Welcome to Resurs Q4 report 2022. Q4 report for Q4 2022. In the first part of the meeting, all participants listening will be in listener mode only. During the Q&A, it is possible to ask question by pressing star five on your phone. I'm now going to hand the conference over to CEO Nils Carlsson. You have the floor. Thank you very much. Good morning. Welcome to Resurs Holding Q4 presentation. We will move straight on to the next slide, page two. My name is Nils Carlsson. I'm the CEO of Resurs Bank, and I'm going to be making this presentation together with our interim CFO, Stefan Noderén, and we're going to be presenting our development for the fourth quarter. Slide three, please. Here is a summary of Q4. We see that during the fourth quarter of 2022, we saw good growth in both of our segments. The lending was up by 12% to SEK 37.2 billion. Total operating income up by 13% compared to last year, both as a result of increasing business volume and a strengthened NBI margin as a result of the continued price adjustments that we've carried out during the quarter. All in all, we see that the NBI margin was up by 0.1% compared to last year, and it remains stable in relation to the previous quarter. Cost of Risk was up, amounted to 2.6% compared to last year as a result of the strong lending growth, which in turn increased the provisions in the macro model we use as a result of the global uncertainty in the world and slightly increased volume in delay status. Stefan will get back to that point in his presentation in a few moments when I've concluded. Compared to last year, we increased our profit in the fourth quarter by 15%. If you look at our financial position and capital position, you will see that it is very strong and stable. The Total Capital Ratio amounted to 16.5%, corresponding to approximately 3 percentage points above the regulatory requirement. Moving on to slide 4. If we sum up Q4, we see that the second part of last year, a number of trends were reversed for Resurs. The fourth quarter to me is proof that we are moving in a positive development. I'm proud that we've succeeded in reversing some of these trends that we've worked hard to reverse in the last while, and we deliver in fact on the transformation journey which we embarked upon towards the end of 2020. Over the course of several years, we've cooperated amongst others with JYSK in Norway and Finland, and during the fourth quarter, JYSK in Sweden also chose to begin cooperating with us. Resurs has an offering in physical stores and online. It covers all of the Nordics. It is a testament to the fact that this is working and our ability to offer an offering at Nordic level regardless of sales channel and the same friction-free customer journey. For the customers, it's one of the reasons why in retail they choose more and more to cooperate with Resurs. Our global environment was characterized in the fourth quarter by increasing uncertainty, and to deal with the current uncertainty and make allowances for the increased cost of living of our customers, we've carried out rigorous adjustment to the credit assessment in line with the bank's conservative approach to credit risk. In spite of this fact, during the quarter, we've seen good growth in our loan book. As you can see, this is a sign that our customer offering is strong and competitive also in uncertain times. We follow and monitor the financial development in society carefully, and we continue our methodic work to deal with the impact that these challenges can mean in the current economic situation for some of our customer groups. It's also worth mentioning that in the month of December, Resurs signed the UN Principles for Responsible Banking, which is a framework for sustainable banking developing through partnerships between banks across the globe. This is one of several signs to show that our ambition in being a sustainable, responsible player in the financial market is continuing. We also launched a digital course in everyday finances, we call it My Economy. The training course is available for anyone who'd like to learn how to build a long-term, sustainable everyday financial situation. During the autumn, we've also stepped up our level of ambition in the area of young people and finances. As I mentioned earlier, we've appointed a youth ambassador who on a daily basis is working within our customer service activities. During the fourth quarter, our work continued with the switch of banking systems. We've announced this at previous meetings, and during the first part of 2023, we'll be launching and rolling out the first services externally to customers. Moving on. To slide 5. Let's have a look at the loan book trend in the different countries. If we look at growth per geographic market, we can see that the Swedish market has continued to see strong growth, 13%, with good growth both in the quarter and compared to last year. In the Norwegian market, we see a growth of 4% compared to previously, and here we're going more strongly in payment solution as a segment than in consumer loans during the quarter. In Denmark, we've seen in the quarter negative growth and we are impacted, like the industry as a whole, impacted negatively by the tougher requirements from the Financial Supervisory Authority, Finanstilsynet. On credit assessment, it began in the early parts of 2022. We have a long-term belief