Welcome to Resurs Holding Q4 Report 2023. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to CEO Magnus Fredin and CFO Sofie Tarring Lindell. Please go ahead. Good morning, and welcome to Resurs Holding's Q4 presentation. My name is Magnus Fredin, and I'm the CEO of Resurs since mid-November, which means that this is my first report. With me here today, I have Sofie Tarring Lindell, and we will take you through the financial performance in the, in the quarter. But before we do so, I would like to start with, just to make it very clear, that we are, of course, not pleased with our results in Q4, even though it's in line with what we already have communicated. Before moving in a little bit deeper into the numbers, I would like to talk a little bit about our focus areas here going forward. As we have communicated, we have initiated a strategic assessment at the company. The aim is to create profitable growth, is to launch the next generation of products, that take the company forward and into the future. I have, deep experience in product-led organization and tech-driven companies, from smaller ones to more well-established global companies. And the common thread in these companies is that it's very close customer-focused. It's, all about the customer experience, it's about the commercial excellence, how we distribute our products, but enabled via how we're building great tech and future technology. And I think we're starting to get a quite clear picture of what we're heading towards. But it's not a revolution, it's an evolution. We're building on our strength. We're not changing everything that we have done in the past. But clear to me is that we need to open up to be able to offer our existing customers more products, but also open the funnel in terms of being able to address a larger market, which will create a good basis for future growth and future profitability. And to make this journey is what I'm really excited about, and this is why I have joined the company as the CEO. Our relationship with our merchants is deeply embedded in our DNA. That's where we're born and raised with. And during this quarter, we have launched Power in Finland, Gigantti in Finland, which is Elgiganten in Finland. We have launched with Webhallen, but we also have signed new agreements with Åhléns, and we have extended our long-term partnership with Bauhaus. But given this position, we have a fantastic list here in terms of the customers that we're working with, among some of the most successful players in the Nordics, both offline and online. We now see clearly that they're asking for more services that we can complete our offering with. We've been very focused on the B2C side in the past. We're getting more and more inquiries on the B2B side. One good example of that is with Komplett, that we are helping to do B2B invoicing or invoicing towards the customers that are companies. And I think this gives a glimpse into the future in terms of the future strategy, as one initiative is that to be able to broaden our product portfolio, and B2B is clearly one of the initiatives that we will continue and start to execute on more focus going forward. But as all journeys, and to be able to execute on this strategy going forward, we have strengthened the management team, and I'm glad that we can attract such senior talent into the company. So new in the leadership team is Pär Isaksson, who is our CTO, who has extensive experience in building tech, both from the financial, financial industry, but also other industries, and he's been a former CEO, CIO at Klarna, as one example. We have Joseph Hajj, who is our Chief Operating Officer, who also has extensive experience in the fintech industry, and has been the Chief Strategy Officer at Swish, as one example. Johan Rönnerman, who is our Commercial Lead, our Chief Commercial Officer, who has significant experience in both selling things online but also very connected to what we do here, leading the BNPL area at Arvato and, and Bertelsmann. So we have strengthened the management team with new people coming in, and of course, we have Sofie Tarring Lindell as our CFO, and also Ronny, who served the company for many years as General Counsel. So this is the first step of strengthening the competence in the company related to how we build the future, how we build technology going forward, and executing on the next generation of products. I would like to summarize Q4, and once again, we think that we can do better than the financial results we had in Q4, and that's our aim to go do that going forward. We need to execute on that. But some of the events in the quarter is optimized capital structure, with the securitization of our NPL portfolio with Lowell, which will lead to capital relief of SEK 900 million going forward. And Resurs Bank complies with the Consumer Credit Act, which means that we will have a positive impact in Q4 of SEK 50 million. Important to say is that the FSA, the Swedish FSA, has been granted to appeal the decision from Förvaltningsrätten. So it will be continued that process. We have the write- down of our IT investments of SEK 201 million, + SEK 56 million in run- off cost related to license fees for the system that we're intending to use, and also consultants related to that project. A few more words on that area is that we have taken that decision based on primarily two different things. One is related to the strategy going forward. We believe direction we're heading is slightly different than we thought a few years back. And to lead and be able to