The proposed Moneta Air Bank deal is off as the parties fail to agree terms.
The Moneta Air Bank deal was to be the largest merger in the history of Czech Republic banking.
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Moneta Money Bank (the former GE Money Bank) kicked off the bid on 8 October last year. It aimed to snap up the Air Bank and Home Credit divisions of PPF group. PPF is owned by Czech billionaire Petr Kellner.
A completed Moneta Air Bank deal would have formed fourth-largest bank in the Czech Republic by branches with 237 outlets.
The new bank would also have been the fifth-largest bank by assets with total customers of around 2 million
The Czech banking sector continues to be dominated by international banks.
In particular, KBC’s CSOB enjoys a market share by assets of 18.5% ahead of Erste’s Ceská Sporitelna with around 18.0%.
Société Générale’s Komercní Banka has a 13.5% market share with UniCredit fourth with 9.4%.
A successful Moneta Air Bank deal would have resulted in the newly merged group having a market share of around 7.5%.
Moneta Air Bank deal: bid lowered by CZK1.75bn
The original Moneta bid was worth around CZK19.75bn ($890m).
But on 21 February Moneta lowered its bid price to CZK18bn.
Thus consumer finance group Home Credit and Air Bank are ending talks and walking away from the deal.
On 6 February Moneta released its full year results for fiscal 2018. The bank reported a net profit of CZK4.2bn, up 7.1% year-on-year.
Moneta: 2018 highlights
Moneta is enjoying success in growing its digital banking channel. Registered users of its Smart Banka m-banking offering are up by 42% to 265,000.
In addition, 2018 Moneta launched multiple new products including commercial credit cards and consumer loans via Smart Banka.
Other digital highlights include a 111% year-on-year increase in traffic to its new website www.moneta.cz.
Moneta increased its retail lending by 22.1% year‐on‐year during 2018. At the same time, it has grown its market share of mortgage gross loans to 2.8% against 2% in 2017.
