative and other operating expenses increased by 7.5% year-on-year and reached CZK 802 million. Depreciation and Amortization expenses increased by 1.9% and stood at CZK 635 million. Regulatory charges reached CZK 307 million, growing 34.1% year-on-year due to deposit base increase and higher contribution to the Deposit Insurance Fund.

Net impairment of financial assets amounted to CZK 30 million for the six months ended 30 June 2023, compared to provision release of CZK 250 million in the same period last year. Cost of risk were positively impacted by solid core portfolio performance as well as by successful NPL disposals. In relative terms, the Cost of Risk amounted to 2bps for the six months ended 30 June 2023, compared to 19bps provision release for the six months of 2022.

Group NPL Ratio decreased to 1.3% as at 30 June 2023 from 1.4% as at 31 December 2022. Total NPL

Coverage stood at 133.4% as at 30 June 2023, compared to 134.8% at 31 December 2022.

As a result, the consolidated Net profit for the six months of 2023 reached CZK 2,478 million, a 13.7% decrease year-on-year. Annualised RoTE for the six months ended 30 June 2023 decreased to 18.9%, from 22.6% for the six months ended 30 June 2022.

The capital position was further supported by issuance of CZK 2.8 billion of subordinated deposit and the Capital Adequacy Ratio reached 19.7% as at 30 June 2023, compared to 18.0% as at 31 December 2022.

5.3 Outlook for 2023 and Risks

According to the latest Czech National Bank macroeconomic forecast, announced on 3 May 2023, the Czech economy is expected to grow only marginally in 2023. In the second half of the year, however, a recovery should take place, supported by slowing inflation and restoration of consumer confidence and spending. The full-year GDP growth in 2023 is forecasted to be 0.5% and the economy will return to a decent growth of 3.0% in 2024.¹⁹

The CNB's forecast assumes that inflation will reach 11.2% on average in 2023 and will continue to fall gradually to levels around the central bank's inflation target of 2.1% on average in 2024. This corresponds with the two-week repo rate at levels around 7% at least during Q3 2023 and decreasing slowly to 4.0% in the last quarter of 2024.

The economic outlook for the Czech Republic's near future is improving. The inflationary factors that were observed last year have disappeared and current inflation seems to be fed mainly by momentum. The economic recovery that is expected to take place in the second half of the year will return the economy to a normal growth rate. The main problem for the domestic economy is slowly becoming the rapidly growing public debt, which could have the potential to undermine future economic performance.

In terms of the 2023 full-year outlook for financial results, the management decided to update its previously published guidance:

• Operating income to reach CZK 12.0 billion, in line with previously communicated guidance, of which CZK 5.9 billion was delivered in the first half of the year (i.e. 49% of the full-year outlook).

Operating expenses to remain at or below CZK 5.7 billion, in line with previously communicated guidance, of which CZK 2.9 billion was incurred in the first half of the year (i.e. 51% of the full-year outlook).
Cost of risk are now projected at between 15-35bps (versus 25-45bps as previously communicated), with the improvement driven by positive first half result. In the first half of the year, the Cost of Risk amounted to 2bps.
Effective tax rate for the full year expected at around 16% against previously expected 22% for the full year 2023.
Net profit to amount to at least CZK 4.7 billion, a CZK 0.4 billion increase versus guidance published on 3 February 2023. The net profit for the six months of 2023 in the amount of CZK 2.5 billion represents 53% of the updated full-year outlook.

¹⁹ Source: Czech National Bank, CNB forecast – Spring 2023, published on 3 May 2023.

6 Basic Information about MONETA Money Bank, a.s.

BASIC DETAILS ABOUT MONETA MONEY BANK
Name	MONETA Money Bank, a.s.
Registered Office	Vyskočilova 1442/1b, 140 00 Praha 4 – Michle
Company ID	25672720
Legal form	Joint stock company
Date of registration	9 June 1998
Registered share capital	10,200,000,000
Paid up	100%

Branches, ATMs and employees:

Number of branches as at 30 June 2023: 140 and 31 December 2022: 153.

Number of offices of tied agents as at 30 June 2023: 29 (31 as at 31 December 2022).

Number of ATMs as at 30 June 2023 ²⁰: 2,058 and 31 December 2022: 1,413.

Number of employees (FTEs) as at 30 June 2023 was 2,511 (decrease of 188 compared to the year end 2022).

Business activities:

The Bank and its consolidated subsidiaries (the "Group") operates in the Czech Republic and focuses primarily on secured and unsecured consumer lending, commercial financing and building savings. The consumer portfolio consists of secured and unsecured lending. Unsecured lending products include consumer and auto loans, credit cards, personal overdrafts, building savings and bridging loans. Secured lending is provided in the form of mortgages and finance leases. Commercial lending products range from working capital, investment loans, finance leases, auto loans, inventory financing, financing of small businesses and entrepreneurs through guarantees, letters of credits and foreign exchange transactions. The Group provides a wide range of deposit and transactional products to retail and commercial customers.

