Cembra Money Bank Ag · SIX:CMBN
Cembra Money Bank — FY2024 Earnings Presentation
36 slides from Cembra Money Bank's earnings presentation, Feb 20, 2025
Slide 1: FY 2024 results
FY 2024 results Holger Laubenthal, CEO Pascal Perritaz, CFO Volker Gloe, CRO 20 February 2025
Slide 2: Key messages
Key messages Consistent strategy execution leads to record results 1 Increase in net income (+8%) and net revenues (+7%) driven by improved net interest margin of 5.6% Strong net revenues growth (9%) in Payments (Cards + BNPL); revenues growth (5%) in Lending (Personal loans + Auto) 2 driven by prof
Slide 3: Agenda
Agenda 1. 2024 highlights Holger Laubenthal 2. FY 2024 financial results Pascal Perritaz, Volker Gloe 3. Strategy execution and outlook Holger Laubenthal Appendix 3 20 February 2025 Full-year 2024 results C e m bra
Slide 4: FY 2024 performance
2024 highlights FY 2024 performance Net income up 8% Highlights Net income Net financing receivables Net revenues in CHF m in CHF m in CHF m • Net income of CHF 170.4 million (+8%) Net interest income +8% -1% Commission and fees • Net financing receivables -1% due to +7% focus on profitable growth 5
Slide 5: Products and markets
2024 highlights Products and markets Focus on profitable growth Lending Payments Personal loans Auto loans and leases Credit cards Buy now pay later (BNPL) • Net financing receivables -4%, • Net financing receivables • Card revenues +14% mainly • BNPL fees +1% due to focus on profitability in +1%, w
Slide 6: Digital offering launched in 2024
2024 highlights Digital offering launched in 2024 Digitalisation drives increase in customer value and productivity Auto platform Cembra app Digital savings Pay later with TWINT • 20-30% faster processing time; • More than 450k enrolled • Migration completed with • Roll-out to all TWINT issuer signi
Slide 7: Agenda
Agenda 1. 2024 highlights Holger Laubenthal 2. FY 2024 financial results Pascal Perritaz, Volker Gloe 3. Strategy execution and outlook Holger Laubenthal Appendix 7 20 February 2025 Full-year 2024 results C e m bra
Slide 8: P&L: Increase in net income driven by net interest income
FY 2024 financial results P&L Increase in net income driven by net interest income In CHF m 2024 2023 as % Interest income 485.7 422.1 15 Comments Interest expense -105.3 -74.9 41 1 Higher interest income in all products 3 Higher BNPL fees as a result of portfolio Net interest income 1 380.5 347.2 1
Slide 9: Net revenues and net interest margin
FY 2024 financial results Net revenues and net interest margin Net interest margin rebounded Net revenues Comments In CHF m • Net revenues +7% due to increase in 2023 2024 interest income, partly offset by interest expense 600 +7% • 2024 a turning point, with increase in interest expense fully offse
Slide 10: Net financing receivables and yield trend
FY 2024 financial results Net financing receivables and yield trend Repricing measures positively impacting yield In CHF m Net financing receivables Personal loans Auto leases and loans Credit cards Net financing receivables Net financing receivables Net financing receivables -1% +1% -4% -2% 3,147 3
Slide 11: Provision for losses
FY 2024 financial results Provision for losses Consistently striking the right risk-reward balance Loss rate1 NPL3 and delinquencies (as %) 3% 2.7% 1.1 1.1 1.1 1.1 30+ days past due 2.1% 1.0 1.0 2.5%4 0.9 2% 0.8 0.8 0.6 0.6 1.2% 1% 0.8% Non-performing loans (NPL) 0.9%4 2014 2015 2016 2017 2018 2019
