Issuance activity: Tomorrow, MinFin is scheduled to auction CZK2.0bn of 2035 bonds, CZK2.0bn of 2037 bonds and CZK2.0bn of 2038 floaters. The amount of subscribed retail bonds during the first subscription period, which ended on June 28, reached approx. CZK80.0bn according to MinFin. There are two more periods in this year: one in August-September, with only the 3m bill on tap, and the second before Christmas, with all three bonds on offer. Overall, with CZK291.2bn issued on the primary and secondary market combined ytd and MinFin’s indicated issuance volume on financial markets prior to the retail bonds campaign at CZK400-500bn, the issuance pace is likely to slow in 2H26 before picking up in 2027 (or eventually in 4Q26 already) due to a deeper budget deficit and higher redemptions next year.

Issuance activity: Tomorrow, MinFin is scheduled to auction CZK2.0bn of 2035 bonds, CZK2.0bn of 2037 bonds and CZK2.0bn of 2038 floaters. The amount of subscribed retail bonds during the first subscription period, which ended on June 28, reached approx. CZK80.0bn according to MinFin. There are two more periods in this year: one in August-September, with only the 3m bill on tap, and the second before Christmas, with all three bonds on offer. Overall, with CZK291.2bn issued on the primary and secondary market combined ytd and MinFin’s indicated issuance volume on financial markets prior to the retail bonds campaign at CZK400-500bn, the issuance pace is likely to slow in 2H26 before picking up in 2027 (or eventually in 4Q26 already) due to a deeper budget deficit and higher redemptions next year.

Market situation: Czech rates came under downward pressure last week following lower-than-expected June CPI (more here: https://bit.ly/CPI_Jun26_EN) and dovish communication by NBP Chief Glapinski following the interest rate decision. However, another round of escalation in the conflict in the Middle East has recently reversed these moves amid the flattening of the CZK IRS and CZGB curves.

Rates outlook: Our baseline scenario is that CNB interest rates will remain on hold for the rest of this year, as we view the June hike as primarily a precautionary measure. However, in terms of the next possible rate movement, we still consider a hike to be more likely than a cut. This is due to the robust domestic economy, rapid wage growth, fiscal expansion (more here: https://bit.ly/CNB_Jun26_EN).

Moneta reported a yoy increase in net profit of +8.3%, reaching CZK1.76bn in 2Q26. This corresponds to RoTE of 23.3%.  Strong growth in NII and NF&C, coupled with lower operating costs, came as a particularly positive surprise. Net profit exceeded the market consensus by 2.6%. Moneta’s management has increased its full-year net profit forecast by 3%. Overall, Moneta delivered very strong results, well above the market.

Moneta reported a yoy increase in net profit of +8.3%, reaching CZK1.76bn in 2Q26. This corresponds to RoTE of 23.3%.  Strong growth in NII and NF&C, coupled with lower operating costs, came as a particularly positive surprise. Net profit exceeded the market consensus by 2.6%. Moneta’s management has increased its full-year net profit forecast by 3%. Overall, Moneta delivered very strong results, well above the market.

Moneta's total operating income grew in the second quarter of 2026, primarily thanks to NII. This increased by +9.2% yoy to reach CZK2.6bn. This was mainly due to a higher volume of loans and the associated income. NIM increased from 1.95% in 1H25 to 2.05%. Growth in NF&C (+10.8% yoy to CZK906m) was also unexpected, driven by the distribution of investment products. Moneta reported total operating income of CZK3.7bn (+8.2% yoy). Operating expenses fell slightly yoy (CZK1.4bn, -0.6%). Operating profit increased substantially by +14.1% yoy to CZK2.3bn. This reflects revenue growth coupled with a decline in costs. Credit costs grew to CZK254m in 2Q26 (+117% yoy) due to a client default. Nevertheless, in our view, they remain very low. The effective tax rate (14.9%) was also slightly lower than expected. Net profit for the second quarter increased by a significant +8.3% yoy to reach CZK1.7bn. This corresponds to a RoTE of 23.3%.

The loan portfolio grew by +9.1% yoy, reflecting growth in investment loans in particular. The volume of new loans granted increased by +43.9% yoy due to strong demand. The NPL ratio fell again, reaching 0.9%. Customer deposits increased by +3.7% yoy.

Moneta’s capital adequacy ratio stood at 19.95%. The excess capital above Moneta’s management target (15.5%) amounts to CZK8bn.

2026 Guidance: Moneta has raised its full-year targets, which were presented in February. It expects total revenue to reach CZK14.8bn (previously CZK14.6bn), operating costs to reach CZK5.9bn (previously CZK6.0bn), operating profit to reach CZK8.9bn (previously CZK8.6bn), net profit to reach CZK6.8bn (previously CZK6.6bn), and RoTE to reach 23%. Management estimates the credit costs at 20-35bps.  For the first half of this year, the reported net profit figures represent 49% of the revised full-year target. The second half of the year tends to be stronger than the first, due to factors such as the absence of regulatory fees, which are typically incurred in the first quarter.