MONETA Money Bank keeps 2022 profit outlook after Q1 jump

div classBodysc17zpet90 cdBBJodivpPRAGUE Reuters – Czech lender MONETA Money Bank posted a 116 annual jump in firstquarter net profit on Thursday and maintained its outlook for a rise in earnings in 2022 thanks to higher interest rates and strong loan quality.p

pMONETA reported net profit of 1.29 billion crowns 55.4 million in the quarter, above the average estimate of 1.25 billion crowns in a Reuters poll.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pNet interest income climbed 17 from a year before while total banking income was up 13 at 3.02 billion crowns.p

pCzech banks have got a lift from fastrising interest rates since last year as the central bank has battled a surge in inflation, which is at its highest in nearly a quartercentury.p

pBut high inflation, along with the impact of war in Ukraine, are starting to take a toll on the economy. Policymakers are cutting their outlook for growth.p

pMONETA Chief Financial Officer Jan Fricek said the bank had so far seen no decrease in its loan portfolio quality. MONETA released provisions in the first quarter, helping boost net profit.p

pMONETA, which is aiming to complete in the third quarter a planned 25.9 billion crown acquisition of rival Air Bank Group, owned by giant Czech investment group PPF, maintained its earnings outlook on Thursday.p

pIt forecasts profit to reach at least 4.4 billion crowns in 2022, up from 4.0 billion crowns in 2021.p

pWhile costs could rise because of inflation and a possible higher contribution into a depositinsurance fund, Fricek said better bank performance would compensate.p

p“So altogether we are still confident in delivering our guided net profit,” Fricek said. p

p1 23.2940 Czech crownsp

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pp Reporting by Jason Hovet Editing by Bradley Perrettp

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