Cembra Money Bank increased its net profit by 11 percent to 87,2 million francs in the first half of 2025, confirming its strategic trajectory. This is according to the figures published on Thursday.

«It was a dynamic first half, but we performed well,» said CEO Holger Laubenthal during a media call. Key drivers of the result included progress in efficiency programs—notably in digitalization and automation—alongside stable customer receivables and declining funding costs.

Defying Low Interest Rates

Net revenue remained steady at 267,3 million francs, despite the low interest rate environment. At the same time, operating expenses fell by 6 percent, significantly improving the cost-income ratio to 47,6 percent, compared to 50,4 percent in the previous year.

Return on equity (RoE) reached 13,8 percent, while the Tier 1 capital ratio remained strong at 17,7 percent, exceeding the target level. The loss rate remained solid at 0,9 percent.

In the business segments, net receivables remained stable:

Vehicle financing and the credit card business both increased by 2 percent, reaching 3,3 billion francs and 1,0 billion francs, respectively.

In contrast, personal loans declined by 3 percent.

In the BNPL (Buy Now, Pay Later) segment, Cembra withdrew from non-strategic partnerships, as previously announced, resulting in an 18 percent decrease.

Strategic Progress in Digital Transformation

Cembra continued its digital transformation strategy:

› All leasing contracts were migrated to a new platform.

› New features were introduced in the credit card offering.

› The BNPL infrastructure was enhanced with real-time credit checks.

› The Riga location was further developed as a technology hub.

Targets Confirmed

Cembra reaffirmed its full-year guidance, expecting a return on equity between 14 and 15 percent and a dividend of at least 4,25 francs per share.
«We are determined to maintain this momentum and achieve our financial goals for 2026,» said Laubenthal. One of these goals is to reduce the cost-income ratio to below 39 percent.