Cembra Money Bank 1H revenue CHF267.3m, estimate CHF277.7m

Cembra Money Bank 1H revenue CHF267.3m, estimate CHF277.7m

Cembra Money Bank AG has released its first half 2025 financial results, revealing a revenue of CHF267.3 million, which is slightly below the estimated CHF277.7 million. The bank's net income for the period was CHF79.8 million, a 3.5% decrease compared to the same period in 2024. The profit margin stood at 29.6%, down from 30.8% in the previous year.

In addition to its financial performance, Cembra Money Bank has made significant strides in the covered bonds market. The bank's inaugural auto covered bonds, issued under a CHF150 million fixed-rate bond with a five-year maturity, have been assigned a final rating of 'AAA' by Fitch Ratings [1]. The bonds, which are backed by a cover pool of Swiss auto lease receivables, including residual value (RV), have a conditional pass-through feature with a maturity extension of seven years. This issuance is the second covered bond programme backed by auto lease receivables rated by Fitch and is based on a similar issuance template to other Swiss contractual covered bonds.

Fitch Ratings' 'AAA' rating for Cembra's auto covered bonds is driven by several key factors. The bonds benefit from strong liquidity protection and prospects of recoveries given default, as Fitch has not identified any material downside risk to recovery expectations. The overcollateralisation protection, with a break-even asset percentage (AP) of 89%, supports timely payments on the bonds and recoveries given default. Additionally, the programme includes a liquidity reserve fund that covers the higher of three months' interest payments on the outstanding auto covered bonds and senior expenses, and accrued interest and senior expenses since the last payment date.

Looking ahead, Cembra Money Bank's revenue is forecast to grow at an average rate of 2.8% per annum over the next three years, compared to a 4.9% growth forecast for the Machinery industry in Switzerland. The company's share price has remained broadly unchanged from a week ago, indicating a cautious market sentiment towards the bank's financial performance.

References:
[1] https://www.marketscreener.com/news/fitch-assigns-cembra-money-bank-ag-s-inaugural-auto-covered-bonds-final-aaa-rating-ce7c5cdcd98af022
[2] https://finance.yahoo.com/news/sfs-group-first-half-2025-075558390.html