The setting sun in Europe can be seen on the side of a Swiss bank. Red lantern in the Stoxx 600 index of the largest European stocks, Cembra Money Bank fell by almost 30% on the Zurich Stock Exchange after losing its contract for fifteen years with the number 1 distributor in Switzerland, which is Migros, where it issues the Cumulus credit card (Mastercard), is the most popular in the country. In the same way that Carrefour Banque issued the card of the French retail giant, Migros Banque will take over the issuance of its parent company from July 2022.
This decision will have an impact on Cembra Money Bank accounts. The consumer credit specialist has already warned that its net profit will fall “passenger” from 10 to 15%. The consequences will be even greater in revenue knowing that the Migros contract is an important growth engine for the bank. The Cumulus card represents more than 80% of the total of 1.05 million credit cards issued by Cembra, according to the Swiss management bank Vontobel, as quoted by the AWP news agency.
By falling to 68.5 Swiss francs per share, Cembra Money erased five years of growth in one session. Never before has the bank fallen so much in the stock market in one day.
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