REGULATORY ANNOUNCEMENT: MONETA announces the impact resulting from the CNB's decision to discontinue remuneration of minimum reserves

Regulatory Announcement

PUBLIC DISCLOSURE OF MANDATORY INFORMATION

8 September 2023 4:00 PM

MONETA Money Bank announces the impact on net interest income resulting from the Czech National Bank's decision to discontinue remuneration of mandatory minimum reserves

On 7 September 2023, the Bank Board of the Czech National Bank decided to discontinue remuneration of mandatory minimum reserves with effect from 5 October 2023. Banks are required to hold minimum reserves equal to 2% of their primary liabilities on an account with the Czech National Bank. Until now, these reserves have been remunerated at the current two-week repo rate. The two-week repo rate has remained at a stable level of 7% since 23 June 2022.

This decision has an impact on both MONETA Money Bank, a.s. and its subsidiary MONETA Stavební Spořitelna, a.s. (further "MONETA Group"). MONETA Group announces that at the end of August 2023 it maintained mandatory minimum reserves in the average amount of CZK 7 billion. This balance corresponds to a monthly interest income of approximately CZK 40 million.

MONETA Group estimates that the decision to discontinue remuneration of the mandatory minimum reserves will result in a decrease in interest income of approximately CZK 120 million in 2023 and approximately CZK 450 million in 2024. The management of MONETA Group will seek business opportunities to compensate the negative impact of this decision.

MONETA Money Bank, a.s. | Vyskočilova 1442/1b, 140 28 Praha 4 - Michle | IČO: 25672720 |Zapsaná v obchodním rejstříku vedeném Městským soudem

v Praze, oddíl B, vložka 5403| tel.: [phone]|www.moneta.cz