steer our technical destiny going forward and build more of the products internally, we believe that's one of the core things to be able to execute on this strategy. The other thing is that after a quite long period of specifying how the system should operate in the company, a lot of pre-studies and specifications related to how we see that the system landscape should look like, we also see now going into Q4, we've seen delays in things that should be started rolling out, but also quality issues that, we were not predicting. Those two became clear during the go live phase here in Q4, and that's the basis of why we have taken the decision to make a write- down. With that said, there's a lot of value built into this also that we are going to use forward. And we will, of course, continue to modernize our infrastructure that will lead to operational efficiencies and be able to launch new products in the future. We have the credit losses, and that's obviously are on higher level than what we are used to, given the turbulent macroeconomic conditions. And that's something that we will talk a lot slightly further about later during this call as well. And then following the negative results in H2, the board has taken the decision related to the dividend policy, that we will not propose a dividend for H2, 2023. Total dividend paid for 2023 is SEK 0.91 per share. Some of the key figures then for 2023, we have a stable NBI margin. We are seeing also some positive things in the report. We see 10% growth in increased earnings before the credit losses, and then we have the credit losses for 2023, that amongst the 3.3%, which of course, is something that we continuously will work on going forward. Related to Payment Solutions, we are growing 14% in the quarter. Related to that, we have launched several new merchants going live in the quarter. I mentioned Power, Gigantti, and also now we will entering a new strategic partnership with Åhléns, that will be launched, during the year. And Bauhaus as we continue to operate with and extended that partnership. We also see stable development in Resurs Cards, even though it's not growing in the same pace as retail finance as a whole. Consumer loans, once again, a lot of uncertainty in the macroeconomics, and that's also where we see the bigger increase of credit losses related to Sweden, primarily in Finland. However, we have stable growth and improved profitability before credit losses in Sweden. In Norway, we have deliberately slowed down related to the risk-weighted assets with a cap of SEK 5 billion, sorry, NOK 5 billion. In Denmark, we start to see some positive momentum after improving the credit worthiness assessment process, CWA. In Finland, we see slightly slower growth, that we talk slightly further about also during this call, than what we have seen in the past. So with that said, I would like to move over to Sofie Tarring Lindell to go through the numbers. Thank you for that, Magnus. In the first part of this presentation, we will describe the underlying development of the company, excluding one-offs, and then in the end of the presentation, I will also bridge you from the underlying profits to the reported profits. That will come in the end. First, looking into the growth for the quarter, we can see that we had an 8% growth for the total company compared with last year. This is mainly driven by the strong growth in Payment Solutions of 14%, as Magnus said, and that we deliberately have reduced our lending volumes in Consumer Loans, and mainly in Norway, to adapt to the new systemic risk, risk buffer requirements. Looking into the growth, compared with Q3, we can see that the underlying growth was 1%, and this is driven by strong growth in payment solutions of 3% in the quarter, and a lower growth in consumer lending, -1%, following the Norwegian reduction of loan book. Looking in the next slide, we can see the country split of the growth, where we can see that Sweden has a strong growth, 16% up versus last year, and this is driven by both payment solutions and consumer lending, where we can see a good demand from our customers. Also, in the Danish market, we have a good growth with 22% up, and as Magnus said, this is mainly following that we've been able to streamline the application processes and adapting to the credit worthiness assessment requirements that we got the last year. The Norwegian market, as I said, we are deliberately reducing the loan book here to adapt to the systemic risk requirements of NOK 5 billion, and we have managed successfully to do so in the end of the year. So now we have reached a level where we want to be for the Norwegian market going ahead. In the Finnish market, we can see that we have a stable growth of 7% versus last year, and here the segment differs a bit. We have a stable growth in Finland, for the consumer lending part, but in payment solutions, we see a really strong growth, and that is mainly thanks to the new partners of Gigantti and Power. And that leads us to the income side, where we can see that the operating income increase of 4% to SEK 889 million during Q4. The overall net interest margin in Q4 amounted to 7.0%, and that is a bit lower than last year and last quarter. This is mainly following the increased funding costs of 270 basis points versus last year and 40 basis points versus last quarter. As we have talked about previously, it is harder for us to navigate the higher funding costs in the payment solutions area, following that we can both increase prices to customers and to partners. During