Moneta signs contract to buy Wustenrot's Czech units

Prague, Dec 12 (CTK) - Moneta Money Bank representatives signed a contract to buy the Czech building savings and mortgage business from German group Wustenrot & Wurttembergische for EUR180.4m (about Kc4.6bn) today, the firms said in a press release.

Moneta will acquire 100 percent of building society Wustenrot - stavebni sporitelna and 100 percent of mortgage bank Wustenrot hypotecni banka.

The acquisition is to be closed on April 1, 2020, but is yet subject to approvals of the Czech National Bank (CNB) and antitrust office UOHS.

Moneta intends to finance the acquisition from its existing excess capital and liquidity resources.

The bank said the step would extend its client base by some 350,000 clients from the current about 1 million.

The acquisition will also increase the bank's retail deposit base by about Kc50bn, or 44 percent, its market share in retail deposits from the current 5 percent to 8 percent, and the mortgage market share from the current 3.2 percent to more than 6 percent, Moneta said.

The bank said earlier it expected the acquisition to strengthen its annual profitability by 15 percent and increase operating revenues by 10 percent annually at least.

Moneta intends to use the growth potential gained thanks to the acquisition, CEO Tomas Spurny said today.

Michael Pupala, the current CEO of Wustenrot in Czechia, is to retain the posts of CEO and board chairman of both units. In addition, he will become a member of Moneta's top management.

"I view the planned acquisition as another stage in our firm's development and as an opportunity to become a top specialist in home financing solutions on the Czech market," Pupala said.

Moneta had operated as GE Money Bank until 2016. It changed the name in connection with its IPO on the Prague Stock Exchange (BCPP) in May 2016.

Moneta Money Bank is the fourth biggest bank in Czechia in terms of client numbers and ranks among the biggest titles traded on the Prague bourse.

The Wustenrot financial group, which offers building savings and mortgage loans on the Czech market, saw its net profit rise by 1 percent to Kc420m last year.

Wustenrot stavebni sporitelna is the smallest out of the five building societies operating on the Czech market. Similarly, Wustenrot hypotecni banka ranks among minor mortgage banks in Czechia.

The Wustenrot group in Czechia used to include an insurance unit, which was bought by insurer Allianz in 2016.

tam/er