Ladies and gentlemen, welcome to the Resurs Holding audiocast for teleconference Q1 2022. This presentation will be held in Swedish. Today, I'm pleased to present CEO Nils Carlsson and CFO Sofie Tarring Lindell. For the first part of this call, all participants will be in a listen-only mode, and afterwards there'll be a question answer session. Speakers, please begin your meeting. Thank you very much, and welcome to the Q1 presentation of Resurs Holding. Moving swiftly to Page 2 on our presentation. My name is Nils Carlsson, as you heard. I'm the CEO of Resurs Bank, and together with our CFO and Head of Investor Relations, Sofie Tarring Lindell, we're going to be presenting our development for the 1st quarter of this year. Slide 3, please. This is a summary of Q1 2022. For the 1st quarter of this year, we saw good growth in both our segments compared to previous year, and we grew our lending by 8% to SEK 34.2 billion. The start of the quarter saw a negative impact on us due to the lockdowns during the pandemic, but towards the end of the quarter, the economies and the communities gradually reopened, which produced a positive recovery towards the end of the quarter. Operating income for the quarter down by 1% compared to the previous year, totaling SEK 766 million. Net result of financial transactions down by SEK 12 million as a result of unrealized decline of true value of interest-bearing securities caused mainly by market turmoil and volatility in the interest rate markets as a result of the ongoing conflict in Ukraine. Excluding net income from financial transactions, total operating income increased by 1% compared to the previous year. Credit loss ratio compared to last year continued to improve, amounted to 2.1%. It was 2.5%, and is a result of our concerted work, as I see it, to improve the underlying credit quality in the company. In total, net profit growth amounted to 8%. Our financial position and capital position remains strong and stable, and the total capital ratio amounted to 16.1%, which corresponds to 3.4 percentage points above the regulatory requirements. Over a long period of time, we've worked in a structured and conservative, perhaps, manner when it comes to funding and liquidity. During March of 2022, we saw a confirmation by credit rating agency NCR, a rating BBB with stable outlook, with the comment focusing on our healthy profitability together with good access to financing opportunities as some of the reasons for their decision. Furthermore, NCR commented that the stable position of the bank and healthy profitability has created a situation where the company is resilient also during turbulent times. Moving on to Slide 4. We'll continue with the operational summary of the past quarter. Towards the end of the quarter, the economies in the Nordics started to open up again after the pandemic, and we noticed this through an increased demand in the travel industry and smart investments to homes such as solar panels and heat pumps. We've also seen a positive development in the Norwegian market. It has stabilized and we saw record sales during the quarter in consumer loans. Similarly to several other sector players, Resurs Bank received the preliminary assessment of the Swedish Financial Supervisory Authority of Resurs' credit assessments in February. We do not share the preliminary assessment by the FSA, and we've replied accordingly to the agency. We take full responsibility, and we are very serious in how we approach credit assessment, and we feel secure in the assessments we perform. Towards the end of the quarter, Resurs Bank entered into a strategic partnership with a company called Payer in order to develop subscription solutions for the Nordic retail market. We see that the demand for payment solutions contributing to the circular economy and a more sustainable society is increasing. We've initiated our first common pilot for subscription solutions in Sweden, and we'll continue to evaluate and develop this service over the next coming months. Resurs is still on its transformation journey, and during this quarter, we've taken new steps forward. We are beginning, among other things, an external rollout of our basic philosophy, providing a balance in people's personal finances, and as you can see in our report, a new visual identity to illustrate to some extent our ambition. Moving on to Slide 5. The reason why we are rolling out a new visual identity is that we want to make it clear to the market, and we want to have a clear position in the community and in society. By focusing on people, their everyday lives, and their finances, we want to build more and long-term relations with customers, partners, employees, and other stakeholders of the company. Building this balance for the private finances of our customers and not just perhaps as we are sometimes perceived as, someone who comes in to resolve when there's a sudden need for credit is important to us. We'll be rolling out our new visual identity step by step over the next while, but it entails a lot more than just shifting a logotype and color and livery. It's about changing the bank, and