Cembra Money Bank (CMBN) H1 2025 earnings summary

Executive summary

• Net income rose 11% year-over-year to CHF 87.2 million, driven by efficiency gains, lower losses, and strategic transformation.

• ROE increased to 13.8%, with a strong Tier 1 capital ratio of 17.7%, exceeding targets.

• Revenues and assets remained stable amid selective underwriting and a softened macro environment.

• Cost/income ratio improved to 47.6% from 50.4% year-over-year.

• Strategic transformation, digitization, and product innovation accelerated, improving customer engagement and operational efficiency.

Financial highlights

• Net revenues were CHF 267.3 million, flat year-over-year; net interest income CHF 184.3 million.

• Net interest margin rose to 5.4%; commission and fee income declined 2% to CHF 83 million.

• Operating expenses fell 6% to CHF 127.3 million, mainly from lower FTE and restructuring costs.

• Loss rate at 0.9%, slightly better than last year and in line with targets.

• Shareholders' equity at CHF 1.25 billion, down 3% due to dividend payout.

Outlook and guidance

• 2025 outlook confirmed: net income growth, ROE of 14–15%, and dividend of at least CHF 4.25.

• Cost/income ratio targeted at or below 45% for 2025, below 39% by 2026.

• Loss rate guidance maintained at around 1% for the full year.

• Revenue and volume growth anticipated to accelerate in H2, supported by innovation in cards and BNPL.

• Dividend policy targets sustainable growth, with increasing payouts planned.