Investor Presentation. November, 2018

Transcription

1 Investor Presentation November, 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 2017 '17 '18 FY 2016 FY 2017 '17 '18 CONSOLIDATED NET PROFIT (bn) TOTAL OPERATING INCOME (bn) PROFITABILITY RETURN ON TANGIBLE EQUITY 15.3% 16.0% 17.5% 19.8% 15.3% 16.0% 17.5% 19.8% RETURN ON AVERAGE EQUITY 14.7% 14.8% 15.9% 18.1% % 14.8% 15.9% 18.1% 2 RETURN ON AVERAGE ASSETS 2.8% 2.2% 2.5% 2.3% 2.8% 2.2% 2.5% 2.3% IMPAIRMENT COST OF RISK 0.93% 0.32% 0.46% 0.00% 0.93% 0.32% 0.46% 0.00% CORE COST OF RISK 1.08% 0.59% 0.68% 0.68% 1.08% 0.59% 0.68% 0.68% COST EFFICIENCY COST TO INCOME RATIO 45.1% 47.9% 44.6% 46.0% 45.1% 47.9% 44.6% 46.0% TOTAL OPERATING EXPENSES (bn) (5.0) (4.9) (3.5) (3.5) (0.2) (0.2) (0.1) (0.1) CAPITAL ADEQUACY RATIO % 17.4% 18.1% 16.6% 20.5% 17.4% 18.1% 16.6% CAPITAL RISK WEIGHTED ASSETS (bn) REGULATORY CAPITAL (bn) LOAN TO DEPOSIT RATIO 96.2% 87.4% 92.0% 90.9% 96.2% 87.4% 92.0% 90.9% LIQUIDITY LIQUIDITY COVERAGE RATIO 161.0% 182.9% 200.7% 131.7% 161.0% 182.9% 200.7% 131.7% NET STABLE FUNDING RATIO 113.9% 120.3% 123.6% 119.5% 113.9% 120.3% 123.6% 119.5% NET CUSTOMER LOANS (bn) ASSETS & LIABILITIES DEPOSITS (bn) TOTAL ASSETS (bn) Notes: Exchange rate of CNB CZK/EUR as of 27 September 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 September

5 MONETA MONEY BANK Company snapshot DISTRIBUTION PLATFORM METRICS FY 2016 FY 2017 '17 '18 BRANCHES ATMs NUMBER OF CLIENTS (ths) 1,064 1,033 1,033 1,033 NUMBER OF EMPLOYEES 3,114 3,304 3,301 3,215 MONETA Money Bank is a leading retail and expanding small business bank in the Czech Republic 4 th largest branch network with 202 branches and 651 ATMs as of September 2018, well dispersed across the Czech Republic, serving ~1m customers (~9% 1 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 2 Balanced business mix with 52% of net loans in retail 3 and 48% in commercial 3 complemented by restarted growth in late 2016 and continuing in 2018 International management team with a wealth of experience in financial services Notes: (1) Refers only to retail customers as % of total population; (2) Available from 2am to 8pm daily; (3) Retail includes consumer loans, consumer authorized overdrafts, credit cards as well as consumer auto and other; commercial includes investment loans, working capital, small business lending, auto & equipment loans and leases, inventory financing and other. 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 RISK MANAGEMENT SUSTAINABILITY EFFICIENT CAPITAL STRATEGY METRICS LOAN BOOK GROWTH (YoY) % 14.0% 13% 1 TOTAL OPERATING INCOME (CZK) 7.8bn 7.5bn ~ 10bn % 10.5bn MAINTAIN AND IMPROVE RETAIL FRANCHISE DEVELOP SMALL BUSINESS BANKING RETAIN AND REINFORCE SME BANKING COST BASE (CZK) 3.5bn 3.5bn COST OF RISK (bps) Excluding legacy NPL sales CONSOLIDATED NET PROFIT (CZK) 3.1bn 3.4bn ~4.8bn 1 ~ 5.1bn ~4.1bn 1 3.8bn COST CONTROL AND OPERATIONAL EXCELLENCE RETURN ON TANGIBLE EQUITY 17.5% 19.8% EFFECTIVE TAX RATE 20.0% 17.2% > 17% 1 ~ 17% 15% ~ 20% CORPORATE SUSTAINABILITY MANAGEMENT WILL CONSIDER TO PROPOSE 2018 DIVIDEND PAYOUT OF CZK 5.6 GROSS PER SHARE 5 Note: All ratios are annualized; (1) Revised guidance announced on November 7, 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 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 Delivering net profit of CZK 3.4 billion, up 7.8% versus prior year METRICS (CZK m, %) 18 YTD 17 YTD CHANGE HIGHLIGHTS NET INTEREST INCOME NET FEE AND COMMISSION INCOME OTHER INCOME 5,437 1, ,520 1, (1.5%) (2.9%) (12.7%) CZK 7.5bn of operating income, down 3.0% YoY, influenced by gain on bond sales of CZK 343m in 1H 17, partially offset by gain from legacy NPL sale of CZK 316m in 2018 TOTAL OPERATING INCOME TOTAL OPERATING EXPENSES COST OF RISK 7,525 (3,465) 0 7,755 (3,455) (401) (3.0%) 0.3% n/a Maintained flat cost base despite wage inflation and investment growth 46.0% Cost to Income ratio ahead of management expectations PROFIT BEFORE TAX NET PROFIT RETURN ON TANGIBLE EQUITY 1 RETURN ON EQUITY 1 4,060 3, % 18.4% 3,899 3, % 16.7% 4.1% 7.8% 230bps 170bps CZK 663m positive impact into Cost of Risk from legacy NPL sales (68bps Cost of Risk excluding gain on legacy NPL sales) CZK 3.4bn of net profit (up 7.8% YoY) resulting in 19.8% RoTE Note: (1) Return on Tangible Equity and Return on Equity are annualized. 7

8 EXECUTING ON STRATEGY Net interest income returned to growth year-on-year, consumer loan production pricing above market, NPL sale strategy on track INCOME PRICING DISTRIBUTION GAIN CAPITAL Net interest income returned to growth on YoY basis Consumer loan production pricing above market 30% of consumer loan production originated online Legacy NPL monetization continued Strong capital position supported by further capital optimization CZK 1,849 million of Net interest income 1 in 18 exceeding Net interest income 1 in 17 by CZK 45 million 70bps uplift versus 4Q 2017 and 60bps above market 2, defending market share of 18.8% 2 CZK 4,477 million consumer loans originated online, out of which CZK 1,116 million originated fully online CZK 1,072 million gain delivered year to date from legacy NPL sale in nominal value of CZK 5.1bn CZK 636 million of 1H 2018 net profit included into regulatory equity, CZK 574 million from risk weighted assets optimization Note: (1) Net interest income excluding opportunistic repo operation; (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. 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 Improving environment with rate increases supporting stabilization of MONETA s new volume pricing STRONG GDP OUTLOOK KEY MACROECONOMIC INDICATORS 4.5% INDICATOR 2Q Q 17 1Q 18 2Q % 3.1% 1 3.3% 1 Export 2 Industrial production 5.3% 4.6% 8.5% 6.7% 5.9% (1.1%) 2.0% 5.7% 7.6% 4.0% 2.3% 3.6% EUR/CZK Banks NPL ratio 4.3% 4.0% 4.0% 3.6% 3.4% 3.3% f 2019f NEW VOLUME PRICING OF CONSUMER LOANS INTEREST RATE ACTUALS AND FORECAST % 11.8% 11.6% 11.0% 11.4% 1Q 10.8% 10.6% 10.2% Market 5 MONETA 9.7% 9.3% 9.4% 8.8% 8.8% 9.5% 9.3% 9.3% 8.5% 8.6% 9.0% 8.5% 2Q 4Q 1Q 2Q 4Q 1Q 2Q % 8.6% 3M PRIBOR 2W Repo rate 1.75% from st Nov Q 1Q 2Q Q Q 2Q 4Q 1Q 2Q 4Q 2020 Source: Czech Statistical Office, Ministry of Labor, Ministry of Finance, Czech National Bank, Latest (revised) data. (1) Latest CNB forecast from November 1, 2018 ( (2) Export following national concept; (3) Represents quarterly averages; (4) Latest CNB forecast from November 1, 2018 used for period 4Q 2018 to 4Q 2020; (5) CNB ARAD, following CNB definition (includes nonpurposed 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 Czech GDP growth decelerated, whilst unemployment remains at historical low level, continuing upward pressure on wages GDP GROWTH UNEMPLOYMENT RATE 3 5.3% 4.3% 4.1% 3.7% 2.9% 2.1% 2.5% 1.9% 2.4% CSU/CNB 1 : +5.4% +2.4% +4.5% 4.4% 3.4% 2.4% +4.1% 4.7% 2.7% 2.2% +2.4% 4.2% 3.3% 2.0% +3.1% 10.9% 10.0% 9.1% 8.1% 8.3% /2018 BB forecast % 4.0% 2.9% 2.3% 2.3% 8.4% 6.7% 5.6% 5.5% 4.6% Q Q 2018 BB forecast 2018 Euro area (19 countries) Czech Republic V4 (without CZ) 2 Euro area (19 countries) Czech Republic V4 (without CZ) 2 INFLATION 4 WAGE, MEDIAN WAGE 5 0.2% 0.0% -0.1% 12/ % 1.1% 1.0% 12/2016 Euro area (19 countries) 2.2% 2.0% 1.4% 12/2017 Czech Republic 2.6% 2.1% 2.1% 2.6% 2.2% 1.8% 9/2018 BB forecast V4 (without CZ) wage median wage +8.6% YoY +6.2% +4.4% change +3.2% +2.9% 31,851 29,496 25,768 26,591 27,764 21,786 22,414 23,692 25,279 27, % +2.9% +5.7% +6.7% +9.4% Q 2018 YoY change Source: GDP actuals: Bloomberg; Forecast: Bloomberg consensus October 18 latest revised data; Unemployment and Consumer prices actuals: Eurostat, Forecast: Bloomberg consensus October 18 latest revised data; Wage actuals: CZSO; (1) GDP YoY growth published by CZSO, Forecast: CNB; (2) V4 calculated as non-weighted average; (3) Registered unemployment rate published by MoLSA: 3.1%; (4) Harmonized index of Consumer Prices; (5) Wage = average of gross nominal annual wage, Median wage = average of quarterly values. 11

