Swiss consumer lending specialist Cembra Money Bank showed record profits last year. The credit card business has grown especially.
Cembra’s net profit increased 6 percent to 161.5 million Swiss francs in 2021, despite revenue falling 2 percent to 487.0 million Swiss francs, the bank said Wednesday, announcing its annual results.
CEO Holger Laubenthal said that sustainable development in all areas of business and our excellent loss ratio allow us to report record profits in difficult circumstances. In addition, Cembra has also won new partners in the areas of credit card and “Buy now, pay later”, he added.
Interest income fell 5 percent due to a reduction in the personal loan receivables base, while interest expenses fell 3 percent to 26 million Swiss francs.
Total net loans and advances to customers at the end of 2021 amounted to 6.2 billion Swiss francs, down 1 percent from the previous year. In loans to individuals, receivables fell by 5 percent to 2.5 billion Swiss francs, while car financing fell by 1 percent to 2.8 billion Swiss francs.
The impact of the Covid-19 pandemic in Switzerland and the cautious underwriting policy in new business were cited as factors.
Credit card receivables increased by 6 percent to 1.0 billion Swiss francs, which contributed to an increase in card issuance by 4 percent over the same period last year to 1.07 million.
At the next general meeting on April 21, the Board of Directors proposes to increase dividends per share by 3 percent to 3.85 Swiss francs.
The major shareholders are UBS Fund Management, which owns at least 5 percent, followed by Blackrock, Credit Suisse Funds and Swisscanto, each of which owns at least 3 percent of Cembra, according to the site.
https://www.retailnews.asia/consumer-bank-cembra-books-record-profits/?utm_source=rss&utm_medium=rss&utm_campaign=consumer-bank-cembra-books-record-profits Consumer bank Cembra records record profits