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1. Company Snapshot

1.a. Company Description

Cembra Money Bank AG provides consumer finance products and services in Switzerland.The company offers savings products, including medium-term notes and deposit accounts; loans comprising cash, consumer, personal, business, and auto loans; credit card receivables; and leasing services for new and used vehicles, including cars, light commercial vehicles, motorcycles, and caravans, as well as corporate leasing services.It also provides financial protection products in case of involuntary unemployment, accident, illness, or disability; travel and flight, and card protection insurance products; investment products; and credit cards, mobile payment, and e-services.


In addition, the company offers financing solutions to small businesses under the Cembra Business brand, as well as invoice financing services.The company serves private and self-employed individuals, and small and medium enterprises.It operates through a network of branches, as well as through various sales channels, such as the internet, credit card partners, independent intermediaries, and approximately 4,000 car dealers.


The company was formerly known as GE Money Bank Aktiengesellschaft and changed its name to Cembra Money Bank AG in October 2013.Cembra Money Bank AG was founded in 1912 and is headquartered in Zurich, Switzerland.

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1.b. Last Insights on CMBN

Cembra Money Bank AG's recent performance was positively driven by its resilient net income, which increased by 5% despite a 2% revenue dip. The company proposed a dividend hike, showcasing strong financial management and strategic cost savings. This dividend increase and the company's ability to maintain profitability despite revenue challenges likely contributed to its performance. Additionally, the company's focus on cost savings and financial management helped it navigate the current market conditions.

1.c. Company Highlights

2. Cembra's 2025 Earnings: A Resilient Performance

Cembra's full-year 2025 results were marked by a net income of CHF 180 million, with a reported EPS of 2.97, slightly below analyst estimates of 3.19. The company's net revenue decreased by 2% to CHF 542 million, primarily due to lower interest income in cards, although this was partially offset by selective growth in receivables. The net interest margin was defended, and loss performance was maintained through prudent risk management, as noted by Holger Laubenthal, "We've defended our net interest margin and loss performance through well-calibrated volume and price risk management."

Publication Date: Feb -22

📋 Highlights
  • Net Income & Cost Savings:: 2025 net income reached CHF 180 million with CHF 19 million in cost savings, reflecting operational efficiency.
  • Dividend Increase:: Proposed 8% rise in ordinary dividend to CHF 4.60 and an extraordinary dividend of CHF 1, totaling CHF 5.60 per share.
  • ROE Target:: 2026 expected return on equity (ROE) of 15%, supported by stable net interest margin and risk management.
  • Balance Sheet Strength:: Tier 1 capital ratio at 17.6% and net financing receivables of CHF 6.6 billion, ensuring robust financial resilience.
  • Cost Savings Plan:: CHF 15–20 million in 2026 savings from automation, IT efficiency, and reduced personnel costs.

Revenue and Margin Analysis

Revenues are expected to grow in line with GDP in 2026, according to the company's guidance, although analyst estimates suggest a slightly higher growth rate of 2.5%. The net interest margin is expected to remain stable, driven by a focus on high-quality assets and limited exposure to contracts priced at the maximum level. The loss rate is anticipated to stabilize around 1% in 2026, following a slight increase in the second half of 2025.

Valuation and Dividend

With a Price-to-Tangible Book Value (P/TBV) ratio not directly available but a Price-to-Book (P/B) ratio of 2.32, Cembra's valuation appears reasonable compared to its peers. The Dividend Yield stands at 4.41%, with a proposed dividend increase of 8% to CHF 4.60 and an extraordinary dividend of CHF 1, indicating a commitment to returning value to shareholders. The company's guidance for a 15% Return on Equity (ROE) in 2026 is slightly above the current ROE of 14.22%, suggesting an improvement in profitability.

Outlook and Strategy

Cembra is focused on driving automation and simplification across the company, with a view to achieving cost savings of CHF 15 million to CHF 20 million in 2026. The company is also accelerating product and service innovation, including a new loyalty proposition. With a robust balance sheet and a Tier 1 capital ratio of 17.6%, Cembra is well-positioned to continue its strategic initiatives and deliver a resilient performance in 2026.

3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.70%)

6. Segments

Lending

Expected Growth: 0.9%

The lending segment is expected to outperform the global growth hypothesis due to its diversified portfolio and focus on niche markets, which should drive growth in consumer finance and small business lending, slightly above the global average.

Payments

Expected Growth: 0.5%

The payments segment is expected to grow at a slower rate than the lending segment, as it is more mature and subject to intense competition. However, the increasing demand for digital payment solutions should still drive growth, albeit at a more modest pace, slightly below the global average.

7. Detailed Products

Consumer Loans

Personal loans for individuals to finance their personal expenses, such as weddings, holidays, or unexpected expenses.

Mortgage Loans

Long-term loans for individuals to finance their property purchases or renovations.

Credit Cards

Credit cards for individuals to make daily purchases and earn rewards.

Savings Accounts

Savings accounts for individuals to save their money and earn interest.

Investment Products

Investment products such as mutual funds, bonds, and stocks for individuals to grow their wealth.

Insurance Products

Insurance products such as life insurance, health insurance, and home insurance for individuals to protect themselves and their assets.

8. Cembra Money Bank AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Cembra Money Bank AG operates in a highly competitive market, and customers have various alternatives for their financial needs. However, the bank's strong brand and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

Cembra Money Bank AG's customers have significant bargaining power due to the competitive nature of the banking industry. Customers can easily switch to alternative banks or financial institutions, which puts pressure on the bank to maintain competitive pricing and services.

Bargaining Power Of Suppliers

Cembra Money Bank AG has a diversified supplier base, which reduces the bargaining power of individual suppliers. The bank's strong financial position and reputation also give it an upper hand in negotiations with suppliers.

Threat Of New Entrants

While there are barriers to entry in the banking industry, new entrants can still disrupt the market. Cembra Money Bank AG's established brand and regulatory requirements mitigate the threat of new entrants, but the bank must still be vigilant to stay competitive.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players vying for market share. Cembra Money Bank AG must continually innovate and improve its services to maintain its market position and competitiveness.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.29%
Debt Cost 3.95%
Equity Weight 28.71%
Equity Cost 5.88%
WACC 4.50%
Leverage 248.28%

11. Quality Control: Cembra Money Bank AG passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Credicorp

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Value: 4.9

Growth: 7.1

Quality: 8.0

Yield: 6.9

Momentum: 8.0

Volatility: 8.0

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BCP

A-Score: 6.5/10

Value: 6.9

Growth: 6.7

Quality: 6.9

Yield: 3.1

Momentum: 9.5

Volatility: 5.7

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Cembra Money Bank

A-Score: 6.3/10

Value: 3.4

Growth: 4.0

Quality: 6.1

Yield: 8.1

Momentum: 7.0

Volatility: 9.3

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A-Score: 6.3/10

Value: 3.5

Growth: 4.6

Quality: 4.5

Yield: 6.2

Momentum: 9.0

Volatility: 10.0

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A-Score: 5.6/10

Value: 3.0

Growth: 6.0

Quality: 6.5

Yield: 1.2

Momentum: 8.0

Volatility: 9.0

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Bank of Ireland

A-Score: 5.5/10

Value: 4.9

Growth: 6.2

Quality: 4.0

Yield: 3.1

Momentum: 10.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

97.15$

Current Price

97.15$

Potential

-0.00%

Expected Cash-Flows