Interim Report January - June 2016

1 April—30 June 2016*
• Lending to the public rose 38% to SEK 19,596 million. Compared with Q1 2016 the increase is slightly above 4%, resulting in an annualised increase of approximately 18%
• Operating income increased by 22% to SEK 710 million
• Operating profit increased by 51% to SEK 309 million, and by 58% to SEK 323 million excl. nonrecurring costs related to the IPO
• Earnings per share rose 52% to SEK 1.20
• C/I before credit losses (excl. Insurance) was 43.2% (49.4), and 41.1% (45.0) excl. nonrecurring costs
• The credit loss ratio was 1.9% (2.5)

1 January—30 June 2016*
• Lending to the public rose 38% to SEK 19,596 million. Compared with Q4 2015 the increase is approximately 8%, resulting in an annualised increase of approximately 15%
• Operating income increased by 22% to SEK 1,386 million
• Operating profit increased by 37% to SEK 562 million, and by 45% to SEK 595 million excl. nonrecurring costs related to the IPO
• Earnings per share rose 37% to SEK 2.18
• The Core Tier 1 ratio was 13.3% (15.0) and the total capital ratio was 14.4% (16.2)
• C/I before credit losses (excl. Insurance) was 45.3% (48.2), and 42.8% (45.8) excl. nonrecurring costs.
• The credit loss ratio was 2.0% (2.5)
• Return on equity excl. intangible assets, (RoTE) was 25.1% (22.9), and 26.6% (24.1) excl. nonrecurring costs.

Statement by the CEO:

Strong earnings trend for first half of the year
- We are continuing our journey of stable growth with another strong quarter, our first as a listed company.

Healthy growth in both lending and earnings
Similar to the first quarter of the year, we saw substantial growth in lending during the second quarter, approximately 18 per cent annualised, which exceeded our mid- term financial target, driven by both increased new sales and a developed product range. Earnings performed strongly during the first half of the year, up 45 per cent excluding nonrecurring costs related to the IPO, primarily driven by higher business volumes and improved net interest income. We continue to pursue a healthy risk- and cost control.

Intense activity in all segments
In Payment Solutions, we were proud to welcome several new retail finance partners during the second quarter. It was gratifying to see the marketing activities that we carried out in credit cards during the year contributed to higher sales. The trend in payment solutions continued during the quarter and Resurs is at the forefront, for example, we were the first to launch Masterpass in Norway in June. Growth was high in Consumer Loans, both including and excluding yA Bank that was acquired last year. We also saw a high inflow of new partners in Insurance.

Increased market shares
During the first half of the year, we saw that the Nordic markets were stable in Sweden and Norway, and slightly more positive in Finland and Denmark. We saw that we captured market shares in several areas, which is very gratifying and in line with plans.
The financial markets were shaky in the period since our listing, particularly in the banking sectors of many countries, both before and after the Brexit referendum in the UK. However, as far as Resurs is concerned, we have not seen any direct consequences on income or earnings. Our operations in the UK are limited to travel insurance in the Insurance segment, which we have already decided to discontinue due to low profitability.

Continued customer focus on a simpler everyday life
Our growth is driven by the Group’s integrated business model whereby partnerships form the platform for our large and unique customer base that enables cross-selling of our different products. In the autumn, we will continue to develop customer- centric sales-promoting solutions for our partners. Our solutions must work as an inherently natural part of our retail partners’ and consumers’ everyday lives, both digitally and in physical environments.
Resurs first quarter as a listed company demonstrates the strength of our business model, with growing volumes and excellent profitability. Our strong Nordic roots and close cooperation with our partners will be key factors in the company’s development in the coming years.

Kenneth Nilsson,
CEO, Resurs Holding AB

About Resurs Holding
The Resurs Group, which operates through subsidiaries Resurs Bank and Solid Försäkring, is the leader in retail finance in the Nordic region, offering payment solutions, consumer loans and niche insurance products. Since its start in 1977, Resurs has established collaborations with over 1,200 retail partners with approximately 35,000 stores and built a customer base of approximately 5 million private customers in the Nordics. Resurs Bank has had a bank charter since 2001 and is under the supervision of the Swedish Financial Supervisory Authority. The Resurs Group, with operations in Sweden, Denmark, Norway and Finland, had around 720 employees and a loan portfolio of approximately SEK 19.6 billion at the end of the second quarter of 2016. Resurs has been listed on Nasdaq Stockholm since 29 April 2016.

*Certain performance measures provided in this section have not been prepared in accordance with IFRS. Definitions of key ratios are provided on page 31. The reasons for the use of alternative performance measures and reconciliation against information in the financial statements are provided on the website under “Financial information”.
The figures in parentheses refer to 30 June 2015 in terms of financial position, and to the year-earlier period in terms of profit/loss items.

This information is such information that Resurs Holding AB is required to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication by the abovementioned contact person on 9 August 2016 at 8:00 a.m. CET. 

About Us

About Resurs Holding Resurs Holding (Resurs), which operates through the subsidiaries Resurs Bank and Solid Försäkring, is the leader in retail finance in the Nordic region, offering payment solutions, consumer loans and niche insurance products. Since its start in 1977, Resurs Bank has established itself as a leading partner for sales-driven payment and loyalty solutions in retail and e-commerce, and Resurs has thus built a customer base of approximately 5.7 million private customers in the Nordics. Resurs Bank has had a banking licence since 2001 and is under the supervision of the Swedish Financial Supervisory Authority. The Resurs Group operates in Sweden, Denmark, Norway and Finland. At the end of the first quarter of 2018, the Group had 754 employees and a loan portfolio of SEK 25.1 billion. Resurs is listed on Nasdaq Stockholm.

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