Friday , November 27 2020

Connecting with Air Air will lead to growth in loans, deposits and profitability, and the dividend will not be affected



The proposed combination of the Moneta Money Bank with Air Bank and Home Credite will not affect the fact that the bank pays shareholders at least 11.5 billion CZK last year, this year, next year and betted dividend In an interview with CTK, Tomáš Spurný, managing director of Moneta Money Bank said. The mid-term aim of the Monetary Money Bank is to grow by eight per cent per year in the number of loans and deposits, following the proposed merger with Air Bank and Home Credits in future years. This growth would be a little faster than what it should strengthen the entire market during this period, he said.

The commitment to the dividend will be respected

The dividend planned this year, the bank raised to 5.6 crowns is a share after the release of the results for the three quarters, so far it was a smaller day. Ultimately, the Bank has promised to pay its shareholders at least 70 per cent of profits. He also taught them that in 2017, 2018, 2019 and 2020 they will pay at least CZK 11.5 billion at least.

Moneta, based on the results, increased its net profit this year to 4.1 billion cones, or 100 million more than the previous estimate in September. In 2017 he won 3.9 billion CZK. In next year, according to Spurn, the proceeds will fall to CZK 3.6 billion due to the one-off effects that have influenced positively on the economy this year.

The 8% increase in loans and deposits annually after joining Air Bank

The mid-term aim of the Monetary Money Bank is to grow by eight per cent per year in the number of loans and deposits, following the proposed merger with Air Bank and Home Credits in future years. This growth would be a little faster than it should strengthen the entire market during this period, Spurny said in an interview with CTK. The acquisition, according to it, provides the faster growth of the bank and lower operating costs.

"The bank's aim is to have a fifth per cent share in the mortgage market by 2020, with the union being an aspiration to have that proportion at least eight percent," said Spurny. The bank started two years ago with one percentage point, which is now 2.4 per cent in the third quarter. This market, according to it, accounts for three quarters of the total credit activity of small clients.

"For the clients of both banks, this means benefits in the form of an intensified branch network of more than 230 retail stores and the availability of cash by more than one thousand more ATMs," said Spurny. Another element is innovation. "Air Bank is much more digital money than we are about distributing retail credit products. We will choose the best of digital platforms to join," he said.

Connecting means increasing profitability by more than a tenth

For bank shareholders, the merger will mean an increase in profitability of more than ten per cent compared to organic growth under the medium term plan. According to Spurny, the number of employees in the future can not be estimated. "At least two of the largest four banks have a program to rationalize the workforce and the cost. We do not have a program of such or design it now," he said.

The closure of the transaction is expected on July 1, 2019, and is subject to complete due diligence, obtaining the approval of the relevant regulators and Monet shareholders at the General Meeting. It will determine the transaction in the first quarter of 2019. Spurny's decision can not be predicted. "In order to increase the value of the bank we need to increase its profitability. In order to increase profitability we need to grow, acquire more clients. We now tend to acquire new clients," he said for the reason the acquisition.

Year of opening discussions

It is the responsibility of the manager to have another strategy that, apart from the organic growth strategy, also includes procurement strategies. That is why 12 months ago he spoke to Air Bank owners and began talking to them about his possible sale, and described the idea of ​​connection. "Whatever the big banks say, bankers called increasingly grow faster than others, in terms of the number of clients and the number of loans and deposits, and they are & Bringing innovation to the market, "he added.

Moneta Money Bank has been operating under its current name since 2016, the former bank name of the GE Money Bank has changed since it entered the stock market in May of that year. The financial institution is one of the largest companies that are being traded on the Prague Stock Exchange for a long time.

The Monet Financial Bank launched a process to acquire Czech and Czech Home and Credit Credits from the PPF group from entrepreneur Petr Kellner a few weeks ago. There will be a double increase in consumer loans and the size of a three-figure banking network under the Air Bank brand. The intended transaction value is 19.75 billion crowns.

The bank that could be established would operate the third largest distribution network in the Czech Republic with 237 branches supported by 1005 ATMs. More than one million Monet customers would have added about 637,000 Air Bank customers and around 469,000 Credit Home customers. According to the number of clients, the new company will be the third largest bank for Česká spořitelna and ČSOB.


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