Cembra falls after weak H1, lower ROE target
20/07/2023 08:56
** Shares in Swiss Cembra Money Bank CMBN.S fall 6% after
it reported weaker than expected H1 profit and turned more
cautious on ROE (return on equity) guidance
** The company posts H1 net income of 75.1 million Swiss
francs ($87.62 million), down 17% from the prior year
** It expects 2023 ROE to come at the lower end of its
earlier 13-14% range and says the ROE target of 15% for 2024
will be challenging
** "Cembra reported slightly weaker than expected H1
results, with a stronger slowdown in the credit card business
than expected," Vontobel says
** Vontobel says the net profit was below estimates due to
slightly lower operating income and higher provisions, adding
the new ROE guidance for 2023 and 2024 is more cautious
($1 = 0.8571 Swiss francs)
(Reporting by Ozan Ergenay)
((ozan.ergenay@thomsonreuters.com))