in the Danish market, and we have therefore focused even more carefully in automation of the customer journey and improve how we gather external customer data. If we have a look at the Finnish market, we see good growth over the past number of quarters. There is no difference looking at Q4, and we grow by 13% compared to last year. That's the current situation when it comes to the loan book trend. Moving on to slide 6. We'll look at payment solutions, one of our segments first. Lending to the public as per the 31st of December 2022 was up by 14%. We also saw good growth compared to Q3. This is customary since we have both Black Week and the Christmas shopping period in Q4. As a result of global turbulence throughout the autumn, we saw a somewhat lower demand than in previous years, but we continue to see a better development in our sales compared to retail as a whole and one of the reasons for this is the fact that our offerings with flexible payment by installments, it is normally appreciated even more so by customers in times of private financial demanding times. If we look at our cluster investment, which we've mentioned before, it continues to yield good results. For example, one of our clients, MyDentist, chose to enter into a cooperation with us as a result of being able to offer an interesting installment scheme to their clients with fixed monthly charges to own their in excess of 10 clinics around the countries of Sweden. Our card offering with different payment terms is also greatly appreciated in these more uncertain times. It opens up for individual flexibility when using your card. During the fourth quarter, cooperation has also been further developed with Komplett, and we have also signed a long-term factoring agreement with Komplett, as well as with 2 Norwegian and 3 Swedish companies in the Komplett Group. It's a very positive development. Slide 7. The second business area, consumer loans, we see that a larger share of growth, while we're up by 10% in the loan book, but a larger share of the growth is coming through our own channels. This proves that the focus we've maintained in strengthening lending using our own channels with higher profitability is something which is beginning to pay off. The strategy remains to give priority to enhanced profitability over volume, and during the quarter, several interest rate adjustments have been implemented in order to defend the interest rate margins and secure future profitability. If we look at Sweden, the Swedish market has seen a strong development in spite of the fact that we've implemented several price adjustments. If we look at Norway, the ratio of lending in our own channels is up. This is a result of the increased focus, as I mentioned earlier, to try and restrict our dependence of external channels for new lending. The market for loan using your accommodation, your home as a collateral grows. During the quarter, the Resurs offering has further developed to meet the demand of our customers of this type of product. If we have a look at Finland, in spite of the interest rate hike, the lending is up compared to last year, and lending through our own channels is up during the quarter. In Denmark, we've seen a somewhat lower demand during the quarter compared to last year, and this is likely due to the somewhat increasing uncertainty globally. Like in previous quarters, we've seen continued improvements of the customer journey that we've talked about before, and this has had the focus of increasing the lending. Moving on to slide 8. To look at a summary of 2022, I thought I'd tell you a little bit about how we elaborate and work with the financial targets that we've presented at our Capital Market Day in the autumn of 2021. Our overall target is to have a profit growth of 10%. In 2022 we achieved the level of 8% net profit growth excluding non-items affecting comparability. Through the focused work that we do in line with the journey of transformation we've embarked upon, we've turned a number of negative trends around such as a stabilization of the NBI margin. The NBI margin has been down over a number of quarters and even if we have not yet reached the complete financial target for 2022, this shows that we are well on the right path. Looking further at our financial targets, we have one for a CI ratio. Over a 3-5-year term we will reach 35%. In 2021 we had an underlying number of 42.0% and this year we are down to 41.3%, so it is an improvement to the tune of 0.7 percentage points. As I mentioned, we have a high level of ambition. We've set the bar high and we believe that our journey of transformation will lead to us continually taking initiatives to improve our efficiency and the greatest initiative is of course implementing our new banking system. Once it is, it has been rolled out, it's going to make us significantly more cost efficient. Another target we've set is to pay out 50% of the reported net result and this is why the board has proposed to the annual general meeting of shareholders in April a dividend of SEK 1.07 per share, which means that for 2022 we've paid out a total of SEK 1.99 per share. If we look at yesterday's share price at closing, it corresponds to a direct yield of approximately a return of 7%. We deliver above both regulatory requirements and the targets when it comes to capital position and the reason why we're above the