Slide 12: Operating expense
FY 2024 financial results Operating expense Diligent cost execution with cost/income at 48.1% (H2 2024: 45.8%) In CHF m 2024 2023 as % Comments Compensation and benefits 1 134.8 137.0 -2 1 Decrease driven by FTE reductions, partly 4 Decrease driven by further reductions Professional services 2 24.6
Slide 13: Cost/income ratio trend
FY 2024 financial results Cost/income ratio trend Efficiency gains expected to drive C/I ratio down to target Realised efficiency gains from transformation Cost/income ratio trend New Auto platform launched in Q1 2024 indexed 100 Processing time -30% 50.6% 50.9% in Auto (time-to- 50 decision) 48.1%
Slide 14: Balance sheet
FY 2024 financial results Balance sheet Net financing receivables -1% In CHF m Assets 31.12.24 31.12.23 as % Comments Cash and equivalents 793 922 -14 1 Trends in net financing receivables: 2 Decrease largely reflecting trend in Financing receivables1 6,783 6,844 -1 ▪ Personal loans -4% reflecting c
Slide 15: Funding
FY 2024 financial results Funding Further diversified, with retail funding growing Funding mix Funding instruments In CHF m1 6,602 6,790 6,429 1 - AT1 subordinated One issuance with perpetual term at 2.9566%1 150 250 150 250 250 150 Non-deposits – 45% 1 2 2,230 2,180 2,230 2 - Convertible bond One i
Slide 16: Capital position
FY 2024 financial results Capital position Strong Tier 1 capital ratio of 17.9% and attractive dividend policy Tier 1 capital walk Risk-weighted assets (RWA) In CHF m In CHF m 17.2% 17.9% 170 0% 1,091 1,046 -125 0 6,090 6,088 31.12.2023 Net income Dividend Other 31.12.2024 31 Dec 2023 31 Dec 2024 (U
Slide 17: Agenda
Agenda 1. 2024 highlights Holger Laubenthal 2. FY 2024 financial results Pascal Perritaz, Volker Gloe 3. Strategy execution and outlook Holger Laubenthal Appendix 17 20 February 2025 Full-year 2024 results C e m bra
Slide 18: Consumer finance market trends
Strategy execution and outlook Consumer finance market trends Attractive lending and payments markets Macro overview (as %) Trends in lending Swiss GDP growth Addressable lending market, in CHF bn +3% 1.5 CAGR 1.1 0.9 21 • Steady growth supported by long-term 20 21 market fundamentals and leasing Co
Slide 19: Strategy execution
Strategy execution and outlook Strategy execution 2024 progress in line with targets Strategy execution 2024 Financial achievements • Decisively implemented repricing measures KPI Targets 2022-261 2023 2024 Cembra’s • Continued to calibrate price/volume/risk equation DNA to drive profitable growth F
Slide 20: Outlook
Strategy execution and outlook Outlook Leverage momentum to achieve 2026 targets Outlook 20251 Financial targets up to 20262 Leverage momentum ROE Tier 1 capital ratio Dividend per share • Operational excellence: Drive transformation with continued focus on realising cost benefits 2024–26: >17% For
Slide 21: Agenda
Agenda 1. 2024 highlights Holger Laubenthal 2. FY 2024 financial results Pascal Perritaz, Volker Gloe 3. Strategy execution and outlook Holger Laubenthal Appendix 21 20 February 2025 Full-year 2024 results C e m bra
Slide 22: Macroeconomic outlook
Appendix Macroeconomic outlook Swiss economy expected to remain resilient GDP in Switzerland Swiss vs. Eurozone CPI Inflation Swiss Franc interest rates Swiss unemployment rate Change vs. previous period as % End-of-period 3-year swap rates as % As %, average per year 10 6 8.4 5.3 8 Switzerland 2 1.