The Group issues debit and credit cards in cooperation with VISA and cooperates with EVO Payments International in acquiring services. In addition, the Group intermediates additional payment protection insurance which covers the customer's monthly loan payment in the event of unemployment, accident or sickness. The Group also acts as the intermediary to provide its customers with other insurance and investment products.

Ownership structure:

The latest available list of entities recorded in the registry of book-entry shares of the Bank kept by the Central Securities Depository in Prague (Centrální depozitář cenných papírů, a.s.) with a shareholding interest of more than 1% of the Bank's registered share capital is available in the investor relations section of the Bank's website at: https://investors.moneta.cz/shareholder-structure. Such entities may not necessarily be the beneficial shareholders of the Bank but may hold shares of the Bank for the beneficial shareholders (such as securities brokers, banks, custodians or nominees).

²⁰ ATM network including 847 KB ATMs, 369 Air Bank ATMs and 263 UniCredit Bank ATMs as of 30 June 2023.

Bank's Supervisory Board

The Bank's Supervisory board held 3 meetings in the first six months of 2023.

Name	Position	Member position held from	Member position held to
Gabriel Eichler	Chairman of the Supervisory Board*	26 October 2017	20 December 2025
Miroslav Singer	Vice-chairman of the Supervisory Board**	24 April 2017	28 April 2025
Michal Petrman	Member of the Supervisory Board	21 April 2016	2 September 2024
Clare Ronald Clarke	Member of the Supervisory Board	21 April 2016	2 September 2024
Denis Arthur Hall	Member of the Supervisory Board	21 April 2016	2 September 2024
Zuzana Filipová	Member of the Supervisory Board	7 May 2021	7 May 2025
Klára Escobar	Member of the Supervisory Board	7 May 2021	7 May 2025
Jana Výbošťoková	Member of the Supervisory Board	7 May 2021	7 May 2025
Kateřina Jirásková***	Member of the Supervisory Board	25 April 2023	25 April 2027

* Mr. Gabriel Eichler was elected as Chairman of the Supervisory Board with effect from 2 August 2018.

** Mr. Miroslav Singer was elected as Vice-chairman of the Supervisory Board with effect from 22 May 2017.

*** Ms. Kateřina Jirásková was elected by the General Meeting as the member of the Supervisory Board on 25 April 2023. Ms. Jirásková replaced Mr. Tomáš Pardubický, whose function term ended on 24 April 2023.

Bank's Management Board

The Bank's Management Board held 25 meetings in the firstsix months of 2023.

Name	Position	Member position held from	Member position held to
Tomáš Spurný	Chairman of the Management Board	1 October 2015	3 October 2027
Carl Normann Vökt	Vice-chairman of the Management Board*	25 January 2013	27 January 2025
Jan Novotný	Member of the Management Board	16 December 2013	18 December 2025
Jan Friček	Member of the Management Board	1 March 2019	2 March 2027
Klára Starková	Member of the Management Board	1 June 2021	1 June 2025

* Mr. Carl Normann Vökt was elected as Vice-chairman of the Management Board with effect from 1 March 2019.

7 Condensed Consolidated Interim Financial Statements for the Three and Six-month Period Ended 30 June 2023 (Unaudited)
7.1 Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income for the Three and Six-month Period Ended 30 June 2023 (Unaudited)

		Quarter ended		Half-year ended
CZK m	Note	30 Jun 2023	30 Jun 2022	30 Jun 2023	30 Jun 2022
Interest and similar income		5,374	3,704	10,229	7,055
Interest expense and similar charges		(3,207)	(1,246)	(6,031)	(2,174)
Net interest income	8.7	2,167	2,458	4,198	4,881
Fee and commission income		799	667	1,559	1,304
Fee and commission expense		(136)	(122)	(280)	(243)
Net fee and commission income	8.8	663	545	1,279	1,061
Dividend income		-	1	1	2
Net income from financial operations		188	14	371	84
Other operating income		10	48	23	62
Total operating income		3,028	3,066	5,872	6,090
Personnel expenses		(595)	(611)	(1,173)	(1,197)
Administrative expenses		(415)	(325)	(780)	(716)
Depreciation and amortisation		(312)	(311)	(635)	(623)
Regulatory charges		(40)	(11)	(307)	(229)
Other operating expenses		(10)	(17)	(22)	(30)
Total operating expenses	8.9	(1,372)	(1,275)	(2,917)	(2,795)
Profit for the period before tax and net impairment of financial assets		1,656	1,791	2,955	3,295
Net impairment of financial assets	8.19.6	(146)	155	(30)	250
Profit for the period before tax		1,510	1,946	2,925	3,545
Taxes on income		(247)	(364)	(447)	(673)
Profit for the period after tax		1,263	1,582	2,478	2,872
Other comprehensive income, net of tax		-	-	-	-
Total comprehensive income attributable to the equity holders		1,263	1,582	2,478	2,872
Profit for the period after tax attributable to the equity holders		1,263	1,582	2,478	2,872
Weighted average of ordinary shares (millions of shares)		511	511	511	511
Basic and Diluted earnings per share (in CZK)		2.5	3.1	4.8	5.6

