MONETA Money Bank : Press release - FY 2022 financial results

PRESS RELEASE

In Prague, 3 February 2023

MONETA delivers CZK 5.2 billion net profit in 2022,

up 30.2 per cent year-on-year;

proposed dividend of CZK 8 per share

• CZK 5.2 billion net profit, up 30.2 per cent on 2021
• CZK 8 per share proposed as 2022 dividend
• 18.7 per cent Return on Tangible Equity, against 15.2 per cent in 2021
• CZK 12.1 billion total operating income, up 8.5 per cent year-on-year
• CZK 5.6 billion operating costs, up 1 per cent year-on-year
• CZK 90 million Cost of Risk, or 3 basis points of the average loan portfolio, down 87.1 per cent year- on-year
• 18 per cent capital adequacy ratio with excess capital of CZK 3.3 billion, or 1.9 per cent
• ATM network strengthened by network sharing agreement with Komerční banka; UniCredit Bank and Air Bank agreed to join in February 2023
• MSCI confirmed MONETA's AA ESG rating
• CDP upgrades MONETA from C to B on environmental impacts

Prague, 3 February 2023 - MONETA Money Bank ("MONETA") today announced its unaudited financial results for the full year 2022. Net profit increased by 30.2 per cent year-on-year to CZK 5.2 billion. This outperformed the full- year net profit guidance published in February 2022 by almost 18 per cent, and was primarily driven by higher interest rates, favourable Cost of Risk and lower than expected operating expenses. Return on Tangible Equity was 18.7 per cent as at 31 December 2022.

Net interest income grew by 8.2 per cent over 2021, which was driven by lending income growth as well as higher income from treasury operations. Net fee and commission income increased by 12.1 per cent due to higher third- party commission income accompanied by a higher intensity of client banking transactions. Total operating income reached CZK 12.1 billion, up 8.5 per cent on 2021.

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MONETA Money Bank, a.s. | Vyskočilova 1442/1b, 140 28 Praha 4 - Michle | Company ID 25672720 | Registered by the Municipal Court in Prague, Section B, Insert 5403 | tel.: [phone] | www.moneta.cz

PRESS RELEASE

Operating costs of CZK 5.6 billion are CZK 100 million below guidance. This results from prudent cost control and a strong focus on productivity amid the inflationary environment. Employee headcount was reduced by 9.5 per cent during the year to 2,699 in December 2022. Operating costs were also supported by the reimbursement of CZK 113 million by PPF Group for costs related to the termination of the Air Bank Group acquisition.

MONETA delivered a 2022 Cost of Risk of CZK 90 million, or 3 basis points of the average loan portfolio, which is below the guided range of 20-40 basis points. The low Cost of Risk was mainly driven by upgrades or repayments of non- performing loans (NPL), as well as a general, and consistent, solid repayment discipline. During 2022 MONETA booked a management overlay to cover anticipatory credit losses resulting from the potential deterioration in loan-portfolio quality with regard to existing risks in the economic environment. The impact of the overlay was mainly offset by the release of provisions related to IFRS 9 model update. The Cost of Risk was also supported by successful NPL disposals, which generated an income of CZK 243 million.

MONETA reported a strong capital position with regulatory capital of CZK 30.9 billion. The capital adequacy ratio stood at 18 per cent with excess capital of CZK 3.3 billion above the management target of 16.1 per cent - this excludes 2022's dividend accrual of CZK 4.1 billion. In 2022 MONETA issued minimum requirement for own funds and eligible liabilities (MREL) eligible bonds in the total amount of CZK 3.9 billion to cover the MREL requirement and will seek another issuance of MREL eligible instruments during the second half of 2023. MONETA's solid capital position allows management to propose the distribution of CZK 8 per share as a 2022 dividend. This represents a pay-out ratio of 79 per cent of consolidated net profit.

MONETA and Komerční banka (KB) in May signed an agreement to share their ATM networks across the Czech Republic. This cooperation increases availability of cash services for clients of both banks, and contributes to sustainability through the shared ATM network optimization and elimination of duplicate ATMs. In December UniCredit Bank and Air Bank agreed to join the ATM-sharing agreement from February 2023, bringing the total number of ATMs in the shared network to 2,048.

MONETA received a range of industry and peer group awards in 2022, including a record 12 awards in the annual Financial Academy's Zlatá koruna (Golden Crown) competition, including four gold, six silver and two bronze awards. The Smart Banka mobile application won one gold and two silver awards, the online mortgage offering took the gold award for Innovation of the Year and a further two golds were awarded for the Building Savings proposition and the Konto FOR Business (Konto pro podnikání) current account. In the prestigious Bank of the Year 2022 awards, MONETA received two gold and two silver medals, including gold in the Responsible Bank category.