Slide 23: Market positions
Appendix Market positions Serving >2 million customers across the business lines Lending and Payments Lending Payment Personal loans: 37% market share Auto business: 18% market share Credit cards: 12% market share BNPL: 30-40% market share 31 December 2024, personal loans market 31 December 2024, le
Slide 24: Strategic programmes
Appendix Recap: Strategy 2022 – 20261 Reimagining Cembra Key messages Strategic ambition We will leverage technology to deliver the most intuitive customer solutions in consumer finance Cembra’s We will draw on the strengths of our world-class credit factory and our leadership Core DNA in selected m
Slide 25: Business line Lending
Appendix Business line Lending Continued delivery on profitable growth and leveraging new platforms Leverage DNA to drive profitability Personal loans Auto Cembra’s Continuously calibrate price/volume/risk DNA equation to drive profitable growth Pricing • Initiate platform renewal to • Full roll-out
Slide 26: Business line Payments
Appendix Business line Payments Building on unique capabilities to accelerate growth Foundation Targeted programmes Ambition Insights on more than ▪ Issuing push with new proposition for BNPL customers Cross-selling 2 million customers1 Increase product ▪ Establish Cembra app as central point of eng
Slide 27: FY segment results
Appendix FY 24 segment results In CHF m FY 2024 Lending as % Payments as % Group Comments Year-on-year Year-on-year 1 Lending net income at CHF 98.4m (+5%) driven by higher net Interest income 372.5 13 113.2 24 485.7 revenues (+5%) and lower operating expenses (-2%) partly offset by higher provision
Slide 28: Profitability by source
Appendix Profitability by source Increase of return on financing receivables due to strongly improved NIM Return on financing receivables 2.6% 2.3% 2.5% Comments FY 2024 + Net revenues • Net interest income affected by higher interest income Net interest income 5.5% 5.2% 5.6% from repricing since mi
Slide 29: Dividends
Appendix Dividends About CHF 1.2 billion dividends paid out since the IPO in 2013 Dividends CHF per share Extraordinary dividend from excess capital 4.45 4.25 2 3.95 4.00 3.85 3.55 3.75 3.75 3.75 • About CHF 1.2 billion dividends 3.35 (or about CHF 40 per share) paid 3.10 2.85 out since the IPO in 2
Slide 30: Sustainability
Appendix Sustainability Strong external ESG recognition, and commitment to further improve Sustainability performance Selected targets External recognition • In 2024, significantly reduced scope 1+2 Reduce Scope 1+2 carbon emissions, by 100% renewable electric power, E lowered carbon emissions from
Slide 31: History
Appendix History Foundation –“Banque Launched credit Launched First public IPO at SIX Launched eny Finance Launched Updated Acquisition Rolled out commerciale et agricole cards through savings Auto ABS Swiss FNAC cards transaction IKEA cards strategy of Byjuno partner- E. Uldry & Cie” in Fribourg Mi
Slide 32: Glossary of key figures
Appendix Glossary of key figures including alternative performance measures To measure its performance, Cembra uses some key figures that are not defined under US GAAP. This glossary provides definitions of alternative performance measures (APM) and other key figures Key figures (including APM) Defi
Slide 33: Key figures over 10 years
Appendix Key figures over 10 years US GAAP 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net revenues (CHF m) 389 394 396 439 480 497 487 509 516 550 Net income (CHF m) 145 144 145 154 159 153 161 169 158 170 Cost/income ratio (%) 41.5 42.5 42.4 44.0 48.3 49.8 50.6% 50.6% 50.9% 48.1% Net fin rec
Slide 34: The Cembra share
Appendix The Cembra share Shareholder structure Institutional owners by domicile1 Based on nominal share capital of CHF 30m, as % Others Own shares UK 7% 2% 8% ~18,000 registered 23% private shareholders EU 10% 55% Switzerland 20% 75% US incl. CND ~1,100 institutional investors Main investors and in
Slide 35: Cautionary statement regarding forward-looking statements
Appendix Cautionary statement regarding forward-looking statements This presentation by Cembra Money Bank AG (“the Group”) includes forward-looking statements that reflect the Group’s intentions, beliefs or current expectations and projections about the Group’s future results of operations, financia
Slide 36: Calendar and further information
Calendar and further information Visit us at www.cembra.ch/investors Corporate events Investor conferences, roadshows and calls 20 March 2025 Annual Report 2024 21 February 2025 Roadshow Zurich 24 April 2025 Annual General Meeting 2025 25 February 2025 Roadshow London 24 March 2025 Roadshow Basel an