Resurs Holding today presents new financial targets for the Group. At the Capital Market Day tomorrow, some of the members of Resurs Holding’s management team will provide greater insight into the company’s operations, strategy and new financial targets.
Resurs Holding’s new financial targets from 2022 are:
- Growth in earnings per share of at least 10 per cent per year. Growth in earnings per share is the overall financial target because Resurs believes that strong profit growth per share is the best measure of creating shareholder value over time
- A C/I ratio before credit losses under 35 per cent excluding Insurance in the mid-term
- Maintain a Common Equity Tier 1 ratio and total capital ratio that exceed the statutory requirement (including Pillar 2 and buffer requirement) by 150 – 300 points
- Annually distribute 50 per cent of net profit to shareholders through dividends and/or repurchase of shares
“By establishing an overall target for earnings growth, we can work with the entire income statement more clearly to optimise the Group’s earnings and create value for our shareholders. The ongoing transformation journey is expected to drive growth and profitability forward. By establishing intervals for the Common Equity Tier 1 ratio and total capital ratio of 150 to 300 points above the statutory requirement, together with the updated dividend policy, we are increasing transparency in regard to expectations about future capital requirements and capital needs,” says Nils Carlsson, CEO of Resurs Holding.
If the capital requirements do not increase as expected and capital thereby exceeds the interval of 150 – 300 points above the statutory requirement, the excess capital may be distributed to shareholders either through dividends or the repurchase of shares, or alternatively could be kept available for potential acquisitions.
Dissolution of the credit provision of SEK 75 million
In April 2020, Resurs Holding’s subsidiary Resurs Bank made an extra credit provision of SEK 75 million due to COVID-19, in accordance with IFRS 9. Resurs has not noted any negative trend in customer payment patterns and uncertainty regarding the ongoing economic recovery and the trend in unemployment and its associated effects on customers’ solvency have declined significantly, with credit quality instead improving. As such, the Board of Directors has resolved to dissolve the extra credit provision of SEK 75 million in its entirety, which will impact earnings positively for the third quarter of 2021.
Update of the potential distribution and the separate listing of Solid Försäkring
In May 2021, the Board of Resurs Holding assigned Group Management the task of evaluating and creating the preconditions for a distribution of Resurs Holding’s shares in the subsidiary Solid Försäkringsaktiebolag to the shareholders through a Lex Asea distribution. This process is continuing according to plan with the aim of listing Solid Försäkring separately on Nasdaq Stockholm’s main market. The ambition of the Board is to soon announce more information to the shareholders concerning the evaluation and the next step of the process, and any potential decisions to propose to Resurs Holding’s General Meeting of Shareholders to distribute the shares in Solid Försäkring. The strategical review and preparations ahead of the separate listing of Solid Försäkring have led to nonrecurring costs of about SEK 15 million that will be charged to Resurs’s earnings for the third quarter of 2021. In addition, Resurs expects further nonrecurring costs of about SEK 25 million, which are expected to be charged to earnings for the fourth quarter of 2021.
At the Capital Market Day tomorrow, Resurs Holding will explain more about how the company’s position and transformation journey will drive growth and profitability forward. The company will also present its view of market conditions and trends.
Resurs Holding’s Capital Market Day is a hybrid event whereby the physical event will take place at Epicenter, Mäster Samuelsgatan 36 in Stockholm, beginning with registration at 8:30 a.m. and lasting until 12 noon. The event will be adapted to current COVID-19 guidelines from the Public Health Agency of Sweden.
If you would like to follow the event online, our live send begins at 9:00 a.m. and ends at 12:00 noon. Register your attendance using this link: https://live.twebcast.com/participant/ResursCMD2021
The presentations will be conducted in Swedish and the presentation material is in English. A version of the event with English subtitles will be made available on the Resurs Holding website at a later date. The presentation material will be available on Resurs Holding’s website www.resursholding.com when the event has concluded.
This information is such information that Resurs Holding AB is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 28 September 2021 at 7:15 p.m. CEST.
ABOUT RESURS HOLDING
Resurs Holding (Resurs), which operates through the subsidiaries Resurs Bank and Solid Försäkring, is the leader in retail finance in the Nordic region, offering payment solutions, consumer loans and niche insurance products. Since its start in 1977, Resurs Bank has established itself as a leading partner for sales-driven payment and loyalty solutions in retail and e-commerce, and Resurs has thus built a customer base of approximately 6 million private customers in the Nordics. Resurs Bank has had a banking licence since 2001 and is under the supervision of the Swedish Financial Supervisory Authority. The Resurs Group operates in Sweden, Denmark, Norway and Finland. At the end of the second quarter of 2021, the Group had 735 employees and a loan portfolio of SEK 31.1 billion. Resurs is listed on Nasdaq Stockholm.