Good morning, and welcome to the Resurs Holding conference call. All participant lines will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to the CEO, Mr. Nils Carlsson. Please go ahead, sir. Thank you very much, and good morning, everyone. A warm welcome to the Resurs Holding Q2 presentation. My name is Nils Carlsson, and I am the president and CEO of Resurs Bank, and together with our CFO and head of IR, Sofie Tarring Lindell, we're going to walk you through our development for the second quarter. Moving swiftly along to the summary first of Q2. This summary is of the figures for this quarter compared to the previous year. During the second quarter of 2022, we saw good growth in both our segments and the lending growth was 11%, up to SEK 34.6 billion. Excluding net financial transaction, the total operating income was up by 1%. The cost of risk level continued to improve up to 2.1%. If we look at the cost levels, we saw an improvement there as well, and the CI ratio, excluding net financial transactions, improved by 0.8 percentage points. All in all, net income, excluding financial transaction and non-recurring items, profit was up by 4% and our financial position and capital position remain strong and stable. Total capital ratio amounted to 16%, corresponding to 3.2 percentage points above the regulatory requirement. In addition, the board of directors intends to convene an extraordinary general meeting in the autumn of 2022 with the aim of distributing SEK 0.92 per share, corresponding to 50% of the reported net profit in line with our dividend policy and the ambition of the board to carry out biannual dividends. Let's continue with a summary of operations for the quarter. It has been a fairly eventful quarter with a high level of activity in both our segments and in all our markets. For example, we've acquired the Hemma operations and platform for green loans for energy investments in the homes in order to meet the significantly increasing demand for solar panels, heat pumps, and charging stations for the home environment. In connection with this acquisition, we've entered into a partnership with 10 or so companies who are market leaders in Sweden on the installation of solar panels, and all these partners will offer financing solutions to the customers via the platform Resurs Green Loans. We've also extended our previously very successful cooperation with Ellos Group AB. This is a real sign of strength showing that our e-commerce solution is relevant for one of the largest e-commerce players in the Nordics. Towards the end of the quarter, we also extended our ABS financing with JP Morgan at unchanged terms, which also goes to show that there is considerable confidence in Resurs Bank on the international banking market in spite of the turbulence in the market preconditions generally. Towards the end of quarter two, the Swedish Financial Supervisory Authority completed its review of credit assessment procedures with a number of companies in the consumer credit market with a final outcome where Resurs was handed down a remark and an administrative sanction to the tune of SEK 50 million. The board of directors of Resurs Bank has decided to appeal this decision to the administrative court, and I'm going to tell you a little bit more about that in more detail in my next slide. The Swedish FSA has been carrying out a review since 2020 into credit assessment procedures with a number of players in the consumer credit market to ensure that all the provisions of the Swedish Consumer Credit Act are complied with. It's fundamentally important, as we perceive it, that private individuals have a possibility of taking out loans and credits when they need to balance their economy for different expenses and investments. However, this places high demands on us as creditors when we grant loans and credits in a responsible way. We need to show due care for the customers and their private finances to ensure that they don't borrow more money than their credit rating and their private finances can handle. Responsible credit lending and careful credit assessments are important to combat over-indebtedness, and we perceive it as a positive thing that the SFSA have decided to review this matter. We always perform a careful assessment of the repayment capacity of our customers, and therefore, as you can see, our credit losses are at low levels. We use a method which is a long-standing one. We have great experience of using it, and it's based on extensive data support. In June. The review by the SFSA was concluded and Resurs received a remark and an administrative sanction. We and the SFSA have different views on the legal requirements and the process for credit assessment and how the customer's data shall be used in the credit assessment process. We consider that the application of the Swedish Consumer Credit Act is unclear. This causes problems for the industry as a whole and by extension also for consumers. In order to ensure added clarity in the application of the Swedish Consumer Credit Act, the board of directors of Resurs Bank has decided to appeal the decision by the SFSA. In parallel, however, we've also taken measures to ensure that we fully comply with the SFSA's demands, and we assess that overall this will neither impact our operations nor our financial performance measures. Let's now have a look at the loan book. Since some time now we have increased our transparency on the different markets in order to show our development. Compared to previous year, we've seen a positive growth on all our markets. The Swedish markets continues to grow substantially. That has a good growth both in the quarter and compared to previous year. If we look