12 ATTRACTIVE MACRO ENVIRONMENT, PROFITABLE BANKING SECTOR Continuing accelerated growth in deposits RETAIL DEPOSIT (CZK bn) +9.1% DEPOSIT MARKET (CZK bn) 1,804 1,836 1,880 1,936 1,968 3,658 3, % 3,774 3,831 3,901 4Q 1Q 2Q COMMERCIAL DEPOSIT (CZK bn) +4.3% 1,854 1,749 1,894 1,894 1,933 4Q 1Q 2Q Q 1Q 2Q Source: Czech National Bank ARAD; Deposits include residents only, i.e. excluding non-residents and building savings deposits. 12

13 ATTRACTIVE MACRO ENVIRONMENT, PROFITABLE BANKING SECTOR Lending market progressing year-on-year lead by retail segment RETAIL LOANS (CZK bn) +8.2% LENDING MARKET (CZK bn) 1,327 1,355 1,376 1,407 1,437 2,759 2, % 2,786 2,852 2,932 4Q 1Q 2Q COMMERCIAL LOANS (CZK bn) +4.5% 1,432 1,352 1,410 1,444 1,496 4Q 1Q 2Q Q 1Q 2Q Source: Czech National Bank ARAD; Gross loans include residents only, i.e. excluding non-residents and building savings loans. 13

14 ATTRACTIVE MACRO ENVIRONMENT, PROFITABLE BANKING SECTOR Retail lending market driven by continued strong development in both mortgages and consumer loans RETAIL LOANS (CZK bn) MORTGAGE MARKET (CZK bn) +8.9% 1,013 1,035 1,053 1,077 1, % 1,327 1,355 1,376 1,407 1,437 4Q 1Q 2Q UNSECURED LENDING MARKET 1 (CZK bn) +6.6% Q 1Q 2Q OTHER 2 (CZK bn) Q 1Q 2Q % Q 1Q 2Q Source: Czech National Bank ARAD; Retail loans include residents only, i.e. excluding non-residents and building savings loans. Figures in chart may not add up due to rounding differences. Note: (1) Unsecured lending includes total consumer loans, credit cards and overdrafts; (2) Other includes loans excluded from previous categories and loans in foreign currencies. 14

15 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. 15

16 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% 3.1% 3.3% Unemployment 5.5% 4.2% 3.2% 3.0% Positive Low 75.2% /CZK PRIBOR (3M) 0.29% 0.41% 1.26% 1.97% Appreciation Increasing 15.8% Inflation 0.7% 2.5% 2.2% 2.6% 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 RoAA Standard Deviation ( ) 4 bps 13 bps 31 bps 6 bps 5 bps 127 bps CAR Ratio 17.8% 16.6% 17.2% 18.6% 15.6% 18.1% 13.2% Market ČSOB ČS KB UNICREDIT RAIFFEISEN 114 bps 93 bps 39 bps 19 bps 12 bps 14 bps 30 Jun Sep Jun Sep Jun Jun Sep 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 June 2018; (4) As of September 2018; (5) Based on regulatory disclosure requirements.; (6) Latest data available as of December

17 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 48% Net loans/ deposits ratio 2 Other 3 Commercial Banking 91% 11% 37% 76% 76% 74% 110% 95% 8% 7% 2% 7% 3% 36% 37% 50% 47% 51% HIGHLIGHTS Focused on attractive Retail and Commercial segment through banking and asset/based financing solutions RETAIL LENDING 52% Mortgage Consumer Loans & Other 4 21% 32% 45% 11% ČS (Erste Group) 52% 4% ČSOB (KBC Group) 42% 6% KB (Societe Generale) 44% 2% UNICREDIT (UniCredit) 37% 9% RAIFFEISEN (Raiffeisen) Leading presence in unsecured consumer lending, strong focus on small business and mortgage franchise Business philosophy firmly anchored on risk adjusted return Notes: MONETA, CS, KB data as of September 2018, CSOB, RB and UCB as of June 2018, CS single, others consolidated; Figures in the stacker bar charts may not add up to 100% due to rounding differences; (1) CS single, others consolidated; (2) Ratio calculated as net customer loans / customer deposits, all ratios at consolidated base; (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. 17

18 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 18: CZK 135.7bn Total in 18: CZK 149.2bn Total in 18: CZK 7.5bn 5% 7% 33% 27% 48% 52% 62% 66% 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 202 branches (1,620 FTEs) & 651 ATMs as of September 2018 Providing attractive products within the retail segment with strong focus on offering products through own network, digital and third party channels COMMERCIAL Serving ~99 thousand customers and focusing on small business lending and SMEs National coverage with 24 dedicated teams for small business and 17 for commercial business within the existing branch network Developing small business banking supported by sales force expansion (166 FTEs) and building digital distribution Notes: (1) Refers only to retail customers as % of total population; 18

19 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) % Commercial NPS Retail NPS 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 22,610 new clients acquired on net basis during 18 versus 18,715 in 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

20 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Primary banking customer relationship improving NET CLIENT ACQUISITION 1 (number of clients in thousands) New Left 4Q 1Q 2Q Write-offs and closures CLIENT BASE EVOLUTION (number of clients in thousands) 1,033 1,033 1,034 1,032 1,033 +4% YoY Primary banking customers Other customers 4Q 1Q 2Q Note: (1) Net acquisition result, excluding write-offs of NPL debtors and bank initiated closures; (2) 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. 20

21 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 39x 40x Approx. 43,700 m 2 and CZK 160 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 59 retail brokers 48 commercial brokers Broad offer of lending and deposit products DIGITAL Web portal Internet banking Mobile banking SMART banka Note: (1) As of 30 September 2018; (2) Based on BCG Research. 21

22 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY The most awarded banking application by clients and jury Zlatá koruna rd place - Public Award Zlatá koruna st place Online application The Best Bank st place Banking innovator Smart Banka awarded by Zlatá Koruna 3rd place as the best financial product on Czech market. Smart Banka awarded by Zlatá Koruna 2018 as the best online application. MONETA with Smart Banka voted by public as the leading banking innovator. Application of the Year 2017 Absolute winner Application of the Year st place Client service WebTop nd place The best mobile solution Finparáda st place The most interesting achievement of the year 2017 Smart Banka voted the best mobile application amongst 750 nominations from Czech Republic and Slovak Republic. Smart Banka voted leading mobile application within B2C sector for best client s service. 2nd place in Best Mobile Solution at WebTop100 contest. Current Account TOM was named the Best Innovation of the Year by Finparada.cz Source: Zlata koruna Nejlepší banka Mobilni aplikace roku WebTOP100 Finparada.cz 22

