Swiss consumer bank Cembra booked profits in all of its businesses to achieve a record net profit. It will increase its dividend.

Last year Swiss consumer bank Cembra recorded a record net profit of 169.3 million Swiss francs ($182.4 million), topping the previous year which was also a record, according to annual results released Thursday. 

The bank said that its strategic transformation is progressing well and the introduction of its new credit card is doing well in the market. At the same time, its integration of Byjuno is on track and helping its buy-now-pay-later (BNPL) business. 

Buy Now, Pay Later

Commenting on the results, Cembra CEO Holger Laubenthal said 2022 «was a successful year for Cembra. We grew profitably in all business areas in a challenging environment. This shows that our financing solutions are attractive and appreciated by our customers. Furthermore, we are making good progress in implementing our strategy.

The launch of our Certo! credit card family is a success, and by deepening and expanding our partnerships we are laying the foundations for further growth. With the acquisition of Byjuno, we have also significantly strengthened our leadership position in the fast-growing BNPL business.»

The BNPL business increased its billing volume by over 50 percent to 477 million francs while fee income from BNPL and other sources was 19.5 million, up 58 percent.

Cembra completed its acquisition of Byjuno in November of last year and is not fully consolidated, according to the report. In addition, the merger with Swissbilling will allow Cembra to develop more online and point-of-sales solutions in Switzerland helping to accelerate profitable BNPL growth.

Dividend Increase

The result allows Cembra to propose a three percent increase of its annual dividend to 3.95 francs from 3.85, which it will do at its annual general meeting on April 21. That results in a payout ratio of 68 percent. 

Cembra achieved a 13.7 percent return on equity and has a tier 1 capital ratio of 17.8 percent. 

Headquartered in Zurich, Cembra has more than one million customers in Switzerland and employs around 1,000 people from 42 different countries. It operates throughout Switzerland through its branch network of branches online distribution channels, along with its credit card partners, independent intermediaries, and car dealers.