at the Norwegian market, it grew with 6% compared to previous year. We have also chosen to stabilize growth during the quarter since we have a strong loan book, therefore we prioritize profitability to volume growth looking ahead. In Denmark, we and the entire business is has a negative effect from the Danish FSA tougher requirements for credit assessment that they started to use in the beginning of the year. We focus intensively to make customer experience automatic and to improve the collection of external customer data. We could see a slight positive development towards the end of the quarter. In the Finnish market, we've seen a good growth the last quarter and there is no difference. In the second quarter, we see a growth of as much as 15% compared to last year. Let's continue. We'll look at our different business segments. We start with payments. We can see that the loan book increased with 10% and we've had a good growth in our volumes of new sales compared to last year and last quarter. Among other things, we see a continued positive development in the travel industry since societies are opening up after the pandemic and consumers are starting to book travels again. Sales volumes within the travel industry surpassed the last quarter and the quarters during the pandemic. The quarter was also a strong period for other businesses such as the car aftermarket, construction industry, gardening, and different investments that people do in their homes. Consumers can now to a high extent book trips, events, experiences, restaurant meals. We see that sales of Resurs Cards has also developed positively, but we can see that it will take some time before this is converted to a loan book. As I mentioned at the beginning, we have extended our collaboration agreement with Ellos Group, and we're happy about that. It's a sign of strength that one of the major e-com traders in the Nordic countries really appreciates our e-com solution. For some quite some time now we focused on developing our e-com solution, and we're now fully competitive and prepared for a much larger share of the market. We have during this quarter also signed agreements with approximately 500 new agents, and we are good at customized solutions that are win-win-win solutions for partners, customers, and us. One example of this would be Watches of Switzerland that opened the first retail store in the Nordic countries with high-quality designer watches. They've chosen Resurs as their financing partner for their entire business in the Nordic countries because we have a very customer-friendly offer to pay by installments. Let's look at the next business segment, consumer loans with a growth of 12%. We have a strong loan book. That means what we prioritize profitability to volume growth. We also want to strengthen sales in our own channels. In Norway, we've seen a good growth of the loan book compared to previous year, but the margins on new sales during the years have been lower than the margins in existing portfolio, which has a negative effect on the NBI margin. During this quarter, the Priority Loan, secured loans that is, have developed further in order to ensure that Resurs has a good and competitive offer. The credit limit has been increased to NOK 1.5 million. But we're still talking quite small volumes though. However, in Sweden, in June, we reached a new sales record and profitability in Sweden has been very stable. We've seen a good growth both in internal and external sales channels. In Finland, we've experienced less demand on the market globally, and our evaluation is that it's due to worries concerning the inflation and higher interest rates. In spite of this, sales and the loan book growth has been strong in Finland, thanks to improvements in our own sales channel, which has increased conversion. As I said previously, in Denmark, we and the entire business is affected by the tougher requirements from the Danish FSA. Tougher requirements for credit assessments. Towards the end of the quarter, we could see a cautiously positive development. I'd like to summarize. Oh, sorry, this was a summary, and by this, I'd like to give the floor back to Sofie. Thank you very much, Nils. Before I proceed with the presentation of the financial, I'd like to mention the fact that all figures that I will be speaking of are excluding non-recurring items. The loan book, Nils mentioned it was up by 11% compared to last year, and it now amounts to SEK 34.6 billion. In constant currencies, growth was 8%. As Nils mentioned, compared to the previous year, we have good growth in both our bank segments and in all geographical markets. Operating income was down by 1%, amounted to a total of SEK 773 million. Net interest income is lower than last year, mainly due to lower margins in Norway, a continued mixed impact in Payment Solutions, and higher interest rate costs than previous year due to increased financing volumes. On the topic of financing costs, our perspective on the future is that we can expect a higher interest rate level, which will impact our financing cost. However, we do not expect the funding margin to increase at the same pace as the increases by the central banks. Our ambition therefore is to gradually transfer an increased funding cost to our customers in lending. Net fees and commission were up due to strong increase in new sales volumes, where among other things, we've had an entire quarter with a reopened society, which has had a very positive impact. Net income from financial transactions was at SEK -12 million compared to SEK -1 million last year as a result of the drop in value of interest-bearing securities, mainly as a result of the market turbulence and volatility