23 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Digital banking proposition continues to gain market traction DIGITAL BANKING PENETRATION (number of clients in thousands) +53.1% SMART BANKA TRANSACTIONS (number of transactions in thousands) 17.6% 16.2% 14.6% 12.3% % ,473 1,444 1,261 1, Q 1Q 2Q Q 1Q 2Q Registered Smart Banka cumulative Service 1 Payment 2 Smart Banka share 3 DELIVERIES 53.1% YoY growth in Smart Banka; registered users reaching 247 thousand 17.6% of payment transactions 2 executed via Smart Banka in 2018 Open banking capability developed enabling clients of four major competitors to view their accounts in Smart Banka New website launched in July with 61% increase in organic traffic for September YoY Simple loan application for nonpreapproved clients via Smart Banka, tripling population eligible for loans via Smart Banka in 2018 ASPIRATIONS FOR 4Q 2018 Tablet based digital loan process to be rolled out to loan brokers and Česká pojišťovna/generali during 4Q 2018 Tablet based digital current account onboarding rolled out to Česká pojišťovna/generali during 4Q 2018 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. 23

24 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY Strong progress in online loan origination driven by development of fully online lending process CONSUMER LOAN VOLUMES ORIGINATED ONLINE 1 (CZK m, YtD) SMALL BUSINESS LOANS ORIGINATED ONLINE 1 (CZK m, YtD) 3, % 4,477 1,116 30% of production 2 Fully online Online initated % % of production 2 3,148 3, HIGHLIGHTS CZK 4.5bn consumer loans originated online, reaching 30% share of MONETA s consumer loan production in 18 YTD versus 17% in 17 YTD CZK 1.1bn in consumer loan volume originated fully online through Smart Banka and internet banking, 8% of total consumer loan production during 18 YTD CZK 26.0bn of pre-approved unsecured loan limits available fully online to more than 144,000 existing retail clients HIGHLIGHTS CZK 444m originated online, reaching 23% share of small business lending volume in 18 YTD versus 13% in 17 YTD CZK 101m of small business loan volumes completed fully online; 5% of total small business loan production during 18 YTD CZK 6.0bn of pre-approved limits to more than 22,800 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. 24

25 STRONG BUSINESS MODEL AND CLEARLY DEFINED STRATEGY MONETA continues digital strategy to serve digital sales and marketing capabilities 2Q Q Q-2Q 2019 CREDIT DISTRIBUTION 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 crosssales 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 branches 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 to new to bank small business clients New web based process for auto loans via dealers Instant online mortgage approval for brokers 2 Fully online loans for new to bank small business clients Retail credit card fully online for 3rd parties via tablet Retail fully online loan consolidation for 3rd parties Fully online business secured loan Fully online overdraft in Smart Banka Fully online property valuation ordering for via price maps TRANSACTION BANKING DISTRIBUTION 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 Extension of Multibanking in Smart Banka 3 Retail current account fully online for new clients via web Retail and small business fully online savings account Instant payments FEE PRODUCTS DISTRIBUTION Expansion of funds proposition (9 new funds) New home and liability insurance product introduced KYC service via API for partners Personal belongings and Cyber insurance fully online Accident insurance in Internet banka Expansion of investment funds proposition (additional partners) Liablity insurance for small business and new life insurance 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, additional banks and migrating from screen-scraping to PSD 2 API technology. 25

26 SUSTAINABLE RISK MANAGEMENT More than 40% of retail and 50% of commercial portfolio secured RETAIL NET LOAN PORTFOLIO COMMERCIAL NET LOAN PORTFOLIO 100% 4% 40% 5% Other Loans 1 Mortgages Consumer authorised overdrafts and credit cards Consumer loans Retail Unsecured 2 57% 52% 56% 100% 2% 6% 21% 15% Inventory financing & other Unsecured instalment loans & overdrafts Auto & equipment loan & lease Working capital Investment loans 5 Total Net Loans as of September 2018: CZK 70,924m (52% of Group Portfolio) Total Net Loans as of September 2018: CZK 64,737m (48% of Group Portfolio) 62% of customers 3 8 years with the bank, in depth knowledge of customer base 61.1% Loan To Value ratio 4 as of 30 September 2018, mortgage portfolio strongly collaterised No retail FX lending 9% of the Group s total commercial exposures as of 30 September 2018 relates to top 10 customers exposure in aggregate value 46% 6 of gross receivables with real estate/land collateral as of 30 September % share of agricultural sector, 14% share 7 of services, 10% 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 18; (4) For performing portfolio of Retail Mortgages; (5) Includes secured non-purpose loans; (6) Refers only to Bank Commercial individually managed portfolio, 44% of individually managed commercial loans are unsecured; (7) Based on share on commercial gross receivables as of 30 September

27 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 68bps Cost of Risk excluding legacy NPL sales 12.9% 11.7% % 4.1% 3.0% % 0.00% % NPL ratio achieved through successful combination of NPL sales and write-offs 95.8% total NPL coverage 1 in September 18 increase due to adoption of IFRS 9 on 1 January 2018 CZK 5.1bn YTD of NPL sales in 18 balance sheet face value of CZK 1bn, off balance sheet value of CZK 4.1bn 0bps total annualized YTD Cost of Risk in 18 CZK 663m positive impact of NPL sales in Cost of Risk, 68bps YTD Cost of Risk in 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; 27

28 SUSTAINABLE RISK MANAGEMENT Maintaining prudent coverage across portfolio GROSS LOAN PORTFOLIO BALANCE (CZK m) PORTFOLIO ALLOWANCES BALANCE (CZK m) 117, , % 127, , % 1, % 0.8% 0.8% 0.7% Stage 1 Coverage 1 Jan 18 1Q 18 2Q Jan 18 1Q 18 2Q ,320 5,306 (22.5)% 4,889 4,126 (0.8)% % 7.1% 7.3% 9.2% 1 Jan 18 1Q 18 2Q Stage 2 Coverage 1 Jan 18 1Q 18 2Q ,274 (20.5)% 4,807 4,459 4,192 3,469 3,140 (23.4)% 2,741 2, % 65.3% 61.5% 63.4% 1 Jan 18 1Q 18 2Q Stage 3 Coverage 1 Jan 18 1Q 18 2Q Note: Figures in chart may not add up due to rounding differences. 28

29 SUSTAINABLE RISK MANAGEMENT Continuing positive portfolio performance and proactive NPL management activities further reduce NPL stock GROSS NPL WALK (CZK m) % of average performing receivables 1 0.5% of average performing receivables 1 0.6% of average performing receivables 1 0.5% of average performing receivables 1 5,457 (625) (445) 5, (665) (382) 4, (596) 4, (494) (659) (281) 4,192 NPLs offbalance sheet 2 (CZK m) Sep 2017 NPL Cured formation Writeoffs + Debt sale Dec 2017 NPL Cured formation Writeoffs + Debt sale Mar 2018 NPL formation Cured Writeoffs + Debt sale Jun 2018 NPL Cured formation 6,117 5,021 3,096 2,526 1,455 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Writeoffs + Debt sale Sep 2018 Note: Figures in chart may not add up due to rounding differences; (1) Calculated as two-point average; (2) Cumulative written of amount. 29

30 SOLID BALANCE SHEET FUNDAMENTALS Continuing to maintain strong and highly liquid balance sheet ASSETS (CZK bn) LIABILITIES AND EQUITY (CZK bn) Cash Investment Portfolio 1 Reverse Repo with CNB Repo operations Due to Banks Customer Deposits Customer Loans Other Liabilities 4.0 Dec Sep 18 Other Assets Dec 17 Sep 18 Equity CZK 16.1bn nominal value of regular interest rate risk hedging position 131.7% LCR exceeding regulatory limit, confirming excellent liquidity position 9.0% Regulatory leverage 4 (2017 at 8.1%) against Czech bank industry leverage of 6.3% 5 Notes: Figures in chart may not add up due to rounding differences; (1) Including encumbered assets of CZK 3.4bn in 2017 and CZK 4.6bn in 18; (2) Including Interbank loans; (3) Excluding CZK 7.0 billion of opportunistic repo transactions as of 18 (as of 4Q 17: 9.4 billion); (4) Calculated pursuant to CRR; (5) Source: CNB web page < tml>, as of 30 June

