1. A strong business model with a nordic
focus and a retailing legacy
Today Resurs is a leader in the growing Nordic consumer credit market. Resurs was founded by retailers for retailers, and 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 both physical and online stores and strengthening customer loyalty. There are important synergies among the three business segments, generating significant opportunities to use cost-effective processes for cross-selling such as credit cards, consumer loans and insurance products with the approximately six million customers in the customer database as a hub. 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, such as Resurs Checkout or Click & Collect. Continued development of AI, which Group had already employed in credit lending, in the business is a priority. 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 a strong contributor to growth in total operating income. In 2019, loans to the public rose 12 per cent, amounting to a total of SEK 31.3 billion. This growth is taking place with good control of credit losses, which remain at a stable low level. Resurs also further improved its profitability in 2019 and its investment return (RoTE) was 32.7 per cent, adjusted for the Common Equity Tier 1 ratio given the Board’s target. The Board proposes that the 2020 Annual General Meeting resolve on dividends of SEK 2.10 per share. According to the company’s model of semi-annual dividend payments, dividends of SEK 1.80 per share (SEK 3.90 per share on an annual basis) were paid in autumn 2019. Accordingly, the proposed dividend together with the dividend decided in autumn 2019 entails an increase of 8 per cent compared with dividends in the preceding year.