CAB Payments (LON:CABP) Issues Quarterly Earnings Results

Key Points

• Strong first-half performance: Income increased 31% year over year to £68 million, adjusted EPS more than doubled to £0.054, and return on total capital reached 26.3%. Management reaffirmed its medium-term guidance.
• Shareholder returns are expanding: CAB Payments declared its first interim dividend of £0.021 per share and plans mid-single-digit annual dividend growth from 2027. Its 21.7% CET1 ratio also leaves scope for potential special dividends or buybacks, subject to approvals.
• Growth opportunities remain balanced by risks: Client additions, emerging-market volumes and international expansion strengthened the franchise, while a regulated stablecoin off-ramp is targeted for launch in the first half of 2027. However, net interest income declined and emerging-market take rates moderated after benefiting from elevated volatility.

CAB Payments (LON:CABP - Get Free Report) announced its quarterly earnings results on Thursday. The company reported GBX 5.40 earnings per share (EPS) for the quarter, Digital Look Earnings reports. CAB Payments had a return on equity of 8.74% and a net margin of 9.04%.

Here are the key takeaways from CAB Payments' conference call:

• Strong H1 performance: Income rose 31% year over year to £68 million, adjusted EPS more than doubled to £0.054, and return on total capital reached 26.3%. Management reaffirmed its medium-term guidance, supported by positive operational leverage.
• New shareholder-return framework: The company declared its first interim dividend of £0.021 per share, equivalent to about 40% of first-half adjusted profit after tax, and plans mid-single-digit annual dividend growth from 2027. With a 21.7% CET1 ratio versus a 16.5%-17.5% target, management said surplus capital could also support special dividends or buybacks, subject to approvals.
• Broadening franchise and growth pipeline: The company added 32 active clients, grew emerging-market volumes 21%, increased correspondent-banking clients to 77, and reported stronger contributions from fintechs, corporates, and development organizations. International expansion, additional offices, new banking relationships, and technology investment are intended to drive further scale and operating leverage.
• Stablecoin opportunity remains under development: The company is building a regulated emerging-market stablecoin off-ramp focused on local liquidity, licensing, compliance, and settlement, with product testing underway and a targeted full launch in the first half of 2027. Management highlighted significant potential but also noted that required regulatory permissions are still pending.
• Some earnings drivers may moderate: Net interest income declined year over year, while emerging-market take rates eased in the second quarter after benefiting from heightened volatility and favorable mix. Management said it is not yet clear whether the take-rate reduction will continue into the second half.

CAB Payments Price Performance

Shares of CABP traded up GBX 1 during midday trading on Friday, reaching GBX 81. 228,368 shares of the stock were exchanged, compared to its average volume of 350,749. CAB Payments has a twelve month low of GBX 46 and a twelve month high of GBX 100. The company has a market capitalization of £205.63 million, a price-to-earnings ratio of 15.58 and a beta of 1.50. The business's 50-day moving average price is GBX 78.04 and its 200 day moving average price is GBX 80.75.

Wall Street Analysts Forecast Growth

Separately, Shore Capital Group restated a "house stock" rating on shares of CAB Payments in a research report on Thursday.

CAB Payments Company Profile

CAB Payments Holdings plc and its subsidiaries (CAB Payments) is a market leader in business-to-business cross-border payments and foreign exchange, specialising in hard-to-reach markets. CAB Payments uses its strength of network, technology, and expertise to seamlessly move money where it's needed and is the holding company for Crown Agents Bank, a UK-regulated bank.

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