31 SOLID BALANCE SHEET FUNDAMENTALS Strong growth in retail deposit balances whilst maintaining low cost of funds CUSTOMER DEPOSITS 1 BY SEGMENT (CZK bn) CUSTOMER DEPOSITS 1 BY PRODUCT (CZK bn) % (0.1)% YoY Commercial % % YoY Term and savings accounts % YoY +12.8% YoY Retail Current accounts 17 FY % 0.16% 0.17% Cost of Funds on customer deposits 4 17 FY HIGHLIGHTS 90.9% Loan to Deposit ratio 3 remained stable compared to 87.4% in 4Q % stable Cost of Funds 4 on customer deposits 14.7% YoY growth of retail customer deposits outperforming 9.1% market growth 5, 3.7% total market share 6 achieved in 18 Notes: Figures in chart may not add up due to rounding differences. (1) Excluding CZK 7.0 billion of opportunistic repo transactions as of 18 (as 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) 0.21% total Cost of Funds; (5) Source: CNB ARAD, Retail customer deposits excl. non-residents and building savings deposits; (6) Source: CNB ARAD; includes residents only, i.e. excluding non-residents and building savings deposits. 31

32 SOLID BALANCE SHEET FUNDAMENTALS Expanding investment portfolio in response to increasing interest rate environment INVESTMENT PORTFOLIO AND REVERSE REPO OPERATIONS (CZK bn) DUE TO BANKS AND REPO OPERATIONS (CZK bn) (41.1)% 9.6 (58.5)% (67.1)% YTD 17.5 Reverse Repo with CNB 16.2 (37.2)% YTD +76.3% YTD Due to banks and other Investment Portfolio Opportunistic repo operations (65.5)% YTD Notes: Figures in chart may not add up due to rounding differences; (1) Investment portfolio consists of Debt securities measured at amortized cost and Equity securities measured at FVTPL, 2017 classified as Financial assets held to maturity; including encumbered assets of CZK 3.4bn in 2017 and CZK 4.6bn in 18; (2) Includes deposits on demand, term deposits and repo operations. 32

33 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 4Q 1Q 2Q Pillar I - CRR requirement Pillar II - SREP requirement Pillar I - CRR Conservation buffer Pillar I - CRR Countercyclical buffer Total capital requirement. 33

34 CAPITAL MANAGEMENT Capital capacity supported by capital optimization and inclusion of 2018 mid-year net profit proportion into regulatory equity ACCOUNTING EQUITY (CZK m) REGULATORY EQUITY (CZK m) (10.5)% 27,268 25, ,400 1,301 1,700 26,420 24,462 22,700 Intangible assets and goodwill Tangible equity 22,420 (10.2)% 20,653 20, CAPITAL ADEQUACY RATIO 1 Dividend pay-out ratio RoTE 15.3% 16.0% 19.8% for previous 100% 124% 104% year INITIATIVES FOR CAPITAL OPTIMIZATION IN % (80)bps 16.6% 16.0% 16.6% CZK 636m of impact into regulatory capital in 18 from inclusion of part of 1H 18 net profit CZK 353m of regulatory capital in utilization of respective credit risk mitigation techniques connected to secured commercial loans and cash collateral (CZK 2,275m RWA) RWA density Q 18 2Q % 54.3% 53.3% % CZK 221m of regulatory capital from other optimization (mainly from review of credit conversion factor for off balance sheet exposures, eligibility of residential immovable property pledged on retail mortgages 2 and other assets with respect to risk weights) (CZK 1,426m RWA) Note: (1) Excluding net profit for the relevant period, except 18 where part of 1H2018 net profit is included (CZK 636m); (2) Based on the EU Regulation (CRR 575/2013 together with EBA Q&A); (3) RWA density ratio recalculated to be in line with BIS Working Papers: 34 Leverage and Risk Weighted Capital Requirements. New methodology applied by MONETA since June 2018, 2016 and 2017 were restated in line with new methodology.

35 CAPITAL MANAGEMENT Capital initiatives materialized in 2018 with positive impact of CZK 1,210 million EXCESS CAPITAL EVOLUTION AGAINST CAPITAL ADEQUACY RATIO TARGET OF 15.5% (CZK m) 2,278 (165) Includes capital optimization of CZK 574m (638) 636 1,305 (452) (355) 31 Dec 2017 Excess capital Excess capital paid in 2017 dividend IFRS 9 Increase in RWA Change in Inclusion of 30% intangibles and other 1H 18 net profit 30 Sep Excess capital RISK WEIGHTED ASSETS WALK (CZK m) Includes RWA optimization of CZK 2,940m 118, ,366 1, Includes RWA optimization of CZK 387m (1,017) (1,128) (446) (388) 121,465 Includes RWA optimization of CZK 374m 31 Dec 2017 Commercial Retail Retail Financial NPL OP risk Deferred tax Other 3 30 Sep 2018 mortgages 2 unsecured 2 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 18 net profit and 70% of 1H 18 net profit; (2) Including off-balance sheet commitments; (3) Including other assets and equity. 35

36 ATTRACTIVE PROFITABILITY Supporting sustainable dividend capacity CONSOLIDATED NET PROFIT (CZK m) RETURN ON AVERAGE EQUITY 4,054 3,923 3, % 14.8% 18.1% FY 2016 FY FY 2016 FY DIVIDEND PAY-OUT PER SHARE (CZK) 124% 104% 70% ~ 5.6 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 5.6 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 September 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 2018 results and revised guidance. Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 36

37 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.. 37

38 2018 Results 38

39 PHENOMENAL SUCCESS OF SMART BANKA The most awarded banking application by clients and jury Zlatá koruna rd place - Public Award Zlatá koruna st place Online application The Best Bank st place Banking innovator Smart Banka awarded by Zlatá Koruna 3rd place as the best financial product on Czech market. Smart Banka awarded by Zlatá Koruna 2018 as the best online application. MONETA with Smart Banka voted by public as the leading banking innovator. Application of the Year 2017 Absolute winner Application of the Year st place Client service WebTop nd place The best mobile solution Finparáda st place The most interesting achievement of the year 2017 Smart Banka voted the best mobile application amongst 750 nominations from Czech Republic and Slovak Republic. Smart Banka voted leading mobile application within B2C sector for best client s service. 2nd place in Best Mobile Solution at WebTop100 contest. Current Account TOM was named the Best Innovation of the Year by Finparada.cz Source: Zlata koruna Nejlepší banka Mobilni aplikace roku WebTOP100 Finparada.cz 39

40 BRANCH NETWORK MONETA s branches in new modern design 40

41 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

42 MACROECONOMIC ENVIRONMENT Improving environment with rate increases supporting stabilization of MONETA s new volume pricing STRONG GDP OUTLOOK KEY MACROECONOMIC INDICATORS 4.5% INDICATOR 2Q Q 17 1Q 18 2Q % 3.1% 1 3.3% 1 Export 2 Industrial production 5.3% 4.6% 8.5% 6.7% 5.9% (1.1%) 2.0% 5.7% 7.6% 4.0% 2.3% 3.6% EUR/CZK Banks NPL ratio 4.3% 4.0% 4.0% 3.6% 3.4% 3.3% f 2019f NEW VOLUME PRICING OF CONSUMER LOANS INTEREST RATE ACTUALS AND FORECAST % 11.8% 11.6% 11.0% 11.4% 1Q 10.8% 10.6% 10.2% Market 5 MONETA 9.7% 9.3% 9.4% 8.8% 8.8% 9.5% 9.3% 9.3% 8.5% 8.6% 9.0% 8.5% 2Q 4Q 1Q 2Q 4Q 1Q 2Q % 8.6% 3M PRIBOR 2W Repo rate 1.75% from st Nov Q 1Q 2Q Q Q 2Q 4Q 1Q 2Q 4Q 2020 Source: Czech Statistical Office, Ministry of Labor, Ministry of Finance, Czech National Bank, Latest (revised) data. (1) Latest CNB forecast from November 1, 2018 ( (2) Export following national concept; (3) Represents quarterly averages; (4) Latest CNB forecast from November 1, 2018 used for period 4Q 2018 to 4Q 2020; (5) CNB ARAD, following CNB definition (includes nonpurposed 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. 42

