MONETA MONEY BANK, Mandatory Disclosure
PUBLIC DISCLOSURE OF INSIDE INFORMATION
6 December 2021, 4:00 PM
MONETA Money Bank, a.s. announces that the Czech National Bank ("CNB") notified it about the 2022 capital requirement resulting from the Supervisory Review and Evaluation Process ("SREP"), which increases by 0.2 percent
In its announcement, the CNB requires MONETA Money Bank, a.s. ("MONETA") to maintain a total SREP capital requirement of 10.6 percent, an increase of 20 basis points from the current requirement, effective 1 March 2022.
The total SREP capital requirement consists of the regulatory capital requirement under Pillar I of 8 percent and a Pillar II regulatory capital requirement of 2.6 percent, which is increased by 20 basis points with this announcement.
The CNB further states in its announcement that the Pillar II capital requirement of 2.6 percent must be met by at least 75 percent by a Tier 1 capital. This decision allows MONETA to cover up to 25 per cent of the requirement with Tier 2 capital. Until now, MONETA was required to cover 100 percent of the SREP requirement in Pillar II exclusively with Tier 1 capital. This change will enable MONETA to fully utilise its existing Tier 2 capital.
Over and above the total SREP capital requirement, MONETA is required to maintain Common Equity Tier 1 capital of 3 percent of Risk Weighted Assets, of which 2.5 per cent represents capital conservation buffer and 0.5 per cent represents a capital countercyclical buffer1.
In addition to the total capital requirement, MONETA is also required to maintain an interim Minimum Requirement for Capital and Eligible Liabilities ("MREL") of 3.1 per cent, effective 1 January 20222
Furthermore, MONETA's Management Board maintains a management capital buffer of 1 percent above the total capital requirement.
Therefore, with effect from 1 March 2022, the total capital requirement for capital and eligible liabilities increases to 17.7 per cent.
- The countercyclical capital buffer will increase to 1 percent effective 1 July 2022, to 1.5 percent effective 1 October 2022 and further to 2 percent effective 1 January 2023.
- Minimum Requirement for Capital and Eligible Liabilities will increase to 4.7 percent effective 1 January 2023 and to 6.3 percent effective 1 January 2024.
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.: +420 224 443 636 | www.moneta.cz
TABLE 1: MANAGEMENT TARGET CAPITAL REQUIREMENT COMPARED TO CURRENT REQUIREMENT
30 Sep | 1 Jan | 1 Mar | 1 Jul | 1 Oct | 1 Jan | 1 Jan | |
2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2024 | |
Pillar I - CRR requirement | 8.0% | 8.0% | 8.0% | 8.0% | 8.0% | 8.0% | 8.0% |
Pilar II - SREP requirement | 2.4% | 2.4% | 2.6% | 2.6% | 2.6% | 2.6% | 2.6% |
CRR capital conservation buffer | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% |
CRR countercyclical capital buffer | 0.5% | 0.5% | 0.5% | 1.0% | 1.5% | 2.0% | 2.0% |
MREL | 0.0% | 3.1% | 3.1% | 3.1% | 3.1% | 4.7% | 6.3% |
Total requirement for capital and | |||||||
eligible liabilities | 13.4% | 16.5% | 16.7% | 17.2% | 17.7% | 19.8% | 21.4% |
Management capital buffer | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% | 1.0% |
MANAGEMENT TARGET | |||||||
REQUIREMENT FOR CAPITAL AND | |||||||
ELIGIBLE LIABILITIES | 14.4% | 17.5% | 17.7% | 18.2% | 18.7% | 20.8% | 22.4% |
TABLE 2: ALLOWABLE CAPITAL AND ELIGIBLE LIABILITES STRUCTURE
30 Sep | 1 Jan | 1 Mar | 1 Jul | 1 Oct | 1 Jan | 1 Jan | |
2021 | 2022 | 2022 | 2022 | 2022 | 2023 | 2024 | |
CET 1 | 9.30% | 9.30% | 8.96% | 9.46% | 9.96% | 10.46% | 10.46% |
Additional Tier 1 | 2.10% | 2.10% | 1.99% | 1.99% | 1.99% | 1.99% | 1.99% |
Tier 2 | 2.00% | 2.00% | 2.65% | 2.65% | 2.65% | 2.65% | 2.65% |
MREL eligible instruments | 0.00% | 3.10% | 3.10% | 3.10% | 3.10% | 4.70% | 6.30% |
TOTAL | 13.40% | 16.50% | 16.70% | 17.20% | 17.70% | 19.80% | 21.40% |
As of 30 September 2021, MONETA has confirmed a strong capital position with a capital adequacy ratio of
18.7 per cent3 and excess capital of CZK 9.4 billion4, which allows for the resumption of dividend payments, subject to prior approval from the CNB.
The above SREP capital requirement is usually reassessed by the CNB on an annual basis. However, the CNB may initiate an ad-hoc extraordinary SREP process, for example, in the event of a significant change in MONETA's consolidation unit.
- Excluding CZK 2.3 billion of consolidated net profit for nine months of 2021.
- Assuming capital requirement of 14.4 percent including 100 basis points of management capital buffer.
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Disclaimer
Moneta Money Bank a.s. published this content on 06 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2021 15:11:03 UTC.
