Investor Presentation. August, 2018

Transcription

1 Investor Presentation August, 2018

2 MONETA Money Bank 2

3 ROAD TO MONETA MONEY BANK More than twenty years of presence on the market /05> 1998 GROWTH PERIOD CONSERVATION PERIOD RETURN TO GROWTH AGROBANKA ACQUISITION INITIAL PUBLIC OFFERING 3

4 MONETA MONEY BANK Company snapshot FINANCIAL METRICS in CZK in EUR FY 2016 FY H'17 1H'18 FY 2016 FY H'17 1H'18 CONSOLIDATED NET PROFIT (bn) TOTAL OPERATING INCOME (bn) PROFITABILITY RETURN ON TANGIBLE EQUITY 15.3% 16.0% 19.1% 19.6% 15.3% 16.0% 19.1% 19.6% RETURN ON AVERAGE EQUITY 14.7% 14.8% 17.1% 17.6% % 14.8% 17.1% 17.6% 2 RETURN ON AVERAGE ASSETS 2.8% 2.2% 2.8% 2.2% 2.8% 2.2% 2.8% 2.2% IMPAIRMENT COST OF RISK 0.93% 0.32% 0.46% (0.24%) 0.93% 0.32% 0.46% (0.24%) CORE COST OF RISK 1.08% 0.59% 0.59% 0.78% 1.08% 0.59% 0.59% 0.78% COST EFFICIENCY COST TO INCOME RATIO 45.1% 47.9% 43.3% 49.7% 45.1% 47.9% 43.3% 49.7% TOTAL OPERATING EXPENSES (bn) (5.0) (4.9) (2.3) (2.4) (0.2) (0.2) (0.1) (0.1) CAPITAL ADEQUACY RATIO % 17.4% 18.4% 16.0% 20.5% 17.4% 18.4% 16.0% CAPITAL RISK WEIGHTED ASSETS (bn) REGULATORY CAPITAL (bn) LOAN TO DEPOSIT RATIO 96.2% 87.4% 93.1% 90.3% 96.2% 87.4% 93.1% 90.3% LIQUIDITY LIQUIDITY COVERAGE RATIO 161.0% 182.9% 160.0% 160.7% 161.0% 182.9% 160.0% 160.7% NET STABLE FUNDING RATIO 113.9% 120.3% 121.8% 118.7% 113.9% 120.3% 121.8% 118.7% NET CUSTOMER LOANS (bn) ASSETS & LIABILITIES CUSTOMER DEPOSITS (bn) TOTAL ASSETS (bn) Notes: Exchange rate of CNB CZK/EUR as of 29 June 2018; (1) CAR ratio does not include net profit for the respective period; (2) Calculated as two point average of equity balance as of 1 January 2018 and as of 30 June

5 MONETA MONEY BANK Company snapshot DISTRIBUTION PLATFORM METRICS FY 2016 FY H'17 1H'18 BRANCHES ATMs NUMBER OF CLIENTS (ths) 1,064 1,033 1,038 1,032 NUMBER OF EMPLOYEES (FTEs) 3,114 3,304 3,287 3,240 MONETA Money Bank is a leading retail and expanding small business bank in the Czech Republic 4 th largest branch network with 203 branches and 655 ATMs as of June 2018, well dispersed across the Czech Republic, serving ~1m customers (~9% 2 of CZ population) Mobile banking platform Smart Banka voted as best mobile application in the Czech Republic; fully digital pre approved unsecured loans for existing retail and small business clients disbursed within 10 minutes after confirmation 3 Balanced business mix with 51% of net loans in retail 4 and 49% in commercial 4 complemented by restarted growth in late 2016 and continuing in 2018 International management team with a wealth of experience in financial services 5

6 STRATEGIC OVERVIEW Key goals (i) return to operating income growth, (ii) contain cost and (iii) become digital leader DIGITAL CAPABILITIES DIGITAL CAPABILITIES RESULTS GUIDANCE METRICS 1H H RISK MANAGEMENT SUSTAINABILITY LOAN BOOK GROWTH (YoY) 2 8.9% 13.4% 9% 10% EFFICIENT CAPITAL STRATEGY TOTAL OPERATING INCOME (CZK) 5.3bn 4.8bn 9.7bn bn COST BASE (CZK) 2.3bn 2.4bn ~ 4.9bn ~ 5.1bn MAINTAIN AND IMPROVE RETAIL FRANCHISE DEVELOP SMALL BUSINESS BANKING RETAIN AND REINFORCE SME BANKING COST OF RISK 3 (bps) Excluding legacy NPL sales (bps) (24) CONSOLIDATED NET PROFIT (CZK) 2.2bn 2.1bn 3.7bn 1 3.8bn COST CONTROL AND OPERATIONAL EXCELLENCE CORPORATE SUSTAINABILITY RETURN ON TANGIBLE EQUITY 19.1% 19.6% 16% 1 15% EFFECTIVE TAX RATE 20.0% 16.9% ~ 17% ~ 20% MANAGEMENT WILL CONSIDER TO PROPOSE 2018 DIVIDEND PAYOUT OF CZK 5 GROSS PER SHARE 5 Note: All ratios are annualized; (1) Revised guidance announced on August 8, 2018; (2) Gross performing loans and receivables to customers growth; (3) 2017 based on IAS 39, 2018 based on IFRS 9; (4) Restated due to split of gain from NPL sales between line Net impairment of loans and receivables and line Other operating income; (5) Based on 1H 18 results and revised guidance. Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 6

7 EXECUTING ON STRATEGY CZK 2.1 billion of net profit delivered METRICS (CZK m, %) NET INTEREST INCOME 1H 18 3,578 1H 17 CHANGE 3,716 (3.7%) CZK 4.8bn of operating income, down 10.1% YoY, partially driven by gain on bond sales of CZK 343m in 1H 17 NET FEE AND COMMISSION INCOME OTHER INCOME (1.4%) (57.1%) CZK 72m higher operating expenses YoY (up 3.1%), mainly due to provision release in 2017 TOTAL OPERATING INCOME TOTAL OPERATING EXPENSES COST OF RISK PROFIT BEFORE TAX 4,770 (2,370) 151 2,551 5,303 (2,298) (261) 2,744 (10.1%) 3.1% >(100%) (7.0%) 49.7% Cost to Income ratio in line with management expectations Positive Cost of Risk, supported by gain on legacy NPL sales (78bps Cost of Risk excluding gain on legacy NPL sales) NET PROFIT RETURN ON TANGIBLE EQUITY 1 2, % 2, % (3.4%) 50bps CZK 2.1bn of net profit resulting in 19.6% RoTE RETURN ON EQUITY % 18.3% 2bps Note: (1) Return on Tangible Equity and Return on Equity are annualized. 7

