Moneta Money Bank dividend in 2024 and beyond (+analyst commentary)

3/27/2024 1:52 PM, BAAGECBA

Detailed information about the Moneta Money Bank dividend.

Moneta Money Bank dividend in 2024

The board proposed the payout dividends in the amount of CZK 9 per share. It must now be approved by the general meeting, which will be held on April 23, 2024. The dividend will be payable on May 21, 2024

If you want to receive it, you need to buy Moneta shares no later than the day that precedes on the so-called ex-date, the first trading day when the shares are traded without the right to a dividend. You can find a more detailed explanation of the terms associated with the dividend payment in the third part of our Dividend Express series.

The ex-date falls on April 26 on the Prague Stock Exchange. On RM-SYSTEM on April 30.

Since Moneta shares are registered, the bank pays the dividend cashless to an account in the CDCP. For details on dividend payment and taxation issues, please refer to an earlier article.

Moneta Money Bank dividend history and policy

A strong capital position enabled Moneta to pay out more than 100% of the net profit generated in 2016 and 2017 in dividends in the first two years after its IPO.

In 2019, Moneta switched to a semi-annual dividend payment, so in addition to the dividend from the profit for 2018, it also paid the first part of the dividend from the profit for 2019.

However, in 2020, Moneta, along with other banks, had to suspend dividend payments due to regulatory restrictions. In December 2021, Moneta approved and in January 2022, Moneta paid a gross dividend of CZK 3 per share to shareholders from the profits for the years 2019 and 2020. This dividend reflected the limits set for banks by the Czech National Bank. In May 2022, Moneta paid a dividend of CZK 7 per share.

In the annual report, Moneta states its dividend policy to pay an annual dividend of at least 70% of consolidated net profit, with the understanding that it may be increased if the bank does not need capital to finance loan growth, or decreased due to an investment opportunity.

Moneta Money Bank dividend in 2025

On the 2023 earnings conference call, management indicated an intention to pay out 90% of earnings in the near term. Our analyst thus expects that Moneta’s dividend could reach CZK 9.2 in 2025 and CZK 9.4 in 2026.

Dividend development of Moneta Money Bank

The view of Karel Nedvěd, Fio bank’s analyst

Moneta achieved a record net profit of CZK 5.2 billion for 2023, as the decline in net interest income was offset by higher fee and commission income and higher other income. The bank thus reported a profit per share of CZK 10.2. Management proposes to pay out 88% of this net profit, which corresponds to a dividend of CZK 9 per share. This is a year-on-year increase of 12.5%, when last year the management paid out CZK 8 per share.

With the results for 4Q and the full year 2023, the management announced the intention to pay out 90% of this year’s net profit. The same payout ratio should then be maintained in the following years.

Management also announced a mid-term plan for 2024-2028. Net profit this year should again reach at least CZK 5.2 billion (CZK 10.2 per share) and grow by an average of 3.6% year-on-year to CZK 6 billion (CZK 11.7 per share) in 2028. Shareholders should therefore also be paid a dividend of at least CZK 9 per share in the following years.

Moneta Money Bank Dividend Yield

Compared to the closing price of the Moneta Money Bank share on March 26, 2024 of CZK 99.5, the gross dividend yield from this year’s dividend of CZK 9 is approximately 9%.

You can find more about the dividend yield in the fifth part of the series.