this quarter, we can see that the partner provisions or partner income was a bit lower than Q3. But overall, we have managed to stabilize the NBI development during the year. Our operating income for 2023 is up 9%, amounting to almost SEK 3.5 billion, and the NBI margin, as Magnus said, is stable versus last year. Looking into the cost side, our total cost for Q4 increased with 5% versus last year, amounting to SEK 373 million. The cost increases is driven by higher personal costs and severance pay, but also higher IT expenses. Following the slightly higher cost increase than the income increase in the quarter, we can see a somewhat decline in CI ratio or not as positively as we can see for the entire year, where we can see that the total cost increases with 7% and the CI ratio is improving with 60 basis points. And that sums up to the earnings before credit losses, where we can see a good growth of 4% in the quarter and an increase of 10% in earnings before credit losses for the year. And looking into the credit losses then, as Magnus described, we are in a in a macroeconomic environment that during all 2023, we have been on higher levels than we have been in 2020, 2022. And during the Q4 and in the in the last part of Q4, we could see that our customers have had harder times to pay, and therefore, we also have had higher provisions. And that was also why we needed to communicate to the market, and what we communicate today is in line with what we communicated two weeks ago. And we can see the negative underlying development in all business areas. We can see it in all countries except for Denmark, where it's more stable. But the most negative development are shown in consumer loans in Finland and Sweden. And in total, this sums up to SEK 417 million increased provisions in Q4. And as we also communicated in the profit warning, we had an additional SEK 52 million due to IFRS 9 model calibrations, and also one approval correction that should be made when we made the NPL securitization. So we have the additional SEK 52 million. But looking back historically, to be on a yearly level at 3.3% is high, but we have historically as well been around 3 percentage points in previous hard macro cycles. What I think is good to mention here is that we have learned from historical negative environment, is that when it's a harder environment, you need to work more actively and structured with contacting the customers that are in delays. That is the work that we have been doing during December and also are improving here in Q1. What we also have done is that when we start to see the negative macro environment trend back in the fall 2022, we have also increased the quality of the customers that we are taking in the book. We can see now in our numbers that the customers that we've been taking in the last 18 months, they behave as we expected, and the customers with main challenges is the customers that's been longer on the book. So going forward, we believe that the increased quality, the loan book will increase quality over time as the newer sales will be a bigger and bigger part of the loan book. So let's go into the development a bit more in detail for the different segments. And as Magnus said, we have a strong growth in payment solutions, up 14% versus last year and up 3% versus last quarter. Operating income is up 1% versus last year and up 3% versus last quarter. And we are working actively with pricing adjustments to mitigate the increased funding costs. And as you can see, we have managed better during the last quarters than versus last year, and this work will continue in 2024 as well. And as you can see on the credit loss graph, the credit losses provisions has increased compared with both Q3 and last year following this negative macroeconomic environment. And looking into consumer lending, we have the lending up 4% versus last year and -1% versus last quarter, and the reason for the negative development here is the Norwegian loan book that we have deliberately reduced, and now we have reached a stable level for the Norwegian loan book. Operating income up 7% in the quarter and a bit lower than last quarter, and that is a result of the lower loan book. But in total, we can see a stable NIM and a stable NBI margin development. And focusing consumer lending is also to sell on customers in internal channels, and what's the point of that, you can question. The reason for that is, of course, because we have lower acquisition costs when we're selling to internal channels, but we also have better information on the credit behavior, which we can use to optimize our quality in the portfolio going forward. Looking into the second half of the year, the internal channels increased with 30% versus the first half of the year. We're really focusing on here to grow on internal channels going forward. And as you can see, and as we've talked about, we have the credit losses that has increased here in Q4 and mainly in December, and its the main negative development comes from Finland and Sweden, and it's mainly on the customers that have been longer on the book rather than the new ones, that we can see that they behave as expected, following the increased quality that we have made, from the fall 2022 and going ahead. So with that said, we can look into the profits for 2023, and following the increased credit losses, following the macroeconomic environment, the total profit for Q4 was SEK 47 million, and for 2023, it was SEK 766 million operating profit. Then we have the reversal of the FSA fine that is