The CNB approved Moneta and Komerční banka to pay dividends

Moneta Money Bank and Komerční banka obtained the approval of the Czech National Bank for a proposal to distribute net profit to shareholders for 2019 and 2020. In the case of Moneta Money Bank, it is CZK 1.533 billion, ie three crowns per share. At Komerční banka, it is 4.535 billion crowns, ie 23.86 crowns per share. This follows from information published by banks. The banks set the dividend in accordance with the restrictions set by the CNB in ​​March this year.

Last week, the CNB announced that it had completed an assessment of the capital situation of individual banks and would no longer limit the amount of bank dividends. It also stated that the total amount of dividends may be approximately 15 percent of the banking sector’s profit for 2019 and 2020. In 2019, banks in the Czech Republic reported a total net profit of a record 90.9 billion crowns and a year later 47.51 billion crowns. The CNB also recommended considering further payment only after the announcement of the economic results for 2021.

The CNB limited the payment of dividends from the profits of 2019 and 2020 as part of anti-crisis measures. It was intended to mitigate the negative impact of large-scale economic closures during a pandemic on banks’ finances and to maintain their capital adequacy to maintain the stability of the banking sector.

Moneta Money Bank announced today that the CNB expects further dividend payments only after the bank’s final financial results for this year will be available and at the same time the development and effects of the pandemic in the autumn and winter months will be clear. “The Board of Directors of the Bank remains bound to shareholders with its dividend policy to pay at least 70 percent of net profit, provided that this is in line with the current situation and applicable restrictions,” said Moneta Money Bank. According to the announcement, the bank’s board of directors intends to submit a proposal for the payment of a dividend to shareholders for approval at the general meeting, which it plans to convene in the first half of November.

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The CNB expressed a similar opinion in the case of Komerční banka, according to published documents. The Board of Directors of Komerční banka intends to convene a general meeting to approve the dividend in the fourth quarter.

Moneta Money Bank reported a net profit of approximately four billion crowns in 2019 and 2.6 billion crowns last year. Komerční banka had a net profit of CZK 14.9 billion in 2019 and a year later CZK 8.2 billion.

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