buffer target is the uncertainty with higher capital requirements, mainly and partly due to the fact that we have not received the Pillar Two guidance yet from the Swedish Financial Supervisory Authority. That was a summary for 2022 and our financial targets and now I'm going to hand the floor over to Stefan. Please go ahead. Thank you. As always, let me just clarify that all the figures in the presentation are excluding one-offs. If we look at the loan book growth, well, Nils has already said that the loan book increased with 12% compared to last year and now amounts to SEK 37.2 billion. In local currencies growth was 8%. We had nice growth compared to last quarter as well, and the loan book compared to last quarter was up 4% or 3% in local currencies. Payment solutions and consumer loans, both of them show good growth, which is gratifying. If we continue with page 11, we see that operating income was up at 13% compared to the same quarter last year, amounting to SEK 851 million. The increase is primarily driven by price adjustments and growth in the loan book. Someone might remember that in Q4 last year we saw a negative effect of SEK 8 million, if we adjust for that negative effect, then growth in income is 12%, still very strong. We also see strong income growth in Q4 compared to last quarter with 5%. It is gratifying to see an increase in the NBI margin for a second consecutive quarter amounting to 9.3% in Q4, which is somewhat higher than Q4 2021. Looking at the entire year, we have an income increase in 2022 compared to 2021 with SEK 132 million over 4% and this increase is completely driven by growth in the loan book since the NBI margin for the full year is somewhat lower compared to last year. We see, however, positive developments under the second half of the year with increasing NBI margins. The credit losses in the quarter will be higher than in Q4 last year in absolute numbers and also as a percentage of the loan book amounting to 2.6% compared to 2.1% last year. This is driven partly by the strong loan book growth and also provisions in our macro model due to the current situation in the world around us, which also gives us somewhat higher volumes in delay status. We follow the financial development very carefully. We continue to work methodologically to manage the challenges that the changes in the economy could mean for certain customers. For the full year, the CUR is stable at 2.2% compared to last year. That being said, we continue with the next slide. Payment solutions loan book was up compared to last year with 14% and 10% in the constant currencies compared to previous quarter growth. This is 7%. The growth in the loan book is from Retail Finance and B2B, whereas the loan book within credit cards is stable. Income was up. Margins were improved compared to last year. Income is up with SEK 58 million. The margin is improved with 0.6 percentage points. A positive development that is driven both at a strong loan book growth and also price adjustments that were made in the quarter. I've already mentioned that we saw a negative effect, SEK 8 million last year due to compensation to partner, and even adjusted for that, we see strong income growth and margin improvements. If we compare this with the previous quarter, we have an income increase with SEK 29 million and a margin improvement with 0.4%. A credit loss level is increasing to 1.9% because of the strong loan book growth and somewhat higher volumes in delay status. We continue to the next page to look at consumer loans. The consumer loans loan book was up 10% and 7% in constant currencies. Sweden and Finland are driving the growth both in percentages and in absolute numbers compared to the previous quarter growth was in total 3%. Income is up 8% compared to the previous year, and the NBI margin is a 0.2 percentage points lower. Compared to the previous quarter, income was up at 3% and the NBI margin was stable at 8.5%. During the quarter, we continued to be successful with price adjustments to compensate for the increased market rates. The Cost of Risk for the quarter increased in absolute numbers and also as a percentage of the loan book because of the growth in the said loan book and the higher provisions in the macro model because of the situation in the world around us and also somewhat higher volumes in delay status. We continue with the next page where we see expenses being up 5% compared to previous year, which is strong compared to income growth amounting to 13%, which means that the CI ratio is improved with three percentage points compared to a Q4 previous year. Looking at the full year, expenses were up 3% and the CI ratio improved with 0.3 percentage points adjusted for net result financial transactions. The CI ratio for 2022 is 41.3% and an improvement with 0.7, as Nils already talked about. Nils has also said already that we have a very high ambition when it comes to efficiencies, and we want to reach a CI ratio of 35% in 2-4 years. As part of our transformation journey, we started in Q4 to move the Norwegian customer service activities to Sweden, and we do that to increase the service level we provide to customers and to improve efficiencies in the company. This is an initiative that we plan to complete in Q1 2023, but it has led to somewhat increased expenses in Q4. If we take a look at page 16, we have operating profit that