9 AUGUST 2016 Q2 2016 Presentation Built by Retailers for Retailers
Today’s Presenters Kenneth Nilsson Peter Rosén Chief Executive Officer Chief Financial Officer 28 Years at Resurs Joined in 2015 ] ] 2
Listing Nasdaq Large Cap Increased ownership by cornerstones The Resurs Share • The 29th April 2016 Resurs Holding was listed Increase On 30th June 2016, the largest shareholders, on Nasdaq Stockholm, large cap since with direct ownership were: 10th May • Subscription price set at 55 SEK/share giving Cidron Semper Ltd./Nordic Capital 34.9% +1.3%* a market cap of SEK 11 bn Waldakt/fam. Bengtsson 28.6% +1.1%* • During Q2, increased ownership by Swedbank Robur Fonder 8.4% +2.7%* cornerstones Andra AP-fonden 3.5% Handelsbanken fonder 3.5% +0.5%* Catella Fonder 2.1% -0.4% * Didner & Gerge Fonder 1.4% AFA Försäkring 1.0% Livförsäkringsbolaget Skandia 0.8% Norges Bank 0.6% Summa 84.8% *Greenshoe utilisation ] ] 3 Strictly private and confidential
Group development highlights “We are continuing our journey of stable growth with another strong quarter, our first as a listed company.” • Strong growth in lending • • Lower Cost of Risk Increasing the quarterly result - 0.2 % + 18 % + 19 % pts annualised Loan Book Growth (MSEK) Net Income (excl. IPO cost net of tax) (MSEK) Cost of Risk (%) 19 596 251 18 760 211 2.1% 1.9% Q1 2016 Q2 2016 Q1 2016 Q2 2016 Q1 2016 Q2 2016 ] ] 4 Strictly private and confidential
Segment development highlights “ Intense activity in all our segments” Insurance Consumer Loans Payment Solutions • Continued good growth in all • Four new partners added : • Strong growth and markets and several new positive contributions partners. Among them: from all markets • Increased market share especially in Sweden and Norway • High activity with newly started partnerships such as : • Mainly driven by • Improved technical profit increased focus on due to closing of customer communication unprofitable business in UK. • Contactless functionality is launched on Supreme Card Gold • In June 2016, first to launch Masterpass in Norway ] ] 5 Strictly private and confidential
Resurs – Nordic largest independent Retail finance group Operating income overview of Segments and Products Pan Nordic Platform Q2 2016 (Loan book) Q2 2016 (Operating Income) Retail Finance Finland Norway 11% >1,200 retail partners Payment Solutions 42% Sweden > 35,000 retail stores 31% c. 270,000 cards 47% Cooperation with partners to provide Credit Cards loyalty credit cards HQ in Sweden Denmark HQ Full service offices across Nordics 11% Consumer Loans Our head office >181,000 loans in portfolio 52% Insurance >3,800 retail stores Long-term client relationships 6% ] ] 6
Retail Finance – Strong value proposition for all stakeholders Drive sales and loyalty for our retail partners… …and Good for Resurs …Good for Customer… Good for Retailer… • • • Drive sales Increases Purchasing Power Profit Contribution • Support omni-channel transition • Payment Flexibility • Retailer Loyalty • Foster customer loyalty • Cross-selling Strong growth online… …a number of longstanding relations with top Nordic Retailers % of Retail Partners E-commerce Sales SEK MM 872 841 25% 779 18% 728 39% 18% Q1 -15 Q2 -15 Q1 -16 Q2 -16 • E-commerce sales have experienced rapid growth >15 years 10-15 years 5-10 years < 5 years ] ] 7
In forefront of adapting new technology Loyo – our consumer card loyalty app Launch of Contactless MasterCard Resurs Bank MasterPass Wallet General: General: General: • Gather your gift cards, loyalty cards and • Open digital wallet to gather your cards • Quicker and more convenient shopping credit cards in one mobile app and contact details in physical stores, just hold the card close to the terminal. ‒ Efficient communication channel for • Simplify online shopping our partners • No pin required for transactions under • Apply for a credit card and sign with ‒ Use BankID + social security number 200sek (Sweden). BankID, instant credit check Q2 Update: Q2 Update: Q2 Update: • Continued Nordic launch plan, June 2016 • Increased activ customer base to c.90k • Since May 2016. All new Supreme Card Resurs first to launch in Norway users Gold, NFC-enabled • Incresed partner base to c.150 • Others in the Supreme Card family to follow Pay with View Balance & Receive Access to Gather All Loyo Offers Retailer Info. Loyalty Cards Trans, Info ] ] 8
Focused Business Model – Retail Finance is at the core of what we do Consumer Loans Retail Finance “We Drive Retail Sales” Credit Insurance Cards Integrated Business Model ] ] 9
