Cembra Money Bank AG

Reported first-half 2026 net income was CHF 92.3 million, up 6% year over year, and EPS was CHF 3.15, also up 6%. Net revenues were stable despite lower maximum interest rates, NIM was 5.4%, and the cost/income ratio improved to 43.5% from 47.6%. Loss provisions were CHF 36.2 million, with a loss rate of 1.1% versus 0.9% last year; 30-plus delinquencies were 3.3% and NPLs were 1.7%. Net financing receivables grew 2% to CHF 6.690 billion, while Tier 1 capital ratio was 17.7% and CET1 was 15.3%. For the full year, management reiterated guidance for organic net revenues to grow in line with GDP, a loss rate around 1% pre-transaction, a cost/income ratio of 43%, ROE around 14%, and unchanged dividend policy, with at least CHF 4.60 per share for 2026. Including the Santander transaction, management said 2026 loss performance would be slightly above the midterm target of around 1%, and cost/income would remain around 43%, with H2 excluding the transaction below 40%.

Holger Laubenthal framed the half as evidence of steady strategy execution, highlighting stronger efficiency, growth across business units, and broad progress in automation and digitalization. He was notably upbeat about the Santander Swiss auto deal, calling it a “strike one opportunity” that strengthens a core business, expands scale and partnerships, and supports future growth. His tone was confident and constructive, with repeated emphasis on profitable growth, simplification, and continued execution.

Christoph Glaser emphasized that the half-year improvement came from lower operating expenses and disciplined balance-sheet management. He cited CHF 116 million of OpEx, down CHF 11 million year over year, a cost/income ratio of 43.5%, ROE of 14.1%, ROA of 2.4%, NIM of 5.4%, and funding cost of 1.17%; he also noted an LCR of 446% and NSFR of 112%. On capital, he said Tier 1 was 17.7% and CET1 15.3%, with the dividend policy unchanged and at least CHF 4.60 targeted for 2026. On the acquisition, he said the purchase price is CHF 820 million, financed with CHF 120 million of equity and CHF 680 million of debt, and that Tier 1 would be impacted by 70 to 80 bps, ending 2026 around 17%.

Analysts pressed for clarity on NIM drivers, the economics of the Santander deal, and the split of the CHF 11 million 2026 transaction impact. Management said yields are broadly stable to modestly lower, funding costs should edge slightly higher by year-end because older cheap funding matures and new debt is raised for the deal, and NIM is expected to stay at 5.4% through the year. For the acquisition, they explained the CHF 11 million net 2026 impact is roughly CHF 14 million pre-tax, with about CHF 8.4 million from day-1 expected credit losses and CHF 5.6 million from OpEx, while the deal should be EPS accretive from 2027 and add around 25 bps of ROE by 2028. They also said the pan-European partnership means Cembra would be Santander’s Swiss partner for importer financing opportunities, rather than a country-by-country structure.