CEMBRA MONEY BANK AG Interim Report 2023
Table of contents
3 | Key facts and figures |
5 | Letter to Shareholders |
7 | Management Report |
18 | Interim Financial Report (unaudited) |
- Information for Shareholders
- Where to find us
Cembra - Interim Report 2023 | 2 |
Key facts and figures
Key facts and figures
Key figures
CHF in millions | H1 2023 | H2 2022 | H1 2022 | H2 2021 | H1 2021 |
Net interest income | 170.6 | 179.5 | 176.7 | 178.7 | 178.0 |
Commission and fee income | 82.4 | 79.4 | 73.3 | 72.5 | 57.9 |
Net revenues | 253.0 | 258.9 | 250.0 | 251.1 | 235.9 |
Provision for losses | -25.1 | -25.9 | -15.0 | -25.9 | -14.4 |
Total operating expenses | -134.5 | -135.5 | -122.0 | -122.2 | -124.1 |
Net income | 75.1 | 78.6 | 90.6 | 82.8 | 78.7 |
Total assets | 7,736 | 7,653 | 7,247 | 7,095 | 7,124 |
Net financing receivables | 6,620 | 6,520 | 6,434 | 6,207 | 6,206 |
Personal loans | 2,411 | 2,387 | 2,338 | 2,292 | 2,303 |
Auto leases and loans | 3,068 | 2,975 | 2,920 | 2,820 | 2,823 |
Credit cards | 1,014 | 1,045 | 1,110 | 1,030 | 1,025 |
BNPL | 128 | 114 | 66 | 65 | 55 |
Shareholders' equity | 1,179 | 1,274 | 1,176 | 1,200 | 1,098 |
Return on equity (in %, annualised) | 12.2 | 12.8 | 15.3 | 14.4 | 14.2 |
Net interest margin (in %, annualised) | 5.1 | 5.5 | 5.5 | 5.7 | 5.6 |
Cost / income ratio (in %) | 53.2 | 52.3 | 48.8 | 48.6 | 52.6 |
Tier 1 capital ratio (in %) | 17.6 | 17.8 | 18.8 | 18.9 | 18.3 |
Employees (full-time equivalents) | 950 | 929 | 916 | 916 | 934 |
Credit rating (S&P) | A- | A- | A- | A- | A- |
Basic earnings per share (in CHF) | 2.56 | 2.41 | 3.09 | 2.82 | 2.68 |
Book value per share (in CHF) | 39.30 | 42.47 | 39.20 | 40.00 | 36.60 |
Share price (in CHF) | 74.20 | 76.90 | 68.20 | 66.45 | 103.70 |
Market capitalisation | 2,226 | 2,307 | 2,046 | 1,993 | 3,111 |
For a glossary of key financial indicators including alternative performance measures please see www.cembra.ch/financialreports.
Cembra - Interim Report 2023 | 3 |
Key facts and figures
Share price Cembra
CHF | |||||||||||||||||||||
125 | |||||||||||||||||||||
110 | |||||||||||||||||||||
95 | |||||||||||||||||||||
80 | |||||||||||||||||||||
65 | |||||||||||||||||||||
50 | |||||||||||||||||||||
Jan 2020 | Mar 2020 | May 2020 | Jul 2020 | Sep 2020 | Nov 2020 | Jan 2021 | Mar 2021 | May 2021 | Jul 2021 | Sep 2021 | Nov 2021 | Jan 2022 | Mar 2022 | May 2022 | Jul 2022 | Sep 2022 | Nov 2022 | Jan 2023 | Mar 2023 | May 2023 | Jun 2023 |
Facts | |||||||||||||||||||||
CHF | |||||||||||||||||||||
2,226,000,000 | 1,039,000 | 1,036,000 |
was the market capitalisation of Cembra | number of credit cards issued by Cembra | customers trust Cembra as their |
by the end of June 2023 | preferred partner (excl. BNPL customers) |
in billion CHF | in 1,000 | ||||
3.0 | 1,100 | ||||
2.5 | 1,000 | ||||
2.0 | 900 | ||||
1.5 | 800 | ||||
1.0 | 700 | ||||
0.5 | 600 | ||||
0 | 500 | ||||
6-2022 | 12-2022 | 6-2023 | 6-2022 | 12-2022 | 6-2023 |
1,023 | 22 |
in 1,000
1,100 | ||
1,000 | ||
900 | ||
800 | ||
700 | ||
600 | ||
500 | ||
6-2022 | 12-2022 | 6-2023 |
2.56 |
employees from 44 different nations work for Cembra (950 FTE)
sales area managers serve about 3,700 car dealers
were the earnings per share (EPS) of Cembra in the first half of 2023
in CHF
1,100 | 30 | |
1,000 | 25 | |
900 | 20 | |
800 | 15 | |
700 | 10 | |
600 | 5 | |
500 | 0 | |
6-2022 | 12-2022 | 6-2023 |
3.0 | ||
2.5 | ||
2.0 | ||
1.5 | ||
1.0 | ||
0.5 | ||
0.0 | ||
6-2022 | 12-2022 | 6-2023 |
6-2022 | 12-2022 | 6-2023 |
Cembra - Interim Report 2023 | 4 |
Letter to Shareholders
Dear Shareholders
It is our pleasure to inform you about a solid result in the first six months of 2023. Our net income amounted to CHF 75.1 million, or CHF 2.56 per share, a decrease of 17% compared to the record results in the first six months of 2022 due to the normalisation of the loss performance towards expected levels after the Covid-19 pandemic, as well as continued strategic investments in operational excellence. Net revenues increased by 1%, and commission and fee income increased by 12%. The loss performance remained strong at 0.7%. As a result, return on equity came in at 12.2%, and the Tier 1 capital ratio stood at 17.6%.