affecting Q4 of SEK 50 million, as Magnus said. We had negative one-time effects of the NPL securitization of SEK 171 million, and we had the IT write-down on the provisions for the, for the, costs to shut down the project of SEK 56 million, amounting to 270, 257 million. So in total, operating profit, - SEK 331 million, and net profit of - SEK 306 million. And as a result of this, the development in the second half of the year was - SEK 106 million, which, as Magnus said, has led that the board has decided to comply with the dividend policy of the company and not propose any dividend for the second half of the year. Looking in just a short glimpse in the capital position, I want to stress that we have a very stable capital position with a total capital of 70.1% and a CET1 capital of 14.0%, and this is well above both the requirements of us as a bank and also the communicated targets by the board. Looking ahead, we announced yesterday that we have been approved by the Swedish FSA to redeem the outstanding T2 bond of SEK 300 million here in March, and this will impact our total capital ratio in Q1. To finish off my presentation, we have the funding situation, and you know our funding position is stable, and the main source of funding is the deposits, where we have more than 95% of our deposits that are covered by the governmental deposit guarantee. In December, we also prolonged and extended the ABS financing with JP Morgan and increased the funding volumes from SEK 2 billion to SEK 3 billion. And we also have a very good liquidity position, a strong one, with, in December, liquidity of SEK 8 billion and a liquidity coverage ratio of 550%. So that's the financial summary, and I, look back to you, Magnus. Thank you, Sofie. For the coming period then, we will continue then to share more information about our future strategy. We are focused on launching new partnership. We mentioned Åhléns as one new, but we have additional, roughly 10 new merchants coming in also during Q4 that we will launch during this year. We have, in the report, we have announced that we will have a further focus on increased efficiency, and we have a cost program that we are working on, which will have provisions of SEK 24, 23 million in 2024, and it will be cost neutral in 2024. From June and onwards, we will start to see some impact of this, and the full effect for 2025 is a reduction in cost of SEK 40 million. However, this money we will also use to invest in the future technology and into the future product suite. We will continue to closely monitor the situation in the financial climate, of course, to secure sustainable profitability going forward... and focus on the negative trend on the credit losses side, and continue to develop the way we work with future technology, strengthen the internal competence base, et cetera, in order to be able to execute on the strategy that lies ahead. So with that said, we would like to open up for questions. Thank you for listening. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Emil Johnsen from DNB Markets. Please go ahead. Hello, good morning, and thank you for taking my question. So these cost savings from 2025 and ahead, am I correct in my interpretation that you don't expect this to be enough for, let's say, the cost level of 2025 to be sort of flat from 2024, and that, instead, you'll still see continued, a continued upward trend on the cost level? Because you're still investing and there's still underlying cost inflation. Is that a fair assessment? Emil, as you know, we are not guiding on future cost levels, but what Magnus said was that, of course, we will have a positive effect of about SEK 40 million in 2025, but we will invest it to some extent in the, in the, in the company. So, I think that is what we can say regards to the cost-saving initiative. Okay. That's fair. And you mentioned you plan on going more into B2B areas. You mentioned B2B invoicing. Are there any other significant areas in B2B that you aim to go into? But we. There will definitely be more areas where we're looking into going forward in terms of the next generation of products. One low-hanging fruit compared to other areas in terms of where we are today in technology stack, et cetera, is that specific area where I think that we have a lot of inquiries from both new and existing merchants. So, that's why we're mentioning that, but it will not be limited to, of course, going forward, I would say. But we will share more information on this topic in the coming months. All right. Is it correct that going forward you'll aim to keep the Norwegian lending book at or below NOK 5 billion for the, let's say, the foreseeable future? Yeah, that's correct. Okay. And I'd also like to ask about the goodwill on your balance sheet. Isn't there-- Don't you think there's a reason to sort of just do away with all the goodwill on the balance sheet? I mean, when new investors come in and look at the stock, you know, when you look at headline return on equity numbers, headline price book numbers, all these numbers are sort of obscured by the goodwill on the balance sheet. And you know, us analysts, we know to look at different measures, but investors who are, for example, screening on a return on equity, they might just overlook the stock because that number is obscured by the goodwill. What, what do you think? Yeah. So we are looking into the goodwill, of course, and evaluate if there is a value that is relevant for having the goodwill in the balance sheet. And the assessments that we're doing together with the