8 EXECUTING ON STRATEGY Net interest income stabilized, NPL sale strategy on track and capital optimization supports overall loan book growth INCOME PRICING GAIN DISTRIBUTION CAPITAL Net interest income returns to growth 1 QtQ Consumer loan production pricing stabilized Legacy NPL monetization continued Strategic cooperation with Generali 3 Risk weighted assets optimization CZK 1,783 million of Net interest income 1 in 2Q 18 exceeding management estimates by more than CZK 30m 50bps uplift versus 4Q 2017 and 50bps above market 2, defending market share of 18.9% 2 CZK 648 million gain delivered in 1H 18 to Cost of Risk from legacy NPL sale in nominal value of CZK 3.6bn Offering retail current accounts and lending products via additional 194 branches 4 and MONETA digital platform CZK 333 million positive impact on regulatory equity achieved in 1H 18 mainly due to optimization of collateral utilization Note: (1) Net interest income excluding opportunistic repo operations; (2) Source: CNB ARAD, Bank. Gross loans excluding Nonresidents and loans in foreign currencies. Consumer loans represent non-purposed and purposed consumer loans, debt consolidations, American mortgages and all other MONETA products classified as consumer loans. New volume pricing represented by annualized weighted average rate for Czech residents denominated in CZK only; (3) Framework agreement signed with Česká pojišťovna, 100% owned subsidiary of Generali.; (4) 194 branches and around 600 salesforce of Česká pojišťovna, 100% owned subsidiary of Generali. 8

9 MONETA S INVESTMENT THESIS Targeting return to growth and stabilization of revenues by 2019 while delivering solid mid-term dividend returns 1 Attractive Macro Environment and Profitable Banking Sector 2 Strong Business Model and Clearly Defined Strategy Growth Profitability 3 4 Sustainable Risk Management Fortress Balance Sheet 5 Attractive Profitability 6 Dedicated and Experienced Management Team 9

10 ATTRACTIVE MACRO ENVIRONMENT, PROFITABLE BANKING SECTOR Czech Republic rating upgraded to AA-, environment improves through rate hikes, MONETA stabilizing new volume pricing STRONG GDP OUTLOOK KEY MACROECONOMIC INDICATORS 2 4.5% INDICATOR 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q % 3.2% 1 3.4% 1 Export 3 Industrial production Unemployment 9.3% 4.9% 4.0% 4.9% 8.5% 6.8% 5.1% 4.2% 4.0% 4.9% 7.6% 3.6% (1.4%) 4.0% 3.7% 1.2% 2.7% 3.0% Inflation 2.4% 2.2% 2.5% 2.6% 1.9% 4 2.3% f 2019f EUR/CZK Banks NPL ratio % 4.3% 4.0% 4.0% % % NEW VOLUME PRICING OF CONSUMER LOANS INTEREST RATE FORECAST % 11.8% 11.6% 11.0% 11.4% 10.8% 10.6% 10.2% 9.7% 9.5% 1Q 2Q 3Q 4Q 1Q Market 6 MONETA 9.3% 9.4% 9.0% 8.8% 8.8% 9.3% 9.3% 8.5% 8.6% 8.5% 2Q 3Q 4Q 1Q 2Q M PRIBOR 2W Repo rate % from 3 rd Aug Q 1Q 2Q 3Q 4Q 1Q Q Q 4Q 1Q 2Q 3Q 4Q Source: Czech Statistical Office, Ministry of Labor, Ministry of Finance, Czech National Bank, Latest (revised) data. Czech Republic investment grade rating source: (1) Latest CNB forecast from August 2, 2018 ( (2)All data except Bank s NPL ratio, export and industrial productions represents quarterly averages; (3) Export following national concept; (4) Change in the CSO methodology, i.e. inflation calculated on updated weights; (5) Latest CNB forecast from August 2, 2018 used for period 3Q 2018 to 4Q 2019; (6) CNB ARAD, following CNB definition (includes non-purposed and purposed consumer loans, debt consolidations and American mortgages). New volume pricing represented by annualized weighted average rate for Czech residents denominated in CZK only. 10

11 ATTRACTIVE MACRO ENVIRONMENT, PROFITABLE BANKING SECTOR Favorable economic development & outlook, banking sector with solid capitalization, strong liquidity and profitability COUNTRY WITH FAVORABLE ECONOMIC OUTLOOK SUPPORTED BY STRONG LIQUIDITY F 1 GDP Growth 2.4% 4.5% 3.2% 3.4% Unemployment 5.5% 4.2% 3.2% 3.0% Positive Low 74.4% /CZK PRIBOR (3M) 0.29% 0.41% 1.31% 1.75% Appreciation Increasing 16.4% Inflation 0.7% 2.5% 2.3% 2.3% Moderation Czech Republic Country Rating 2 : A1/AA-/AA-. Outlook Positive/Stable/Stable Czech Banking System Liquid Assets/Total Assets 3 Czech Banking System Loans to Deposits 4 WELL REGULATED BANKING SECTOR WITH STRONG CAPITALIZATION 5 CZECH BANKS ROAA AMONG HIGHEST AND MOST RESILIENT IN EU 6 Top 6 banks 16.4% as of 30 Jun 18 CAR Ratio 17.6% 16.0% 17.2% 18.6% 18.1% 15.3% 13.3% RoAAStandard Deviation ( ) 4 bps 13 bps 31 bps 6 bps 5 bps 127 bps Market ČSOB ČS KB UNICREDIT RAIFFEISEN 114 bps 93 bps 39 bps 19 bps 12 bps 14 bps 30 Mar Jun 18 Source: Czech Statistical Office, Ministry of Labour, Ministry of Finance, Czech National Bank, Latest (revised) data; Notes: (1) CNB forecast; (2) Moody s, S&P and Fitch - Foreign Currency LT debt rating; (3) Consolidated, as of March 2018; (4) As of June 2018; (5) Based on regulatory disclosure requirements.; (6) Latest data available as of December

12 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY MONETA holds strong position amongst local and regional competitors RETURN ON AVERAGE EQUITY 1 RETURN ON AVERAGE ASSETS 18.5% 17.6% 17.1% 14.5% 13.9% 2.3% 2.2% 11.7% 11.1% 1.3% 1.2% 1.1% 1.0% 0.8% OTP MMB CSOB KB Raiffeisen Erste Alior OTP MMB KB Raiffeisen CSOB Alior Erste NPL RATIO COST / INCOME RATIO 8.1% 10.8% 44.4% 48.9% 49.3% 49.7% 55.1% 56.0% 61.5% 2.2% 2.7% 3.3% 3.6% 4.8% CSOB KB MMB Erste Raiffeisen OTP Alior Alior CSOB KB MMB OTP Raiffeisen Erste Notes: Data as of 30 June 2018; Source: Publicly available disclosures of each banks; (1) Calculated as two-point average of equity balance. Equity balances under IFRS 9 or IAS 39 used based on publicly available disclosure. 12

