After record profits last year, Swiss consumer lending specialist Cembra continues its positive profit run through the first half of this year.

Cembra bank saw its net income increase 15 percent to 90.6 million Swiss francs, equating to 3.09 francs per share in the first half of the year compared to the same period a year ago, growing profitably in all areas of its business, the consumer lending specialist said in a statement Thursday.

Net revenues were 6 percent higher while fee income was 27 percent compared to the first six months of last year, the latter bolstered by its credit card and buy now pay later (BNPL) businesses. 

Lifting of Restrictions

The bank said its «excellent» results were from its commercial efforts as well as a rebound effect following the lifting of covid restrictions, as consumers pulled out their credit cards and started spending.

In its credit card business, Cembra registered an 18 percent increase in transaction volumes compared to the first six months of last year, with the number of cards issued topping 1 million at the end of June. Interest income for the unit rose 6 percent to 43.7 million francs, according to the statement.

Cutting Expenses

During the first six months of the year, Cembra also managed to squeeze its operating expenses by 2 percent, lowering them to 122 million. Personnel expenses fell by the same percentage to 67.1 million «mainly reflecting the lower number of employees.»

At the same time, general and administrative expenses fell 1 percent to 54.9 million. Overall, this resulted in a cost/income ratio of 48.8 percent compared to 52.6 percent over the same period last year.

Strategic Initiatives

Cembra’s key strategic initiatives aimed at achieving operational excellence, business acceleration, growth, and cultural transformation were progressing well in the first six months of the year, according to the bank. In addition,  new partnerships were signed with the retail chain SPAR and Zurich Insurance Switzerland, while strengthening existing partnerships with Conforama and FNAC.

In April, a new credit card app was launched to strengthen customer relationships and increase efficiency. The recent successful launch of the new credit card range Certo! was another key step in the implementation of the bank’s strategy, Cembra said.