in the interest rate market Excluding net income of financial transactions, operating income was up by 1% compared to previous year. NBI margin is lower as a result of lower margins in Norway and the mixed impact in Payment Solutions. I'm going to get back to this when I talk about the different segments to some extent. If we compare with the previous year, income was up by 1%. Let's have a look at credit losses. The cost of risk, as Nils mentioned, compared to last year, continued to improve. It's now at 2.1% compared to the first quarter of 2022. The cost of risk was stable, it increased somewhat in absolute numbers as a result of growth in our loan book. During the quarter, the payment patterns of our clients were stable, and we follow along with the financial development in society and we monitor this very carefully, as increases in inflation and interest rates could have an impact on the household's disposable income. As you know, we tightened our credit lending at the beginning of the pandemic, which makes us more resilient now. However, obviously, we monitor this very carefully. As I've mentioned, we've not identified any negative impact as of yet on the payment patterns of our customers. Looking further at the segments, starting with Payment Solutions, our loan book was up compared to last year to the tune of approximately 10% or 7% in constant currencies. The growth in the loan book comes from the retail finance operations, while the loan book in credit cards is unchanged compared to last year. New sales, as Nils mentioned, in all of payment solutions has been very strong during the quarter, both compared to last year and the previous quarter. Both in credit cards and retail finance, it does require a few months to go by before this is converted to the loan book and we start seeing an interest income. Compared to last year, income and margins are lower as a result of the fact that a larger share of our loan book comes from partners and industries where we have a lower margin. It impacts the total. The segment is also impacted negatively by the net result in financial transactions. Excluding this, the margin would have been strengthened by 0.2 percentage points. Cost of risk improved compared to last year, stable compared to the previous quarter. Let's now have a look at Consumer Loan. Loan book up by 12% compared to last year. We saw positive growth in all our markets, whereas Sweden and Finland are the strongest growth drivers, both from a percentage perspective and in absolute figures. Income up by 3% compared to last year, and the NBI margin is lower, mainly due to the lower margins in Norway, where new sales margin was lower than the total portfolio. Also due to the fact that we have lower levels in Denmark, where we've increased our ticket size. Since we work with a risk-based pricing, this produces lower income margins, but over time, also a lower cost of risk. The net income from financial transactions also impacted the NBI margin in a negative manner to the tune of 0.2 percentage points compared to last year. Compared to the previous quarter, income was up by 2% in this segment, and the NBI margin remains stable. Cost of risk ratio was stable both compared to the previous year and the previous quarter amounting to 2.5 percentage points. Let's have a look at the cost levels, our expenses. We have good cost control in Resurs and in Q2 the cost amounted to SEK 320 million lower than the previous quarter and last year. Compared to last year, the payroll cost was lower, mainly due to the fact that we have fewer people employed. However, IT costs are up. The CI ratio amounted to 41.4% in the quarter, so an improvement both compared to the last quarter and last year. Excluding the net income of financial transactions, the CI ratio was 40.8%, i.e., 80 points lower than last year. It is our ambition to continue to reduce our CI ratio in the medium term, and the objective is that within a 3- to 5-year scenario, we will have a CI ratio of 35%. In the short term, we can expect income in absolute numbers will be going up somewhat. Now we're on page 16 and our operating profit. All in all, operating profit is stable compared to last year, but excluding the net income of financial transactions, operating profit was 4% better than last year and 5% up from Q1. All in all, for the first six months of 2022, the net profit excluding financial transaction was up by 9.5% compared to last year. Our capital position. As Nils mentioned, we have a strong and stable capital situation with a total capital ratio of 16.0% and a CET1 ratio of 14.4%, which gives us a good margin over the regulatory requirements and our targets. The reason for the lower capital ratios being lower than last year is because we have increased our growth, but also because in January we repaid a subordinated loan of SEK 300 million, which was issued in January 2017, and this impacted our total capital ratio to the tune of 0.6 percentage points. The capital ratios include the board's intention to propose a biannual dividend of, in this case, SEK 0.92 per share in the autumn of 2022, corresponding to 50% of the reported net profit during the first six months and in line with our dividend policy and the ambition stated by the board to carry out biannual dividend payments. As we've discussed earlier, our assessment is that the capital requirements will increase in the future. However, the timeline is not known yet, in addition to the fact that the counter-cyclical buffer requirements are gradually being reintroduced. We know that much. By way of conclusion, I would like to say a few words about our funding. Over a long time, we've worked in a very structured manner on