board and within the company, that we think it is a value, and therefore, we have it in the balance sheet. But, of course, I can see the point that you're making, but I think we rather need to improve how we communicate with the investors. Okay. That makes sense. And, well, what about starting doing buybacks? I mean, when the stock is trading at the level that it is, and price book levels or price and asset—net asset value levels, whatever have you, are very low, don't you think that there's a reason going forward to look into doing buybacks rather than paying out dividends? I think that the management focus right now is to increase the profitability of the company and to increase the net income, and then it's a board question if we should the net profit that we have, if we should pay it out to the customers to the investors, or if we should buy back shares. But of course, the board is continuously discussing on how we can improve value for our shareholders. Okay. And the new strategy that you mentioned, is the ambition still to present the new strategy in, was it Q2 or Q3? Yes, absolutely. Absolutely. And I think that we will continuously to share more and more information on this topic during the coming months as well, but I think the timeline is correct. ... Okay, and so far, do you see anything that sort of speaks for or against changing which countries you're active in or which segments you're active in? I think overall, I think we obviously are assessing this on continuous basis with how we are using our capital in the most efficient way. So this is, of course, an assessment that we need to do during this process as well. I can say that looking at the retail finance area and sales finance area, and rel-- call it sys or services, that is connected more to that business area, I would say probably is gonna be more in focus going forward than consumer lending. With that said, we are not planning to change that business overall. It's rather that we increase focus on things that we see where we have better growth opportunities with better margins. Okay. That makes sense. And, do you see any reason to revise the financial targets? That's something we need to come back to once we have decided how we communicate the strategy going forward, and we will come back to that. They are not changing today. All right. Okay, and just one last question. Could you remind us on what you see in terms of upcoming changes to the capital requirements? We don't foresee any upcoming changes for the capital requirements going forward. All right. Well, thank you for taking my questions, and thank you for the presentation. Thank you, Emil. Thank you, Emil. The next question comes from Jacob Hesslevik from SEB. Please go ahead. Morning. In your profit warning, you mentioned most of the credit deterioration occurred during the latter part of December, and given that January usually is the most difficult month for Swedish consumers to make ends meet, it must be quite plausible to believe loan losses so far during 2024 remains at an elevated level, right? Yeah, Jacob, I could see. If we look in normal seasonality for a year, we have the highest credit losses in Q1 and Q4, so the winter months, we are having higher credit losses. So I guess it's correct to assume that Q1 will be on higher levels as well. Okay, perfect. How will the proposed changes from the Swedish Minister of Finance affect Resurs, where the politicians will remove the tax deductibility on unsecured consumer loans already next year? Will Resurs take the hit in the NIM to your customers, or should we expect loan losses to rather increase? But if we start, I mean, first of all, we are, of course, supportive when it comes to decrease the over-indebtedness in the society overall. That's the first one. Secondly, related to the interest rates, I think that or the deduction of interest rates, I think it's more, it's hard to say exactly what the impact will be, and I think we need to analyze this slightly further before we make up our mind. But I think we can, of course, conclude that the cost will increase for our customers. And that, of course, is not something that we believe is positive. Related to how we will impact our P&L and our KPIs, I think Sofie is better equipped to answer that question. Yeah, and I think the short answer is that it's too early to know how it will impact our financial position. But I guess, we'll see how it will evolve, and we will come back to you with a more detailed analysis when we know exactly how it will impact. But, I mean, it's gonna increase the cost for your customers by up to 30%. So, I mean, either you're gonna have to push it out towards your customers, and I guess credit losses will increase as a result, or you're gonna have to share the cost with your customers, which will reduce your NIM, right? Do you say any other- Yeah, Jacob, I think that this is everything else equal. What we will also see going forward, what we believe we'll see going forward is a different macroeconomic environment, and then we perhaps will have increases for one reason, but the positive development in any other reason. So I think it's everything else equal, you're right, but I don't think everything else will be equal in the period of time we have in front of us. Okay, makes sense. If we move over to your credit rating, you were recently downgraded to negative outlook. How would a lower actual credit rating affect Resurs? I think that, a lower credit rating will perhaps impact the prices of our, our wholesale funding. But, we'll