this can be seen throughout our offers and services. We've talked about our core bank system shift, which was begun last year at previous reporting events, and we will in fact continue to develop more simple, innovative digital services adapted to how our customers lead their lives today. We will be developing sustainable loans and new offerings in the area of circular consumption. We're going to be thinking in new ways, and we will be fully responsible as we play our part in society. Today, we're also activating the website of Resurs Society, where we talk about how we are more transparent, how we take full responsibility towards our customers but also in the sector and society in general. Page 6. The loan book trend over time then. For the past while, we've increased our transparency in different markets to show how we develop, and during the quarter, we've seen good growth in three of our four markets. We can see that the Swedish market on this graph is very stable for us with good growth. Moving on, we see that it is equally and continually satisfying and gratifying to know that the positive trend in the Norwegian market has been maintained during Q1. You see how it's gradually start to turn up. It has been going in the other direction since 2019. Compared to Q1 last year, we're down by 1% on the loan book. In spite of this, however, we've identified a number of positive features in the market. Moving on to the Danish loan book. New lending in the Danish market during the quarter was somewhat lower than usual. Q1 has been somewhat negatively impacted by the decision of the Danish FSA, where they require stricter calculations for NDI, net disposable income. We've adjusted our process for retrieving and collecting of information in this calculation to comply with these requirements. At the beginning of the 2nd quarter, we have launched a more automated process to gather and collect this information. In the Finnish market, we've seen good growth in the past number of quarters, and there's no difference on that point in Q1, where we're growing by 11% compared to last year. Page 7. We'll have a look at our segments starting with Payment Solutions. Loan book is up by 6%, and as I mentioned, we see that the economies in the Nordic countries are starting to truly open up in earnest after the pandemic towards the end of the quarter. This has resulted in a clear trend where more people are planning to travel again. We have a strong presence in the travel industry through our new cooperation with Nordic Leisure Travel Group and their brands. We also have a cooperation, long-standing cooperation with Ticket, and we've also seen a demand for so-called smart investments in the home, such as solar cells and heat pumps after the pandemic. That's quite a clear trend as well. In the retail side, we're helping our customers, our partners to digitize their customer offerings evermore. One concrete example is, for example, car workshops who can send out our checkout solution directly to the customer's mobile phone. It has been possible through our cooperation with Mekonomen Group for the past while, and during the quarter, we've increased our cooperation with Speedy amongst others, with 40 or so workshops, and a similar solution has also been rolled out together with the car dealership, Bavaria. If we look at the margin and in order to stabilize the negative marginal development, we focus on our cluster focuses throughout the Nordics. During the quarter, we've seen a positive development in terms of the number of new corporations and also in the form of growing, enhancing sales volumes in the sectors we've chosen to focus on, such as, for example, dentists, bicycle retailers, and different types of heat pumps. We focus on SME customers with better marginal development for us. Looking a little bit further at this segment, developing Resurs card is a process which continues. Towards the end of the past quarter, we implemented a shift of name and look and feel as a first step in our card strategy, which we've renewed. During the month of March, towards the end of the quarter, we saw changes. The markets have opened up a little bit more, and there's more activation of cards with existing customers. Slide 8 then. Looking at consumer loans. Here we grow by 9% in the loan book. The Swedish market has grown in a stable manner. We've made improvements in our own sales channels with a simpler loan calculator for our customers, for example. It has been shown to have a positive effect. In the Norwegian market, we see that the situation has stabilized. We've had focus on increasing sales, ensure profitable growth, and strengthen customer loyalty further. During the quarter, we launched a new application flow, which contributes to an improved customer journey for our customers. As I mentioned earlier, we have in fact set a sales record during the quarter, which is a very positive factor as we see it. We can see that the Norwegian market is coming back for us. However, we are still impacted by the fact that new customers come in with lower interest rates, and that has an impact on the margin