Under the agreement, Cembra will be a preferred partner for financing of SME loans sourced by Lendico and consolidate them on the Cembra balance sheet. Lendico will continue to service the portfolio once the loans have been financed. In addition to financing, Cembra will provide collection services for the portfolio financed by Cembra.

Robert Oudmayer, CEO of Cembra Money Bank, said: “The long term partnership with Lendico is in line with our strategy to realize profitable growth in Switzerland. The partnership allows Cembra to expand its small ticket SME loan portfolio targeting a currently underserved market segment. We look forward to working with Lendico to grow their business in the coming years.”

Myriam Reinle, Managing Director of Lendico, commented: “We are excited to start working with this reliable and professional partner. With Cembra we can amplify our support to SMEs, which we see as a great potential in Switzerland. Cembra is a strong partner in our goal to develop the Lendico marketplace.”

The transaction is not expected to have a material impact on Cembra’s performance in 2018 and is expected to be EPS accretive in 2019 and beyond.