Cembra reports solid full-year results

Cembra Money Bank AG / Key word(s): Annual Results Cembra reports solid full-year results 22-Feb-2024 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 LR The issuer is solely responsible for the content of this announcement. Ad hoc announcement pursuant to Art. 53 LR

• Net income at CHF 158.0 million, 7% lower than record prior-year results; net income in second half of 2023 at CHF 83.0 million, up 5% year on year
• Net financing receivables up 3% and net revenues up 1% to CHF 515.7 million, with a 10% increase in fee income
• Stable cost/income ratio of 50.9% (2022: 50.6%), and continued robust loss performance, with a loss rate of 0.8%
• Return on equity at 12.5%, with Tier 1 capital ratio of 17.2%
• Dividend increase to CHF 4.00 per share proposed
• Further progress in strategic transformation, on track to deliver mid-term targets by 2026
• Outlook: increase in net income with return on equity of 13–14% in 2024

Zurich, 22 February 2024 – In a challenging environment, Cembra achieved solid results and continued to press ahead with its strategic transformation. Cembra’s 2023 net income amounted to CHF 158.0 million, or CHF 5.39 per share, a decrease of 7% compared to the record results of 2022 as higher commission and fee income was outweighed by lower net interest income, the return of the Group’s loss performance to normal levels following the Covid-19 pandemic and continued strategic investments in operational excellence. Net revenues increased by 1%, with commission and fee income offsetting lower net interest income. The loss performance remained robust at 0.8%. As a result, return on equity came in at 12.5%, and the Tier 1 capital ratio stood at 17.2%.

CEO Holger Laubenthal commented: “The solid results for 2023 reflect our continued focus on profitable growth. We responded decisively to the increased funding cost by adopting appropriate pricing measures. This had a positive impact on the net interest margin in the second half of the year. We continued to grow our net financing receivables, reflecting our strong market position. With our ongoing investments in the strategic transformation and our cost discipline we are on track to deliver on our mid-term targets.”