1. A strong business model with a nordic
focus and a retailing legacy
Resurs was founded by retailers for retailers. Its business model is therefore based on retailing experience. 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 or e-commerce and strengthening customer loyalty. Today Resurs is a leader in the growing Nordic consumer credit market, with approximately 5.9 million customers in its customer database. There are important synergies between the three business segments, and the customer database serves as a hub generating significant opportunities for cross-selling offerings such as credit cards, consumer loans and insurance products. Based on its successful business model, Resurs continues to run an operation that will continue in the future to exhibit strong profitable growth, a growing base of retail finance partners, new products, growing cross-selling and strategic acquisitions.
2. Unique solutions for the omni-retail
of the future
Innovation plays a vital role in Resurs’s competitiveness. The Group is continuously adding new products and services to its product portfolio to support our retail finance partners and benefit our customers. The Group is also focused on digitising its processes in order to make things simpler and more efficient for customers and employees. Resurs’s omni-channel strategy has evolved in recent years to mean that the Group offers efficient payment solutions regardless of the sales channel. Some examples from 2018 were the launch of Resurs’s Checkout payment solution for physical stores, which helps consumers move seamlessly between physical and e-commerce stores, and Click & Collect, a central e-commerce checkout combined with local management of inventories and store checkout. The Group expanded the development of AI, which it had already employed in credit lending, into other parts of the business during the year. Algorithms are used to achieve a faster process for identifying existing customers’ behaviours with high precision. This in turn generates activities and offerings that are customised and better suited to specific customer needs.
3. Healthy profitable growth and an
attractive direct yield
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. Resurs has successfully developed and expanded its loan portfolio, which has been the main contributor to growth in total operating income. In 2018, loans to the public rose 16 per cent, amounting to a total of SEK 28 billion. This growth is taking place with good control of credit losses, which remain at a low and stable level. Resurs also further improved its profitability in 2018 and its investment return (RoTE) was 33.9 per cent, adjusted for the Common Equity Tier 1 ratio given the Board’s target. The Board proposes a dividend of SEK 3.60 per share for full-year 2018, of which SEK 1.65 was paid in October 2018. This is a 9 per cent increase compared with 2017. The Board intends to continue paying semi-annual dividends.