7.2 Condensed Consolidated Statement of Financial Position as at 30 June 2023 (Unaudited)

CZK m	Note	30 Jun 2023	31 Dec 2022
Assets
Cash and balances with the central bank		10,303	12,467
Derivative financial instruments with positive fair value	8.20	652	761
Investment securities	8.10, 8.20	80,483	57,951
Hedging derivatives with positive fair values		3,731	4,942
Change in fair value of items hedged on portfolio basis		(1,147)	(2,090)
Loans and receivables to banks	8.11	55,109	37,886
Loans and receivables to customers	8.12	268,027	268,752
Intangible assets		3,280	3,379
Property and equipment		2,361	2,318
Investments in associates		4	3
Current tax assets		23	6
Other assets		1,003	1,135
TOTAL ASSETS		423,829	387,510

Liabilities
Derivative financial instruments with negative fair value	8.20	631	747
Due to banks	8.13	7,707	5,953
Due to customers	8.13	368,177	334,251
Hedging derivatives with negative fair values		1,545	845
Change in fair value of items hedged on portfolio basis		(169)	(438)
Issued bonds	8.14	4,909	5,520
Subordinated liabilities	8.15	7,501	4,687
Provisions		238	306
Current tax liability		163	482
Deferred tax liability		408	496
Other liabilities		3,238	3,570
Total liabilities		394,348	356,419
Equity
Share capital		10,220	10,220
Statutory reserve		102	102
Other reserves		1	1
Retained earnings		19,158	20,768
Total equity		29,481	31,091
TOTAL LIABILITIES AND EQUITY		423,829	387,510

7.3 Condensed Consolidated Statement of Changes in Equity for the Half-year Ended 30 June 2023 (Unaudited)

CZK m	Share capital	Statutory reserve	Reserve from revaluation of FVTOCI	Retained earnings	Total
Balance as reported 1 Jan 2023	10,220	102	1	20,768	31,091
Transactions with owners of the company
Dividends	-	-	-	(4,088)	(4,088)
Total comprehensive income
Profit for the period after tax	-	-	-	2,478	2,478
Other comprehensive income after tax
Change in fair value of FVTOCI investment securities	-	-	-	-	-
Deferred tax	-	-	-	-	-
Balance 30 Jun 2023	10,220	102	1	19,158	29,481

Balance as reported 1 Jan 2022	10,220	102	1	19,158	29,481
Transactions with owners of the company
Dividends	-	-	-	(3,577)	(3,577)
Total comprehensive income
Profit for the period after tax	-	-	-	2,872	2,872
Other comprehensive income after tax
Change in fair value of FVTOCI investment securities	-	-	-	-	-
Deferred tax	-	-	-	-	-
Balance 30 Jun 2022	10,220	102	1	18,453	28,776

7.4 Condensed Consolidated Statement of Cash Flows for the Half-year Ended 30 June 2023 (Unaudited)

	Half-year ended
CZK m	30 Jun 2023	30 Jun 2022
Cash flows from operating activities
Profit after tax	2,478	2,872
Adjustments for:
Depreciation and amortisation	635	623
Net impairment of financial assets (excl. cash collection and recovery)	56	(248)
Net gain on revaluation of investment securities	(3)	1
Accrued coupon, amortisation of discount/premium of investment securities	(389)	(171)
Net interest income from hedging derivatives	452	(43)
Net gain/ loss from revaluation of hedging derivatives	1,435	(1,704)
Net gain/ loss from revaluation of hedged items on portfolio basis	(1,466)	1,662
Net gain/loss from unrealised FX	(7)	(121)
Change in provisions not recognised in depreciation and amortisation	(30)	28
Net loss on sale and other disposal or impairment of tangible and intangible assets	1	(1)
Dividend income	(1)	(2)
Tax expense	447	673
	3,608	3,569
Changes in:
Loans and receivables to customers and banks	471	(8,523)
Other assets	132	88
Due to banks	1,754	8,537
Due to customers	33,926	17,054
Other liabilities and provisions	(332)	(1,112)
	39,559	19,613
Income taxes paid	(872)	(315)
Net cash used in operating activities	38,687	19,298

Cash flows from investing activities
Acquisition of investment securities	(21,912)	(4,485)
Proceeds from investment securities	580	-
Acquisition of property and equipment and intangible assets	(581)	(537)
Proceeds from the sale of property and equipment and intangible assets	20	4
Dividends received	-	-
Net cash used in investing activities	(21,893)	(5,018)

Cash flows from financing activities
Proceeds from issued bonds	-	2,379
Repayment of issued bonds	(650)	-
Proceeds from subordinated deposits	2,838	-
Dividends paid	(4,088)	(5,110)
Net cash used in financing activities	(1,900)	(2,731)
Net change in cash and cash equivalents	14,894	11,549

Cash and cash equivalents at the beginning of the period Effect of exchange rate fluctuations on cash and cash equivalents Cash and cash equivalents at the end of the period	50,100 (24) 64,970	26,476 43 38,068
Interest received*	11,465	7,294
Interest paid*	(6,264)	(2,231)

* Lines "Interest received" and "Interest paid" represent interest as per contractual rate and are included in cash flows from operating activities.