13 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Solid position in consumer lending, small business and SMEs with rapidly growing mortgages differentiates MONETA from competitors NET LOANS AND RECEIVABLES TO CUSTOMERS 1 Focus on small business COMMERCIAL LENDING 49% RETAIL LENDING 51% Net loans/ deposits ratio 2 Other 3 Commercial Banking Mortgage Consumer Loans & Other 4 90% 11% 38% 19% 32% 76% 76% 75% 107% 85% 8% 36% 45% 7% 37% 52% 1% 50% 42% 1% 70% 25% 1% 52% 39% HIGHLIGHTS Focused on attractive Retail and Commercial segment through banking and asset/based financing solutions Leading presence in unsecured consumer lending, strong focus on small business and mortgage franchise Business philosophy firmly anchored on risk adjusted return 11% 4% 6% 3% 8% ČS (Erste Group) ČSOB (KBC Group) KB (Societe Generale) UNICREDIT (UniCredit) RAIFFEISEN (Raiffeisen) Notes: MONETA, CS, CSOB, KB data as of June 2018, RB and UCB as of December 2017; Figures in the stacker bar charts may not add up to 100% due to rounding differences; (1) CS and RB single, others consolidated; (2) Ratio calculated as net customer loans / customer deposits, RB single, others consolidated; (3) MONETA includes auto loans, equipment loans, leases and inventory financing to commercial customers. Where available for other banks, includes leasing and factoring receivables; (4) Includes consumer loans, overdraft, credit cards, auto loans and other consumer products. 13

14 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Platform designed to serve targeted segments of retail and commercial customers NET LOANS & RECEIVABLES TO CUSTOMER CUSTOMER DEPOSITS TOTAL OPERATING INCOME Total in 1H 18: CZK 132.2bn Total in 1H 18: CZK 146.4bn Total in 1H 18: CZK 4.8bn 5% 7% 34% 28% 49% 51% 61% 65% Retail Commercial Retail Commercial Repos Retail Commercial Treasury /Other RETAIL Serving ~1 million customers ~9% 1 of Czech population 4 th largest branch network with 203 branches (1,616 FTEs) & 655 ATMs as of July 2018 Providing attractive products within the retail segment with strong focus on offering products through own network, digital and third party channels COMMERCIAL Serving ~98 thousand customers and focusing on small business lending and SMEs National coverage with 26 dedicated teams for small business and 18 for commercial business within the existing branch network Developing small business banking supported by sales force expansion (167 FTEs) and building digital distribution Notes: (1) Refers only to retail customers as % of total population; 14

15 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Accelerated new client acquisition, platform supported by loyal and satisfied customer, underpinned by better NPS SIGNIFICANTLY IMPROVED NPS 1 IN COMMERCIAL SEGMENT NEW CLIENT NET ACQUISTION 2 (number of clients in thousands) +33.1% Commercial NPS Retail NPS 1H 17 1H 18 LOYAL CUSTOMER BASE 3 Customer satisfaction confirmed by strong improvement of 4% Net Promoter Score (NPS) in commercial especially in small business segment and stable NPS in retail 23% 10% 62% 8 Years 4 8 Years 1 4 Years < 1 Year 7,822 new clients acquired on net basis during 2Q 18 versus 6,996 in 2Q 17 Over 60% of customers have been with the Bank 8 years, witnessing solid customer base Source: Company information, U&A study 2016 Ipsos, Ipsos Benchmarks; Notes: Data relates to retail operations only; (1) Data as of Autumn Net promoter score is the difference between % of promoters & % of detractors. Based on a survey on consumer products; (2) Net acquisition result, excluding write-offs of NPL debtors and bank initiated closures; (3) Based on total Group s retail customers with at least one active product, data as of 1Q

16 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Client acquisition and primary banking relationship improving NET CLIENT ACQUISITION 1 (number of clients in thousands) New Left 1H 2H H CLIENT BASE EVOLUTION 2 (number of clients in thousands) 1,038 1,033 1,032 +4% YoY Primary banking customers Other customers 1H 2H 1H Note: (1) Net acquisition result, excluding write-offs of NPL debtors and bank initiated closures; (2) Includes write offs mainly from NPL sale and account closures (1H 17: 37.2ths, 2H 17: 19.3ths, 1H18: 17ths); (3)Retail customer with credit income on current account of more than 7 thousand CZK at least twice in last 3 months and commercial customers with at least nine initiated debit transactions in previous 3 months or client with active not delinquent loan product. 16

17 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Strong footprint, namely in small cities, supported by call center, digital and 3 rd party capabilities with solid level of efficiency BROAD AND BALANCED GEOGRAPHIC REACH 1 SOLID ACCESS TO CUSTOMERS IN SMALLER TOWNS 40x 40x 40x Approx. 44,000 m 2 and CZK 167 million annual rent cost best in class concerning efficiency amongst Czech banks 2 DISTRIBUTION BY CITY POPULATION 16% 20% 10% <10k population 10k-50k population 50k-100k population >100k population 41x 42x 54% 84% in cities below 100k of population ADDITIONAL CHANNELS SUPPORTING BRANCH NETWORK CALL CENTRE 24/7 access to bank account On line communication Proactively approaching customers BROKERS 60 retail brokers 45 commercial brokers Broad offer of lending and deposit products DIGITAL Web portal Internet banking Mobile banking SMART banka Note: (1) As of 30 June 2018; (2) Based on BCG Research. 17

18 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY MONETA making solid progress in online banking through Smart Banka success DIGITAL BANKING PENETRATION (number of clients in thousands) 136 1H +67.9% 187 2H 228 1H Registered Smart Banka cumulative DELIVERIES 67.9% YoY growth in Smart Banka; registered users reaching 228 thousand 15.4% of payment transactions 2 executed via Smart Banka in 1H 2018 Open banking capability developed enabling clients of four major competitors to view their accounts in Smart Banka SMART BANKA TRANSACTIONS (number of transactions in thousands) 15.4% 11.5% % 166 2, ,912 1,199 1H 2H 1H Service 1 Payment 2 Smart Banka share 3 ASPIRATIONS FOR 2H 2018 Simple loan application for nonpreapproved clients via Smart Banka, tripling population eligible for loans via Smart Banka in 3Q 2018 New web presence to be rolled out in 3Q 2018 focused on radically improving sales efficiency Tablet based digital loan process to be rolled out to selected loan brokers during 3Q 2018 and Česká pojišťovna/generali Note: Figures in chart may not add up due to rounding differences. (1) Service transactions include: standing orders cancellation/activation/change, direct debit cancellation/activation/change, credit/debit card setting; (2) Payment transactions include: one-time payments, credit top up (O2, Vodafone, T-Mobile); (3) Calculated as one-time payments on MONETA s total e- payments. 18

19 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Digital strategy yields strong commercial growth in on-line lending CONSUMER LOAN VOLUMES ORIGINATED ONLINE 1 (CZK m) SMALL BUSINESS LOANS ORIGINATED ONLINE 1 (CZK m) 2, % 2, , % of production 2 Fully online Online initated % % of production 2 2,066 2,155 2, H 2H 1H 1H 2H 1H HIGHLIGHTS CZK 3.1bn consumer loans originated online, reaching 30% share of MONETA s consumer loan production in 1H 18 versus 15% in 1H 17 CZK 751m in consumer loan volume originated fully online through Smart Banka and internet banking, 7.3% of total consumer loan production during 1H 18 CZK 26.3bn of pre-approved unsecured loan limits available fully online to more than 146,000 existing retail clients HIGHLIGHTS CZK 328m originated online, reaching 23% share of small business lending volume in 1H 18 versus 12% in 1H 17 CZK 76m of small business loan volumes completed fully online; 5.4% of total small business loan production during 1H 18 CZK 5.0bn of pre-approved limits to more than 21,000 existing clients available online Note: (1) Online represents volume from leads initiated through digital channels and disbursed either through digital channels or branches; fully online = volume from leads both initiated and disbursed in digital channels; online initiated = volume from leads initiated in digital channels but disbursed at branch; (2) Proportion of total new volume. 19