was up 7% in Q4 compared to previous year, thanks to strong improvements of income and the improvement of the CI ratio. Operating profit for the full year 2022 was up 2% to SEK 1,078, adjusted for one-offs. As Nils has already mentioned, this is a strong improvement of the net profit with 8% for 2022 adjusted for one-offs and net result for financial transactions. If we continue with pages 17, our capital position continues to be very strong with a Total Capital Ratio of 16.5% and a CET1 ratio of 14.9%, which is with the good margin above regulatory requirements and also objectives is set by the board. During the quarter, we had gotten approval from the Swedish Financial Supervisory Authority to change our calculation method for operational risk, and that strengthened CET1 with 1.3 percentage points. Together with our strong result, this means that our capital ratio is higher than the previous year in spite of our strong loan book growth. We have talked about our expectation that capital requirements will increase. The board intends to propose a dividend of SEK 1.07 per share, which means a total dividend for 2022 with SEK 1.99. It should be noted that from this proposed dividend, well, we have made adjustments for the capital ratios that have been accounted for. Continuing to page 18. To conclude, a few words on the funding. Our liquidity is very strong. For example, LCR amounts to 276%. Our funding is stable. For a long time now, we have been working with a diversified funding, and that serves us well when market situations are more difficult, as we've seen in Q4. That being said, well, I'm going to hand back to Nils. Thank you very much, Stefan. If we have a look at the coming period, we have a continued focus, of course, to strengthen our profitability and moving further into the future also fuel our growth. We'll continue to focus on new partnership pos-- we also want to continue to maximize and make the most of the potential we have in our existing collaborations across the Nordics. We also wish to strengthen our B2B position moving forward. This is important, and it is something we focus on. Implementation of our new cloud-based core banking system, where we'll be launching and rolling out the first components to customer during the first 6 months, is another focus area for us in the next while. We also experienced that the general demand for credits remained good during the quarter. As we move forward, it may of course be impacted by a change in the macro financial situation and the way inflation develops. A drop in sales in retail is a negative factor. However, the increased need for flexible financing solutions and credits during such a period can in fact contribute to a growth and increase in demand. The inflation hike and interest rates going up mean that in the future we will work with price adjustments both for lending and funding. Gradually we will pass on our increased financing costs to our customers. As we've mentioned, there could be the potential of a timing impact between the quarters in this process. By way of conclusion, particularly important to underline in a turbulent global situation, we have a strong and stable financial position, and we will hold our annual general meeting of shareholders on April 26th with a decision for a proposed dividend to be dealt with by shareholders. Stefan and I would like to thank you for your attention, and we'd be happy to answer questions. Time for the Q&A. If you want to ask a question, press star five on your phone, you will be placed in the queue. If you no longer want to ask a question, you press again star five. The first question is from Jacob Hesslevik from SEB. Please go ahead. Hi, good morning. Let's start with the commission income. It looks like. Oh, hang on 1 second. Yes. Payment solutions, you talk in the text about this being due to the loan book growth. What is your point on that? What do you mean? Well, you see that you have nice growth. I'm looking at payment solutions, but in the text you say that it's the loan book growth. Which part talking payment solutions? Well, payment solutions as such is growing, but there we have, for example, all of the B2B that is growing. For example, with Komplett and that collaboration, that is within the business line of the payment solutions, and there the loan book is growing thanks to, for example, the factoring solutions. Okay. Thank you. That explains a bit. If we also look at net interest income, consumer loans up SEK 100 million year-over-year and payment solutions even more than that. That means that you are not as sensitive to changes in interest rates as the bigger banks. Is that correct as an assumption? Well, yes. When it comes to payment solutions, primarily, we have a different business model where it's more relevant to look at the NBI compared to the NII. That is because, well, we have different ways in which we charge, and it's not necessarily so that when interest rates go up, that we bring everything to the end customer, but the partners will take some of it, and that is why it's more relevant to look at the NBI margin. Okay. You feel that NBI is more important. Another question has to do with your credit loss ratio within payment solutions, up to 1.9% with 50 points, and how much is driven by the model and how much is actual losses? Well, within payment solutions, it's mainly driven by