8 Notes to Unaudited Condensed Consolidated Interim Financial Statements

8.1 Reporting Entity

MONETA Money Bank, a.s. (the "Bank") is a company domiciled in the Czech Republic. These condensed consolidated interim financial statements ("interim financial statements") as at and for the six months ended 30 June 2023 comprise the Bank and its consolidated subsidiaries (together referred to as the "Group").

8.2 Basis of Preparation and Presentation

These interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group's last annual consolidated financial statements as at and for the year ended 31 December 2022 ("last annual financial statements"). These interim financial statements do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. These interim financial statements were neither audited nor reviewed by an auditor.

The Group's interim financial statements were authorised for issue by the Management Board on 26 July 2023.

Going concern

These interim financial statements are prepared on a going concern basis, as the Management Board of the Bank is satisfied that the Group has the resources to continue in business for the foreseeable future. In making this assessment, the Management Board of the Bank has considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources.

Functional and presentation currency

These interim financial statements are presented in Czech Koruna (CZK) which is the functional currency of all Group entities. All amounts have been rounded to the nearest million, except where otherwise indicated.

8.3 Use of Judgements and Estimates

In preparing these interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

Significant judgements made by the management in applying the Group's accounting policies and the key sources of uncertainty estimation are significantly impacted by the situation related to the macroeconomic and geopolitical situation.

In the area of expected cash flows resulting from loan receivables, used for determination of amortised cost of the debt financial assets, are made significant estimates, related to future development of prepayments of the loan's notional amount, by the management of the Group.

8.4 Significant Accounting Policies

The significant accounting policies used in preparation of these interim financial statements are consistent with those used in the last Consolidated Annual Financial Statements.

Uncertainty regarding the future macroeconomic environment evolution has remained pronounced in the second quarter of 2023 since the inflation and interest rates remained on elevated levels. To account for these risk factors in expected credit loss model, the Group has maintained and updated framework of management overlays in the second quarter of 2023. As of June 30, 2023, the total management overlay amount stood at CZK 931 million.

In Q2 2023, the Group closely monitored evolution of the macroeconomic prognoses provided by Czech public authorities such as Ministry of Finance of the Czech Republic and Czech National Bank and concluded that the forward-looking macroeconomic scenarios of main macroeconomic drivers such as GDP growth and unemployment rate implemented in August 2022 are appropriate with respect to the current macroeconomic situation in Q2 2023.

GDP Growth	MFCR	MFCR	CNB	CNB	IFRS 9
Year	(1/2023)	(4/2023)	(2/2023)	(5/2023)	Model
2023	(0.5)%	0.1%	(0.3)%	0.5%	1.1%
2024	3.0%	3.0%	2.2%	3.0%	3.8%

Unemployment
Year	MFCR (1/2023)	MFCR (4/2023)	CNB (2/2023)	CNB (5/2023)	IFRS 9 Model
2023	3.2%	3.0%	2.7%	2.5%	2.7%

Following table shows overview of internal scenarios based on prognoses of MFCR and CNB:

8.5 Consolidation Group

The definition of the consolidation group as at 30 June 2023 has not changed compared to the last Consolidated Annual Financial Statements.

Apart from the Bank, the Group's companies included into the consolidation group as at 30 June 2023 together with the ownership were as follows:

Name	Registered office	Business activity	The Bank's share	Method of consolidation
	Vyskočilova 1442/1b,	Auto financing
MONETA Auto, s.r.o.	140 00 Prague 4	(Auto Loans)	100%	Full
	Vyskočilova 1442/1b,	Financing of loans
MONETA Leasing, s.r.o.	140 00 Prague 4	and leasing	100%	Full
MONETA Stavební Spořitelna, a.s.	Vyskočilova 1442/1b,	Building savings and
	140 00 Prague 4	bridging loans	100%	Full
CBCB – Czech Banking Credit	Štětkova 1638/18,	Banking Credit
Bureau, a.s.	140 00 Prague 4	Register	20%	Equity

8.6 Dividends Paid

On 25 April 2023, the General Meeting approved the dividend payment of CZK 8 per share before tax which represented the total amount of CZK 4,088 million. The dividend was due on 25 May 2023 and was paid by MONETA Money Bank, a.s. through Komerční banka, a.s., as paying agent, by a transfer to bank accounts of the shareholders listed in the Central Securities Depository.