20 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY MONETA continues digital strategy to serve digital sales and marketing capabilities 1Q Q Q-4Q 2018 CREDIT DISTRIBUTION Business credit card fully online for existing clients Unsecured lending for incorporated clients online (existing to bank) Retail consumer loan for 3rd parties fully online via tablet Retail credit card fully online for existing clients Real time, data based targeting for cross-sales via branch and inbound contact center (online and outbound in Q4 18) Retail consumer loan for 3rd parties via tablet Retail credit card fully online for 3rd parties via tablet Online approval process for credit cards and loans to new to bank small business clients (completion in branch) Fully online process for credit cards and loans to new to bank small business clients New web based process for auto loans via dealers Instant online mortgage approval for brokers 2 TRANSACTION BANKING DISTRIBUTION Retail current account with new value proposition fully online Mobile payments for Android Multibanking in Smart Banka 1 Implementation of automated Fraud tool to digital processes Digital invite a friend process for current account online New Moneta Web portal Retail current account for 3 rd parties via tablet Retail current account fully online for new clients via web Extension of Multibanking in Smart Banka 3 FEE PRODUCTS DISTRIBUTION Business payment insurance protection fully online Expansion of funds proposition (9 new funds) New home and liability insurance product introduced KYC service via API for partners Expansion of investment funds proposition (additional partners) Personal belongings and Cyber insurance fully online FULL DIGITAL DISTRIBUTION STRATEGY at Note: (1) Giving ability to view accounts at selected competitor banks; (2) Approval based on credit worthiness and affordability, online collateral valuation and full approval to be delivered in subsequent phases; (3) Adding support for ios devices, full transaction history, additional banks and migrating from screen-scraping to PSD 2 API technology. 20

21 SUSTAINABLE RISK MANAGEMENT More than 40% of retail and 50% of commercial portfolio secured RETAIL NET LOAN PORTFOLIO COMMERCIAL NET LOAN PORTFOLIO 100% 4% 37% 5% Other Loans 1 Mortgages Consumer authorised overdrafts and credit cards Consumer loans Retail Unsecured 2 59% 54% 55% 100% 2% 6% 21% 16% Inventory financing & other Unsecured instalment loans & overdrafts Auto & equipment loan & lease Working capital Investment loans Total Net Loans as of June 2018: CZK 67,468m (51% of Group Portfolio) Total Net Loans as of June 2018: CZK 64,728m (49% of Group Portfolio) 62% of customers 3 8 years with the bank, in depth knowledge of customer base 60.4% Loan To Value ratio 4 as of 30 July 2018, mortgage portfolio strongly collaterised No retail FX lending 9% of the Group s total commercial exposures as of 30 June 2018 relates to top 10 customers exposure in aggregate value 46% 5 of gross receivables with real estate/land collateral as of 30 June % share of agricultural sector, 12% share 6 of services, 11% share of commercial real estate Figures in the charts may not add up to 100% due to differences. Notes: (1) Other loans include auto and & equipment leases, auto & equipment loans and other loans; (2) Retail unsecured includes consumer loans, authorized overdrafts and credit cards (3) Based on total retail customers with at least one active product as of 1H 18; (4) For performing portfolio of Retail Mortgages; (5) Refers only to Bank Commercial individually managed portfolio, 46% of individually managed commercial loans are unsecured; (6) Based on share on commercial gross receivables as of 30 June

22 SUSTAINABLE RISK MANAGEMENT Continued positive portfolio performance, Cost of Risk impacted by legacy NPL sales WELL PROVISIONED AND DECREASING NPL PORTFOLIO LOW COST OF RISK Total NPL coverage NPL (CZK bn) NPL ratio 83.0% 84.0% 82.5% 77.0% % 1.70% 0.79% 0.93% 59bps Cost of Risk excluding legacy NPL sales 78bps Cost of Risk excluding legacy NPL sales 12.9% 11.7% % 4.1% 3.3% H % (0.24%) H % NPL ratio achieved through successful combination of NPL sales and write-offs 93.4% total NPL coverage 1 increase due to adoption of IFRS 9 in January 18 CZK 3.6bn of NPL sales in 1H 18 balance sheet face value of CZK 0.8bn, off balance sheet value of CZK 2.9bn CZK 151m net release of provisions or (24)bps total annualized YTD Cost of Risk in 1H 18 CZK 648m positive impact of NPL sales in Cost of Risk, 78bps YTD Cost of Risk in 1H 18, excl. income from NPL sales During 2018 MONETA will further seek to monetize on and off balance sheet NPLs Note: NPL definition includes un-allowed debits (technical overdrafts); 1) Total NPL coverage represents total allowances (including IBNR) over NPL; (2) 2016 Cost of risk restated. Reclassification of collection costs from Administrative & Other operating expenses into Cost of risk; 22

23 SUSTAINABLE RISK MANAGEMENT Prudent coverage prevails accross portfolio NON-IMPAIRED PORTFOLIO (CZK m) ALLOWANCES FOR NON-IMPAIRED PORTFOLIO (CZK m) 122,466 5, % 131, ,925 4,889 5,306 Stage 2 Stage 1 1, % 1, , , , , ,068 1 Jan 18 1Q 18 2Q 18 1 Jan 18 1Q 18 2Q 18 IMPAIRED PORTFOLIO (CZK m) ALLOWANCES FOR IMPAIRED PORTFOLIO (CZK m) 5,274 (15.5)% 4,807 4,459 Stage 3 (21.0)% 3,469 3,140 2,741 1 Jan 18 1Q 18 2Q 18 1 Jan 18 1Q 18 2Q 18 Note: Figures in chart may not add up due to rounding differences. 23

24 SUSTAINABLE RISK MANAGEMENT Continuing positive portfolio performance and proactive NPL management activities further reduce NPL stock GROSS NPL WALK (CZK m) 1.6% of average performing receivables 1 1.5% of average performing receivables 1 1.0% of average performing receivables 1 1,806 7,487 (1,631) (1,480) 6,181 1,826 (1,523) 5,274 1,321 (1,211) (1,261) (876) 4,459 Dec 2016 NPL formation Cured Write-offs + Debt sale Jun 2017 NPL Cured Write-offs Dec 2017 NPL Cured Write-offs Jun 2018 formation + Debt sale formation + Debt sale NPLs offbalance sheet 2 (CZK m) 6,636 5,869 5,021 2,526 Dec 16 Jun 17 Dec 17 Jun 18 Note: Figures in chart may not add up due to rounding differences; (1) Calculated as two point average; (2) Cumulative return of amount. 24