and on our profitability. Growth in Finland continues in spite of tough competition. Moving forward, we'll continue to develop the digital customer journey for Finland with similar improvements to those we've made in the other Nordic markets, with a continued focus on our own sales channels in order to ensure an improved margin. In Denmark, during the quarter, we've seen a negative impact as a result of the decision by the Danish FSA that I mentioned earlier. That was a summary of the quarter, and now I'm going to give the floor to Sofie, who's going to tell you about the figures. Please go ahead. Thank you. Thank you, Nils. We move directly to Page 10. Nils has talked about the loan book. As I'll just mention briefly that it was up 8% year-on-year and now amounts to SEK 34.2 billion. Just as Nils has said, we have good growth in both our banking segments. If we look at the quarter since Q4 2021, we have had a positive development primarily within consumer loans, payment solutions, and retail finance credit cards. Well, normally they have a weaker Q1 compared to Q4, and we also have to remember that the beginning of the year was negatively impacted by the lockdowns during the pandemic. Just as Nils has said, if we look at the geographical market and compare to Q4 2021, we see growth in Sweden, Norway, and Finland, and the loan book in Denmark has gone down somewhat, just like Nils said. Moving on to Page 11 and our income. Income were down with 1% and amounted to SEK 766 million compared to Q4 income was up with 2%. Net interest income is lower than last year, and that has mainly to do with lower margin in Norway and continued mixed effects within Payment Solutions. I'll come back to that. Compared to Q4 2021, NII was up 4%, but we do have negative effects. If we adjust it for that, it was up 1% compared to Q4. Net income from financial transactions was -12 compared to +3 last year. Nils has already said that this has to do with an unrealized value decline in interest-bearing securities, and that had to do with market turmoil, volatility, and the conflict in Ukraine. Adjusted for that, operating income was up 1% compared to last year. NBI margin is lower than last year due to these lower margins in Norway and the mixed effects within Payment Solutions that we will get back to. Compared to last quarter, the NBI margin was stable if we adjust for net income from financial transactions, and that is positive that we've stabilized that negative margin development. Moving on to Page 12 and the credit losses. Credit loss ratio compared to last year continues to improve and amounted to 2.1%. Nils has already mentioned that is part of the targeted work we have done to improve the underlying credit quality. If we compare to Q4 2021, credit loss ratio was stable, increased somewhat in absolute numbers due to the increased loan book. We see that customers' payment patterns have been stable during the quarter, and we follow closely the financial development in society with increased inflation, increased interest rates, and how that can impact households' disposable income. As you know, we have been doing updates in the credit granting, and that makes us more resilient. We continue to see that customers' payment patterns are stable. If we continue with segments and next page, loan book was up 6% for Payment Solutions compared to last year. Looking at income, both in absolute numbers and in the margin, they are lower due to what we see since last year that we have a negative income. Just like Nils said, we see in the quarter that we have a better beginning of a growth, and we have to remember that this is a relatively speaking lower part, smaller part of the loan book. We continue to see a negative trend with the loan book, and that has a negative impact on our activities. Just like Nils said, in March, we started to see better sales. However, usually it takes a month or so before those sales begin to build the loan book and generate income. If we compare to Q4 2021, underlying income and margins were stable. If we adjust for the negative one-offs in Q4, then net income from financial transactions is stable. The same thing goes for the credit loss ratio compared to last year and the previous quarter. Moving on to Page 14 and consumer loans. Consumer loans loan book was up 9%, and growth compared to last year was good in all markets except the Norwegian one. Compared to Q4, we had a positive growth in Sweden, Norway, and Finland. However, the Danish market was impacted by the credit granting process. Income is stable compared to last year, was up at SEK 10 million if we adjust for net income from financial transactions. Compared to last year, we had an NBI margin, and that was lower partly or mainly due to margins in Norway, where new sales is at lower interest rates than the existing portfolio, and we have a number of customers who terminate their loans in advance. Another explanation for the lower income margin has to do with the more restrictive credit granting that were introduced beginning of the pandemic. When we work with this risk-based pricing, that gives us a lower income