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Financials

UPDATE 1-Moneta Money Bank committed to 2019, 2020 dividend outlook -CEO

(Adds dividend outlook, estimate on gain, debt issue)

PRAGUE, Dec 13 (Reuters) - Czech lender Moneta Money Bank will stick to its dividend guidance for 2019 and 2020 as it completes its acquisition of the Czech building savings and mortgage business from Germany’s Wuestenrot & Wuerttembergische , Chief Executive Tomas Spurny said.

Moneta has said it would pay at least 6.65 crowns per share in dividends from 2019 and 2020 profits. In November, shareholders approved paying a portion of the 2019 dividend in an interim payout.

Spurny said the 2020 payment would again be split with an interim dividend.

Moneta said on Thursday it had signed a deal to acquire Wuestenrot’s Czech assets for 180.4 million euros ($198.84 million) and expected to settle the transaction on April 1 next year.

It has said the deal would boost profitability by 15%.

Spurny told an analysts call that the capacity to increase dividends would be seen from 2021.

He also estimated a 500 million crown (19.62 million euros) ($21.62 million) after-tax gain from the acquisition, although integration costs and accounting adjustments could offset that.

As part of the acquisition Moneta will issue Tier 2 debt of up to 2.6 billion crowns, planned for the first quarter next year, Spurny said.

Moneta last month reported third-quarter net profit of 1.06 billion crowns, down 15% on the year, and lifted its outlook for the full-year to an expected 4 billion crowns.

$1 = 23.1270 Czech crowns 1 euro = 25.4906 Czech crowns $1 = 0.9073 euros Reporting by Jason Hovet, editing by Louise Heavens

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