Cembra Money Bank AG (XSWX:CMBN) Full Year 2025 Earnings Call Highlights: Resilient Net Income …

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Fri, February 20, 2026 at 12:01 AM GMT+9 3 min read

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**Net Income:** Increased by 5% to CHF179.6 million.

**Net Revenue:** Decreased by 2% to CHF542 million.

**Net Interest Margin:** Maintained at 5.5%.

**Cost Savings:** Achieved CHF19 million in cost savings.

**Cost Income Ratio:** Improved to 45.2%, with 43% in the second half.

**Loss Performance:** Loss rate stable at 1.1%.

**Tier 1 Capital Ratio:** Strong at 17.6%.

**Dividend:** Proposed increase of 8% to CHF4.60, plus an extraordinary dividend of CHF1.

**Net Financing Receivables:** Slight decline by 0.6% to CHF6.6 billion.

**Operating Expense:** Decreased by 7% to CHF245 million.

**Funding Cost:** Improved to 1.33%.

**Liquidity Coverage Ratio (LCR):** Strong at 744%.

**Net Stable Funding Ratio (NSFR):** At 116%.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Cembra Money Bank AG (XSWX:CMBN) reported a net income increase of 5% to CHF180 million, demonstrating resilience in a volatile economic environment.

The company achieved CHF19 million in cost savings, reaching the upper end of their guidance.

A proposed dividend increase of 8% to CHF4.60, along with an extraordinary dividend of CHF1, reflects strong capitalization and performance.

The Tier 1 capital ratio remains robust at 17.6%, above the midterm target of 17%.

Operational efficiency improved significantly, with a cost-income ratio reduction to 45.2% and further improvements expected in 2026.

Negative Points

Net revenue decreased by 2% to CHF542 million, reflecting selective growth in receivables and lower interest income in cards.

The personal loans segment saw a decline of 6% due to selective underwriting and pricing strategies.

The net financing receivables slightly declined by 0.6% to CHF6.6 billion, indicating challenges in maintaining growth.

The cards yield was impacted by regulatory changes in maximum interest rates, affecting overall revenue.

Loss provisions remained stable at CHF74 million, with a loss rate of 1.1%, indicating ongoing risk management challenges.

Q & A Highlights

Q: We observed a significant swing in the loss rate between the first and second half of the year. Could you explain what caused this and if the second half rate is indicative of future expectations? A: The difference in loss rates is primarily due to the synchronization of collection and write-off procedures, which had a more pronounced effect in the first half. Typically, the second half is slightly worse due to seasonality. We manage this within a triangle of risk, price, and volume, and expect to maintain a loss rate around 1% in 2026.

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Q: Could you elaborate on the cost savings planned for 2026, particularly the CHF15 million to CHF20 million reduction? A: The cost savings will result from lower personnel costs due to automation, efficiency gains in IT through infrastructure consolidation, reduced depreciation from legacy assets, and disciplined expense management. These initiatives are expected to achieve the targeted cost reductions.

Q: Regarding net interest margin (NIM), how do you expect it to remain stable given the decline in funding costs and the impact of lower interest rate caps on personal loans? A: We anticipate a stable NIM in 2026. Our strategy focuses on high-quality assets, limiting exposure to contracts priced at the maximum level. We dynamically adjust pricing to maintain a stable NIM despite fluctuations in interest rates.

Q: Can you discuss the decline in the personal loans book and any changes in lending policy? A: The decline in personal loans is due to more restrictive lending policies. We have maintained market share, indicating similar market trends. We regularly adjust underwriting procedures based on macroeconomic conditions and have re-entered segments previously exited, focusing on profitable growth.

Q: What is the outlook for the cost of financing in 2026? A: We expect a slight reduction in the cost of financing in 2026, following a decrease from 1.53% in 2024 to 1.33% in 2025. Our approach focuses on managing the net interest margin through dynamic pricing adjustments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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