Q2 – In figures Excluding one-off costs related to IPO and yA Bank acquisition
Overview of financial performance Continued strong loan book growth and high increase of net income Net Banking Income Margin (%) ¹ Opex (excl insurance and IPO cost) (MSEK) Loan Book Growth (MSEK) +4% +0.3 % pts 44.4% C / I 41.1% 19 596 18 760 14.0% 13.7% 282 276 Q1 2016 Q2 2016 Q1 2016 Q2 2016 Q1 2016 Q2 2016 Cost of Risk (%) Net Income (excl. IPO cost net of tax) (MSEK) RoTE (excl. IPO cost net of tax) (%) -0.2 % pts +2.5 % pts +19% 251 27.9% 211 25.4% 2.1% 1.9% Q1 2016 Q2 2016 Q1 2016 Q2 2016 Q1 2016 Q2 2016 1. NBI for bank calculated as group operating income less reported insurance segment operating income ] ] 11
Loan book evolution Strong growth in both Payment Solutions and Consumer Loans Payment Solutions (MSEK) Consumer Loans (MSEK) Total Resurs (MSEK) yA Bank 11 270 19 596 10 824 8 327 18 760 10 294 7 936 18 198 7 905 7 695 17 468 9 773 7 207 14 163 6 956 Q2 2015pf Q4 2015 Q1 2016 Q2 2016 Q2 2015pf Q4 2015 Q1 2016 Q2 2016 Q2 2015pf Q4 2015 Q1 2016 Q2 2016 +12%pf +15% +8%pf +11% +15%pf +19% YoY YTD (ann) YoY YTD (ann) YoY YTD (ann) • • Positive contribution from all markets • Positive contribution from all markets, Both segments and all markets show growth primarily Sweden and Norway • Increased sales with our partners, both • Market activities and product offerings with existing and new partners drive growth • Market activities have positive effects on credit card development ] ] 12
Margin evolution Strong growth in net interest income and net banking income Net Interest Margin (%) Highlights Net Interest Income (MSEK) +6% +0.2 % pts 548 518 11.4% 11.2% • Net interest income Q2 2016 vs. Q1 2016 +6% at somewhat higher NIM — Higher NIM primarily affected by seasonality within Consumer Loans Q1 2016 Q2 2016 Q1 2016 Q2 2016 • Net banking income Q2 2016 vs. Q1 2016 +6% with higher NBIM Net Banking Income (MSEK) Net Banking Income Margin (%) — Higher NBIM following on higher NIM +6% +0.3 % pts 670 635 14.0% 13.7% Q1 2016 Q2 2016 Q1 2016 Q2 2016 ] ] 13
Evolution of operating expenses Improved cost income ratios Cost Income Ratio (excl. IPO cost) (%) Operating expenses (excl. IPO cost) (MSEK) Highlights Bank Bank 282 -3.3 % pts 276 44.4% 41.1% • Operating expenses in Q2 on level with Q1 • Cost income ratios improve QoQ Q1 2016 Q2 2016 Q1 2016 Q2 2016 Note: IPO cost of SEK20m reducced in Q1 2016 and SEK14m in Q2 2016. ] ] 14
Evolution of credit losses Maintained low cost of risk Cost of Risk (%) Highlights Credit Losses (MSEK) -0.2 % pts 98 91 2.1% 1.9% • Cost of risk developed further from 2.1% to 1.9% on the back of improved credit quality Q1 2016 Q2 2016 Q1 2016 Q2 2016 ] ] 15
Strong growth of net income and RoTE RoTE Ratio (excl. IPO cost) (%) Highlights Net Income (excl. IPO cost) (MSEK) +19% +2.5 % pts 27.9% 251 25.4% 211 • Strong net income growth of 19% • Strong RoTE 27.9% at CET1 13.3% — RoTE 29.3% at target CET1 12.5% Q1 2016 Q2 2016 Q1 2016 Q2 2016 ] ] 16
Stable capital position Highlights Capital structure, % Diagramrubrik 14.4% 13.6% 14.2% 1.1% 1.1% • Strong CET1 ratio of 13.3% with a 2.1% comfortable buffer vs. capital requirements of 9.9% and target CET1 1.6% of 12.5% Tier 2 Capital AT 1 • Reflects 50% pay-out ratio CET 1 13.3% 13.1% 9.9% Capital requirements 31 Dec 2015 30 Jun 2016 Axeltitel ] ] 17
Funding evolution Continued diversification Highlights Equity and Liabilities 8% 9% • Diversified funding with MTN and ABS 20% 20% — Continue to expand use of both MTN and ABS 66% 64% Q1 2016 Q2 2016 Deposits Equity MTN & ABS ] ] 18
Medium Term Financial Targets - Recent Performance Metric Target Q2 Organic ~ 10% p.a. Very strong Q2 with annualized 18% growth QoQ Loan Growth In line with NBI Margin recent performance Q2 improvement to 14.0% (Bank) (c. 13% – 15% in 2013-2015) Cost/Income ~ 40% in the Q2 improvement to 41.1% (Bank) medium term In line with Cost of Risk recent performance Q2 improvement to 1.9% (c. 2% – 3% in 2013-2015) ~ 30% in the medium term RoTE (Based on Capital Employed 27.9% at CET 13.3% / 29.3% at CET1 12.5% at 12.5% CET1 Ratio) Payout 50% of H1 2016 Net income provisioned for as dividend in CET1 > 50% Ratio calculation CET1/Total >12.5% CET1 13.3% CET1 Capital Ratio 14.5% Total Capital 14.4% Total Capital ] ] 19 Strictly private and confidential
Strategy & Going forward
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