8.7 Net Interest Income

		Quarter ended	Half-year ended
CZK m	30 Jun 2023	30 Jun 2022	30 Jun 2023	30 Jun 2022
Interest income from financial assets measured	4,617	3,366	8,848	6,512
at amortised cost
Loans to customers	3,080	2,689	6,037	5,278
out of which: interest income from impaired loans	39	40	77	93
out of which: penalty interest	5	5	10	12
out of which: EIR amortisation, modification/derecognition and amortisation of FV adjustments	(124)	(166)	(275)	(305)
Loans to banks	868	394	1,636	719
out of which: interest income from repurchase and reverse repurchase	859	393	1,618	715
agreements Cash and deposit with central bank and other banks	117	76	230	131
Interest income from investment securities at amortised cost	550	201	942	375
Other interest income*	2	6	3	9
Interest income from hedging derivatives	757	338	1,381	543
Interest income and similar income	5,374	3,704	10,229	7,055
Interest expense from financial liabilities measured at amortised cost	(3,044)	(1,132)	(5,674)	(1,985)
Due to banks	(27)	(178)	(41)	(296)
Due to customers	(2,866)	(874)	(5,350)	(1,536)
out of which: arising from repurchase agreements	-	(8)	-	(15)
out of which: amortisation of acquisition FV adjustments	8	9	14	20
Subordinated liabilities	(52)	(41)	(94)	(84)
Mortgage-backed bonds	(27)	(26)	(54)	(49)
Other issued bonds**	(44)	(12)	(88)	(19)
Other interest expense*	(28)	(1)	(47)	(1)
Interest from hedging derivatives	(157)	(109)	(346)	(179)
Interest expense from lease liabilities	(6)	(5)	(11)	(10)
Interest expense and similar expense	(3,207)	(1,246)	(6,031)	(2,174)
Net interest income	2,167	2,458	4,198	4,881

* Represents interest income or expense respectively from received or provided collateral resulting from Credit Support Annex (CSA).

** MREL requirement eligible bonds are included.

8.7.1 Analysis of deferred costs and fees directly attributable to origination of new loan products that are integral part of the effective interest rate for a three and six-month period

Quarter ended 30 Jun 2023 CZK m	Balance at the beginning of the period	Amortisation	Derecognitions / Modifications	Additions to deferred fees	Additions to deferred costs	Balance at the end of the period
Consumer Loans	147	(2)	-	(17)	15	143
Mortgages	1,594	(17)	-	(1)	3	1,579
Credit Cards & Overdrafts	11	(2)	-	-	1	10
Auto Loans and Finance Leases	199	(28)	(1)	-	24	194
Retail loans deferrals	1,951	(49)	(1)	(18)	43	1,926
Investment Loans	495	(29)	-	(2)	7	471
Working Capital	(3)	1	-	(7)	-	(9)
Auto & Equipment Loans and Finance Leases	233	(37)	-	-	32	228
Unsecured Instalment Loans and Overdrafts	100	(9)	-	(1)	12	102
Commercial loans deferrals	825	(74)	-	(10)	51	792
Total loan deferrals	2,776	(123)	(1)	(28)	94	2,718

Quarter ended 30 Jun 2022 CZK m	Balance at the beginning of the period	Amortisation	Derecognitions / Modifications	Additions to deferred fees	Additions to deferred costs	Balance at the end of the period
Consumer Loans	140	(8)	(1)	(13)	36	154
Mortgages	1,651	(53)	(1)	(7)	107	1,697
Credit Cards & Overdrafts	15	(3)	-	-	2	14
Auto Loans and Finance Leases	163	(26)	(1)	-	30	166
Retail loans deferrals	1,969	(90)	(3)	(20)	175	2,031
Investment Loans	557	(24)	-	(4)	10	539
Working Capital	(1)	-	-	(2)	1	(2)
Auto & Equipment Loans and Finance Leases	220	(39)	-	-	40	221
Unsecured Instalment Loans and Overdrafts	93	(10)	-	(2)	17	98
Commercial loans deferrals	869	(73)	-	(8)	68	856
Total loan deferrals	2,838	(163)	(3)	(28)	243	2,887

Half-year ended 30 Jun 2023 CZK m	Balance at the beginning of the period	Amortisation	Derecognitions / Modifications	Additions to deferred fees	Additions to deferred costs	Balance at the end of the period
Consumer Loans	150	(5)	-	(32)	30	143
Mortgages	1,639	(71)	(1)	(2)	14	1,579
Credit Cards & Overdrafts	12	(4)	-	-	2	10
Auto Loans and Finance Leases	192	(51)	(2)	-	55	194
Retail loans deferrals	1,993	(131)	(3)	(34)	101	1,926
Investment Loans	508	(50)	-	(5)	18	471
Working Capital	(3)	1	-	(8)	1	(9)
Auto & Equipment Loans and Finance Leases	231	(74)	-	-	71	228
Unsecured Instalment Loans and Overdrafts	98	(18)	-	(3)	25	102
Commercial loans deferrals	834	(141)	-	(16)	115	792
Total loan deferrals	2,827	(272)	(3)	(50)	216	2,718