financing and liquidity, and in a more challenging market situation like the current one, this serves us well. Liquidity is strong and our LCR amounted to 265% during the quarter. We extended our ABS financing with JP Morgan entirely in line with our strategy to have diversified financing, and that we can enter into financing agreements of this type with unchanged terms and conditions in spite of the market situation shows that we have a very good quality in our underlying assets, and this is true testament to the confidence that exists in our operations in the international capital markets. Now I'd like to hand back to Nils to conclude. Thank you very much, Sofie. If we look at the upcoming period, we are keeping our focus on strengthening our profitability and our growth. We're going to continue to focus on new partnerships, but also ensuring that we can maximize the potential of our existing ones. Furthermore, during the quarter, we'll continue to implement our new cloud-based core banking system. It's a central component when it comes to strengthening our competitiveness over time. It's progressing according to plan, and we'll continue to monitor what Sofie touched upon, the global economies and the uncertainty we see globally and the increase in inflation, of course. Our expectation is that central banks will take various measures which will impact our financing and funding costs, and we do expect to pass on that increase to our lending customers. The rising inflation and interest rates may also impact the disposable income of households in the next quarter. However, at the same time, currently, we're not seeing any negative impact on the payment patterns of our customers. No impact whatsoever, in fact. By way of conclusion, I'd just like to say the following: It's particularly important perhaps to emphasize in light of the global turbulent situation the fact that we have a strong and stable financial position in the bank. Very much to our favor. Now I'd like to open up for questions, and I'd also like to take the opportunity to wish you all a very pleasant rest of the summer. If there is any. Thank you. Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed, and if you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. Dear participants, kindly ask your questions in Swedish. Our first question is from the line of Jens Hallén from Carnegie. Please go ahead. Thank you. Good morning. I thought we could talk about margins first. In payment solutions for quite a number of quarters now, we've seen the mix impact. We talked about the mix, and my question is about the downside. I can understand that margins continue to drop. It can vary a little bit, but what's the duration in the book? How much more could the mix effect produce in kronor? Not on the margin, but in actual numbers. Are you seeing a stabilization soon? Could you give us a little bit more guidance there to try and assist us when we look at this? Well, it's hard to put any more, much more color to it. We don't give any guidance on the margin at all, of course. As we've said earlier, and as you know, of course, we are seeing relatively good growth in the quarter, but the margins have not been able to keep up, and this is of course something we will prioritize as we move forward. Now, whether the margin continues down or will stabilize, we'll have to wait and see. We do everything to stabilize the margin as much as possible always, as I stated in my presentation earlier as well. We're going to prioritize perhaps I'd nearly say that profitability would be prioritized over growth almost. That's not perhaps the answer that you were looking for. I understand that it's difficult to say much more and give guidance, but if we look at this margin, the volumes are up, and the larger customers continue to grow, but the net interest income in krona continues to drop. That's really where you're struggling. In installments and payback times, the small traders who suffered during COVID, at some point, that volume should have almost disappeared out of the portfolio. Lower margin, yes, but the impact in kroner should be, the change should be visible at some point, no? Jens says Sofie. In the quarter, we do see an impact with some of the major partners in the quarter where we have a different profitability structure and model, which has a continued impact. The ambition as we move forward is that as we see improved sales in retail finance and in credit cards, that this starts to build the loan book because the customers pay back in installments, and the earnings model is different. It will see a positive impact in absolute numbers, but it takes some time to build that positive trend. It depends on, and it's very much related to the situation previously. Could you tell us anything about the duration on that point? It varies a little bit depending on the type of products in the book. In around or just over six months, generally speaking. A question about Norway. Norway being one of the areas where you've seen some pressure on the net interest income with volumes impacted, not a huge increase. What's happening in Norway? I I remember about a year ago or so when we talked about Norway, when the debt register was introduced, et cetera, you identified a wish to stay in Norway, but what's the situation now? Do you expect this to be a growing and profitable market to you? Answer, yes, absolutely. We've received this question before, of course, even the question of whether we will leave Norway or not. I think we've shown that we're able to, and well able to create growth, to build growth in the Norwegian market. There's a good market there. There's good demand. What happened in the last quarter