Swiss consumer credit bank Cembra Money Bank boosted profit in the first half of the year by 12 percent and raised its profit forecast for the full year.
Cembra Money Bank’s profit in the six months through June rose 12 percent to 77.7 million Swiss francs ($78.3 million), driven by a strong performance in its core business related to growth initiatives, it said Tuesday. The bank’s net customer credit claims reached almost 5 billion francs.
The credit claims rose 4 percent on the year to 4.7 billion francs. The private credit business by 4 percent (1.9 billion francs), the vehicle financing arm by 2 percent (2 billion francs) and the credit card business by 8 percent (900 million francs).
Profit Boost Flagged
Given the assumption the current business climate and the business development remain intact, the bank has lifted its full-year forecast for earnings-per-share to 5.20 francs to 5.50 francs (from 4.80 francs to 5.10 francs). The bank expects improved profit from its acquired businesses and the growing credit card sector. These should offset the decline in interest rates in the private sector credit business.
Operating expenses are forecast to increase slightly as a result of the acquisition-related increase in staff and higher investments in digitalization, it said. This should ensure a stable cost-to-income ratio, while allowances for losses should remain at last year's level.
In April Niklaus Mannhart was named chief operating officer at Cembra Money Bank, and will take up the new position next month and and join top management. In June Cembra appointed Joerg Fohringer as B2B head, and will take up his post as well as join the top echelon from December.
