Q1 2020 PRESENTATION Q1 2020 PRESENTATION TODAYS PRESENTERS - PowerPoint PPT Presentation

Q1 2020 PRESENTATION

Q1 2020 PRESENTATION TODAY’S PRESENTERS Kenneth Nilsson Christina Kassberg Stefan Noderen Chief Executive Officer Interim Chief Financial Officer Head of Credit & NPL

Q1 2020 PRESENTATION PERFORMANCE FOR THE QUARTER Net profit Total lending Cost of risk, % -29% +7% (+4%*) SEKm SEKm 4,0% 35 000 350 31 148 305* 3,5% 294 29 182 30 000 300 3,0% 3.4% 25 000 250 2,5% 20 000 200 2,0% 2,2% 2,4%** 208 15 000 150 1,5% 10 000 100 1,0% 5 000 50 0,5% 0 0 0,0% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 * Excluding the financial transactions of SEKm -51 and the ** Excluding the extra credit provision of SEKm -75 3 extra credit provision of SEKm -75

Q1 2020 PRESENTATION Lending to the public Q1–20 THE STRENGTH OF OUR BUSINESS MODEL Three segments – four markets – Payment Solutions and Supreme Cards initially affected by 16% declining sales in the travel and tourism segments. Our diversified partner base has mitigated effects by increasing sales in home electronics, DIY, bikes, and spare parts for cars Finland – Moderate impact on Consumer Loans to date, however continued challenges in Norway. As always, our customary conservative risk approach is prioritised ahead of volume and 24% Norway 46% increased lending Sweden – We capitalize from the four Nordic countries differing in terms Provid idin ing a alternativ ive of dynamics and competition, and all markets except Norway fina nanc ncing ng s soluti utions ns see a recovery in the latter part of April drives c con onversion on of of – 98 per cent of our customers are private consumers in the vis isit itors in into payin ing HQ Nordic countries, where social security systems have been customer mers Denmark further enhanced 14% 4

Q1 IN FIGURES

Q1 2020 PRESENTATION PERFORMANCE IN THE SEGMENTS Total Lending Payment Solutions Consumer Loans +7% +4% +8% SEKbn SEKbn SEKbn 11,4 11,4 35 12 11,1 11,1 24 31,3 31,1 31,1 10,7 30,3 29,2 20,0 19,9 19,7 19,2 30 10 18,5 20 25 8 16 20 6 12 15 4 8 10 2 4 5 0 0 0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 6

MARGIN EVOLUTION OPERATING INCOME Highlights Operating income +0% – Operating income up to SEK 897 (+6%*) SEKm million. 1 200 – The volatility in the market negatively impacted the 948* 1 000 investment portfolio through revaluations on the closing date, which affected the item net 800 expense from financial transactions of SEK -51 million. 600 Adjusted for this, operating income increased 6 per cent to SEK 948 945 925 913 896 897 400 million (896). 200 0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 * Excluding net financial transactions of SEKm -51 7

EVOLUTION OF OPERATING EXPENSES COST INCOME RATIO Operating Expenses Cost Income Ratio, bank Highlights +0.5% +0% – OPEX increased slightly 0.4% 1.6% pts but with strict cost control. – Cost control compensate SEKm for the lower NBI margin, 400 363 365 – The cost/income ratio 44% 40,1% 39,5% 39,0% 38,5% 37,6% continued to improve based on scalable 300 33% business model. 200 22% 100 11% 0 0% Q1 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 8

EVOLUTION OF COST OF RISK COST OF RISK Credit Losses, Net Cost of Risk Highlights 4,0% Credit losses totalled SEK - – 263 million (-155) and the SEKm 3,5% credit loss ratio was 3.4 per cent (2.2 per cent). 3,0% 3.4% – Underlying credit losses 240 263 2,5% totalled SEK -188 million. 2.7% 1 per cent point of the credit 155 180 2,0% loss ratio refers to the extra 188 ** credit provision. 1,5% 120 – Excluding the extra credit 2,4% ** 2,2% * 2,2% 1,0% provision in Q1, CoR ratio 2,0% 2,0% was 2.4 per cent. 60 0,5% 0,0% 0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q1 20 Excluding extra credit provision of SEKm 35* in Q4 2019 and 9 SEKm 75** in Q1 2020

Q1 2020 PRESENTATION OPERATING PROFIT Operating profit Highlights -29% (+5%**) – Operating profit decreased 29 per SEKm cent to SEK 269 million (378). – Operating profit, adjusted for the 500 399* extra credit provision of SEK -75 395** 416 405 million and net expense from 378 400 financial transactions of SEK -51 million, amounted to SEK 395 million, an increase of 5%. 300 364 200 269 100 0 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 *Q4 19 excluding extra credit provision SEKm 35 **Q1 20 excluding extra credit provision SEKm 75 and 10 net financial transactions of SEKm 51