was that we started to move slightly across to a situation where new lending has performed very well indeed. The problem is that new clients, new customers are at lower interest rate levels than existing ones and cards, for example, putting a pressure on the margins, of course. That's what's happening. However, the market as such is and remains a good market. We want to have a presence there, and we're convinced that that is the case. We've no question marks there. It's tougher competition that we're seeing in the Norwegian market. We probably feel nevertheless that it has stabilized after the developments and the debt register that was introduced back in 2018 and 2019. Okay. One final question about the margins. Funding costs that you've outlined, they should go up likely in the future. My question is, what do you do looking into the future? You know that the costs for financing will go up. Is there room, from a competitive perspective to assume that it's going to be perfectly possible to raise the interest rates to customers? Or is the market expecting a situation where financing costs will go up first and then you pass it on to customers? Will it take a quarter or two before that has been passed on? What's your reasoning there? Contractually speaking, when our financing costs go up, and we know that that's going to happen, we can pass it on to the customer level. In the Norwegian market, you have to re-inform the customers a little bit earlier than in some of the other markets. It varies between our markets, but we are going to be as proactive as we possibly can, but it's also related to the competitive environment, of course, how much and to what extent you can pass on these increases. The ambition is clearly to pass it on to customers. It's also a matter of timing from one quarter to the next, depending a little bit on when we can implement the increases and when the higher financing costs are experienced. You may have some impact for shorter periods, but the intention is nevertheless to pass it on. If we look at this year, there has been an increase that we've seen. You're much closer to the market. What does the competitive landscape look like? Has it been possible to pass on these increases, or generally, are you holding off waiting to see about volume? We've implemented increases at the start of the third quarter, in fact, in the beginning of Q3. Okay. Actually, one final question. Investments to develop the core banking system. Is there anything that you could tell us there? How is it going? It's a very interesting component looking at the longer term. What's the pace? How quickly is it progressing? What can you tell us? Or are you taking all the investments now and the information is lagging, or what's happening? This project has been running for two years now, and it's an extremely significant project. We've been able to show, as I see it, that we're sticking to the time frame, to our deadlines. We're not spending a lot of time in our quarterly reports discussing this, but we're according to plan time-wise, and our assessment is that the first release will come next year, the beginning of next year. It's looking very promising, but it's a very, very extensive project. During next year, we're going to be able to show what we can save in terms of costs. It'll be a great cost saver to us, and at the same time, we can have a much more competitive modern solution in relation to customers. The customer journey will be a lot more modern, more efficient, simplified. There are many good factors and effects here. I understand that there may be a number of questions, but we're not sharing a lot of information on this. This is also due to the fact that this is something we're going to use to compete, simply put. So far, it's looking very well. The project is progressing entirely according to plan, so nothing out of the ordinary there. To me, this is a very positive thing. It's going to be very interesting indeed to see what happens and how we can see it as we move forward. I'll have to just be patient and look forward to 2023 when you'll start showing us more of this. Yes. At a very high pace we're progressing in this project compared to many of the other banks across the globe who've implemented similar systems. We are progressing, but it does take time when you do things like this. Very interesting. Very exciting. That's all. Thank you. Thank you very much. Thank you. Our next question is from the line of Emil Jonsson from DNB. Please go ahead. Hey. Thanks for the presentation. I just have one question. Are there any examples of anything concrete and tangible that you've done in credit assessments or the credit side of things to reduce credit losses where you can expect a more resilient long-term effect for upcoming quarters? For Emil Jonsson, we follow the cost of risk and credit losses, and we are continuously working to fine-tune our processes. But we haven't done anything in particular in detail that we'd like to share with the market here and now because we have credit analysts who follow this on a daily basis making fine-tunings and adjustments. We're always working with this continuously, but there's nothing major that we have made that we're informing the market of in this quarter. Okay. Thank you very much. Thank you. This concludes our question and answer session. I would like to turn the conference back over to Nils and Sofie for any closing remarks. Thank you very much. Thank you for the questions asked, and thank you for your interest in Resurs Bank. Hereby, I'd like to wish you a very pleasant summer, and let's be in touch in quarter three. Thank you very much. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.