43 ECONOMIC GROWTH Czech GDP growth decelerated, whilst unemployment remains at historical low level, continuing upward pressure on wages GDP GROWTH UNEMPLOYMENT RATE 3 5.3% 4.3% 4.1% 3.7% 2.9% 2.1% 2.5% 1.9% 2.4% CSU/CNB 1 : +5.4% +2.4% +4.5% 4.4% 3.4% 2.4% +4.1% 4.7% 2.7% 2.2% +2.4% 4.2% 3.3% 2.0% +3.1% 10.9% 10.0% 9.1% 8.1% 8.3% /2018 BB forecast % 4.0% 2.9% 2.3% 2.3% 8.4% 6.7% 5.6% 5.5% 4.6% Q Q 2018 BB forecast 2018 Euro area (19 countries) Czech Republic V4 (without CZ) 2 Euro area (19 countries) Czech Republic V4 (without CZ) 2 INFLATION 4 WAGE, MEDIAN WAGE 5 0.2% 0.0% -0.1% 12/ % 1.1% 1.0% 12/2016 Euro area (19 countries) 2.2% 2.0% 1.4% 12/2017 Czech Republic 2.6% 2.1% 2.1% 2.6% 2.2% 1.8% 9/2018 BB forecast V4 (without CZ) wage median wage +8.6% YoY +6.2% +4.4% change +3.2% +2.9% 31,851 29,496 25,768 26,591 27,764 21,786 22,414 23,692 25,279 27, % +2.9% +5.7% +6.7% +9.4% Q 2018 YoY change Source: GDP actuals: Bloomberg; Forecast: Bloomberg consensus October 18 latest revised data; Unemployment and Consumer prices actuals: Eurostat, Forecast: Bloomberg consensus October 18 latest revised data; Wage actuals: CZSO; (1) GDP YoY growth published by CZSO, Forecast: CNB; (2) V4 calculated as non-weighted average; (3) Registered unemployment rate published by MoLSA: 3.1%; (4) Harmonized index of Consumer Prices; (5) Wage = average of gross nominal annual wage, Median wage = average of quarterly values. 43

44 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

45 CZECH DEPOSIT MARKET Continuing accelerated growth in deposits RETAIL DEPOSIT (CZK bn) DEPOSIT MARKET (CZK bn) 1, % 1,836 1,880 1,936 1,968 3,658 3, % 3,774 3,831 3,901 4Q 1Q 2Q COMMERCIAL DEPOSIT (CZK bn) +4.3% 1,854 1,749 1,894 1,894 1,933 4Q 1Q 2Q Q 1Q 2Q Source: Czech National Bank ARAD; Deposits include residents only, i.e. excluding non-residents and building savings deposits. 45

46 CZECH LENDING MARKET Lending market progressing year-on-year lead by retail segment RETAIL LOANS (CZK bn) +8.2% LENDING MARKET (CZK bn) 1,327 1,355 1,376 1,407 1,437 2,759 2, % 2,786 2,852 2,932 4Q 1Q 2Q COMMERCIAL LOANS (CZK bn) +4.5% 1,432 1,352 1,410 1,444 1,496 4Q 1Q 2Q Q 1Q 2Q Source: Czech National Bank ARAD; Gross loans include residents only, i.e. excluding non-residents and building savings loans. 46

47 CZECH LENDING MARKET Retail lending market driven by continued strong development in both mortgages and consumer loans RETAIL LOANS (CZK bn) MORTGAGE MARKET (CZK bn) +8.9% 1,013 1,035 1,053 1,077 1, % 1,327 1,355 1,376 1,407 1,437 4Q 1Q 2Q UNSECURED LENDING MARKET 1 (CZK bn) +6.6% Q 1Q 2Q OTHER 2 (CZK bn) Q 1Q 2Q % Q 1Q 2Q Source: Czech National Bank ARAD; Retail loans include residents only, i.e. excluding non-residents and building savings loans. Figures in chart may not add up due to rounding differences. Note: (1) Unsecured lending includes total consumer loans, credit cards and overdrafts; (2) Other includes loans excluded from previous categories and loans in foreign currencies. 47

48 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

49 2018 FINANCIAL PERFORMANCE AGAINST GUIDANCE Consolidated net profit outlook upgraded to CZK 4.1 billion with RoTE above 17% RESULTS 2018 GUIDANCE METRICS 2017 YTD 2018 YTD Initial 1 Revised LOAN BOOK GROWTH (YoY) % 14.0% 9% 13% TOTAL OPERATING INCOME (CZK) 7.8bn 7.5bn 9.5bn ~ 10bn COST BASE (CZK) COST OF RISK 3 46bps 0bps Cost of Risk (excluding legacy NPL sales) 68bps 4 68bps CONSOLIDATED NET PROFIT (CZK) RETURN ON TANGIBLE EQUITY 3.5bn 3.4bn 3.4bn EFFECTIVE TAX RATE 20.0% 17.2% ~ 17% 3.1bn 3.5bn 17.5% 19.8% ~ 4.9bn 45 55bps bps 14% ~4.8bn 15-25bps 70 80bps ~4.1bn DIVIDEND PER SHARE (CZK gross per share) 5 n/a n/a > 17% ~ 17% Note: All ratios are annualized; (1) Initial guidance announced on February 7, 2018 except Cost of Risk excluding legacy NPL sales and Dividend per share; following revision of initial guidance on page 44; (2) Gross performing loans and receivables to customers growth; (3) 2017 based on IAS39, 2018 based on IFRS9; (4) Restated due to split of gain from NPL sales between line Net impairment of loans and receivables and line Other operating income; (5) Initial proposal of CZK 5 gross per share announced on 8th August 2018 and increased to CZK 5.5 gross per share on 17th September Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 49

50 2018 GUIDANCE Improving 2018 guidance, targeting to deliver net profit of CZK 4.1 billion Initial Net Profit guidance billion +0.7 billion Revised Net Profit guidance 4.1 billion Net Interest Income +0.2 billion Other Operating Income +0.2 billion Cost Base +0.1 billion Cost of Risk +0.4 billion Better than expected NII position due to: Accelerated rate hikes Portfolio growth Re-pricing Better than expected success in legacy NPL sales Better than expected cost management on Personnel & Administrative charges Favorable macroeconomic environment and better than expected success in legacy NPL sales Tax -0.2 billion Note: (1) Initial guidance announced on February 7,

51 EXECUTING ON STRATEGY Outperforming guidance in portfolio growth, solid capital position, increasing 2018 dividend outlook to CZK 5.6 per share 14.0% YoY growth in gross performing loans outperforming guidance DIGITAL DIGITAL CAPABILITIES CAPABILITIES RISK MANAGEMENT SUSTAINABILITY EFFICIENT CAPITAL STRATEGY 20.8% YoY increase in RETAIL gross performing loan balance 50.7% YoY continued growth in gross performing mortgage balance 1, achieving market share of 2.4% 2 in 18 (1.7% in 17) 9.1% YoY growth in gross performing consumer loans balance and maintaining market share at 18.8% 3 7.3% YoY growth in COMMERCIAL gross performing loan balance MAINTAIN AND IMPROVE RETAIL FRANCHISE DEVELOP SMALL BUSINESS BANKING RETAIN AND REINFORCE SME BANKING 65.3% YoY strong growth in gross performing small business loan balance, with new volume in instalment lending up 48.8% YoY 8.6% YoY increase in gross performing investment loan balance 16.6% Capital Adequacy Ratio with positive result from capital optimization initiatives of CZK 1,210 million COST CONTROL AND OPERATIONAL EXCELLENCE CORPORATE SUSTAINABILITY MONETA received the best rating among other banks in evaluating quality of mortgage process 4 MANAGEMENT WILL CONSIDER TO PROPOSE 2018 DIVIDEND PAYOUT OF CZK 5.6 GROSS PER SHARE 5 Note: (1) Mortgage book includes American mortgages; (2) Source: CNB ARAD, in new production achieved market share of 8.2% in 18 (3.8% in 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) Source: Market Vision: (5) Based on 18 results and revised guidance. Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 51

52 EXECUTING ON STRATEGY Delivering net profit of CZK 3.4 billion, up 7.8% versus prior year METRICS (CZK m, %) 18 YTD 17 YTD CHANGE HIGHLIGHTS NET INTEREST INCOME NET FEE AND COMMISSION INCOME OTHER INCOME 5,437 1, ,520 1, (1.5%) (2.9%) (12.7%) CZK 7.5bn of operating income, down 3.0% YoY, influenced by gain on bond sales of CZK 343m in 1H 17, partially offset by gain from legacy NPL sale of CZK 316m in 2018 TOTAL OPERATING INCOME TOTAL OPERATING EXPENSES COST OF RISK 7,525 (3,465) 0 7,755 (3,455) (401) (3.0%) 0.3% n/a Maintained flat cost base despite wage inflation and investment growth 46.0% Cost to Income ratio ahead of management expectations PROFIT BEFORE TAX NET PROFIT RETURN ON TANGIBLE EQUITY 1 RETURN ON EQUITY 1 4,060 3, % 18.4% 3,899 3, % 16.7% 4.1% 7.8% 230bps 170bps CZK 663m positive impact into Cost of Risk from legacy NPL sales (68bps Cost of Risk excluding gain on legacy NPL sales) CZK 3.4bn of net profit (up 7.8% YoY) resulting in 19.8% RoTE Note: (1) Return on Tangible Equity and Return on Equity are annualized. 52