Half-year ended 30 Jun 2022 CZK m	Balance at the beginning of the period	Amortisation	Derecognitions / Modifications	Additions to deferred fees	Additions to deferred costs	Balance at the end of the period
Consumer Loans	125	(15)	(4)	(27)	75	154
Mortgages	1,605	(120)	(3)	(9)	224	1,697
Credit Cards & Overdrafts	16	(6)	-	-	4	14
Auto Loans and Finance Leases	165	(51)	(2)	-	54	166
Retail loans deferrals	1,911	(192)	(9)	(36)	357	2,031
Investment Loans	536	(9)	1	(9)	20	539
Working Capital	(1)	-	-	(3)	2	(2)
Auto & Equipment Loans and Finance Leases	223	(76)	-	-	74	221
Unsecured Instalment Loans and Overdrafts	92	(20)	-	(3)	29	98
Commercial loans deferrals	850	(105)	1	(15)	125	856
Total loan deferrals	2,761	(297)	(8)	(51)	482	2,887

8.8 Net Fee and Commission Income

		Quarter ended	Half-year ended
CZK m	30 Jun 2023	30 Jun 2022	30 Jun 2023	30 Jun 2022
Insurance*	303	190	585	366
Investment funds	75	67	147	140
Penalty fees (incl. early termination fees)	69	73	136	149
Deposit servicing fees	98	100	201	201
Lending servicing fees	55	54	111	107
Transactional and other fees	199	183	379	341
Fee and commission income	799	667	1,559	1,304
Fee and commission expense	(136)	(122)	(280)	(243)
Net fee and commission income	663	545	1,279	1,061

* The line "Insurance" in 2023 includes the commissions on life insurance contracts in the amount of CZK 66 million relating to insurance contracts originated during 2018–2022.

8.9 Total Operating Expenses

		Quarter ended	Half-year ended
CZK m	30 Jun 2023	30 Jun 2022	30 Jun 2023	30 Jun 2022
Personnel expenses	(595)	(611)	(1,173)	(1,197)
Administrative expenses	(415)	(325)	(780)	(716)
Depreciation and amortisation	(312)	(311)	(635)	(623)
out of which depreciation of right-of-use assets	(81)	(85)	(164)	(169)
Regulatory charges*	(40)	(11)	(307)	(229)
Other operating expenses	(10)	(17)	(22)	(30)
Total operating expenses	(1,372)	(1,275)	(2,917)	(2,795)

FTEs (average)**	2,472	2,840	2,508	2,867
FTEs (at the end of the period)***	2,511	2,880	2,511	2,880

* The line "Regulatory charges" includes contributions to the Deposit Insurance Fund of CZK 171 million in 2023, contributions to the Resolution and Recovery Fund of CZK 130 million in 2023 and contributions to the Investor Compensation Fund of CZK 6 million in 2023.

** Members of the Supervisory Board and the Audit Committee are excluded. The average recalculated number of employees during the period is an average of the figures reported to Czech Statistical Authority in accordance with Art. 15 of Czech Act No. 518/2004.

*** Members of the Supervisory Board and the Audit Committee are excluded.

8.10 Investment Securities

CZK m	30 Jun 2023	31 Dec 2022
Debt securities measured at amortised cost	80,430	57,879
out of which: government bonds	76,645	54,479
out of which: corporate bonds	3,785	3,400
Debt securities measured at FVTPL	27	46
Equity securities measured at FVTOCI	1	1
Equity securities measured at FVTPL	25	25
Total investment securities	80,483	57,951

8.11 Loans and Receivables to Banks

CZK m	30 Jun 2023	31 Dec 2022
Current accounts at banks	289	446
Overnight deposits	745	482
Term deposits in banks payable within 3 months	565	453
Receivables arising from reverse repurchase agreements	53,068	36,253
Cash collaterals granted	441	251
Other	1	1
Total Loans and receivables to banks	55,109	37,886
Included in cash equivalents	54,667	37,634

8.12 Loans and Receivables to Customers

	30 Jun 2023			31 Dec 2022
CZK m	Gross carrying amount	Allowance/ Provision	Net book value	Gross carrying amount	Allowance/ Provision	Net book value
Consumer Loans	49,449	(2,299)	47,150	50,348	(2,600)	47,748
Mortgages	132,195	(625)	131,570	133,930	(592)	133,338
Credit Cards & Overdrafts	2,423	(204)	2,219	2,570	(233)	2,337
Auto Loans and Finance Leases	2,572	(76)	2,496	2,623	(75)	2,548
Other	10	(10)	-	10	(10)	-
Total Retail	186,649	(3,214)	183,435	189,481	(3,510)	185,971
Investment Loans	46,039	(286)	45,753	46,341	(311)	46,030
Working Capital	16,374	(273)	16,101	14,333	(195)	14,138
Auto & Equipment Loans and Finance Leases	9,207	(232)	8,975	9,730	(244)	9,486
Unsecured Instalment Loans and Overdrafts	13,418	(740)	12,678	12,930	(829)	12,101
Inventory Financing and Other	1,104	(19)	1,085	1,045	(19)	1,026
Total Commercial	86,142	(1,550)	84,592	84,379	(1,598)	82,781
Total Loans and receivables to customers	272,791	(4,764)	268,027	273,860	(5,108)	268,752

8.13 Due to Banks and Due to Customers

Breakdown of Due to banks:

CZK m	30 Jun 2023	31 Dec 2022
Deposits on demand	666	334
Term deposits	185	-
Liabilities arising from repurchase agreements	2,690	-
Cash collateral received*	2,505	3,931
Other due to banks**	1,661	1,688
Total Due to banks	7,707	5,953

* Cash collaterals received represent CSA²¹ Collaterals of other financial institutions for derivative transactions.