Development of lending activity1

MONETA's loan portfolio increased by 5.6 per cent year-on-year and reached CZK 270.1 billion, whilst overall new production declined by 28.4 per cent to CZK 61.7 billion. The retail loan portfolio grew by 6.8 per cent year-on-year to CZK 186.6 billion. New retail lending volumes were CZK 40.3 billion, down 39 per cent year-on-year. The commercial

1 Portfolio represents gross performing loans.

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MONETA Money Bank, a.s. | Vyskočilova 1442/1b, 140 28 Praha 4 - Michle | Company ID 25672720 | Registered by the Municipal Court in Prague, Section B, Insert 5403 | tel.: [phone] | www.moneta.cz

PRESS RELEASE

loan portfolio grew by 3.1 per cent to CZK 83.4 billion. New commercial lending volumes were CZK 21.4 billion, a rise of 6.5 per cent over 2021.

In the retail segment new consumer lending slightly decreased by 10.1 per cent to CZK 16.7 billion, while the consumer loan portfolio rose by 2.9 per cent year-on-year to CZK 48.6 billion. A similar trend was visible in new disbursed mortgage volumes, which fell by 51.9 per cent to CZK 22.1 billion, reflecting lower demand due to higher interest rates, negative sentiment and increased caution all round. On the other hand, the mortgage portfolio rose by 8.4 per cent year-on-year to CZK 133 billion, mainly due to drawdowns of pre-existing mortgage commitments. Retail auto loan new volumes were stable at CZK 1.5 billion and the overall portfolio balance grew by 7.5 per cent year-on-year to CZK 2.6 billion. The credit card and overdraft portfolio slightly declined by 1.4 per cent year-on-year to CZK 2.5 billion.

In the commercial segment, MONETA delivered a significant increase in new small business loan volumes, which rose by 11.7 per cent on 2021 to CZK 4.5 billion. The total small business portfolio grew by 24.3 per cent to CZK 12.4 billion. The investment loan volumes grew by 6.7 per cent to CZK 12.8 billion, whilst the overall portfolio remained stable at CZK 46.3 billion. Commercial auto loan new volumes increased by 15.9 per cent to CZK 2.9 billion, and the portfolio grew by 7.8 per cent year-on-year to CZK 6.9 billion. Leasing portfolio declined by 20.6 per cent year-on-year to CZK 3.6 billion. The working capital portfolio grew by 4 per cent year-on-year to CZK 14.2 billion.

Digital distribution

The 2022 Deloitte Digital Banking Maturity Study recognised MONETA as the most advanced digital solution provider of all Czech banks for the third time in a row. MONETA is also ranked among the world's top 10 per cent of digital banks, with 98 per cent of its portfolio covered digitally. MONETA has moved significantly towards full digitalisation with the introduction of several innovations, including online mortgage facilities and the possibility of digitally opening, closing and otherwise managing current accounts, building savings accounts, and the family account that is unique in the Czech environment.

Digital channels accounted for the origination of 48.3 per cent of new consumer lending volumes2 and 24.2 per cent of new small business loan volumes in 2022. Clients used digital channels for making deposits as well, with 35 per cent of retail current accounts opened online, 45.5 per cent of retail term deposits and 61.1 per cent of retail savings accounts were opened online.

Distribution of collective investment products

The outstanding balance of investment funds distributed by MONETA reached CZK 28.1 billion as at 31 December 2022, up by 3.3 per cent year-on-year. Associated fee income rose by 43.1 per cent year-on-year to CZK 302 million, mainly thanks to changes in pricing policy.

2 Excluding production of MONETA Stavební Spořitelna.

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MONETA Money Bank, a.s. | Vyskočilova 1442/1b, 140 28 Praha 4 - Michle | Company ID 25672720 | Registered by the Municipal Court in Prague, Section B, Insert 5403 | tel.: [phone] | www.moneta.cz

PRESS RELEASE

Deposit taking activity

MONETA increased its core deposit balance by CZK 48.9 billion, or 17.2 per cent year-on-year, from CZK 284.8 billion at the end of 2021 to CZK 333.8 billion at the end of 2022. Retail core customer deposits increased by 18 per cent year-on- year to CZK 256.3 billion. Commercial core customer deposits increased by 14.5 per cent year-on-year to CZK 77.5 billion. As a result, the Loan to Deposit ratio decreased to 80.4 per cent compared to 89.6 per cent at the end of 2021.

Loan portfolio quality

The good quality of MONETA's loan portfolio continued to further improve during 2022. Overall coverage through loan loss provisions of the loan book decreased from 2.2 per cent at the end of 2021 to 1.9 per cent at the end of 2022. The non-performing loan (NPL) portfolio at year's end stood at CZK 3.8 billion after a reduction of CZK 1.9 billion during the last 12 months. The decrease resulted from upgrades of previously downgraded loans which show continued good payment discipline, successful disposals of NPLs and their write-offs. As a result, the NPL ratio decreased year-on-year from 2.2 per cent to 1.4 per cent.