In the first half of the year, we achieved a solid result, and further advanced our strategic transformation. In the context of the changed interest rate environment, we put a particular focus on selective growth while continuing the repricing measures started in mid-2022. I am particularly pleased with the successful continuation of the migration of our cards portfolio and the strengthening of our position in the attractive BNPL market by bundling Swissbilling and Byjuno into CembraPay.
Robust business performance
The Group's total net financing receivables at 30 June 2023 amounted to CHF 6.6 billion, an increase of 2% compared with 31 December 2022. Adjusted for the effect of the adoption of CECL (current expected credit losses) in US GAAP, the underlying operational growth amounted to 3%.
In the personal loans business, net financing receivables increased by 1% to CHF 2.4 billion in the first six months of 2023. Interest income in personal loans increased by 2% to CHF 82.5 million, with a yield of 6.6%.
Net financing receivables in auto leases and loans increased by 3% to CHF 3.1 billion in the reporting period. Interest income increased by 11% to CHF 71.8 million, with a yield of 4.7%.
Following the successful launch of the credit card family Certo! in July 2022, the credit cards business delivered a resilient performance in the first six months of 2023. Net financing receivables declined by 3% to CHF 1.0 billion at 30 June 2023. Interest income in the cards business declined by 4% to CHF 42.1 million, with a yield of 8.0%. The number of cards issued amounted to 1,039,000 at 30 June 2023, a decline of 1% since 31 December 2022. By mid-July 2023, about 60% of the previous Cumulus card portfolio has been migrated to the new proprietary offering Certo!. Cembra also continued to successfully grow its portfolio of co-branding card partnerships (excluding Cumulus) by 7% in the first six months of the year.
In the buy now pay later (BNPL) business, the billing volumes more than doubled to CHF 446 million in the first half of 2023 (H1 2022: CHF 197 million), driven both by the consolidation of Byjuno and organic growth. As a result, the commissions and fee income from BNPL increased to CHF 19.0 million, up from CHF 6.5 million in the first half of 2022.
Fee business drives up revenues
Net revenues increased by 1% to CHF 253.0 million in the first six months of 2023.
Net interest income declined by 3% to CHF 170.6 million (H1 2022: CHF 176.7 million) as interest expense reflected the
changed interest rate environment since mid-2022 and increased to CHF 30.3 million (H1 2022: CHF 12.3 million).
The lower net interest income was more than compensated by a 12% increase of commission and fee income to CHF 82.4 million, mainly driven by growth in BNPL. The share of net revenues generated from commissions and fees amounted to 33%, up from 29% in the first six months of 2022
Total operating expenses increased by 10% to CHF 134.5 million. Personnel expenses increased by 4% to CHF 69.7 million, reflecting the acquisition of Byjuno. General and administrative expenses amounted to CHF 64.8 million, an increase of 18% due to significant investments in strategic initiatives, integration costs and the enhanced organisation. As a consequence the cost/income ratio increased to 53.2% (H1 2022: 48.8%). For the 2023 financial year, Cembra continues to expect a stable cost/income ratio compared to 2022 (50.6%).
Cembra - Interim Report 2023 | 5 |
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Disclaimer
Cembra Money Bank AG published this content on 20 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2023 04:53:08 UTC.
