Kenneth Nilsson Chief Executive Officer 28 Years at Resurs
2
Peter Rosén Chief Financial Officer Joined in 2015
Listing Nasdaq Large Cap
The Resurs Share
• • •
The 29th April 2016 Resurs Holding was listed on Nasdaq Stockholm, large cap Subscription price set at 55 SEK/share giving a market cap of SEK 11 bn During Q2, increased ownership by cornerstones
Increased ownership by cornerstones
On 30th June 2016, the largest shareholders, with direct ownership were: Cidron Semper Ltd./Nordic Capital
34.9%
+1.3%*
Waldakt/fam. Bengtsson
28.6%
+1.1%*
Swedbank Robur Fonder
8.4%
+2.7%*
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
*Greenshoe utilisation
3
Strictly private and confidential
Increase since 10th May
84.8%
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
• Increasing the quarterly result
+18%
18 760
-0.2%
+19%
annualised
Loan Book Growth (MSEK)
• Lower Cost of Risk
Net Income (excl. IPO cost net of tax) (MSEK)
19 596
pts Cost of Risk (%)
251 211 2.1%
Q1 2016
4
Q2 2016
Strictly private and confidential
Q1 2016
Q2 2016
Q1 2016
1.9%
Q2 2016
Segment development highlights “Intense activity in all our segments”
Payment Solutions
Consumer Loans
• Continued good growth in all markets and several new partners. Among them:
• Strong growth and positive contributions from all markets
• High activity with newly started partnerships such as:
• Contactless functionality is launched on Supreme Card Gold • In June 2016, first to launch Masterpass in Norway
5
Strictly private and confidential
Insurance • Four new partners added:
• Increased market share especially in Sweden and Norway • Mainly driven by increased focus on customer communication
• Improved technical profit due to closing of unprofitable business in UK.
Resurs – Nordic largest independent Retail finance group Operating income overview of Segments and Products
Q2 2016 (Loan book)
Retail Finance
Q2 2016 (Operating Income)
Payment Solutions
Pan Nordic Platform
Finland Norway 42%
Sweden
> 35,000 retail stores
31%
c. 270,000 cards
47%
Credit Cards
Cooperation with partners to provide loyalty credit cards Denmark
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
7
>15 years
10-15 years
5-10 years
< 5 years
In forefront of adapting new technology Loyo – our consumer card loyalty app
Launch of Contactless MasterCard
General:
General:
General:
• Gather your gift cards, loyalty cards and credit cards in one mobile app
• Open digital wallet to gather your cards and contact details
• Quicker and more convenient shopping in physical stores, just hold the card close to the terminal.
• Simplify online shopping
• No pin required for transactions under 200sek (Sweden).
‒ Efficient communication channel for our partners • Apply for a credit card and sign with BankID, instant credit check
‒ Use BankID + social security number
Q2 Update:
Q2 Update:
Q2 Update:
• Increased activ customer base to c.90k users
• Continued Nordic launch plan, June 2016 Resurs first to launch in Norway
• Since May 2016. All new Supreme Card Gold, NFC-enabled
• Incresed partner base to c.150
Pay with Gather All View Balance & Receive Access to Loyo Loyalty Cards Trans, Info Offers Retailer Info.
8
Resurs Bank MasterPass Wallet
• Others in the Supreme Card family to follow
Focused Business Model – Retail Finance is at the core of what we do
Consumer Loans
Retail Finance
“We Drive Retail Sales” Credit Cards
Insurance
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
Loan Book Growth (MSEK) +4%
+0.3 % pts
19 596
18 760
Q2 2016
Cost of Risk (%)
C/I
Q1 2016
Q2 2016
Net Income (excl. IPO cost net of tax) (MSEK) -0.2 % pts
+19%
Q1 2016 1.
