Half Year 2024 Cembra Money Bank AG Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andreas Venditti - Bank Vontobel AG - Analyst : Yes. Can you hear me? (multiple speakers) thank you so much. I have actually -- thank you for the [swift] presentation. Actually, I have -- actually a number of questions. Maybe we start with net interest income. Can you maybe provide a bit of color of how far the repricing has gone, maybe by the different books that you are working on, and that's mainly on the interest income side. On the funding cost side, Pascal, I think you mentioned stabilization. Does that mean the stabilization at the exit rate, should we assume that? Or I'm not sure how to understand this. On the expense side, FTEs obviously went down quite a bit and you mentioned that the impact will be visible in the second half. Now, should we expect an impact, let's say, in line with the decrease in FTEs? Or has the FTE declines been more in, let's say more below average paid staff. So less than the decreased. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 24, 2024 / 7:00AM, CMBN.S - Half Year 2024 Cembra Money Bank AG Earnings Call On buy now pay later, we had flat growth. And you mentioned a kind of shift in terms of focus on profitability, it is done? Or shall we also assume further, let's say, impact on growth in the second half? Or should the growth rate basically resume? Yeah. Maybe one last one from my side. On the dividends, you said at least CHF4, and shall we assume that they're basically dividend going, let's say, in line with profit growth or? Yeah. Well, thank you.

Question: Andreas Venditti - Bank Vontobel AG - Analyst : Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 24, 2024 / 7:00AM, CMBN.S - Half Year 2024 Cembra Money Bank AG Earnings Call

Question: MßtT Nemes - UBS Investment Bank - Analyst : Thanks for the presentation and for taking my questions. I wanted to follow up on NII and specifically net interest margin. I think in the presentation, you wrote a rebound to 5.5% expected in 2024, '25. I think then in the prepared remarks, you mentioned lead this by '26. Could you provide any additional clarity on the timing of that. Rebound, I guess to 5.5% by the end of the year appears at this point challenging unless you're suggesting that you could accelerate repricing on the asset side. So any helpful color on that would be appreciated. And then secondly, I am curious if you could share any initial experience that the TWINT buy now pay later, pay later rollout usage patterns. What do you see actually on your platform and better that can really accelerate growth in the buy now pay later business. Just echoing what's Andreas mentioned. Seems like flat fees, a lower billing volumes, e-commerce market, not exactly growing. It doesn't scream off the growth story on that side. So if you could help us understand where that growth will be coming from. Thank you.

Question: MßtT Nemes - UBS Investment Bank - Analyst : Thank you.

Question: Daniel Regli - Zurcher Kantonalbank - Analyst : Good morning. Thank you for taking my questions. I have four questions or one that's kind of first follow up on the development on gross yields and what I noted is that particularly in credit cards, the gross yields have increased and have increased more than I would have anticipated by the kind of lift in maximum rates for credit cards. So can you elaborate a bit what happened here? Has the amount of revolving credit card debt increased? Or what was the reason for this pickup in yields on credit card debt. Then secondly, on your interest income, obviously we have seen this two rate cuts by the S and B, what are your expectations with regards to the maximum rate for consumer credit and credit card debt? And and how far does this impact your repricing activity and onto the main outlook and concert on the loan loss provisions you have previously been I'm saying that your target is below 1%, our loan loss provision rate. Now you're guiding for about 1% loan-loss provision rate. Obviously this is nitty-gritty, but it's still slightly above what your guidance. So should 2024 be rather an exceptionally high loan loss provision a year? Or do you expect to kind of trail at this 1% level going forward. And then last question on restructuring expenses. You have accounted for CHF2.7 million restructuring expenses in H1. And how can you give us a bit of a guidance, what should we expect in H2 and next year in terms of restructuring expenses?

Question: Daniel Regli - Zurcher Kantonalbank - Analyst : Thank you for your answers. Can I quickly follow up on the restructuring expense and and obviously until 2023, you had about CHF19 million in total and now you have another. So you're getting to 2.2 -- CHF 22 million and with some less in age to maybe 24-ish for the full year. So do you kind of expect lower restructuring expenses than originally guided or or another and you referred to 2020 to 2024?