Cembra Money Bank : Investor presentation half-year results 2023

Cembra

Half-year 2023 results

Holger Laubenthal, CEO | Pascal Perritaz, CFO | Volker Gloe, CRO

20 July 2023

Agenda

1. H1 2023 highlights

Holger Laubenthal

2. H1 2023 financial results

Pascal Perritaz, Volker Gloe

3. Outlook

Holger Laubenthal

Appendix

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20 July 2023

Half-year 2023 results

Cembra

H1 2023 highlights

H1 2023 performance

Solid first half year

Highlights

■ Net income of CHF 75.1 million,

17% lower due to normalisation of

loss performance and investment

in strategic initiatives

■ +2% net financing receivables

(+3% adjusted for CECL effect1)

■ +1% net revenues, with fees +12% due

to BNPL

■ Cost/income ratio of 53.2%, mainly

driven by investments in operational

excellence and BNPL acquisition

Net income

in CHF m

-17%

90.6

75.1

H1 2022

H1 2023

Loss rate

Mid-term target ≤ 1%

Net financing receivables

in CHF m

+2%

6,5206,620

31.12.2022 30.06.2023

Return on equity

Target ROE of 13-14% for 2023

Net revenues

in CHF m

Net interest income

Commission and fees

		+1%
		253.0
250.0
73.3	82.4	+12%
176.7	170.6	-3%
H1 2022	H1 2023

Tier 1 capital ratio

Mid-term target of at least 17%

■ Continued strong loss performance,

with loss rate at 0.7%

■ ROE at 12.2%, and strong Tier 1

capital ratio of 17.6%

0.5%

1%

0.7%

15.3%

13-14%

12.2%

17%

17.8%17.6%

H1 2022

H1 2023

H1 2022

H1 2023

31.12.2022 30.06.2023

1 Adjusted for CECL-related day 1-increase of allowance for losses amounting to CHF 64m

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20 July 2023

Half-year 2023 results

Cembra

H1 2023 highlights

H1 2023 products and markets

Focus on profitable growth

Personal loans		Auto loans and leases
Consumer loans market, in CHF bn	Leasing market, in CHF bn

	environment							+5%										+3%
	Market																						10.8
	8.1	7.9	7.8	8.4		8.8				9.4	9.8	9.8		10.4
		2019	2020	2021	2022	H1 23	2019	2020	2021	2022	H1 23
		Source: ZEK										Source: ZEK
			■ Net financing receivables	■ Net financing receivables
	2023
		up +1% in H1 2023						+3% in line with market
	H1		■ Selective growth while						■ Share of used cars financed
		continuing the repricing	at 78% (2022 H1: 74%)
	Cembra
		measures										■ Leasing market share of 21%
			■ Market share of 39%
		1 BNPL includes Swissbilling SA, and Byjuno AG since November 2022
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	20 July 2023					Half-year 2023 results

Credit cards

Transaction volumes, in CHF bn (first four months)

+8%

										17.9
							16.5
	14.8
		12.4		12.6

2019 2020 2021 2022 H1 23

Source: SNB June 2023

• Card revenues, assets and transaction volumes in line with expectation
• Cards issued -1% in H1 2023 to 1,039,000, with own and co- branding cards +7%
• Market share of 12% (cards issued)

Buy now pay later (BNPL)

eCommerce market, in CHF bn (full year)

13 14 15 15

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2019 2020 2021 2022 2023E

Sources: Handelsverband.swiss, zhaw, 2023 Cembra estimate

• BNPL1 fees +194%
• Billing volume 446m (+134%)
• 2.3m (+140%) invoices processed (thereof 1.9m BNPL)

Cembra

H1 2023 highlights

H1 2023 operational highlights

Progress in strategy implementation

Overall resilient performance	■ Focused on selective growth; higher fees compensated lower net interest income
	■ Repricing measures successfully being implemented
	■ Continued disciplined risk, funding and expense management while advancing
	the strategic transformation

Progress in strategy execution

Operational excellence

Business acceleration

New growth opportunities

Cultural transformation

• Core banking system for leasing ready to be launched in 2023
• Data centre consolidated and self-service app functionalities enhanced
• Continued successful transition to new card offering Certo!
• Instant POS onboarding for credit card partners launched
• CembraPay launched, bundling Swissbilling and Byjuno
• Cooperation with TWINT on track
• Ongoing execution on organisational readiness and simplification programme (new division in place, KPI's installed)
• Launched new employer branding, and career website

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20 July 2023

Half-year 2023 results

Cembra