look into that, when we have... We have had BBB- rating previously and been able to, to issue bonds in that, area as well. So I think, of course, we will keep the rating on BBB, but, we will most more focus on, stabilizing credit losses, which was the reason for the negative outlook. So that is our focus going forward. Okay. Just one quick last question. How large part of your deposit in Swedish SEK is from Avanza? I think it's SEK 4 billion, something like that. Thank you very much. Thank you, Jacob. The next question comes from Jens Hallén from Carnegie Investment Bank. Please go ahead. Good, good morning. Can I ask, start with a follow-up on the loan loss provision question? I want to make sure that we, we get it right. So when you say it's fair to assume that they remain elevated, are we then talking about a sort of December level for the month and a half that we've seen this year, or is there another reference point you have? No, I think you should look into the entire Q4, the organic reservations that we've been said was SEK 470 million, and I think you would expect the same or a slightly increase in levels for Q1 as well. Okay. And I just wanna make sure, 'cause you—I think when we talked about it last, you said that of those 417, quite a lot of that also came in December. So- Yeah, that's- ... if you multiply the December figures, it'll be very high. Yeah. But what we normally see is that December and January are the highest, and then we will have improvements in February and March. So I guess that's what we'll see this year as well. Okay, perfect. Thank you. And then a question on the IT write-off. Again, we've talked about it in the past, but, I mean, you wrote off about half of what you've already invested, so the SEK 200 million out of the SEK 400 million, roughly speaking. Really, you're not gonna stop doing changes to the system, but it's just gonna be done in a different way. My question then is, that will add on a lot of expenses, and if it's not cheaper, the way you're gonna do it now, then we're looking for another, I don't know, SEK 200 million-SEK 300 million over the next year or two. Is that fair? We, we're gonna come back related to when we present our strategy, what investments are related to the future and on this topic. What I can say is that we will do it different than what we've done it in the past. We will do it more stepwise. We will not build it in a big bang. So we will see also the impact of things that we're releasing more correlated with how we are taking in costs and what that cost will be when we are building the new system landscape. So it will be done in a fairly different manner than what we've done it in the past, related to this topic. Then the exact numbers for what investment we will make in this area, we will come back to you during when we present the strategy. But, just looking short term, we are not investing in the same extent, because now we're figuring out how we're going to communicate and how we're going to steer the project. So going for the coming months, we will see a lower investment in the project. Okay. And then, I have to ask... I mean, it sounds like, in the end, what they had provided is not actually what you had ordered. Is it the supplier's fault that they provided a product that didn't meet the standards? And if so, are you gonna try to sue them and recover the investment? First of all, we are ultimately responsible for the tech that we're building. We have been having quality issues, and how we're gonna handle that is a process that we are now looking into and analyzing very thoroughly. So we need to come back on that question, how we're gonna handle this with all the suppliers been involved in this project. But overall, we are obviously ultimately responsible for our destiny related to how we built this. Thank you. Actually, I asked that, and a final question we have going back on the loan losses that I forgot. I mean, you talked about that, that is actually the old vintages of the loan, but that's creating the problems. Can I ask to clarify, is it all older loans, or is it specific vintages done at, I don't know, any early COVID or other periods where perhaps you weren't quick enough to change the underwriting standards? We are in the... What we can say is it's mainly the old ones in Finland and Sweden in the consumer lending area, and exactly the factors that are, that is the reason of why we are having the bad vintages. We are under investigation on how, how this could happen. So I can't give you a clear answer of that yet, Jens. Okay. But if I heard you correctly, it doesn't sound like it's everything done pre-prior to 2020 or autumn 2022, but specific vintages, and then they are the ones causing the problems. Yeah. I guess that know. Yeah, perfect. We will see. If you ever decide to share the data, that would be fantastic, but then, of course, it's easier for us to- Yeah ... sort of separate that out. But, I guess we will have to see what you can do. Yeah. Perfect. Okey-dokey, that's, that's all from me. Thank you very much. Thank you. The next question comes from Patrik Brattelius from ABG. Please go ahead. Thank you. Yes, I will also start with a question on asset quality, given that topic is in focus. So could you, without giving a guidance, because you never like to talk about that, but could you, with your own words, share a little bit how you view the outlook for on asset quality looking into 2024, please? ... Yeah, but I think it's what we have communicated, is that we, we expect to, a normal seasonality