25 SOLID BALANCE SHEET FUNDAMENTALS Maintaining highly liquid and strong balance sheet post dividend payment ASSETS (CZK bn) LIABILITIES AND EQUITY (CZK bn) Cash Investment Portfolio 1 Reverse Repos with CNB Interbank Loans Repo operations Due to Banks Customer Deposits Customer Loans Other Assets Dec 17 Jun 18 Dec 17 Jun 18 CZK 13.9bn nominal value of regular IRR hedging position 160.7% LCR exceeding regulatory limit, confirming excellent liquidity position 8.5% Regulatory Leverage 3 (2017 at 8.1%) against Czech bank industry leverage of 6.2% 4 Other Liabilities Equity Notes: Figures in chart may not add up due to rounding differences; (1) Including encumbered assets of CZK 3.4bn in 2017 and CZK 10bn in 1H 18; (2) Excluding CZK 7.0 billion of opportunistic repo transactions as at end of 1H 18 (as at end of 4Q 17: 9.4 billion); (3) Calculated pursuant to CRR; (4) Source: CNB web page < tml>, as of 31 March

26 SOLID BALANCE SHEET FUNDAMENTALS Strong growth and low cost deposit funds gathering continue CUSTOMER DEPOSITS 1 BY SEGMENT (CZK bn) CUSTOMER DEPOSITS 1 BY PRODUCT (CZK bn) % % YoY Commercial % % YoY Term and savings accounts % YoY +12.4% YoY Retail Current accounts 1H 17 2H 17 1H % 0.16% 0.17% Cost of Funds on customer deposits 1H 17 2H 17 1H % 0.16% 0.17% HIGHLIGHTS 90.3% Loan to Deposit ratio 3 remained stable compared to 87.4% in 4Q % stable Cost of Funds 4 on customer deposits 14.1% YoY growth of retail customer deposits outperforming 8.9% market growth 4, 3.3% total market share 5 achieved in 1H 18 Notes: Figures in chart may not add up due to rounding differences. (1) Excluding CZK 7.0 billion of opportunistic repo transactions as at end of 1H 18 (as at end of 4Q 17: 9.4 billion); (2) Includes term deposits, savings accounts and other deposits; (3) Ratio calculated based on reported customer deposits, including opportunistic repo transactions; (4) 0.20% total Cost of Funds; (4) Source: CNB ARAD, Retail customer deposits excl. non-residents; ; (5) Source: CNB ARAD. 26

27 SOLID BALANCE SHEET FUNDAMENTALS Expanding our investment portfolio amid increasing interest rate environment INVESTMENT PORTFOLIO AND REVERSE REPO OPERATIONS (CZK bn) DUE TO BANKS AND REPO OPERATIONS (CZK bn) (34.8)% 9.6 (45.9)% (59.9)% YTD 21.1 (26.8)% YTD 21.3 Reverse Repo with CNB 7.1 Due to banks and other % YTD (52.2)% YTD Investment Portfolio Opportunistic repo operations H H 18 Notes: Figures in chart may not add up due to rounding differences; (1) Investment portfolio consists of Czech government bonds and Visa shares, 2017 classified as Financial assets held to maturity and Financial assets available for sale; including encumbered assets of CZK 3.4bn in 2017 and CZK 10bn in 1H 18;(2) Includes deposits on demand, term deposits and repo operations; 27

28 CAPITAL MANAGEMENT MONETA faces increasing capital requirements due to change of prudential buffer but maintains its CAR target at 15.5% DEVELOPMENT AND DECOMPOSITION OF CAPITAL REQUIREMENT 14% 14% 14.5% 14.5% 14.75% 14.75% 15% 0.5% 0.5% 1% 1% 1.25% 1.25% 1.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5 3% 3% 3% 3% 3% 3% 3% 8% 8% 8% 8% 8% 8% 8% 1Q 2Q 3Q 4Q 1Q 2Q 3Q Pillar I - CRR requirement Pillar II - SREP requirement Pillar I - CRR Conservation buffer Pillar I - CRR Countercyclical buffer Total capital requirement. 28

29 CAPITAL MANAGEMENT Sufficient capital capacity to support further growth, expecting to approach 15.5% CAR by the end of 2018 according to plan ACCOUNTING EQUITY (CZK m) REGULATORY EQUITY (CZK m) 27, (15.1)% 25,763 1,301 23,158 1,568 Intangible assets Tangible equity 22,420 (12.7)% 20,653 19,584 26,420 24,462 21, H H 18 Dividend RoTE 15.3% 16.0% 19.6% 100% 124% 104% pay-out ratio CAPITAL ADEQUACY RATIO 1 RWA density % 2016 (450)bps 17.4% % 1H % 46.3% 53.3% INITIATIVES FOR CAPITAL OPTIMIZATION IN 2018 CZK 183m of regulatory capital in utilization of respective credit risk mitigation techniques connected to secured commercial loans (CZK 1,181m RWA) CZK 91m of regulatory capital in optimization of other assets with respect to risk weights (CZK 589m RWA) CZK 59m of regulatory capital in review of credit conversion factor for off balance sheet exposures (CZK 380m RWA) CZK 600m of estimated impact into regulatory capital 2 in 3Q 18 from inclusion of 1H 18 profit net of 70% dividend as per MONETA s dividend policy Note: (1) Excluding net profit for the relevant period; (2) Subject to prior permission of CNB, verification by MONETA s statutory auditor and other regulatory requirements and limitations; (3) RWA density ratio recalculated to be in line with BIS Working Papers: Leverage and Risk Weighted Capital Requirements. New methodology applied by MONETA since June 2018, 2016 and 2017 were restated in line with new methodology. 29

30 CAPITAL MANAGEMENT Capital initiatives materialized in 1H 2018 with positive impact of CZK 333 million EXCESS CAPITAL EVOLUTION (CZK m) 2,278 (165) Includes capital optimization of CZK 333m CZK 2,438m above regulatory requirement (638) (608) (266) Dec 2017 Excess capital Excess capital paid in 2017 dividend IFRS 9 Increase in RWA Change in intangibles and other 30 June Excess capital RISK WEIGHTED ASSETS WALK (CZK m) 118,547 2,054 2,624 1,095 1,293 (1,185) (1,128) (391) (439) 122, Dec 2017 Commercial Retail Retail Financial NPL OP risk Deferred tax Other 30 Jun mortgages unsecured operations deduction Note: Figures in chart may not add up due to rounding differences; (1) Subject to corporate, regulatory and regulator s limitations, does not include 1H 18 net profit; (2) Including off-balance sheet exposures. 30

