Resurs Bank Year-end Report January—December 2017

1 July—31 December 2017*

  • Lending to the public rose 14% to SEK 24,069 million
  • Operating income increased 10% to SEK 1,502 million
  • Operating profit increased 23% to SEK 710 million
  • C/I before credit losses was 38.6% (44.0%)
  • The credit loss ratio was 1.8% (1.8%)

1 January—31 December 2017*

  • Lending to the public rose 14% to SEK 24,069 million
  • Operating income increased 9% to SEK 2,928 million
  • Operating profit increased 18% to SEK 1,342 million
  • C/I before credit losses was 40.1% (43.5%)
  • The credit loss ratio was 1.8% (1.9%)

Statement by the CEO

Strong end to 2017 – continued profitable growth and new retail finance partners

2017 ended with another successful half-year. Lending amounted to SEK 24.1 billion, up 14 per cent in 2017, meaning SEK 2.9 billion in absolute terms. We can also present the best half-year results after tax in our 40-year history – we achieved SEK 549 million, an increase of 8 per cent excluding nonrecurring costs. This means that we reported profit after tax of more than SEK 1 billion in 2017. We achieved this by continuing to generate profitable growth, through our scalability which enabled C/I before credit losses to continue to improve despite increased IT investments, and by retaining good control of our credit losses.

The growth in the loan portfolio remained strong in our banking segments and in all of our markets. This was achieved despite having to make adjustments to the new regulations in the Norwegian market, which, as anticipated, slowed lending growth in Consumer Loans in Norway. We were aware of this and thus we focused on increasing the rate of growth in our other markets, which shows the strength of our Nordic business model.

Successful performance of the operations continues

We entered into a number of collaborations with new retail finance partners during the half-year, such as ‘yearly upgrade programmes’ together with our partner Upgraded. The collaboration includes a number of Apple Premium Resellers and Elgiganten in all Nordic countries and means that, for example, customers can pay a monthly fee to upgrade their Apple products to newer models every year.

We also signed an agreement with Lufthansa’s Miles & More, Europe’s leading airline customer loyalty programme. Together we launched the MasterCard credit card in Sweden, allowing customers to earn points and take advantage of special offers from Miles & More.

We continuously work on launching new and innovative solutions for our retail finance partners and customers. Earlier in the year, we launched our digital credit application in physical stores and its usage is already at more than 70 per cent in Sweden.

We also see that the digital tools that we have successfully introduced to our Business Support have simplified and improved the efficiency of our processors. For example, more than one-third of all sales of our Supreme Card now take place by incoming telephone call, which has reduced our acquisition costs.

Seamless retail – the future way of consuming

Our omnichannel strategy means that we offer efficient payment solutions regardless of channel. Consumers are to be able to move from a retail finance partner’s physical store to the e-commerce store or the other way round. Seamless retail is the future way of consuming and we work continuously to develop our offering. One-third of retail finance partners who joined us during the year operate in the omnichannel.

All in all, we are very strong for the future, we are well-organised and structured to continue to expand our operations.

Kenneth Nilsson,
CEO Resurs Bank AB

About Resurs
Resurs was founded in 1977 and is one of the fastest-growing niche banks in the Nordic region. During the 1980s, we pioneered the successful “interest free” retail finance concept, and today we are one of the leading Nordic retail finance banks, with over 5.5 million private customers across the Nordic region. From our core business in retail finance, we have expanded our product offering to also include savings accounts, insurance policies, consumer loans and credit cards. Resurs Bank is owned by Parent Company Resurs Holding and is part of the Resurs Holding Group. In 2015, Resurs Bank acquired the subsidiary yA Bank. When we use the term “Group” in this report, we are referring to the Resurs Bank Group.

*Certain performance measures provided in this section have not been prepared in accordance with IFRS. Definitions of performance measures are provided on page 27. The reasons for using alternative performance measures and reconciliation against information in the financial statements are provided on the website under Financial statements. The figures in parentheses refer to 31 December 2016 in terms of financial position, and to the year-earlier period in terms of profit/loss items. 

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About Resurs:Resurs was founded in 1977 and is one of the fastest-growing niche banks in the Nordic region. During the 1980s, we pioneered the successful “interest free” retail finance concept, and today we are one of the leading Nordic retail finance banks, with about 5.7 million private customers across the Nordic region. From our core business in retail finance, we have expanded our product offering to also include savings accounts, insurance policies, consumer loans and credit cards. Resurs Bank is owned by Parent Company Resurs Holding and is part of the Resurs Holding Group. In 2015, Resurs Bank acquired the subsidiary yA Bank.