MONETA Money Bank: valuation prices in higher ROE and strong yield (stays HOLD)
We keep MONETA Money Bank as a HOLD, and set our 12M price target (PT) at CZK 116.2/share (up from CZK 90.1/share). We consider MONETA a solid dividend payer, and its 9%+ yield is responsible for the majority of the return that we see for investors in the next 12 months. Its high single-digit dividend yield remains the key investment angle for us and a reason we remain HOLDers of the bank, amid its relatively high valuation vs. its regional banking peers. The growth strategy guided by management suggests that MONETA may lag the market growth levels and lose some market share (2023-26E loan portfolio CAGR below 2%). This, in combination with the uncertainties related to the further steps that its current largest shareholder, PPF, may take with regards to its exposure to the bank, acts as a headwind, in our view. On the flipside, shareholders are likely to be supportive of high dividend remuneration.Moneta Money Bank as is a Czech Republic-based retail and expanding small and medium enterprises (SME) bank. The Company holds an universal banking licence and provides a range of retail and SME-focused financial products and services. The Company operates through a national distribution network of 229 branches and through alternative distribution channels, such as the internet, its call centre, auto dealers, brokers and approximately 4,700 leasing partners. The Company together with its controlled subsidiaries offers current accounts, savings accounts, term deposits and transactional banking products including payment services and debit cards, consumer loans, credit cards, overdrafts, mortgages and auto loans, auto leases and other complementary products such as bancassurance and sales of investment funds.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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