PAYMENT SOLUTIONS +4% NBI margin Loan Book SEKm 15% 11 148 12 000 10 707 12% 10 000 8 000 9% 14,1% 6 000 13,4% 6% 4 000 3% 2 000 0 0% Q1 19 Q1 20 Q1 19 Q1 20 Highlights Cost of Risk – Payment Solutions’ performance for the first two months of the year was characterised by healthy growth in all markets except 3,0% Norway, and was then impacted by the effects of the outbreak of COVID-19 in March 2,5% 2,0% – Lower NBI margin following growth by retailers with lower margins. 1,5% 2,7% – Credit losses for the quarter increased in absolute terms as a 1,0% 1,8% percentage of lending, which was mainly an effect of the extra 0,5% credit provision made as a result of the expected future effects of the COVID-19 pandemic. 0,0% Q1 19 Q1 20 11

CONSUMER LOANS +8% Loan Book NBI margin SEKm 19 999 15% 18 475 20 000 12% 15 000 9% 10 000 6% 10,5% 10,1% 5 000 3% 0% 0 Q1 19 Q1 20 Q1 19 Q1 20 Cost of Risk Highlights 4,0% – Performance was largely stable, despite challenges in the Norwegian market. 3,5% 3,0% – The NBI margin decreased and was mainly negatively 2,5% impacted by the conditions in the Norwegian 2,0% 3,7% Consumer Loans market but also increased ticket size 1,5% and some margin pressure. 2,4% 1,0% – Introducing austerity measures to the credit models 0,5% during the quarter to counteract higher credit losses. 0,0% Q4 19 Q1 20 12

INSURANCE Premium Earned, net Technical Result +6% +30% Highlights SEKm SEKm 30 350 100 30 300 23 25 – Premium earned, net up 229 250 6 per cent compared with 215 20 last year. 200 15 150 – Strong increase in 10 technical result up 100 30 per cent compared 5 50 with last year. 0 0 0 Q1 19 Q1 20 Q1 19 Q1 20 – Improved combined ratio. Combined ratio -71% Operating income – Negative outcome for (-0,3%*) -2.4% pts net expense from 59 57* 100% 60 90.1% 87.7% financial transactions of SEK -40 million. 50 80% 40 60% 30 40% 20 20% 17 10 0% 0 Q1 19 Q1 20 Q1 19 Q1 20 13 *Excluding financial transactions of SEKm -40

CAPITAL POSITION STRONG CAPITAL POSITION Highlights – Strong CET1 and total 16.2% capital ratios well above 16% 15.0% requirement and targets. 1,5% 1,0% 14% 1,9% Reducing the regulatory – minimum capital 11.7% 12% requirement in the countercyclical capital 2,2% 10% buffer. This entailed a total reduction of about 1.7 1,6% 8% percentage points to 0.3 13,7% per cent for Resurs. 13,1% 6% 4% 7,9% 2% 0% Capital requirements 31 Mars 2019 31 Mars 2020 Tier 2 Capital AT 1 CET 1 14

FUNDING EVOLUTION CONTINUED DIVERSIFICATION Funding total ex. equity Funding mix Highlights – The strategy is to actively work with SEKm various sources of financing in order to use the most suitable source of financing at any given time and to create 35 000 100% 32 431 32 081 31 642 diversified financing in the long term 30 756 30 591 15% 15% 15% 16% 16% 30 000 – During Q1 SEK 700 million was issued 9% 9% 10% 9% 10% under the MTN program and NCR 25 000 confirmed Resurs Bank’s credit rating of BBB- 20 000 Repurchase of bond shares for a total – 50% amount of 300 MSEK in Q1, mainly to 15 000 support investors, also given some 76% 76% 75% 75% 74% positive P&L effect. 10 000 – Liquidity remained healthy and the 5 000 liquidity coverage ratio (LCR) was 263 per cent (264 per cent) in the consolidated 0 situation. 0% Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Deposit ABS MTN 15

MEDIUM TERM FINANCIAL TARGETS FINANCIAL TARGET PERFORMANCE Metric Target Jan-Mar 2020 Annual lending growth > 10% p.a. 7% In line with recent performance Risk adjusted NBI margin 7.9% (c. 10% – 12%) C/I before credit losses excl. < 40% in the Insurance and adjusted for 38.5% medium term nonrecurring costs Return on equity (RoTE) adjusted for ~ 30% in the medium term 20.8% nonrecurring costs* Payout ratio > 50% n/a Common Equity Tier 1 ratio/ >11.5% CET1 13.7% CET1 Total Capital Ratio >15.0% Total Capital 16.2 Total Capital *Based on Capital Employed at the boards target CET1 Ratio 16

Q1 CREDIT