Year-end Report January–December 2019

1 October–31 December 2019*

Lending to the public rose 12% to SEK 31,345 million
Operating income increased 7% to SEK 945 million
Operating profit was impacted by an extra credit provision of SEK 35 million due to the information we received through the Norwegian Gjeldsregistret and declined 3% to SEK 364 million, excluding this effect operating profit would have increased 7% to SEK 399 million.
Earnings per share increased 1% to SEK 1.43
C/I before credit losses (excl. Insurance) was 39.5% (40.7%) The credit loss ratio was 2.7% (2.0%). 0.5% of the credit loss ratio refers to the extra credit provision, as commented on in the statement by the CEO.

1 January—31 December 2019*

Lending to the public rose 12% to SEK 31,345 million
Operating income increased 7% to SEK 3,679 million
Operating profit was impacted by an extra credit provision of SEK 35 million due to the the information we received through Norwegian Gjeldsregistret and declined 5% to SEK 1,563 million, excluding this effect operating profit would have increased 7% to SEK 1,598 million.
Earnings per share increased 6% to SEK 6.07
C/I before credit losses (excl. Insurance) was 39.1% (40.5%)
The credit loss ratio was 2.3% (2.1%). 0.2% of the credit loss ratio refers to the extra credit provision.
The Board proposes that the 2020 Annual General Meeting resolve on dividends of SEK 2.10 per share (1.95). According to the company's model of semi-annual dividend payments, dividends of SEK 1.80 per share (1.65) were paid in autumn 2019. Accordingly, the proposed dividend together with the dividend decided in autumn 2019 entails an increase of 8% compared with dividends in the preceding year.

"Yet another successful year of stable and profitable growth."

Kenneth Nilsson, CEO Resurs Holding AB

ABOUT RESURS HOLDING

Resurs Holding (Resurs), which operates through the subsidiaries Resurs Bank and Solid Försäkring, is the leader in retail finance in the Nordic region, offering payment solutions, consumer loans and niche insurance products. Since its start in 1977, Resurs Bank has established itself as a leading partner for sales-driven payment and loyalty solutions in retail and e-commerce, and Resurs has thus built a customer base of approximately 6 million private customers in the Nordics. Resurs Bank has had a banking licence since 2001 and is under the supervision of the Swedish Financial Supervisory Authority. The Resurs Group operates in Sweden, Denmark, Norway and Finland. At the end of the fourth quarter of 2019, the Group had 750 employees and a loan portfolio of SEK 31.3 billion. Resurs is listed on Nasdaq Stockholm.

* Certain performance measures provided in this section have not been prepared in accordance with IFRS or the capital adequacy rules, meaning that they are alternative performance measures. Calculations and reconciliation against information in the financial statements of these performance measures are provided on the website under "Financial reports." Definitions of performance measures are provided on the website under "Financial data." In this section, changes and comparative figures refer to the same period in the preceding year. This applies to all other sections of text in this interim report, profit/loss items and cash flow that are compared with the same period in the preceding year. The exception is for financial position for which the comparative figure refers to 31 December 2018.

Yet another successful year of stable and profitable growth

Resurs ended 2019 with continued profitable growth and a strong trend in underlying earnings. The earnings trend will benefit our shareholders through the proposed 8 per cent increase in dividends for the full-year. Overall we presented our best ever full-year earnings, despite a lower margin. Resurs continued to capture market shares in the fourth quarter of the year and delivered stable earnings with healthy growth in lending. Lending at year-end amounted to SEK 31.3 billion, corresponding to a 12 per cent increase compared with 2018. We supplemented our capital structure in the fourth quarter with an oversubscribed issue of Additional Tier 1 Capital of SEK 300 million. In December, the Board of Resurs decided to strengthen the financial capital target for the total capital ratio, raising it from 14 per cent to more than 15 per cent. All in all, these initiatives not only strengthen Resurs in meeting the higher regulatory buffer requirements, but the Additional Tier 1 Capital also means that we are well-positioned to continue to deliver profitable growth based on responsible credit lending.