31 ATTRACTIVE PROFITABILITY Supporting sustainable dividend capacity CONSOLIDATED NET PROFIT (CZK m) RETURN ON AVERAGE EQUITY 4,054 3, % 14.8% 17.6% 2,121 FY 2016 FY H 18 FY 2016 FY H 18 1 DIVIDEND PAY-OUT PER SHARE (CZK) 124% 104% 70% ~ 5.0 CZK 5,008 million paid as 2016 dividend CZK 4,088 million paid as 2017 dividend CZK 11.5 billion management commitment of aggregate dividend pay-out 2 CZK 5 gross per share will be considered by management as 2018 dividend payout proposal E Dividend Pay-out ratio Note: (1) Calculated as two point average of equity balance as of 1 January 2018 and as of 30 June 2018; (2) Out of which CZK 4.1 million was already paid on 31st May The remaining amount of CZK 7.4 billion will be proposed to shareholders at General meetings to be held in , not as a single payment, but yearly subject to actual financial results in the years ; subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meetings; (3) Based on 1H 2018 results and revised guidance. Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 31

32 EXPERIENCED AND INTERNATIONAL MANAGEMENT TEAM International management team with strong expertise and high level of aspiration to deliver strategic objectives MANAGEMENT BOARD OF MONETA MONEY BANK TOMÁŠ SPURNÝ Chairman of the Management Board Chief Executive Officer, since 2015 Previously, CEO of Romania s biggest bank Banca Commercial Romana ( ), CEO of CIB Bank Hungary ( ), CEO of PPF Czech Republic ( ), CEO of VÚB Banka ( ) and a member of the board of Komerční Banka ( ) PHILIP HOLEMANS Vice-Chairman of the Management Board Chief Financial Officer, since 2014 Previously, CFO at GE Capital for Germany and Benelux CARL NORMANN VÖKT Member of the Management Board Chief Risk Officer, since 2012 Previously, held the position of Chief Risk Officer at Bank BPH JAN NOVOTNÝ Member of the Management Board Chief Commercial Banking Officer, since 2013 Previously, head of the SME segment at MONETA (joined MONETA 1 in 2003) ALBERT PIET VAN VEEN Member of the Management Board Chief Operating Officer, since 2017 Previously, CIO at Schiphol Group Amsterdam TRACK RECORD OF SUCCESS CEO with significant expertise in financial services in the CEE region Deep operational know how coupled with strong knowledge of Czech banking Proven track record of delivering profitability through the economic cycle Targeting alignment of senior management incentive scheme towards external KPI s in 2018 Notes: (1) Till 30 April 2016 GE Money Bank, a.s.. 32

33 1H 2018 Results 33

34 EXECUTING ON STRATEGY Strategy execution proceeding according to plan 13.4% YoY growth in gross performing loans outperforming guidance DIGITAL DIGITAL CAPABILITIES CAPABILITIES RISK MANAGEMENT SUSTAINABILITY EFFICIENT CAPITAL STRATEGY 18.4% YoY increase in RETAIL gross performing loan balance 42.3% YoY continued growth in gross performing mortgage balance 1, achieving market share of 2.2% 2 in 1H 18 (1.7% in 1H 17) 9.4% YoY growth in gross performing consumer loans balance and maintaining market share at 18.9% 3 8.5% YoY growth in COMMERCIAL gross performing loan balance MAINTAIN AND IMPROVE RETAIL FRANCHISE DEVELOP SMALL BUSINESS BANKING RETAIN AND REINFORCE SME BANKING 67.8% YoY strong growth in gross performing small business loan balance, with new volume in instalment lending up 57.7% YoY 6.9% YoY increase in gross performing investment loan balance COST CONTROL AND OPERATIONAL EXCELLENCE CORPORATE SUSTAINABILITY Smart Banka awarded by Zlatá koruna as the best online application and 3rd place as the best financial product 16.0% Capital Adequacy Ratio 5 with positive result of capital optimization initiatives of CZK 333m, 8.0% YoY RWA growth MANAGEMENT WILL CONSIDER TO PROPOSE 2018 DIVIDEND PAYOUT OF CZK 5 GROSS PER SHARE 6 Note: (1) Mortgage book includes American mortgages; (2) Source: CNB ARAD, in new production achieved market share of 7.7% in 1H 18 (4% in 1H 17) based on signed contracts from hypoindex.cz; (3) Source: CNB ARAD, Bank. Gross loans excluding non-residents and loans in foreign currencies. Consumer loans represent non-purposed and purposed consumer loans, debt consolidations, American mortgages and all other MONETA products classified as consumer loans; (4) Premier award for finance industry in Czech Republic; (5) Does not include net profit for 1H 18. (6) Based on 1H 18 results and revised guidance. Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 34

35 EXECUTING ON STRATEGY CZK 2.1 billion of net profit delivered METRICS (CZK m, %) NET INTEREST INCOME 1H 18 3,578 1H 17 CHANGE 3,716 (3.7%) CZK 4.8bn of operating income, down 10.1% YoY, partially driven by gain on bond sales of CZK 343m in 1H 17 NET FEE AND COMMISSION INCOME OTHER INCOME (1.4%) (57.1%) CZK 72m higher operating expenses YoY (up 3.1%), mainly due to provision release in 2017 TOTAL OPERATING INCOME TOTAL OPERATING EXPENSES COST OF RISK PROFIT BEFORE TAX 4,770 (2,370) 151 2,551 5,303 (2,298) (261) 2,744 (10.1%) 3.1% >(100%) (7.0%) 49.7% Cost to Income ratio in line with management expectations Positive Cost of Risk, supported by gain on legacy NPL sales (78bps Cost of Risk excluding gain on legacy NPL sales) NET PROFIT RETURN ON TANGIBLE EQUITY 1 2, % 2, % (3.4%) 50bps CZK 2.1bn of net profit resulting in 19.6% RoTE RETURN ON EQUITY % 18.3% 2bps Note: (1) Return on Tangible Equity and Return on Equity are annualized. 35

36 EXECUTING ON STRATEGY Net interest income stabilized, NPL sale strategy on track and capital optimization supports overall loan book growth INCOME PRICING GAIN DISTRIBUTION CAPITAL Net interest income returns to growth 1 QtQ Consumer loan production pricing stabilized Legacy NPL monetization continued Strategic cooperation with Generali 3 Risk weighted assets optimization CZK 1,783 million of Net interest income 1 in 2Q 18 exceeding management estimates by more than CZK 30m 50bps uplift versus 4Q 2017 and 50bps above market 2, defending market share of 18.9% 2 CZK 648 million gain delivered in 1H 18 to Cost of Risk from legacy NPL sale in nominal value of CZK 3.6bn Offering retail current accounts and lending products via additional 194 branches 4 and MONETA digital platform CZK 333 million positive impact on regulatory equity achieved in 1H 18 mainly due to optimization of collateral utilization Note: (1) Net interest income excluding opportunistic repo operations; (2) Source: CNB ARAD, Bank. Gross loans excluding Nonresidents and loans in foreign currencies. Consumer loans represent non-purposed and purposed consumer loans, debt consolidations, American mortgages and all other MONETA products classified as consumer loans. New volume pricing represented by annualized weighted average rate for Czech residents denominated in CZK only; (3) Framework agreement signed with Česká pojišťovna, 100% owned subsidiary of Generali.; (4) 194 branches and around 600 salesforce of Česká pojišťovna, 100% owned subsidiary of Generali. 36