** Other due to banks comprises:

• Loan provided by European Investment Bank in January 2021 to MONETA Money Bank, a.s. This loan amounts to CZK 1,661 million at 30 June 2023 (31 December 2022: CZK 1,688 million).

Breakdown of Due to customers:

CZK m	30 Jun 2023	31 Dec 2022
Retail current accounts	55,016	57,786
Retail savings accounts and term deposits	200,693	169,602
Retail building savings	26,465	28,664
Commercial current accounts	41,538	43,437
Commercial savings accounts and term deposits	42,411	32,474
Commercial building savings	1,254	1,323
Cash collateral received	373	491
Other due to customers	427	474
Total Due to customers	368,177	334,251

²¹ Credit Support Annex ("CSA") is a legal document which regulates credit support (collateral) for derivative transactions.

8.14 Issued Bonds

Issued Mortgage-Backed Bonds

The Bank maintained 1 tranche of mortgage-backed securities issued externally in the total nominal amount of CZK 1,250 million for funding purposes. The rest of remaining issued securities are held by MONETA Stavební Spořitelna, a.s., and therefore eliminated on a consolidated basis. Below listed tranche is owned by third parties.

ISIN	Issue date	Currency	Maturity date	Interest rate	Total nominal amount outstanding CZK m
CZ0002005689	04.07.2018	CZK	04.07.2023	7.25% p.a.	1,250

Amortised cost of the outstanding mortgage-backed bonds held by external owners:

CZK m	30 Jun 2023	31 Dec 2022
Mortgage-backed bonds at amortised cost	1,294	1,948
Total	1,294	1,948

The Group did not have any defaults of principal or interest or other breaches with respect to mortgage-backed bonds during the year 2023.

Other Issued Bonds

The Bank issued the senior preferred bonds in the total nominal amount of CZK 1,500 million and EUR 100 million. These bonds are denominated in EUR and CZK. The EUR tranche was settled on 3 February 2022 and the CZK tranche was settled on 15 December 2022.

The Bank issued the bonds as a part of compliance with the minimum requirement for own funds and eligible liabilities ("MREL") requirement which was set for the Bank by CNB (note 8.19.1).

ISIN	Issue date	Currency	Maturity date	Interest rate	Call option	Total nominal amount outstanding EUR m / CZK m
XS2435601443	03.02.2022	EUR	03.02.2028	1.625% p.a.	after 5 years	100
CZ0003707671	15.12.2022	CZK	15.12.2026	8.00% p.a.	after 3 years	1,500

Amortised cost of the outstanding other issued bonds:

CZK m	30 Jun 2023	31 Dec 2022
Other issued bonds at amortised cost	3,615	3,572
Total	3,615	3,572

The Group did not have any defaults of principal or interest or other breaches with respect to other issued bonds during the year 2023.

8.15 Subordinated Liabilities

Issued Subordinated Debt Securities

Issued subordinated debt securities are the Bank's sources of debt funding and are subordinated to all other liabilities of the Bank. As of 30 June 2023, they form a part of the Tier 2 capital of the Bank as defined by the CNB for the purposes of determination of its capital adequacy (note 8.19.1).

These instruments are initially measured at fair value minus incremental direct transaction costs and subsequently measured at their amortised cost using effective interest method.

The Bank issued debt securities in total nominal amount of CZK 4,602 million.

Name	ISIN	Issue date	Currency	Maturity date	Interest rate	Call option	Total nominal amount at issue date CZK m
MB 3.30/29	CZ0003704918	25.9.2019	CZK	25.9.2029	3.30% p.a.	after 5 years	2,001
MB 3.79/30	CZ0003705188	30.1.2020	CZK	30.1.2030	3.79% p.a.	after 5 years	2,601

Amortised cost of the outstanding subordinated debt securities:

CZK m	30 Jun 2023	31 Dec 2022
Subordinated debt securities at amortised cost	4,672	4,687
Total	4,672	4,687

The Bank did not have any defaults of principal or interest or other breaches with respect to subordinated liabilities during the year 2023.

Subordinated Deposits

In the second quarter of 2023, the Bank strengthened its capital and eligible liabilities through a subordinated deposit offering. The Bank has received the subordinated deposits in the amount of CZK 2.8 billion. The term of the subordinated deposit is set at five years with guaranteed interest rate of 7 percent for the entire term. As of 30 June 2023, they form a part of the Tier 2 capital of the Bank as defined by the CNB for the purposes of determination of its capital adequacy (note 8.19.1).

CZK m	30 Jun 2023	31 Dec 2022
Subordinated deposits at amortised cost	2,829	-
Total	2,829	-

8.16 Legal Risks

The legal risks, to which the Group is exposed, have been disclosed in the Bank's 2022 Consolidated Annual Financial Report.

