Czech Republic Diversified Banks: Maintaining Neutral ratings on Komercni and Moneta

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Czech Republic Diversified Banks: Maintaining Neutral ratings on Komercni and Moneta

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18 Jun 2026 23:00:00 ET │ 38 pages

Czech Republic Diversified Banks

Maintaining Neutral ratings on Komercni and Moneta

CITI'S TAKE

Accounting for 1Q26 results, current sector trends and our meetings with

Czech banks last week, we reduce our EPS estimates for Komercni by -1%/-

1%/-4% for 2026-28E. For Moneta we leave our projections broadly AC

unchanged (but reflect in our valuation the recent issuance of AT1). In light Andrzej Powierza

of all this, we decrease our TP for Komercni to CZK 1,023 (from CZK 1,126 +48-22-690-3566

previously) and increase our TP for Moneta to CZK 194.3 (from CZK 192.1). andrzej.powierza@citi.com

We maintain our Neutral rating for both banks.

Czech banking market has changed — In contrast to the past, the Czech banking

market is now more competitive. We believe this is visible in the constant high price

competition for deposits (see Fig 15-17) and low spread on new mortgages (see Fig

13). In the past deposits used to rise more than loans, but currently the loan growth

(+9% yoy in April 2026) materially exceeds deposit growth (+5% yoy); which we

believe can partially be attributed to the recent issuance of government’s retail

bonds (CZK 50bn). Likewise in contrast to the past, the growth in consumer loans

exceeds 10% (+15% yoy in April 2026).

Lowered EPS and DPS forecasts for Komercni — Given weaker than anticipated

1Q26 operating results and lowered management guidance on 2026 revenues (from

“Mid-to-High” to “Mid-single-digit growth”) we reduce our EPS estimates for

Komercni by -1%/-1%/-4% for 2026-28E respectively. With these lowered EPS

projections and increased guidance on loan growth (from “Mid-to high” to “High-