37 GROSS PERFORMING LOAN PORTFOLIO DEVELOPMENT Accelerated growth in retail, complemented by strong performance in commercial RETAIL GROSS PERFORMING LOAN BALANCE (CZK bn) % Q 3Q 4Q 1Q 2Q COMMERCIAL GROSS PERFORMING LOAN BALANCE (CZK bn) % Q 3Q 4Q 1Q 2Q

38 GROSS PERFORMING RETAIL LOAN PORTFOLIO DEVELOPMENT Retail growth driven by mortgages, auto finance and consumer lending MORTGAGE BALANCE (CZK bn) AUTO LENDING BALANCE (CZK bn) % % Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q CONSUMER LOAN BALANCE (CZK bn) CREDIT CARD & OVERDRAFT BALANCE (CZK bn) +9.4% (12.8)% Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q

39 GROSS PERFORMING COMMERCIAL LOAN PORTFOLIO DEVELOPMENT Commercial growth supported by rapid build-up in small business franchise SMALL BUSINESS LENDING BALANCE 1 (CZK bn) WORKING CAPITAL BALANCE (CZK bn) % % Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q 2Q INVESTMENT LOAN BALANCE (CZK bn) AUTO AND LEASING BALANCE (CZK bn) +6.9% (0.4)% Q 3Q 4Q 1Q 2Q 2Q 3Q 4Q 1Q Q Note: (1) Includes small business instalment loan, commercial overdraft and credit card. 39

40 NET INTEREST INCOME OVERVIEW Increasing full year NII estimate by more than CZK 100m, confirming return to YoY growth by 4Q 18 NET INTEREST INCOME excl. opportunistic repo operations (CZK m, YoY) ACTUAL FORECAST (13.4%) (11.9%) (9.1%) (6.2%) (2.2%) 0.1% 1.8% YoY change 1,824 1,804 1,797 1,775 1,783 1,805 1,830 Revised forecast ~ 1,750 ~ 1,760 ~ 1,800 Original forecast 2Q 3Q 4Q 1 1Q 2 2Q 3 3Q 4Q Note: Original forecast as of May 10, 2018, Revised forecast as of August 8, 2018 (1) Reported number of CZK 1,844 million, incl. income from opportunistic repo operations; (2) Reported number of CZK 1,796 million in 1Q 18, incl. income from opportunistic repo operations; (3) Reported number of CZK 1,782 in 2Q 18, incl. income from opportunistic repo operations. 40

41 LOAN PORTFOLIO MARGIN EVOLUTION Retail loan book yield erosion slowing down, commercial yield stable RETAIL LOAN PORTFOLIO YIELD LOAN PORTFOLIO YIELD 9.4% 9.0% 8.5% 7.9% 7.6% 6.4% 6.2% 6.0% 5.7% 5.5% 2Q 3Q 4Q 1Q 2Q COMMERCIAL LOAN AND LEASING PORTFOLIO YIELD 3.5% 3.5% 3.4% 3.5% 3.3% 2Q 3Q 4Q 1Q 2Q Q 3Q 4Q 1Q 2Q

42 RETAIL LOAN PORTFOLIO MARGIN EVOLUTION Consumer portfolio yield stabilizing, overall retail yield continues to be impacted by change in product mix CONSUMER LOAN PORTFOLIO YIELD RETAIL LOAN PORTFOLIO YIELD 11.7% 11.1% 10.6% 10.3% 10.1% 9.4% 9.0% 8.5% 7.9% QtQ decrease driven by portfolio composition change 7.6% 2Q 3Q 4Q 1Q 2Q RETAIL LOAN PORTFOLIO COMPOSITION 1 Secured Unsecured 35% 36% 37% 39% 41% 2Q 3Q 4Q 1Q 2Q 65% 64% 63% 61% 59% Q 3Q 4Q 1Q 2Q Note: (1) Based on gross performing receivables, secured includes mortgages, auto loans and financial leases; Unsecured includes consumer loans, consumer authorized overdrafts and credit cards. 42

43 NET FEE AND COMMISSION INCOME 3rd party products distribution drives fee and commission income NET FEE & COMMISSION INCOME (CZK m) THIRD PARTY COMMISSION INCOME (CZK m) (1.4)% % Investment funds Insurance H 1H 1H 1H SERVICING AND PENALTY FEES (CZK m) TRANSACTIONAL & OTHER FEES (CZK m) Deposit servicing Lending servicing Penalty/early termination (8.7)% % H 1H 1H 1H Note: Figures in chart may not add up due to rounding differences. (1) Insurance fee income restated in 1H 17 due to the reclassification between Insurance and Other fees in the amount of CZK 5 million decrease of Insurance and increase of Other fees. 43

44 NET FEE AND COMMISSION INCOME Deposit and lending servicing fee income faces continual challenge, namely in retail DEPOSIT SERVICING FEES (CZK m) LENDING SERVICING FEES (CZK m) (19.4)% (9.0)% H 1H 1H 1H Commercial Retail PENALTY AND EARLY TERMINATION FEES (CZK m) HIGHLIGHTS H +6.5% H (19.4)% YoY decline in deposit servicing fees, namely in retail due to continuing market trend towards free current accounts. (9.0)% YoY drop in lending servicing fees due to feeearning portfolio run-off. 6.5% YoY increase in penalty and early termination fees mainly driven by retail Note: Figures in chart may not add up due to rounding differences. 44

45 OPERATING EXPENSES Managing flat operating expenses despite salary inflation and increase in depreciation and amortization OPERATING EXPENSES (CZK m) HIGHLIGHTS CZK 1,172m of personnel expenses remain flat YoY 2, % 2, % YoY decrease in admin & other operating expenses to CZK 930m : CZK (47)m savings from no MSA/TSA charges in ,174 1,172 Personnel CZK (35)m IT separation costs incurred in 2017 CZK (10)m lower contribution to Deposit Insurance Fund and Resolution and Recovery fund Admin & Other operating CZK 59m lower release of solicitors provision (CZK 25m compared to CZK 84m in 1H 17) 57.6% YoY increase in depreciation and amortization to CZK 268m : H 17 1H 18 Depreciation and amortization Primarily driven by higher amortization due to investments in IT separation and digital 3,287 3,240 FTEs (average) 43.3% 49.7% Cost to Income Ratio 45

46 CONTINUED IMPROVEMENT IN ASSET QUALITY Cost of Risk positively impacted by legacy NPL sales with gain of CZK 648 million GROSS LOAN PORTFOLIO BALANCE (CZK m) NET IMPAIRMENTS (CZK m) 122, % 127, , ,762 62,861 66,011 Commercial Commercial 61,772 64,881 70,352 Retail (313) Retail 1H 17 FY 17 1H 18 1H 17 FY 17 (151) 1H 18 NPL DEVELOPMENT (CZK m) COST OF RISK (annualized) 6,181 1,347 4,834 (27.9)% 5,274 1,635 3,639 4,459 1,544 2,915 Commercial Retail METRICS COST OF RISK CORE COST OF RISK IMPACT OF LEGACY NPL SALES 1H % FY % 1H 2018 (0.24)% 0.59% 0.59% 0.78% (0.13)% (0.27)% (1.02)% 1H 17 FY 17 1H % 4.1% 3.3% NPL ratio TOTAL NPL COVERAGE % 77.0% 93.4% Note: Figures in chart may not add up due to rounding differences; (1) Restated due to split of gain from NPL sales between line Net impairment of loans and receivables and Other operating income; (2) Total NPL coverage represents total allowances over NPL. 46