PROFITABILITY AND RETURN ON CAPITAL

• Total operating income of CZK 12.1 billion, up 8.5 per cent on 2021. This was supported by net interest income growth of 8.2 per cent and net fee and commission income growth of 12.1 per cent compared to 2021.
• Total operating expenses of CZK 5.6 billion, supported by a cost reimbursement of CZK 113 million related to the terminated acquisition of Air Bank Group.
• Operating profit reached CZK 6.5 billion, up 15.8 per cent on 2021.
• Total Cost of Risk lowered significantly to CZK 90 million, or 3 basis points.
• Income tax of CZK 1.2 billion with an effective tax rate of 19.4 per cent.
• Net profit of CZK 5.2 billion, up by 30.2 per cent year on year, resulting from the above-mentioned drivers.
• Return on Tangible Equity 18.7 per cent, up by 3.5 percentage points compared to 2021.

BALANCE SHEET

MONETA's overall balance sheet at the end of 2022 was CZK 387.5 billion, up 13.9 per cent year-on-year mainly due to expansion in deposit base through attractive proposition of savings and term deposit accounts.

Investment securitiesportfolio of CZK 58 billion, up 17.8 per cent year-on-year, consisting mainly of Czech government bonds.

Overall loan portfolio3grew by 5.6 per cent year-on-year to CZK 270.1 billion, mainly driven by:

• Retail lendingwas up 6.8 per cent year-on-year and reached CZK 186.6 billion. The retail loan portfolio constitutes 69 per cent of MONETA's total loan portfolio.

3 Gross performing loans.

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MONETA Money Bank, a.s. | Vyskočilova 1442/1b, 140 28 Praha 4 - Michle | Company ID 25672720 | Registered by the Municipal Court in Prague, Section B, Insert 5403 | tel.: [phone] | www.moneta.cz

PRESS RELEASE

• • Mortgage lending up 8.4 per cent year-on-year to CZK 133 billion.
  • Consumer lending up 2.9 per cent year-on-year to CZK 48.6 billion.
  • Retail auto loans up 7.5 per cent year-on-year to CZK 2.6 billion.
  • Credit cards and overdrafts broadly stable at CZK 2.5 billion, in line with market trends.
• Commercial lendingwas up by 3.1 per cent year-on-year and reached CZK 83.4 billion, which represents 31 per cent of total loan portfolio.
• • Investment loan portfolio remained stable at CZK 46.3 billion.
  • Working capital portfolio increased by 4 per cent year-on-year to CZK 14.2 billion.
  • Small business lending grew by 24.3 per cent year-on-year to CZK 12.4 billion.
  • Commercial auto loans grew by 7.8 per cent year-on-year to CZK 6.9 billion.
  • Leasing portfolio down by 20.6 per cent year-on-year to CZK 3.6 billion in line with MONETA strategy.

Total funding baseincreased by 14.5 per cent year-on-year to CZK 346 billion:

• Retail core customer depositsincreased by 18 per cent year-on-year to CZK 256.3 billion, which represents 74 per cent of the total funding base.
• Commercial core customer depositsincreased by 14.5 per cent year-on-year to CZK 77.5 billion, which represents 22 per cent of the total funding base.
• Wholesale fundingdecreased by 29.2 per cent year-on-year to CZK 12.2 billion, which represents 4 per cent of the total funding base.

ONLINE DISTRIBUTION

Digital platform - full year performance:

• Share of digital consumer lending in total new production4 reached 48.3 per cent.
• Signed mortgages through the Refinanso.cz platform and through the online mortgage proposition accounted for 14 per cent of total new mortgage production.
• Digital small business instalment lending accounted for a 24.2 per cent share of total new small business instalment lending.
• 61.1 per cent of new retail savings accounts opened online
• 45.5 per cent of new retail term deposits opened online
• 35 per cent of new retail current accounts opened online.
• 8.6 per cent of new asset management volume generated online.
• 9.4 per cent of new building savings contracts signed online.

Client base:In 2022, MONETA attracted almost 170,000 new clients and the total client base therefore grew by 5.4 per cent to 1.5 million. Approximately 1.4 million are retail clients and approximately 125,000 are commercial clients, of which the majority are in the Small Business segment.

4 Excluding production of MONETA Stavební Spořitelna.

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MONETA Money Bank, a.s. | Vyskočilova 1442/1b, 140 28 Praha 4 - Michle | Company ID 25672720 | Registered by the Municipal Court in Prague, Section B, Insert 5403 | tel.: [phone] | www.moneta.cz