Cembra Money Bank announces strong annual results in 2023

Cembra Money Bank has released its results for the year 2023, marked by a net profit of CHF 158.0 million, down 7% compared to the previous year. Despite a challenging environment, the bank delivered a solid performance, supported by a 5% increase in profits in the second half of the year compared to the previous year. Net financial assets and net revenues increased by 3% and 1% respectively, reaching CHF 515.7 million. The bank has also proposed an increase in its dividend to CHF 4.00 per share.

CEO Holger Laubenthal highlighted Cembra's ongoing efforts to grow profitably, citing price adjustments in response to rising financing costs. The bank's strategic transformation initiatives are on track to achieve medium-term objectives by 2026. Notable performances include a stable cost-to-income ratio of 50.9% and a return on equity of 12.5%. Solvency remains strong with a Tier 1 equity ratio of 17.2%.

The bank also reported progress in implementing its strategy, particularly through transforming its organizational structure and focusing on automation and digitalization to enhance the customer experience. The goal is to reduce staff to around 830 full-time equivalents by the end of 2024, through natural attrition and early retirements, while providing a social plan for inevitable redundancies.

For 2024, Cembra anticipates a net revenue increase moderately above Swiss GDP growth with a cost-to-income ratio below 49%, aiming for higher net profit and an ROE of 13 to 14%. These forecasts reaffirm the medium-term objectives until 2026.