the strong growth and also the fact that in the quarter we see a somewhat higher volumes in delay status, looking specifically at payment solutions. You cannot say how much is from the model. No, we are not going to go into such detail. Okay. The last question. You said that you expected that capital requirements will go up. What do you expect when it comes to final volumes? The large banks, they are giving guidance on about 15%. Well, we do not give guidance in such a manner. We hope that we'll have Pillar Two guidance from the supervisory authority in the year. We know now that they have given indications that, well, overall for the entire sector it will be between 1 and 1.5 percentage points, on average. We're not going to speculate when it comes to us, but we'll wait for more information. Okay. Thank you. That was all the questions I had. Next question from Patrik Brattelius from ABGSC. You have the floor. Hello. Thank you very much. I can pick up where you just left off on the topic of the Pillar Two requirements. We hear that the Swedish Financial Supervisory Authority is out talking to the banks. Do you have an updated timeline for when you might get the information you need on your requirements? No, is my simple answer. We simply don't know. We don't know, and we're not going to make any guesses. Okay. Thank you very much. In that case, I have another question. You're talking about the shift in costs where you grew your cost base somewhat in Q4. If you adjust for increased expenses, what would the adjusted cost base have come out at? Just to get a feel for what we can expect from that factor in 2023. We're not giving specific guidance on expenses, but what we did do, and paid specific focus on it in Q4, is the shift we mentioned on customer service, where we're moving it from Norway to Sweden. This, of course, has meant a number of extra items of non-recurring character, of additional expenditure. Moving forward, we don't expect any particular increase in the level of expenses. I think you can expect to see us trending the same way we have previously. If we look at the switch of the banking systems, this is balanced, but this is something we've mentioned before, of course. I understand. Thank you. Getting back to a previous question then. On the margin for the net interest income, you mentioned the NBI margin, but if we look at the NII margin, it's down 10 points a quarter on quarter when I look at this. What's your perception of the development, transferring funding costs to customers? Is there more to do? Is there a lag impact which will help the NII later on? Or do you need to bring in the commission income and look at it sort of as a combination of those two? As I mentioned earlier, specifically in payment solutions, I believe that you have to look at the NBI margin based on what our earnings look like and the combination of the fact that the increased funding costs are transferred to customers and partners. Anything else would lead you off on the wrong track. In consumer loans, where it's a little bit more precise, when it comes to the possibility to follow this based on the perspective you outlined. We've said earlier that we do have some timing effects to be expected. These entail that depending on the market as well, we need to have some preempting. We need to look forward to know what we need to do in terms of interest rate adjustments. I see. Thank you. A large component here is to do with the fact that Well, could you tell us a little bit more about the competitive situation? Could you say a little bit more about that in Q4? Do you see aggressive competitors in the market? What's the competition in pricing? Yes. Well, there is an element of competition, no question about that, in this area, but it's Norway in particular where competition is very fierce. If we look at Sweden, we feel that it is working quite well. We also see in the German market where we operate for the funding in euros, and the German market works well as we see it. I'll also add, says Nils, that our strategy is not for us to be at the very top and compete with the highest interest rates for deposits. That's, this is an area where we have quite a stable situation, in fact. Excellent. Thank you. I have nothing further. Thank you. The next question is from Jens Hallén from Carnegie Investment Bank. Please go ahead. Thank you and good morning. I have a few brief short questions for today, starting with expenses. Just so that I understand things correctly, thinking 2023, wage and salary increases, will that have a direct impact from Q1 and Q4? I wonder if there are any variable parts that will also have an impact as a starting point for Q1. Let's start with the first question. Salary revisions, that will be during the spring, for all the markets where we are active. That will not have any impact starting January as far as we are concerned. That was that question. Secondly, if we are to look at Q4, and we've already mentioned that we have, expenses, that, are relative to the loan book and to our growth, and vary with those components. Q4 from an expense perspective, it's strong. If we look at the ratio, there is an improvement compared to the previous year. I do think that we have to remember that we work actively, in the longer term, to get, to a CET1 ratio of, 35%. That is, our ambition. Our ambition is to continuously improve