11
41.1%
282
276
Q1 2016
Q2 2016
RoTE (excl. IPO cost net of tax) (%) +2.5 % pts
251
211 2.1%
44.4%
14.0%
13.7%
Q1 2016
Opex (excl insurance and IPO cost) (MSEK)
25.4%
27.9%
1.9%
Q2 2016
Q1 2016
NBI for bank calculated as group operating income less reported insurance segment operating income
Q2 2016
Q1 2016
Q2 2016
Loan book evolution Strong growth in both Payment Solutions and Consumer Loans Payment Solutions (MSEK)
Total Resurs (MSEK)
Consumer Loans (MSEK)
yA Bank
11 270
19 596 17 468
18 198
10 824
8 327
18 760
7 905
7 695
10 294
7 936 9 773
7 207 14 163 6 956
Q2 2015pf Q4 2015
Q1 2016
Q2 2016
+12%pf
+15%
YoY
YTD (ann)
• Both segments and all markets show growth
Q2 2015pf Q4 2015
+8%pf YoY
Q1 2016
Q2 2016
Q1 2016
Q2 2016
+11%
+15%pf
+19%
YTD (ann)
YoY
YTD (ann)
• Positive contribution from all markets • Increased sales with our partners, both with existing and new partners • Market activities have positive effects on credit card development
12
Q2 2015pf Q4 2015
• Positive contribution from all markets, primarily Sweden and Norway • Market activities and product offerings drive growth
Margin evolution Strong growth in net interest income and net banking income Net Interest Margin (%)
Net Interest Income (MSEK) +6%
+0.2 % pts 548
518
Highlights
11.2%
11.4%
• 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
Net Banking Income (MSEK)
Q1 2016
Net Banking Income Margin (%) +0.3 % pts
+6% 635
Q1 2016
13
Q2 2016
670
Q2 2016
13.7%
14.0%
Q1 2016
Q2 2016
• Net banking income Q2 2016 vs. Q1 2016 +6% with higher NBIM — Higher NBIM following on higher NIM
Evolution of operating expenses Improved cost income ratios Operating expenses (excl. IPO cost) (MSEK)
Cost Income Ratio (excl. IPO cost) (%) Bank
Bank 282
Highlights
-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
Note: IPO cost of SEK20m reducced in Q1 2016 and SEK14m in Q2 2016.
14
Q1 2016
Q2 2016
Evolution of credit losses Maintained low cost of risk Cost of Risk (%)
Credit Losses (MSEK)
Highlights
-0.2 % pts
98 91
2.1% 1.9%
Q1 2016
15
Q2 2016
Q1 2016
Q2 2016
• Cost of risk developed further from 2.1% to 1.9% on the back of improved credit quality
Strong growth of net income and RoTE
Net Income (excl. IPO cost) (MSEK)
RoTE Ratio (excl. IPO cost) (%)
Highlights
+2.5 % pts
+19%
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
16
Q2 2016
Q1 2016
Q2 2016
Stable capital position
Highlights
Capital structure, %
Diagramrubrik 13.6%
14.2%
1.1%
14.4% 1.1%
2.1%
Tier 2 Capital
1.6%
• Reflects 50% pay-out ratio
AT 1 CET 1 13.1%
13.3%
31 Dec 2015
30 Jun 2016
9.9%
Capital requirements
Axeltitel
17
• Strong CET1 ratio of 13.3% with a comfortable buffer vs. capital requirements of 9.9% and target CET1 of 12.5%
Funding evolution Continued diversification Highlights
Equity and Liabilities
8%
9%
20%
20%
• Diversified funding with MTN and ABS — Continue to expand use of both MTN and ABS
64%
66%
Q1 2016
Q2 2016 Deposits
18
Equity
MTN & ABS
Medium Term Financial Targets - Recent Performance
19
Metric
Target
Q2
Organic Loan Growth
~ 10% p.a.
Very strong Q2 with annualized 18% growth QoQ
NBI Margin (Bank)
In line with recent performance (c. 13% – 15% in 2013-2015)
Q2 improvement to 14.0%
Cost/Income (Bank)
~ 40% in the medium term
Q2 improvement to 41.1%
Cost of Risk
In line with recent performance (c. 2% – 3% in 2013-2015)
Q2 improvement to 1.9%
RoTE
~ 30% in the medium term (Based on Capital Employed at 12.5% CET1 Ratio)
27.9% at CET 13.3% / 29.3% at CET1 12.5%
Payout Ratio
> 50%
50% of H1 2016 Net income provisioned for as dividend in CET1 calculation
CET1/Total Capital Ratio
>12.5% CET1 14.5% Total Capital
13.3% CET1 14.4% Total Capital
Strictly private and confidential
Strategy & Going forward
Resurs has a well defined strategy for growth
Strong Q2 performance
• Strong lending growth + 18% annualised • Increasing the quarterly result +19%
compared to Q1
Clear Growth Strategy
We will keep focus and grow organically in the Nordics through our scalable captive business model. This includes four main growth areas
• Several new partners during Q2
Strengthen existing collaborations to increase credit penetration