margin. Over time, which is what we see to the right, this also improves credit loss ratios. Adjusted for credit losses, we were up 8% on the risk-adjusted margin compared to last year, and Q4 was also improved. If we continue to Page 15 and expenses. Our operating expenses amounted to SEK 330 million in the quarter, and compared to last year, personnel costs were lower. We have decreased the number of coworkers, and IT costs are up because we're developing our digital customer interfaces to increase competitiveness. The C/I ratio was 43%, and there is an increase compared to last year, and that is mainly due to lower income. It was 42.4 if we make an adjustment, so lower than last year. Compared to Q4 2021, the cost level was somewhat lower, and the C/I ratio was improved due to higher income and lower costs. We do have a high ambition level when it comes to effectiveness, and the objective to reach a C/I ratio of 35% in 3-5 years is an important guiding star for us in the ongoing transformation journey. If we continue with Page 16, we see, to summarize, that the operating profit is improved with 5%, amounting to SEK 260 million, and the income is also 7% better compared to Q4. In total, we were up 8% compared to last year. If we continue with Page 17, we see our capital position, and it is continuing strong with a capital ratio of 16.1% and CET1 ratio of 14.5%, which is well above regulatory requirements as well as our objectives. The reason why these ratios are lower than last year is increased growth and also that we in January repaid the subordinated loan of SEK 300 million that was issued in January 2017. We'd had an impact of 0.6 percentage points. Page 18, our funding. Just like Nils has said, this is something that we have been working with in a structured manner with funding and liquidity. In March 2022, we got to the credit rating BBB with a stable outlook. We see the LCR ratio amounting to 271% in the quarter. I will hand back to Nils. Thank you. Thank you, Sofie. We also have the outlook. If we look at that, we have a continued focus on strengthening our growth. We will develop existing partnerships on our retail side with the other subscription solutions. We are, during this period, also going to continue to work with strengthening our brand, something that we will be working with throughout the year. We've also mentioned the situation in Denmark, where we now have launched a solution that was in April, and we're going to continue to work with this. Of course, we also have a continued focus on customer satisfaction in Norway. Which we believe will reduce the churn. In addition to that, we're also working, needless to say, with stabilizing our margins and acting when it comes to our C/I ratio, just like Sofie said. We are going to continue this coming period to work with creating a cloud-based bank with our new core banking system work that is underway. We are getting close to a first release. Of course, we're monitoring a possible impact on us and our customers, the Ukraine war. Regardless that, well, we have very stable KPIs in spite of all the turbulence that we might see in the market. That being said, we conclude our presentation and open up for questions. Thank you. If you do wish to ask a question, please press 01 on your telephone keypad now. Our first question comes from the line of Emil Jonsson from DNB. Please go ahead. Hello. Thank you for that presentation. I have a question. What is the reason for somewhat higher costs this quarter compared to the previous quarter? I presume there's a seasonality of some type, but what's more specifically driving costs? Sofie. Well, the costs overall are SEK 7 million below Q4, in fact. Oh, perhaps it's me. Okay. Okay, I see. Okay, that's fine then. But I read in your report, in any case, that I saw something about how you had improved your agreements, your contracts with loan brokers to make that situation more profitable. Could you tell us a little bit more about how that has developed? Nils. Well, when we sell, we have our own sales channels and external ones, agents as it were. What we have done is we've renegotiated some of our agreements, so that's the information contained in that comment. The specifics, the levels and details is not something we give guidance on, but we've improved the general situation. Okay. Thank you. I also wonder about the headcount. There's somewhat lower number of employees than the previous quarters. Would it be correct to say that you intend to continue along with that trend and that you have quite a large number of employees? Will we see any efficiency improvements there? That's an excellent question. Yes, we have reduced the total number just as you point out. This is not to be interpreted to say that our ambition is to continue to reduce the headcount. In connection with the core banking project that we are working on right now, we're refocusing the skills and competence in the company. We need more tech competence, tech skills, so this is not to be interpreted as an enormous savings potential that we intend to cut back on the headcount. Rather, we will be making