47 SUSTAINABLE RISK MANAGEMENT Continuing positive portfolio performance and proactive NPL management activities further reduce NPL stock GROSS NPL WALK (CZK m) 1.6% of average performing receivables 1 1.5% of average performing receivables 1 1.0% of average performing receivables 1 1,806 7,487 (1,631) (1,480) 6,181 1,826 (1,523) 5,274 1,321 (1,211) (1,261) (876) 4,459 Dec 2016 NPL formation Cured Write-offs + Debt sale Jun 2017 NPL Cured Write-offs Dec 2017 NPL Cured Write-offs Jun 2018 formation + Debt sale formation + Debt sale NPLs offbalance sheet 2 (CZK m) 6,636 5,869 5,021 2,526 Dec 16 Jun 17 Dec 17 Jun 18 Note: Figures in chart may not add up due to rounding differences; (1) Calculated as two point average; (2) Cumulative return of amount. 47

48 SUSTAINABLE RISK MANAGEMENT Prudent coverage prevails accross portfolio NON-IMPAIRED PORTFOLIO (CZK m) ALLOWANCES FOR NON-IMPAIRED PORTFOLIO (CZK m) 122,466 5, % 131, ,925 4,889 5,306 Stage 2 Stage 1 1, % 1, , , , , ,068 1 Jan 18 1Q 18 2Q 18 1 Jan 18 1Q 18 2Q 18 IMPAIRED PORTFOLIO (CZK m) ALLOWANCES FOR IMPAIRED PORTFOLIO (CZK m) 5,274 (15.5)% 4,807 4,459 Stage 3 (21.0)% 3,469 3,140 2,741 1 Jan 18 1Q 18 2Q 18 1 Jan 18 1Q 18 2Q 18 Note: Figures in chart may not add up due to rounding differences. 48

49 2018 GUIDANCE Improving 2018 guidance underpinned by increase in total operating income METRICS INITIAL as of February REVISED as of May REVISED as of August GROSS PERFORMING LOAN BOOK GROWTH 9% 9% 9% TOTAL OPERATING INCOME (CZK) 9.5bn 9.5bn 9.7bn COST BASE (CZK) ~4.9bn ~4.9bn ~4.9bn COST OF RISK Cost of Risk (excluding legacy NPL sales) 45 55bps bps 35 45bps 80 90bps 20 30bps 75 85bps CONSOLIDATED NET PROFIT (CZK) 3.4bn ~ ~ ~ 3.5bn ~ ~ 3.7bn RETURN ON TANGIBLE EQUITY 14% 14% 16% EFFECTIVE TAX RATE ~ 17% ~ 17% ~ 17% 49

50 REPORTING DATES AND INVESTOR MEETINGS Upcoming events till the end of 2018 Goldman Sachs CEEMEA Financials Symposium HSBC GEMs Investor Forum Bank of America Merrill Lynch Financials CEO Conference London 3 September 2018 London 4 September 2018 London September Q 2018 Earnings 7 November 2018 Goldman Sachs Annual CEEMEA One-on-One Conference London November 2018 WOOD's Winter Wonderland Conference Prague 4 7 December

51 INVESTOR RELATIONS Contacts Linda Kavanová Manda Drvotová Jarmila Valentová MONETA Money Bank, a.s. BB Centrum, Vyskočilova 1422/1a Praha 4 Michle Tel: investors@moneta.cz Identification number: Bloomberg: MONET CP ISIN: CZ Reuters: MONET.PR SEDOL: BD3CQ16 51

52 Appendix Digital Distribution update AuM Distribution Rating of MONETA Consolidated Statement of Financial Position Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Performance Ratios Alternative Performance Measures Glossary Forward Looking Statements Material Assumptions and Estimates for 2018 Guidance

53 New mobile ATM used for MONETA promotion 53

54 DIGITAL DISTRIBUTION UPDATE New Moneta Web platform introduced in July, aiming to increase organic traffic and conversion to sales WEB LANDING PAGE BUSINESS GOALS Optimised web for organic traffic growth to increase online marketing effectiveness, number of leads & sales conversion Setting market standards in modern and innovative design Smart commercial banking integration Integration of Moneta Auto and Moneta Leasing HIGHLIGHTS New design & simpler customer experience Fully responsive web to any device Search engine friendly web structure with the right keywords New copy writing & content based on customer needs Better visibility of key components (calculator, buttons) All important information occurs above the scroll Pictures work as complement to text, not primary content Web is sales tool > sales texts with clear messaging and call to action New contact forms linked to Google maps, clients easily booking appointment Web is build based on the outcome of continuous customer /UX research 54

55 DIGITAL DISTRIBUTION UPDATE Multi-banking launched in Smart Banka in May 2018 FIRST MULTIBANKING FEATURES IN THE CZ FOR MOBILE BANKING, ALLOWING TO DISPLAY BALANCE FROM: Air Bank Česká spořitelna ČSOB mbank OTHER BANKS AND FEATURES (LIKE DISPLAY TRANSACTION HISTORY, ARRANGE PAYMENT TRANSACTION, TRANSACTIONS BETWEEN ACCOUNTS) WILL BE LAUNCHED LATER THIS YEAR. 55

56 DIGITAL DISTRIBUTION UPDATE Fully online credit card application launched in Smart Banka for existing retail clients Application has 6 screens where client provides update of basic income information & employer, includes cashback package setting Client set credit limit and address for delivery of his new card, Google Pay available from next day 56

57 DIGITAL DISTRIBUTION UPDATE Online approval of credit card & unsecured loan for new small business customers to be launched in 3Q 18 In Q3 new process for credit distribution will be delivered for new to bank clients with credit scoring based on external data without the need for financial statements. The process is originated on the web including application approval and is however, finished at the branch with expected time of signature and disbursement of about 15 min. LENDING PAGE ON BUSINESS ID FILL IN CHECK WITH NEW WEB BUSINESS REGISTER DOCUMENTS FILL IN 5 CREDIT SCORING GUARANTEED BRANCH MEETING 6 7 LOAN ORGANIZATION 8 OFFER SIGNATURE ON BRANCH 57

58 DIGITAL DISTRIBUTION UPDATE Personnal insurance protection exclusively for online distribution to be launched in Sep 2018 We are adding additional cover specifically targeting risks associated with mobile/online banking and payment card usage. The process will be simple requiring the client just to choose the package and sign the contract. 58

59 DIGITAL DISTRIBUTION UPDATE Smart Banka awards First place as the best online application in 2018 Third place as the best financial product in 2018 The application of the year 2017 absolute winner The application of the year 2017 First place at clients service Awarded as the most interesting achievement of the year 2017 Second place as the best mobile solution 2017 Continues to be the best rated banking application 59