REGULATORY ANNOUNCEMENT: 2023 capital requirement announcement
October 24, 2022 at 11:20 am EDT
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Mandatory Disclosure
PUBLIC DISCLOSURE OF INSIDE INFORMATION
24 October 2022, 5:00 PM
MONETA Money Bank, a.s. announces that the Czech National Bank ("CNB") notified the results of the Supervisory Review and Evaluation Process ("SREP"). Total SREP capital requirement for 2023 remains unchanged at 2.6 percent.
In the announcement, the CNB requires MONETA Money Bank, a.s. ("MONETA") to maintain a total SREP capital requirement unchanged at 10.6 percent; effective from 1 January 2023.
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. Both requirements remain unchanged compared to 2022 requirement.
The CNB further confirmed that the Pillar II capital requirement of 2.6 percent is required to be covered by 56.25 percent of Tier 1 common equity (CET 1) and by 75% of Tier 1 capital. Remaining part can be covered by Tier 2 instrument.
Over and above the total SREP capital requirement, MONETA is required to maintain Common Equity Tier 1 capital of 4.5 percent of Risk Weighted Assets effective 1 January 2023, of which 2.5 per cent to cover capital conservation buffer and 2.0 per cent to cover a capital countercyclical buffer1.
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.
As of 30 June 2022, MONETA has confirmed a solid capital position with a capital adequacy ratio of 16.8 percent and excess capital of CZK 5.2 billion2, which allows for the resumption of dividend payments, subject to prior approval from the CNB.
The countercyclical capital buffer will increase to 2.5 percent effective 1 April 2023.
Including the accrual of CZK 2.3 billion for future dividend distribution. Subject to corporate, regulatory and regulator´s limitations.
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
PROJECTION OF MANAGEMENT CAPITAL TARGET ON CONSOLIDATED BASIS
1 Jul
1 Oct
1 Jan
1 Apr
2022
2022
2023
2023
Pillar I - CRR requirement
8.0%
8.0%
8.0%
8.0%
Pilar II - SREP requirement
2.6%
2.6%
2.6%
2.6%
CRR capital conservation buffer
2.5%
2.5%
2.5%
2.5%
CRR countercyclical capital buffer
1.0%
1.5%
2.0%
2.5%
Total regulatory requirement for capital
14.1%
14.6%
15.1%
15.6%
Management capital buffer
1.0%
1.0%
1.0%
1.0%
MANAGEMENT CAPITAL TARGET ON CONSOLIDATED BASIS
15.1%
15.6%
16.1%
16.6%
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Disclaimer
Moneta Money Bank a.s. published this content on 24 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2022 15:19:02 UTC.
Moneta Money Bank a.s. is one of the leading financial services groups in the Czech Republic. Net sales break down by activity as follows:
- retail banking (64.2%): sales of conventional banking products and services to induviduals (current account management, consumer credit, sale of savings contracts, mortgages, car loans, home loans, leasing, credit card issuance, etc.);
- commercial banking (29.6%): sales of banking products and services to small and medium enterprises, financial and public institutions (asset funding, investments and projects, leasing, management of vehicle fleets, industrial equipment funding, etc.);
- other (6.2%): primarily investment banking and bancassurance.
At the end of 2021, the group managed CZK 285.1 billion in courrent deposits and CZK 255.6 billion in current loans.
The products and services are marketed through a network of 154 branches located in the Czech Republic.
MONETA MONEY BANK, 
