Cembra Money Bank AG

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, NIM was 5.4%, and the cost/income ratio improved to 43.5% from 47.6%; ROE was 14.1% and ROA was 2.4%. Loss provisions were CHF 36.2 million, equal to a 1.1% loss rate versus 0.9% in the prior-year period, while net financing receivables increased 2% to CHF 6.690 billion. For full-year 2026, management reaffirmed guidance for organic net revenue growth in line with GDP, loss performance slightly above the midterm around 1% because of the acquisition accounting effect, a cost/income ratio of 43%, H2 cost/income below 40% excluding the transaction, and ROE around 14%. The Santander Swiss auto business purchase price is CHF 820 million, financed with CHF 120 million of equity and CHF 680 million of debt; management said it will reduce the Tier 1 ratio by 70 to 80 basis points to around 17% at year-end 2026.

Holger Laubenthal framed the half-year as evidence that the transformation program is working, pointing to growth in net income, better efficiency, and stable revenues despite lower rates. He emphasized growth across product lines, including a rebound in personal loans and continued momentum in auto, cards, and buy now pay later, while highlighting stronger automation, app penetration, and AI adoption. His tone was upbeat and strategic, especially around the Santander auto acquisition, which he called a "strike one opportunity" that expands scale, partnerships, and future growth options.

Christoph Glaser focused on the operating metrics and capital strength, citing CHF 92.3 million of net income, CHF 3.15 EPS, stable net revenues, NIM of 5.4%, and a cost/income ratio of 43.5%. He said OpEx fell to CHF 116 million from CHF 127 million a year earlier, with FTEs down to 744 from 805, and noted funding remained strong with an LCR of 446%, NSFR of 112%, and a Tier 1 ratio of 17.7% / CET1 of 15.3%. On the acquisition, he said the deal is EPS dilutive in 2026 because of day-one expected credit losses and integration costs, but accretive from 2027 and adds 25 basis points of ROE by 2028; he also said the company intends to pay at least CHF 4.60 per share for 2026 and grow the dividend thereafter.

Analysts focused on the NIM bridge, the Santander deal economics, and whether the acquisition would change loss rates and yield mix. Management said cost of funds was 1.17% at period end, would likely rise only slightly by year-end due to maturing low-cost vintages and new debt for the acquisition, while asset yields should gradually normalize rather than move sharply. On the acquisition, management clarified that the pan-European partnership means Cembra would become Santander’s Swiss partner for importer/dealer financing opportunities, and said the CHF 11 million 2026 impact reflects about CHF 8.4 million of day-one expected credit losses and CHF 5.6 million of 2026 OpEx. On buy now pay later and cards, management said BNPL restructuring is largely done and growth should return, while card volumes and card counts are rising even though fee income was temporarily affected by Swiss franc FX translation.