Cembra reports 6% increase in net income in the first half of 2026 and acquires the substantial part of Santander’s Swiss auto financing business

Ad hoc announcement pursuant to Art. 53 LR

• Net income increased by 6% to CHF 92.3 million, driven by further efficiency gains 
   
• Net financing receivables grew by 2%, supported by targeted growth in personal loans, auto and cards businesses
   
• Net revenues remained stable despite lower maximum interest rates and softened macro environment
   
• Operating expenses declined 9% improving the cost/income ratio to 43.5% from 47.6%, and continued solid loss performance at 1.1% 
   
• Return on equity increased to 14.1% from 13.8%, with strong Tier 1 capital ratio of 17.7%
   
• Acquisition of Santander’s Swiss auto financing business adds further scale and expands distribution and is expected to be EPS accretive from 2027 onwards. Related one-off effects are expected to reduce Group ROE to around 14% in 2026
   
• Outlook: Excluding the transaction, Cembra expects its 2026 full-year performance to be in line with its previous guidance 

Zurich, 23 July 2026 – In the first half of 2026, Cembra increased net income by 6% to CHF 92.3 million, or CHF 3.15 per share. The improvement was driven by a 9% reduction in operating expenses. Net revenues remained stable and net financing receivables increased by 2%, reflecting targeted growth in the personal loans, auto leases and credit cards businesses. The cost/income ratio improved to 43.5% and the loss performance continued to remain solid with a loss rate of 1.1%. Return on equity reached 14.1%, and the Tier 1 capital ratio stood at 17.7%. 

Cembra has signed an agreement to acquire the substantial part of Santander’s Swiss auto financing business. The acquisition will strengthen Cembra’s position in auto financing, particularly in the new car segment, expand its automotive partner network, and add further scale to its leasing platform. Cembra will also become Santander’s exclusive Swiss partner for pan-European leasing and financing programmes. The transaction is expected to be EPS accretive by 2027 and to increase Cembra’s return on equity by around 25 basis points from 2028. Subject to customary closing conditions, it is expected to close in November 2026.

CEO Holger Laubenthal commented: “The further improvement in our cost/income ratio demonstrates our continued discipline in executing our strategy. With the acquisition, we are taking a focused strategic step to strengthen our position in auto financing and expand our partner network. The transaction adds scale to our leasing platform and gives us access to attractive international leasing programmes. Together with the growing momentum of our growth initiatives, it creates a strong basis for profitable growth and long-term value creation.”

Net financing receivables grow while net revenues remain stable

In the first six months of 2026, Cembra’s net financing receivables increased by 2% to CHF 6.7 billion. Net financing receivables in personal loans increased by 2% to CHF 2.2 billion, in auto leasing by 1% to CHF 3.3 billion and increased in credit cards by 2% to CHF 1.1 billion, while net financing receivables in BNPL declined by 2% to CHF 0.1 billion.

Net revenues remained stable at CHF 267.2 million. Net interest income was unchanged at CHF 184.3 million with lower interest expenses of CHF 40.9 million compensating for the lower interest income of CHF 225.2 million following the reduction of the maximum interest rates in consumer finance. The net interest margin remained stable at 5.4% (H1 2025: 5.4%).

Commission and fee income was unchanged at CHF 82.9 million. Lower income from credit cards (-3%), and insurance (-5%) were offset by an 11% increase in loans and leases (+11%) and a 2% increase in BNPL. The share of net revenues generated from commission and fee income remained stable at 31% (H1 2025: 31%).

Improved cost/income ratio and continued solid loss performance

Total operating expenses declined by 9% to CHF 116.3 million reflecting further efficiency gains. Personnel expenses declined by 3% to CHF 60.9 million. General and administrative expenses decreased significantly by 15% to CHF 55.4 million, mainly due to lower external service costs and lower depreciation and amortisation. This resulted in an improved cost/income ratio of 43.5% (H1 2025: 47.6%).

Provisions for losses increased by CHF 4.8 million to CHF 36.2 million. The loss rate was 1.1% in the first six months of 2026 compared to 0.9% in the same period in 2025 and remained within Cembra’s expected range. The non-performing-loans (NPL) ratio declined to 1.7% from 1.9% at year-end 2025, while the rate of over-30-days past due financing receivables decreased to 3.3% from 3.5%.

Further diversified funding portfolio, and strong capital base

The Group’s funding portfolio decreased by 1% to CHF 6.3 billion at 30 June 2026. The share of deposits increased slightly to 57% (31 December 2025: 56%). The weighted average duration increased slightly to 2.3 years at 30 June 2026 from 2.2 years at year-end. The end-of-period funding cost declined to 1.17% (31 December 2025: 1.33%).

Cembra remains very well capitalised, with a strong Tier 1 capital ratio of 17.7% (31 December 2025: 17.6%). Shareholders’ equity decreased by 5% to CHF 1.274 billion, following the payout of ordinary and special dividends totalling CHF 164 million in April 2026.

Cembra acquires Santander’s Swiss auto financing business and becomes its exclusive partner in Switzerland

Cembra has signed an agreement for the acquisition of the substantial part of Santander Consumer Finance’s Swiss auto financing business. The transaction comprises a lending portfolio of about CHF 800 million as well as the intended transfer of nine partner relationships (manufacturers and importers). The agreement aims to ensure continuity for these partners as the business transitions to Cembra. The transaction is expected to close in November 2026, subject to customary closing conditions.

The acquisition will significantly strengthen Cembra’s auto financing business, particularly in the new car segment. It will broaden Cembra’s network of automotive partners and creates further opportunities for profitable growth.

As part of the transaction, Cembra will also become Santander’s exclusive Swiss partner for pan-European leasing and vehicle financing programmes. This will give Cembra access to international manufacturer programmes and further strengthen its position as a preferred financing partner for automotive manufacturers and importers.

The transaction is expected to be EPS accretive from 2027 and to increase the Group’s return on equity by around 25 basis points from 2028. It will be financed through a combination of approximately CHF 680 million of additional debt and around CHF 120 million of equity and equity-related instruments, including the planned use of treasury shares corresponding to about 2.0% of share capital. For 2026, Cembra expects integration costs and transaction-related one-off expenses. These costs, together with the planned use of treasury shares, are expected to temporarily reduce the Group’s return on equity by around 1 percentage point in 2026.

Outlook

Excluding the transaction, Cembra expects its full-year performance 2026 to be in line with the previous guidance. Including the one-off effects from the planned transaction, Cembra expects an ROE of around 14% for 2026, a loss rate slightly above the mid-term guidance of around 1%, a cost/income ratio below 43% as well as a Tier 1 capital ratio of around 17%. Cembra aims to pay a dividend of at least CHF 4.60 for the current financial year. The company will present an update on its strategy and financial targets at an Investor Day in early December 2026.

All documents (investor presentation, interim report and this media release) are available at www.cembra.ch/investors

About Cembra
Cembra is a leading Swiss provider of innovative financing and payment solutions. The product range includes personal loans and auto leases and loans, credit cards, the insurance made available in this context, invoice financing and savings products.

Cembra serves over 2 million customers in Switzerland and employ about than 800 people from 40 countries. Headquartered in Zurich, Cembra operates across Switzerland through a network of branches and online distribution channels, as well as through our credit card partners, independent intermediaries and car dealers.

Cembra has been listed as an independent Swiss bank on the SIX Swiss Exchange since 2013. The company is rated A- by Standard & Poor's and is recognised for its strong sustainability performance by leading ESG rating agencies.