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Investing.com -- Cembra Money Bank (SIX:CMBN) shares plummeted more than 11% Thursday after the company’s first-half (H1) results missed market expectations.
The Swiss lender posted an 11% increase in first-half net income to CHF 87.2 million, supported by lower operating costs and stable asset quality, despite a subdued macroeconomic environment and lower interest rates in consumer finance.
However, the figure was 6% below consensus estimates, according to investment bank Vontobel.
Net revenues were stable at CHF 267.3 million in the first half of 2025, with net interest income contributing CHF 184.3 million, unchanged from the prior year. Vontobel said revenue missed estimates by 4%.
Overall, Cembra’s net interest income declined 2% to CHF 231.4 million for the period, while the net interest margin stood at 5.4%.
Operating expenses fell 6%, driving the cost/income ratio down to 47.6% from 50.4% a year earlier. Credit quality remained solid, with the loss rate improving slightly to 0.9% from 1.0%. Return on equity reached 13.8%, while the Tier 1 capital ratio stood at 17.7%.
CEO Holger Laubenthal said the group had made “significant progress with our strategic transformation,” adding that cost reductions and product simplification efforts were beginning to show results.
“We are determined to sustain this momentum and deliver on our 2026 financial targets,” he said.
Cembra reaffirmed its 2025 outlook, targeting a return on equity of 14–15% and higher net income. The company also expects to pay a dividend of at least CHF 4.25 for the year and remains committed to meeting its 2026 financial goals.