is that we have higher credit losses in the winter months, and December and January normally tends to be the highest ones. So just in the short-term perspective, you might, think that we will have higher levels, going forward. But, as I said in the presentation, that we have been managed more actively on contacting customers that are in delay. And what we also can see is that the newer customers that we are taking on book, following the increased requirements of capital, of, quality in our credit assessments from 2022 in the fall, we can see that the customers there behaves in the way that we have expected. Going ahead, this new lending will be a bigger and bigger share of the total loan book. More than that, I think it's hard for us to communicate on in this time. I see, but if I ask, like this, how confident are you that you will see a falling loan loss ratio in 2024 compared to 2023? Following that, we're not guiding. I don't want to answer that question in public. Fair enough. Can you please elaborate a little bit more on these regulatory changes in Finland that you wrote in the report, and how you view market growth in that region looking ahead? So we have the interest requirement cap of 15%, and that has affected the Finnish business to some extent, and then we also have the marketing regulations. But looking into the Finnish market, I think we will have a good growth going forward following the new partnerships with both Power and Gigantti, that have been growing really good in their first quarter, and looking ahead, I think they will grow in good volumes as well. And we also have some of the new partners, as Magnus talked about, during the quarter that we have been signing, is also partners for the Finnish market. So looking ahead, we will have a strong growth and good momentum in Payment Solutions, Finland. And then we are, I think we will have a stable development in the consumer lending side. Because you highlight, the competition is intensified, so we shouldn't be worried of margins being pressured additionally in the Finnish market. I think it's hard to say. The margins in the consumer lending area are tied to the reference rate, so that will change on the book, depending on how we will have the evolution there. But I think in the Payment Solutions market, we will have some decrease in the interest rate, looking at Finland as such, because of the interest cap. But when Finland becomes a bigger part of the total margin for the company, it will be positively, because they are higher in the total margin than, and higher than the total margin of Resurs. Thank you. And you did this IT writedown and this sort of profit warning now in January, and then you say you will deliver a new strategy in Q2 or Q3, but the Q3 report, that is probably presented in October. Don't you think it's a little bit late to come out with a strategy that late? Yeah, but, agree, and I think we will do it before that, but, exact date and how we will do it, we will come back to you. Yeah, and I think Q2 and Q3 should not be seen as the time as we presenting, we are presenting the report. It's a time of actual Q2 and Q3 in 2024. Okay, that sounds better. And then as a last question, you, how do you view the cost base here in 2024? Can you just, not speaking about guidance, but what are the main drivers here, looking into 2024? Because you have worked with this IT project for quite a while now, are there any cost benefits that you can extract already here, or is that to be waited for, for 2025? No, I think we will not see that during 2024. I think in general, we are rather focused on strengthening the organization and our product offering, et cetera. You will not see the cost reduction impact in 2024 related to that. Okay, then to my earlier question then, of the drivers, how many new staff do you net, do you expect to ramp up, at this point? How is the cost inflation impacting you, et cetera? Do you. You have talked about these IT investments. Just to get the sense of, where the cost is heading, for this year. Yeah, and I think going ahead, where we will see the main increases will not - It will, to some extent, be on personnel costs, but that will mainly be in the IT area, where we still think that we need to strengthen our resources and build even stronger capacity going forward. And then we will see higher IT expenses as well. So that's it will be a focus area for IT in 2024 as well. So there will be cost increases, mainly driven by those, both on IT expenses, but also on the personnel side. Great, thank you. And then I squeeze in a last question. I saw the net commission income was slightly weaker than I expected. I would expect it a little bit of a tailwind, given seasonality here in Q4. What can you say about that, please? Yeah. So, compared with Q3, we have one seasonality effect in the Payment Solution, where we have the credit card annual fee in September, so that is a diff of SEK 4 million. And then following the slower growth in consumer lending, we had somewhat lower PPI income as well in Q4, following, mainly following the Norwegian reduction that we've been made, but now we're on stable levels there. And then we also have some mix effects in the Payment Solution side, with a little bit lower partner fees in Q4. But looking ahead, our ambition is to have a better growth rate in the commission income. Great. Thank you so much. Thank you. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. Then we are finishing the questions, and thank you for listening. I wish you a great day. Bye. Bye.