some shifts in the skills profile. That's what's behind this. A follow-up question to that. If you shift people from various areas to tech, all else equal, should we expect somewhat higher staff costs because IT people have higher salaries so may cost more? No, that's not our assessment. We do not believe that this will be particularly visible or noticeable in our figures. Okay. Thank you. One final question. You talked a little bit in your presentation about the circular economy initiative which you intend to roll out. What type of initiative could that entail? Well, in particular it's about renewals we work with Flero, for example. Subscription solutions where customers have more opportunities to opt for better quality. It can be different types of sustainable loans tied to particular parameters in the area of sustainability. Sustainability, for example, in terms of your own personal finances. That's the content of that concept. As of today, you can go to the Resurs Holding website and click on the so-called Resurs Society. This is the start of a community that we're rolling out to show our perspective on the circular economy, our corporate social responsibility in the community, and the initiatives we've taken to be more transparent in relation to the market on our stance, both on the part of the company and offerings and cooperations with companies and organizations. There's more to be seen and found out there if you're interested. Thank you very much. Those were all my questions. Thank you. We have one more question from the line of Herman Wartoft from Pareto Securities. Please go ahead. No. Hey, Hi, and good morning, and thank you for that very interesting presentation. I have a question about the interest rate situation and the 1%, and if you have an estimate. Well, this is nothing that we can share publicly. What we can say is that if we have higher funding costs, we can transfer those to the customers, but it is not for sure that the funding costs will go up. It has to do not only with market, but also other factors having to do with lending rates. But we can make such transfers, and we are preparing for that if it will be necessary. Thank you. Could you say something about a time perspective, when it comes to higher interest rates for you? Well, I have nothing that I can communicate in public, but historically, we've been able to transfer those costs to customers and it has worked well. Thank you. NBI margin, it has stabilized this quarter, and the income is going up compared to Q4. Can we expect that income will continue to grow now with a more stable NBI margin? Well, it's very difficult for us to predict the future. Nils has talked about this, and I as well, that we are working on stabilizing the margin developments, but there are certain negative factors in Norway, for example, where we have a lower margin on new lending compared to the existing loans that we have, and we're trying to counteract that with well, credit granting, for example. The ambition, of course, is to stabilize the NBI margin, but we can't really give any guidance when it comes to the future. Thank you. I understand. Then the last question, the C/I ratio and what we have this quarter and your perspective of three to five years. If you could say something about that and the cost base. Well, I can start. Well, everything that we're doing, what we've been working with last year with our core banking project, that is in order to be able to have a banking system in the Nordics. Well, the way it's run today, it is costly, and it's not just about improving digital customer interfaces and flexibility, but in this work that we're doing, we also have significant cost savings that will be had when we move on with the project, and that is something you have to have in mind, income, and Sofie has talked about that. We see that we have better interest rates now in Norway, for example, and we're working with profitability and margins, and that is what we're doing. Whether this is an objective we can reach, yes, definitely. What you have to remember, Sofie, is that many of costs that we have are fixed, and then we can't just add volume. We have to increase income, and we do that. We work with growth. When we move on with the core banking project, we think that will have an impact also on expenses. Thank you. I understand. Well, one last question. Net income from financial transactions. What do you think about the next quarter looking at Q1 and Q1 compared to Q2? Will it be similar to 2020? Well, it's difficult to say. It depends on the markets and what will happen in the future, and it is difficult to predict. We do have quite a large portfolio, so there might be minor changes in basis points, and it is difficult to predict. Okay. Thank you. As there are no further questions, I will hand it back to the speakers. Right. Thank you very much for all those questions, and thank you for your attention, for the interest you've shown in the company, and we hope to hear from you again when we release our Q2 report in July. Thank you very much. Thank you all for attending. You may now disconnect your line.