53 EXECUTING ON STRATEGY Net interest income returned to growth year-on-year, consumer loan production pricing above market, NPL sale strategy on track INCOME PRICING DISTRIBUTION GAIN CAPITAL Net interest income returned to growth on YoY basis Consumer loan production pricing above market 30% of consumer loan production originated online Legacy NPL monetization continued Strong capital position supported by further capital optimization CZK 1,849 million of Net interest income 1 in 18 exceeding Net interest income 1 in 17 by CZK 45 million 70bps uplift versus 4Q 2017 and 60bps above market 2, defending market share of 18.8% 2 CZK 4,477 million consumer loans originated online, out of which CZK 1,116 million originated fully online CZK 1,072 million gain delivered year to date from legacy NPL sale in nominal value of CZK 5.1bn CZK 636 million of 1H 2018 net profit included into regulatory equity, CZK 574 million from risk weighted assets optimization Note: (1) Net interest income excluding opportunistic repo operation; (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. 53

54 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

55 DIGITAL TRANSFORMATION PROGRESSING Digital banking proposition continues to gain market traction DIGITAL BANKING PENETRATION (number of clients in thousands) +53.1% SMART BANKA TRANSACTIONS (number of transactions in thousands) 17.6% 16.2% 14.6% 12.3% % ,473 1,444 1,261 1, Q 1Q 2Q Q 1Q 2Q Registered Smart Banka cumulative Service 1 Payment 2 Smart Banka share 3 DELIVERIES 53.1% YoY growth in Smart Banka; registered users reaching 247 thousand 17.6% of payment transactions 2 executed via Smart Banka in 2018 Open banking capability developed enabling clients of four major competitors to view their accounts in Smart Banka New website launched in July with 61% increase in organic traffic for September YoY Simple loan application for nonpreapproved clients via Smart Banka, tripling population eligible for loans via Smart Banka in 2018 ASPIRATIONS FOR 4Q 2018 Tablet based digital loan process to be rolled out to loan brokers and Česká pojišťovna/generali during 4Q 2018 Tablet based digital current account onboarding rolled out to Česká pojišťovna/generali during 4Q 2018 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. 55

56 STRONG ONLINE LENDING PERFORMANCE Strong progress in online loan origination driven by development of fully online lending process CONSUMER LOAN VOLUMES ORIGINATED ONLINE 1 (CZK m, YtD) SMALL BUSINESS LOANS ORIGINATED ONLINE 1 (CZK m, YtD) 3, % 4,477 1,116 30% of production 2 Fully online Online initated % % of production 2 3,148 3, HIGHLIGHTS CZK 4.5bn consumer loans originated online, reaching 30% share of MONETA s consumer loan production in 18 YTD versus 17% in 17 YTD CZK 1.1bn in consumer loan volume originated fully online through Smart Banka and internet banking, 8% of total consumer loan production during 18 YTD CZK 26.0bn of pre-approved unsecured loan limits available fully online to more than 144,000 existing retail clients HIGHLIGHTS CZK 444m originated online, reaching 23% share of small business lending volume in 18 YTD versus 13% in 17 YTD CZK 101m of small business loan volumes completed fully online; 5% of total small business loan production during 18 YTD CZK 6.0bn of pre-approved limits to more than 22,800 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. 56

57 CLIENT BASE EVOLUTION Primary banking customer relationship improving NET CLIENT ACQUISITION 1 (number of clients in thousands) New Left 4Q 1Q 2Q Write-offs and closures CLIENT BASE EVOLUTION (number of clients in thousands) 1,033 1,033 1,034 1,032 1,033 +4% YoY Primary banking customers Other customers 4Q 1Q 2Q Note: (1) Net acquisition result, excluding write-offs of NPL debtors and bank initiated closures; (2) 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. 57

58 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

59 SOLID BALANCE SHEET FUNDAMENTALS Continuing to maintain strong and highly liquid balance sheet ASSETS (CZK bn) LIABILITIES AND EQUITY (CZK bn) Cash Investment Portfolio 1 Reverse Repo with CNB Repo operations Due to Banks Customer Deposits Customer Loans Other Liabilities 4.0 Dec Sep 18 Other Assets Dec 17 Sep 18 Equity CZK 16.1bn nominal value of regular interest rate risk hedging position 131.7% LCR exceeding regulatory limit, confirming excellent liquidity position 9.0% Regulatory leverage 4 (2017 at 8.1%) against Czech bank industry leverage of 6.3% 5 Notes: Figures in chart may not add up due to rounding differences; (1) Including encumbered assets of CZK 3.4bn in 2017 and CZK 4.6bn in 18; (2) Including Interbank loans; (3) Excluding CZK 7.0 billion of opportunistic repo transactions as of 18 (as of 4Q 17: 9.4 billion); (4) Calculated pursuant to CRR; (5) Source: CNB web page < tml>, as of 30 June

60 SOLID BALANCE SHEET FUNDAMENTALS Expanding investment portfolio in response to increasing interest rate environment INVESTMENT PORTFOLIO AND REVERSE REPO OPERATIONS (CZK bn) DUE TO BANKS AND REPO OPERATIONS (CZK bn) (41.1)% 9.6 (58.5)% (67.1)% YTD 17.5 Reverse Repo with CNB 16.2 (37.2)% YTD +76.3% YTD Due to banks and other Investment Portfolio Opportunistic repo operations (65.5)% YTD Notes: Figures in chart may not add up due to rounding differences; (1) Investment portfolio consists of Debt securities measured at amortized cost and Equity securities measured at FVTPL, 2017 classified as Financial assets held to maturity; including encumbered assets of CZK 3.4bn in 2017 and CZK 4.6bn in 18; (2) Includes deposits on demand, term deposits and repo operations. 60

61 GROSS PERFORMING LOAN PORTFOLIO DEVELOPMENT Accelerated growth in retail continued, supporting strategic focus on retail and small business RETAIL GROSS PERFORMING LOAN BALANCE (CZK bn) % Q 1Q 2Q COMMERCIAL GROSS PERFORMING LOAN BALANCE (CZK bn) % Q 1Q 2Q

62 GROSS PERFORMING RETAIL LOAN PORTFOLIO DEVELOPMENT Mortgage balance growth accelerating, complemented by solid auto finance and consumer lending MORTGAGE BALANCE (CZK bn) AUTO LENDING BALANCE (CZK bn) % % Q 1Q 2Q 4Q 1Q 2Q CONSUMER LOAN BALANCE (CZK bn) CREDIT CARD & OVERDRAFT BALANCE (CZK bn) +9.1% (13.1)% Q 1Q 2Q 4Q 1Q 2Q

63 GROSS PERFORMING COMMERCIAL LOAN PORTFOLIO DEVELOPMENT Commercial growth driven by continued increase in small business franchise supported by strong investment lending SMALL BUSINESS LENDING BALANCE 1 (CZK bn) WORKING CAPITAL BALANCE (CZK bn) % % Q 1Q 2Q 4Q 1Q 2Q INVESTMENT LOAN BALANCE (CZK bn) +8.6% AUTO AND LEASING BALANCE (CZK bn) (1.6)% Q 1Q 2Q 4Q 1Q 2Q Note: (1) Includes small business instalment loan, commercial overdraft and credit card. 63

64 SOLID BALANCE SHEET FUNDAMENTALS Strong growth in retail deposit balances whilst maintaining low cost of funds CUSTOMER DEPOSITS 1 BY SEGMENT (CZK bn) CUSTOMER DEPOSITS 1 BY PRODUCT (CZK bn) % (0.1)% YoY Commercial % % YoY Term and savings accounts % YoY +12.8% YoY Retail Current accounts 17 FY % 0.16% 0.17% Cost of Funds on customer deposits 4 17 FY HIGHLIGHTS 90.9% Loan to Deposit ratio 3 remained stable compared to 87.4% in 4Q % stable Cost of Funds 4 on customer deposits 14.7% YoY growth of retail customer deposits outperforming 9.1% market growth 5, 3.7% total market share 6 achieved in 18 Notes: Figures in chart may not add up due to rounding differences. (1) Excluding CZK 7.0 billion of opportunistic repo transactions as of 18 (as 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) 0.21% total Cost of Funds; (5) Source: CNB ARAD, Retail customer deposits excl. non-residents and building savings deposits; (6) Source: CNB ARAD; includes residents only, i.e. excluding non-residents and building savings deposits. 64

