PRAGUE (Reuters) – Czech lender MONETA Money Bank raised its 2021 profit forecast on Friday after a stronger-than-expected third quarter as risk costs eased, while higher interest rates bode well for the future.

The improving economy and a central banking system that raises interest rates rapidly to tame inflation have helped the sixth-largest bank in the country. But, MONETA Chief Executive Tomas Spurny stated there are still some uncertainties.

MONETA expects net profits to rise from 3.0 billion to 3.6 Billion in earlier years.

It posted a net profit of 1.47 Billion Crowns in the third quarter, which is well over the Reuters poll estimate at 1.09 billion.

The quarter saw net interest income and net bank income slightly higher than expected, however, risk costs decreased sharply which boosted profit and improved the outlook.

Spurny stated to journalists that the bank will update its outlook for 2022-2025 in February, but that he still sees upside potential in earnings.

“The upside from higher interest rates can be in the range between 4 and 5% of cumulative interest income,” he stated.

He said that risk costs would increase, but he did not know why.

Spurny stated that there was a possibility of a resurgence of the COVID-19 pandemic.