1. Strong business model with a Nordic focus and a retailing legacy
Resurs was founded by retailers for retailers. The business model is therefore based on retailing experience, and the founders of Resurs realised the benefits of retail finance solutions and flexible payment for increasing customer purchasing power and consumption, attracting customers to stores and strengthening customer loyalty. Since the company’s retail finance solution was launched in the 1980s, Resurs has continued to refine its retail finance offering and is now the largest independent retail finance provider in the Nordic region.
Resurs now has more than five million customers in its customer database, and most of these come from retail finance. The large customer database provides opportunities for cross-selling other offerings, such as credit cards, consumer loans and insurance products. Historically, Resurs has shown strong growth, driven by a broader base of retail finance partners, new product introductions, geographic expansion and several key acquisitions.
2. Continuous innovation
Innovation plays a vital role in Resurs’s competitiveness. The Group is continuously adding new products and services to its product portfolio to support the transactions of our retail finance partners. In the 1980s, for example, Resurs was the first company to launch the “interest-free credit” concept in retail finance solutions, and one of the first in Sweden to issue credit cards with reward and loyalty programmes. In 1993, Resurs added product insurance through Solid to its Retail Finance offering.
In recent years, the omni-channel offering, which enables a multichannel approach to our solutions, has been actively implemented by our retail finance partners. In 2016, Resurs launched a beta version of the Loyo Pay app (based on the Loyo mobile platform), a digital credit application at checkout and contactless cards.
3. Profitable growth
Resurs’s stable returns are driven by the Group’s range of small and medium-sized loans with relatively short maturities, low customer acquisition costs and effective marketing. Small and medium-sized loans with short maturities offer attractive pricing and lower risk. Deposits from the public represent Resurs’s main source of funding, and are complemented by other sources of funding such as medium-term notes (MTN) and asset-backed securities (ABS). This diversification matches the long-term needs of the business operations.
Historically, Resurs has shown strong growth, driven by a broader base of retail finance partners, new products, geographic expansion and strategic acquisitions. The Retail Finance business has generated a steady inflow of new customers, and helped to grow Resurs’s customer base from half a million customers in 2001 to the current figure of five million. Resurs has successfully developed and expanded its loan portfolio over the past 30 years, which has been the main contributor to growth in total operating income. In 2016, loans to the public rose 17 per cent and passed the SEK 20 billion mark for the very first time. Total lending amounted to SEK 21.2 billion. At the same time, Resurs’s profitability improved and in 2016, the return on tangible equity (ROTE) was 27 per cent.
4. Attractive dividend yield
According to the dividend policy adopted by the Board, Resurs is to distribute at least 50 per cent of annual consolidated net profit over the medium term. Should Resurs generate a substantial surplus due to its profit and in relation to its dividend policy, Resurs intends to use this surplus to either finance higher organic growth and/or future acquisitions, or to transfer the surplus to its shareholders through dividends. For 2016, the Board of Resurs proposes a dividend of SEK 3.00 per share, representing 66 per cent of net profit for the year.