65 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

66 CONTINUED IMPROVEMENT IN ASSET QUALITY Cost of Risk positively impacted by legacy NPL sales with gain of CZK 663 million GROSS LOAN PORTFOLIO BALANCE (CZK m) NET IMPAIRMENTS (CZK m) +12.3% 139, , ,742 61,646 62,861 65,856 62,678 64,881 73,820 Commercial Retail (90) Commercial Retail 17 FY FY NPL DEVELOPMENT (CZK m) COST OF RISK (annualized) (23.2)% 5,457 5,274 METRICS FY ,516 1,635 4,192 1,316 Commercial COST OF RISK CORE COST OF RISK 0.46% 0.68% 0.32% 0.59% 0.00% 0.68% 3,941 3,639 2,876 Retail IMPACT OF LEGACY NPL SALES (0.22)% (0.27)% (0.68)% 17 FY % 4.1% 3.0% NPL ratio TOTAL NPL COVERAGE % 77.0% 95.8% Note: Figures in chart may not add up due to rounding differences; (1) Total NPL coverage represents total allowances over NPL; (2) Restated due to split of gain from NPL sales between line Net impairment of loans and receivables and Other operating income. 66

67 NPL DEVELOPMENT OVERVIEW Continuing positive portfolio performance and proactive NPL management activities further reduce NPL stock GROSS NPL WALK (CZK m) % of average performing receivables 1 0.5% of average performing receivables 1 0.6% of average performing receivables 1 0.5% of average performing receivables 1 5,457 (625) (445) 5, (665) (382) 4, (596) 4, (494) (659) (281) 4,192 NPLs offbalance sheet 2 (CZK m) Sep 2017 NPL Cured formation Writeoffs + Debt sale Dec 2017 NPL Cured formation Writeoffs + Debt sale Mar 2018 NPL formation Cured Writeoffs + Debt sale Jun 2018 NPL Cured formation 6,117 5,021 3,096 2,526 1,455 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Writeoffs + Debt sale Sep 2018 Note: Figures in chart may not add up due to rounding differences; (1) Calculated as two-point average; (2) Cumulative written of amount. 67

68 ASSET QUALITY Maintaining prudent coverage across portfolio GROSS LOAN PORTFOLIO BALANCE (CZK m) PORTFOLIO ALLOWANCES BALANCE (CZK m) 117, , % 127, , % 1, % 0.8% 0.8% 0.7% Stage 1 Coverage 1 Jan 18 1Q 18 2Q Jan 18 1Q 18 2Q ,320 5,306 (22.5)% 4,889 4,126 (0.8)% % 7.1% 7.3% 9.2% 1 Jan 18 1Q 18 2Q Stage 2 Coverage 1 Jan 18 1Q 18 2Q ,274 (20.5)% 4,807 4,459 4,192 3,469 3,140 (23.4)% 2,741 2, % 65.3% 61.5% 63.4% 1 Jan 18 1Q 18 2Q Stage 3 Coverage 1 Jan 18 1Q 18 2Q Note: Figures in chart may not add up due to rounding differences. 68

69 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

70 CAPITAL MANAGEMENT Capital capacity supported by capital optimization and inclusion of 2018 mid-year net profit proportion into regulatory equity ACCOUNTING EQUITY (CZK m) REGULATORY EQUITY (CZK m) 27, (10.5)% 25,763 1,301 24,400 1,700 22,420 (10.2)% 20,653 20,132 26,420 24,462 22, Intangible assets Tangible equity INITIATIVES FOR CAPITAL OPTIMIZATION IN 2018 CAPITAL ADEQUACY RATIO 1 CZK 636m of impact into regulatory capital in 18 from inclusion of part of 1H 18 net profit 17.4% 16.6% (80)bps 16.0% 16.6% CZK 353m of regulatory capital in utilization of respective credit risk mitigation techniques connected to secured commercial loans and cash collateral (CZK 2,275m RWA) RWA density % 1Q 18 2Q % 53.3% % CZK 221m of regulatory capital from other optimization (mainly from review of credit conversion factor for off balance sheet exposures, eligibility of residential immovable property pledged on retail mortgages 2 and other assets with respect to risk weights) (CZK 1,426m RWA) Note: (1) Excluding net profit for the relevant period, except 18 where part of 1H2018 net profit is included (CZK 636m); (2) Based on the EU Regulation (CRR 575/2013 together with EBA Q&A); (3) RWA density ratio recalculated to be in line with BIS Working Papers: 70 Leverage and Risk Weighted Capital Requirements. New methodology applied by MONETA since June 2018, 2016 and 2017 were restated in line with new methodology.

71 EXCESS CAPITAL MANAGEMENT Capital initiatives materialized in 2018 with positive impact of CZK 1,210 million EXCESS CAPITAL EVOLUTION AGAINST CAPITAL ADEQUACY RATIO TARGET OF 15.5% (CZK m) 2,278 (165) Includes capital optimization of CZK 574m (638) 636 1,305 (452) (355) 31 Dec 2017 Excess capital Excess capital paid in 2017 dividend IFRS 9 Increase in RWA Change in Inclusion of 30% intangibles and other 1H 18 net profit 30 Sep Excess capital RISK WEIGHTED ASSETS WALK (CZK m) Includes RWA optimization of CZK 2,940m 118, ,366 1, Includes RWA optimization of CZK 387m (1,017) (1,128) (446) (388) 121,465 Includes RWA optimization of CZK 374m 31 Dec 2017 Commercial Retail Retail Financial NPL OP risk Deferred tax Other 3 30 Sep 2018 mortgages 2 unsecured 2 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 18 net profit and 70% of 1H 18 net profit; (2) Including off-balance sheet commitments; (3) Including other assets and equity. 71

72 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 4Q 1Q 2Q Pillar I - CRR requirement Pillar II - SREP requirement Pillar I - CRR Conservation buffer Pillar I - CRR Countercyclical buffer Total capital requirement. 72

73 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

74 NET INTEREST INCOME OVERVIEW Outperforming guidance, targeting to deliver CZK 3,730m for second half of 2018 NET INTEREST INCOME excl. opportunistic repo operations (CZK m, YoY) ACTUAL REVISED FORECAST YoY change (2.2%) (6.2%) (11.9%) (9.1%) 1,804 1,797 1,775 1, % 1,849 1, % NIM 2 4.5% 4.3% 4.2% 4.2% 4.4% 4Q 1 1Q 1 2Q 1 1 4Q Note: Revised forecast as of November 7, (1) Reported number incl. income from opportunistic repo operations: 4Q 17 of CZK 1,844 million, 1Q 18 of CZK 1,796 million, 2Q 18 of CZK 1,782 million and 18 of CZK 1,859 million; (2) Excluding opportunistic repo operations. 74

75 LOAN PORTFOLIO MARGIN EVOLUTION Stable portfolio yield driven by improvement in new consumer loan pricing, commercial portfolio re-pricing and improving interest rate environment RETAIL LOAN PORTFOLIO YIELD LOAN PORTFOLIO YIELD 9.0% 8.5% 7.9% 7.6% 7.3% 6.2% 6.0% 5.7% 5.5% 5.5% 4Q 1Q 2Q COMMERCIAL LOAN AND LEASING PORTFOLIO YIELD 3.5% 3.4% 3.5% 3.3% 3.5% 4Q 1Q 2Q Environment driven by competition Environment stabilizing 4Q 1Q 2Q

76 RETAIL LOAN PORTFOLIO MARGIN EVOLUTION Retail yield continues to be impacted by shift in portfolio mix towards mortgages CONSUMER LOAN PORTFOLIO YIELD RETAIL LOAN PORTFOLIO YIELD 11.1% 10.6% 10.3% 10.1% 9.9% 9.0% 8.5% 7.9% 7.6% QtQ decrease mainly driven by portfolio composition change 7.3% 4Q 1Q 2Q RETAIL LOAN PORTFOLIO COMPOSITION 1 Secured Unsecured 36% 37% 39% 41% 43% 4Q 1Q 2Q % 63% 61% 59% 57% 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. 76

