27.04.2020 – Cembra Money Bank AG

Q1 2020 update: Cembra reports overall strong business performance

Q1 2020 update: Cembra reports overall strong business performance

Zurich – Due to Covid-19, Cembra is providing this update outside of the regular reporting cycle.

In the first quarter 2020, Cembra delivered a strong business performance with net revenues increasing by 19% year-on-year (organic growth +1%) to CHF 128.2 million. Net interest income grew by 24% due to the successful commercial integration of cashgate. Commission and fee income increased by 6%, with credit card fees and commissions declining by 3%. In the month of March 2020, the credit card transaction volumes declined by 17% year-on-year due to lower spending abroad following the Covid-19 lockdown in Switzerland.

Net financing receivables amounted to CHF 6,449 million at the end of March 2020, down 2% compared to year-end 2019. Lower assets in credit cards were largely offset by a stable trend in personal loans and auto financing.

The loss rate in the first quarter 2020 improved year-on-year and was better than the corresponding budget. In the month of March, the 30+ days delinquencies and losses were in-line with the budgeted amounts. Operating expenses remained below the budgets due to benefits of the integration of cashgate, which is progressing as planned. As a result, net income for the first quarter 2020 came in above the management’s budget.

The Group currently expects to deliver a resilient business performance in 2020, with revenues being impacted mainly by overall lower volumes in credit cards. Cembra confirms its mid-term targets1 but suspends detailed guidance for 2020 due to the uncertainties related to the impact of Covid-19 on the Swiss economy and related governmental measures. Cembra will publish its half-year results on 23 July 2020.

1 Mid-term targets ROE > 15%, Tier 1 capital ratio 17% and dividend pay-out ratio 60-70%; assuming a recovery of the Swiss economy in 2021



Karin Broger; +41 44 439 85 12; media@cembra.ch

Investor Relations:

Marcus Händel; +41 44 439 85 72; investor.relations@cembra.ch

Key dates

23 July 2020

Publication of 2020 half-year results and publication of the interim report

About Cembra Money Bank

Cembra is a leading Swiss provider of financing solutions and services. Our product range includes consumer finance products such as personal loans and auto leases and loans, credit cards and the insurance sold with these products, SME loans, as well as invoice financing and deposit and savings products.

We have our headquarters in Zurich-Altstetten and operate across Switzerland through our network of branches, online distribution, as well as credit card partners, independent intermediaries and car dealers.

We have over 1 million customers in Switzerland and employ more than 1,000 people from 36 different countries. In September 2019, we successfully completed our takeover of consumer credit provider cashgate. We have been listed as an independent Swiss bank on the SIX Swiss Exchange since October 2013.