Moneta Money Bank, formerly GE Money Bank, has announced it will pay CZK 4.1 billion in dividends to shareholders from its net profit of CZK 4.7 billion in the previous year. The remaining funds will be transferred to the account of undistributed profit from previous years, according to the bank’s general meeting held on Tuesday. The dividend will amount to CZK 8 per share and will be paid on May 25. The decision was made despite the Covid-19 pandemic and the current economic uncertainties.

Shareholders who are registered with the Central Securities Depository as bank shareholders by May 2 will be entitled to receive the dividend. The general meeting also approved the annual and remuneration reports for the bank’s board of directors and supervisory board. Moreover, a new member of the supervisory board, Kateřina Jirásková, from the PPF group, a significant shareholder in Moneta, was elected. Jirásková currently serves as the financial director of the entire PPF group. Moneta’s shares are traded on the Prague Stock Exchange.

Last year, Moneta paid a dividend of CZK 3.6 billion from the net profit of CZK 4.1 billion from the previous year. The dividend amounted to CZK 7 per share. The bank had 1.5 million clients and 2,699 employees at the end of last year. According to the bank, the total client base increased by 5.4 percent year-on-year, while the number of employees decreased by almost a tenth.

The largest shareholder in Moneta is the PPF financial group, which sought to merge Moneta with its Air Bank group. The transaction to incorporate parts of PPF, including Air Bank, Czech and Slovak Home Credit, and Benxy (Zonky), with Moneta Money Bank was approved by Moneta shareholders in December 2021. The plan was initially announced in the spring of last year. However, it was abandoned due to the negative economic impact of the Covid-19 pandemic and changes in the central bank’s requirements regarding the capital adequacy of banks in the Czech Republic.

Despite the challenges caused by the pandemic, Moneta’s dividend announcement indicates the bank’s solid financial position, which has enabled it to pay a significant dividend to its shareholders. The decision to pay dividends also reflects the bank’s confidence in its future growth prospects, indicating that it has successfully navigated the economic uncertainties caused by the pandemic.

Article by Prague Forum