77 NET FEE AND COMMISSION INCOME Continued growth in 3rd party fee and commission income partially offsetting decline in servicing and penalty fees THIRD PARTY COMMISSION INCOME (CZK m) NET FEE & COMMISSION INCOME (CZK m) 1,392 (2.9)% 1, % Investment funds Insurance TRANSACTIONAL & OTHER FEES (CZK m) +2.4% SERVICING AND PENALTY FEES (CZK m) Deposit servicing Lending servicing 18 Penalty / early termination (12.4)% Note: Figures in chart may not add up due to rounding differences. (1) Insurance fee income restated in 17 due to the reclassification between Insurance and Other fees in the amount of CZK 11 million decrease of Insurance and increase of Other fees. 77

78 NET FEE AND COMMISSION INCOME Deposit and lending servicing fee income continues to decline in line with expectation DEPOSIT SERVICING FEES (CZK m) SERVICING AND PENALTY FEES (CZK m) (19.1)% Commercial Retail 814 (12.4)% LENDING SERVICING FEES (CZK m) (9.5)% PENALTY AND EARLY TERMINATION FEES (CZK m) (5.4%) Deposit servicing Lending servicing 2018 Penalty / early termination Note: Figures in chart may not add up due to rounding differences. 78

79 OPERATING EXPENSES Managing flat operating expenses despite increase in depreciation and amortization OPERATING EXPENSES (CZK m) HIGHLIGHTS 2.3% YoY decrease in personnel expenses to CZK 1,743m +0.3% 2.6% YoY decline of average FTEs 3,455 3, % YoY decrease in admin & other operating expenses to CZK 1,294m : 1,784 1,743 Personnel CZK (47)m savings from no MSA/TSA charges in 2018 CZK (35)m IT separation costs incurred in 2017 CZK (10)m lower contribution to Deposit Insurance Fund and Resolution and Recovery fund 1,389 1,294 Admin & Other operating CZK (10)m higher release of solicitors provision (CZK 94m compared to CZK 84m in 2017) Depreciation and amortization ,301 3,215 FTEs (average) 51.8% YoY increase in depreciation and amortization to CZK 428m : Primarily driven by higher amortization due to investments in IT and digital 44.6% 46.0% Cost to Income Ratio 79

80 Content Czech macroeconomic environment Banking market dynamics MONETA strategy execution Digital update Balance sheet development Asset quality and risk metrics Capital management Profit and loss key developments Guidance Appendix

81 2018 GUIDANCE Improving 2018 guidance, targeting to deliver net profit of CZK 4.1 billion Initial Net Profit guidance billion +0.7 billion Revised Net Profit guidance 4.1 billion Net Interest Income +0.2 billion Other Operating Income +0.2 billion Cost Base +0.1 billion Cost of Risk +0.4 billion Better than expected NII position due to: Accelerated rate hikes Portfolio growth Re-pricing Better than expected success in legacy NPL sales Better than expected cost management on Personnel & Administrative charges Favorable macroeconomic environment and better than expected success in legacy NPL sales Tax -0.2 billion Note: (1) Initial guidance announced on February 7,

82 2018 GUIDANCE Improving 2018 guidance underpinned by increase in total operating income, targeting to deliver net profit of CZK 4.1bn METRICS INITIAL as of February REVISED as of May REVISED as of August REVISED as of September REVISED as of November GROSS PERFORMING LOAN BOOK GROWTH 9% 9% 9% 11% 13% TOTAL OPERATING INCOME (CZK) 9.5bn 9.5bn 9.7bn >9.9bn ~10.0bn COST BASE (CZK) ~4.9bn ~4.9bn ~4.9bn <4.9bn ~4.8bn COST OF RISK Cost of Risk (excluding legacy NPL sales) 45 55bps bps 35 45bps 80 90bps 20 30bps 75 85bps 20 30bps 75 85bps 15 25bps 70 80bps CONSOLIDATED NET PROFIT (CZK) 3.4bn ~ ~ ~3.5bn ~ ~ 3.7bn ~ ~ 4.0bn ~4.1bn RETURN ON TANGIBLE EQUITY 14% 14% 16% 17% >17% EFFECTIVE TAX RATE ~17% ~17% ~17% ~17% ~17% DIVIDEND PER SHARE (CZK gross) 1 n/a n/a Note: (1) Subject to corporate, regulatory and regulator s limitations and approval of the Annual General Meeting. 82

83 REPORTING DATES AND INVESTOR MEETINGS Calendar for 4 th quarter 2018 Goldman Sachs Annual CEEMEA Conference Czech & Hungary Investor Day WOOD s Winter Wonderland Conference London November 2018 London 14 November 2018 Prague 4 7 December 2018 General Meeting 4Q 2018 Earnings Prague 13 December February

84 INVESTOR RELATIONS Contacts Linda Kavanová 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 84

85 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

86 New mobile ATM used for MONETA promotion 86

87 DIGITAL DISTRIBUTION UPDATE Small business New to bank fully on-line business credit card starting with Friends & Family pilot In Q we plan to deliver fully on-line process for credit card sales for new to bank client. Customer is identified with taking picture of two valid documents and face recognition. Contract is signed using penny payment transfer. Credit scoring is based on external data scorecard and replacing financial statements process. LENDING PAGE ON NEW WEB CHECK WITH BUSINESS REGISTER IDENTIFICATION OVERVIEW FACE RECOGNITION 5 CREDIT SCORING 6 GENERATED CONTRACT CONTRACT SIGNATURE 7 8 VICTORY SCREEN AND 87

88 DIGITAL DISTRIBUTION UPDATE Small business New to bank Credit card & Unsecured loan with origination on web and signature on branch in 15 min In Q3 we delivered new process for credit distribution 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 88

89 DIGITAL DISTRIBUTION UPDATE Small business pre-approved loan also for companies In Q3 we delivered fully on-line lending capabilities for our current clients legal entities. We offer an unsecured installment loan and overdraft up to CZK500k where clients are able to finish process without filling any information including the empowerments of company and are able to disburse the loan by the second business day the latest. OFFER IN INTERNET PRODUCT LOAN PARAMETERS BANKA SELECTOR CONFIGURATION RECAP AND CREDIT CHECK CONSENTS CREDIT SCORING CONTRACT SMS SIGNATURE READING VICTORY AND DISBURSMENT 89

90 DIGITAL DISTRIBUTION UPDATE We have developed a version of our tablet based loan process for third parties to exploit this growing channel LOAN PROCESS BROKER SHARE ON LOANS EVOLUTION (%) 18.9% 16.6% 15.7% 16.3% 16.3% 14.4% Q1 Q2 Q3 Q4 Q1 Q COMMENTS The broker distributed consumer loan estimated at CZK 8 bn in 2018 growing significantly YoY MMB targets CZK 2.5 bn from this market in 2018 of which more than 60% is expected to be new to bank. The digital process will allow the broker to finish Consumer loan fully online w/o need to visit a branch and will be unique on Czech market Process is perceived as significant improvement by brokers and will be rolled-out to brokers by end of November and to ~2,000 by end of December From Q2/19 fully online loan refinancing capability will be added 90

91 DIGITAL DISTRIBUTION UPDATE We are developing a unique online mortgage capability for the broker market MORTGAGE PROCESS BROKER SHARE ON MORT. EVOLUTION (%) 69.9% 71.3% 65.2% 75.3% 78.0% 77.6% Q1 Q2 Q3 Q4 Q1 Q COMMENTS The broker distributed mortgage volume estimated at CZK 168 bn in 2018, 75% of the total market. MMB s targets CZK 10.5 bn (+52% YoY) from this market in 2018 with 75% of the clients being new to bank. From September we introduced to brokers capability allowing fully online conditional financial approval of client Very positively accepted by brokers as unique on CZ market. 700 fully online approvals (33% of all broker s approvals) done since launch In Q2/19 we ll add capability of fully online property valuation. 91

92 CLIENT ACQUISITION Smart Banka continues to be the best rated app on both Google Play and Apple, even beating out most FinTechs AWARDS FEATURES DELIVERED IN 2018 Non pre-approved consumer loan process up to 500K Multibanking available for ios + other banks SEPA/FX/Foreign payments Chat with call centre via Facebook Messenger included chatbot PDF statements of investments accounts Real time push notifications about card payments Autofilling of employer details for loan and Credit Card applications UX enhancements of Card repayment, transaction history page FEATURES DELIVERED IN 4Q 2018 Personal belongings insurance included digital insurance (PIP) Enhanced security against malware threats Tool about features and Smartbanka functionalities What SmartBanka can do (including 60 features) Apple Business Chat (chat with our agents via imessage) Accesibility of SmartBanka for visual impaired 92