the CET1 ratio quarter on quarter, and we then need to compare to the same quarter previous year because we see some seasonal variations in our cost base as well. Absolutely. Just thinking about the market you're in and that Q4 or quarterly figures are important. Credit losses, looking at the 2022 and 2023, you've talked about you having a long history of 1- 3 percentage points. Looking ahead, do you see any indications that what has happened in the past is no guidance whatsoever for the future? Well, let me try to express myself this way. The history and what we see there will have an impact also on the future because it has to do with for example, how we look at risk. That being said, we do want to stress the fact that we have our credit portfolios that we look at very carefully. We look at very carefully what we bring in as well. We do not give any guidance for the future. Looking at the situation around us, we feel that for certain households, it will be more difficult with their everyday finances. That is something that will also change for the better. Thank you. Denmark, you have talked about automation and a new regulatory system that has had an impact on the entire market. What you are doing, what do you think about automating things? How long will it take? Well, I understand that it's difficult to be precise, but are we talking about one or a couple of quarters or years? No, we're not talking about years, but probably more than one more quarter, since it's not just about to what extent we can automate the customer journey or the customer experience. It's really more about us gathering new information. We have to look at what the Danish Financial Supervisory Authority says, the customers' behaviors will also have to change so that they are willing to give us that information. It's not just about us gathering the information through, for example, open banking solutions or the systems, but customers also somewhere have to give their consent. We have some cultural differences in the Nordic countries as to how willing you are to do that. So it's about customers changing their behaviors. So it's more about customer behaviors and customers accepting this more than our capability. That is what we need to see in the Danish market. We have carried out changes in Norway 2019 with the Gjeldsregisteret, the debt register, and we saw that it took a bit of time before we got the customers back. I guess I can't be more precise than that. Well, great. Thank you. I do understand. Then banking systems, you talked about this and the work that you're doing that is going according to plan, and you talked about the 2023, but could you tell us a bit more about what will happen? Do you have a sneak preview? No, not a sneak preview. We do not have that. We'll start in 6 months or so to launch new services that are based on cloud-based systems and that will be in Norway. That is where we will start. There will not be a full monty, so to say, but certain products that will be launched. Sorry, I'll keep you in suspense. I'm not going to tell you anything more about what products that will be the first to be launched. That will be a surprise. Yeah. Okay. Some 4 months or for something, 4 months and a few days. Okay. Thank you. Thank you. Next question, Emil Jonsson from DNB Markets. Go ahead. You have the floor. Good morning, and thank you for the presentation. I had a question on consumer loans. I had a look and calculated the interest rate margin a little bit and how it's developing. I get the impression that it's down a little bit, both quarter-on-quarter and year-on-year. You mentioned some lagging if impact outside of Sweden. Is it correct to assume that the interest rate margin would have expanded if it hadn't been for the impact that you mentioned? Yes. I think that might be a correct assumption. I can agree with you on that one. Okay. I'm also wondering, there was a question earlier on how much of the increase in credit losses is due to the increase in delay status as in payment solutions. It's both increase in growth and more delays in payment, but what's the situation in consumer loans? What's the dominating factor there? CFO. Well, it's a combination of those factors in consumer loans and also an impact from our macro model. As we've mentioned earlier, it's mainly impacting consumer loans in the sense that that's where we have an exposure for longer maturities. This parameter enters into play more so here. Okay. One final question from me? The move, the relocation of Norwegian customer service, do you have a figure, just a rough one on the cost? Yes, we do. It's not anything that we communicate. What you need to remember, however, is that we're doing this because we want to be more efficient and make long-term cost savings and make sure that we raise the customer service level to our Norwegian customers compared to what we've been able to offer before. This is not really driven by an effort to save on our expenses. It's to improve availability for our Norwegian customers in customer service, and that's the driving factor. Okay. Those were all my questions. Thank you very much. There are no more questions. I'll hand back to Nils and Stefan. Okay. Thank you very much for all those questions. Thanks to all of you for, joining us for this Q4 presentation. I wish you an excellent rest of the day. Thank you very much. Bye-bye.