8.16.1 Legal disputes

The Group is not a party to any significant legal disputes.

8.17 Segment Reporting

Group's operating segments are following: Commercial, Retail and Treasury/Other. The segments are described in more detail in the last annual financial statements.

The Management Board of the Bank (the chief operating decision makers) does not use the below presented segmental view on all items of the Statement of Profit or Loss. For this reason, Operating expenses, Taxes and consequently Profit for the period before tax and Profit for the period after tax are not reported for segments but only on the Total level.

Quarter ended 30 Jun 2023 CZK m	Commercial	Retail	Treasury / Other	Total
Interest and similar income	1,203	1,878	2,293	5,374
Interest expense and similar charges	(522)	(2,350)	(335)	(3,207)
Net fee and commission income	150	516	(3)	663
Dividend income	-	-	-	-
Net income from financial operations	53	128	7	188
Other operating income	1	9	-	10
Total operating income	885	181	1,962	3,028
Net impairment of financial assets	(33)	(113)	-	(146)
Risk adjusted operating income	852	68	1,962	2,882
Total operating expenses				(1,372)
Profit for the period before tax				1,510
Tax on income				(247)
Profit for the period after tax				1,263

Quarter ended 30 Jun 2022 CZK m	Commercial	Retail	Treasury / Other	Total
Interest and similar income	989	1,701	1,014	3,704
Interest expense and similar charges	(164)	(709)	(373)	(1,246)
Net fee and commission income	157	390	(2)	545
Dividend income	-	-	1	1
Net income from financial operations	-	-	14	14
Other operating income	5	43	-	48
Total operating income	987	1,425	654	3,066
Net impairment of financial assets	(106)	261	-	155
Risk adjusted operating income	881	1,686	654	3,221
Total operating expenses				(1,275)
Profit for the period before tax				1,946
Tax on income				(364)
Profit for the period after tax				1,582

Half-year ended 30 Jun 2023 CZK m	Commercial	Retail	Treasury / Other	Total
Interest and similar income	2,331	3,706	4,192	10,229
Interest expense and similar charges	(975)	(4,386)	(670)	(6,031)
Net fee and commission income	302	984	(7)	1,279
Dividend income	-	-	1	1
Net income from financial operations	102	246	23	371
Other operating income	6	17	-	23
Total operating income	1,766	567	3,539	5,872
Net impairment of financial assets	(31)	1	-	(30)
Risk adjusted operating income	1,735	568	3,539	5,842
Total operating expenses				(2,917)
Profit for the period before tax				2,925
Tax on income				(447)
Profit for the period after tax				2,478

Half-year ended 30 Jun 2022 CZK m	Commercial	Retail	Treasury / Other	Total
Interest and similar income	1,930	3,348	1,777	7,055
Interest expense and similar charges	(260)	(1,269)	(645)	(2,174)
Net fee and commission income	301	764	(4)	1,061
Dividend income	-	-	2	2
Net income from financial operations	-	-	84	84
Other operating income	9	53	-	62
Total operating income	1,980	2,896	1,214	6,090
Net impairment of financial assets	(77)	327	-	250
Risk adjusted operating income	1,903	3,223	1,214	6,340
Total operating expenses				(2,795)
Profit for the period before tax				3,545
Tax on income				(673)
Profit for the period after tax				2,872

Assets and liabilities by segment:

30 Jun 2023 CZK m	Commercial	Retail	Treasury / Other	Total
Total assets of the segment	93,198	186,542	144,089	423,829
Net value of loans and receivables to customers	84,592	183,435	-	268,027
Total liabilities of the segment	87,437	285,264	21,647	394,348

31 Dec 2022 CZK m	Commercial	Retail	Treasury / Other	Total
Total assets of the segment	91,540	189,161	106,809	387,510
Net value of loans and receivables to customers	82,782	185,970	-	268,752
Total liabilities of the segment	79,213	259,735	17,471	356,419

8.18 Related Parties

The Group's related parties include associates, key members of the management and members of the Supervisory Board and their close family members.

Transactions provided by the Group to related parties represent bank services (esp. loans and interest-bearing deposits); expenses from transactions with related parties comprise remuneration to members of Supervisory Board, Management Board and other Key Executive Managers.

Transactions with related parties are carried out in the normal course of business operations and conducted under normal market conditions.

Tanemo a.s., a subsidiary of PPF Group, became a related party with significant influence on MONETA in 2021, thus transactions with entities from PPF Group are considered as related party transactions.

The following transactions were undertaken with related parties:

30 Jun 2023 CZK m	Related parties with significant influence on MONETA	Associates	Key members of the management* and Supervisory Board	Total
Loans and receivables to customers	-	-	36	36
Derivative financial instruments with positive fair value	51	-	-	51
Hedging derivatives with positive fair value	424	-	-	424
Due to customers	17	-	23	40
Due to banks	313	-	-	313
Derivative financial instruments with negative fair value	60	-	-	60
Hedging derivatives with negative fair value	143	-	-	143