Cembra Money Bank (CMBN) H1 2024 earnings summary

Executive summary

• Net income rose 4% to CHF 78.3 million in H1 2024, with revenues up 6% to CHF 268.0 million, driven by repricing, fee income, and selective growth across lending and payments.

• The segment-based organization in Lending (Personal loans + Auto) and Payments (Cards + BNPL) is operational and delivering growth.

• Major transformation milestones included a full-scale roll-out of the new auto banking platform and a revamped digital savings offering.

• Cost/income ratio improved to 50.4% (H1 2023: 53.2%), with further reductions targeted.

• The company confirms its midterm targets and dividend outlook.

Financial highlights

• Net income increased 4% to CHF 78.3 million and net revenues rose 6% to CHF 268.0 million year-over-year.

• Net interest income up 8% to CHF 183.6 million; commission and fee income up 2% to CHF 84.4 million.

• Net financing receivables rose 2% to CHF 6.8 billion, with growth across all products.

• Loss rate normalized to 1%, up from 0.7% in H1 2023, in line with guidance.

• ROE reached 12.7%, and tier one capital stood at 17.1%.

Outlook and guidance

• Net interest margin expected to rebound to 5.5% by 2025–2026; cost/income ratio targeted below 49% for 2024 and below 39% by 2026.

• Full-year loss rate expected around 1%; ROE for the full year anticipated between 13%–14%.

• Dividend policy of at least CHF 4 per share confirmed, with increases in line with sustainable earnings growth.

• Mid-term targets include financing receivables growth of 1–3% p.a. and increasing dividend.

• Tier 1 capital ratio target remains above 17%.