Year distinguished by continued innovation and more strategic partnerships

Payment Solutions continued to report healthy and profitable growth during the year, primarily driven by increased volumes from our retail finance partners. The margin for the quarter was impacted by the customer mix and higher credit losses in Norway. A number of new collaborations with retail finance partners were initiated throughout the Nordic region during the year, in parallel with Resurs receiving renewed trust as a strategic partner from a large number of existing retail finance partners, such as Mio and Bauhaus.

Our Insurance business segment continued to develop its travel, security, roadside assistance and product insurance product lines with strong growth in both premium earned and technical result. In summary, first-rate operation that is making great progress.

Responsible credit lending in a challenging Norwegian market

Consumer Loans reported overall healthy lending growth for the year. The Norwegian market remains a challenge since the effect of the new statutory requirements and the implementation of the Gjeldsregistret changed the market conditions. Higher credit losses are probably to be expected, but we believe these will only affect a portion of our Norwegian credit portfolio and be of a temporary nature. Work was carried out to qualify as far as possible the over-indebtedness in the Norwegian market that was not possible to verify before Gjeldsregistret was introduced. The current IFRS 9 models are not sufficiently quick to identify future credit losses since the models are based on historical figures. In order to manage the increase in credit losses right away, an extra credit provision of SEK 35 million was made in the fourth quarter, alongside the model-based reserves that are made on an ongoing basis. I am proud of the conservative credit model that we follow for both assessment and the reserve ratio.

Looking ahead, we see many opportunities as the Norwegian market stabilises to design an offering that meets both the new rules of play and that delivers customer and business value.

Full focus on responsible business

Our dedication to Resurs's most material sustainability topics – including responsible credit lending, anti-corrpution, equality and diversity – is not only an important prerequisite for growth and profitability but also for earning the trust of the market.

It is also gratifying that we were recognised in several different ways during the year, for example, for our work on shaping an equal opportunity workplace for which we were rewarded by holding our place on the AllBright Foundation's green list of Swedish listed companies with gender equal management. Towards the end of the year, Resurs was named 2020 Career Company of the Year1 , which recognises employers who offer development opportunities for younger employees and, not least, ranked our transparency surrounding how we combat corruption among the top2 of Swedish companies.

We can look back on another successful year in which Resurs continued to grow faster than the market and capture market shares. Our success lies in our extensive experience of retail, leading technological developments and a robust business model that combined with responsible business presents a strong combination that is difficult to beat. It is also a combination that means we are well positioned to seize all the opportunities offered by not only a new year but also a brand new decade!

Kenneth Nilsson CEO, Resurs Holding AB

¹ For more information, visit karriarforetagen.se/karriarforetag-2020/ ² "Sustainable Company" survey carried out by DI, Aktuell Hållbarhet and Lund University School of Economics and Management

LENDING GROWTH

+12%

DIVIDENDS FOR THE YEAR +8%

C/I RATIO (excl. Insurance)

+39.5%

Kenneth Nilsson CEO, Resurs Holding AB

Performance measures

SEKm unless otherwise specified	Oct-Dec 2019	Oct-Dec 2018	Change	Jan-Dec 2019	Jan–Dec 2018	Change
Operating income	945	883	7%	3,679	3,437	7%
Operating profit	364	375	-3%	1,563	1,487	5%
Net profit for the period	289	284	2%	1,216	1,143	6%
Earnings per share, SEK	1.43	1.42	2%	6.07	5.72	6%
C/I before credit losses, %*	39.2	41.7		39.3	41.2
C/I before credit losses (excl. Insurance), %*	39.5	40.7		39.1	40.5
Common Equity Tier 1 ratio, %	13.6	13.4		13.6	13.4
Total capital ratio, %	16.3	14.7		16.3	14.7
Lending to the public	31,345	27,957	12%	31,345	27,957	12%
NIM, %*	9.4	10.3		9.7	10.6
Risk-adjusted NBI margin, %*	8.6	10.2		9.4	10.6
NBI margin, %*	11.3	12.2		11.7	12.6
Credit loss ratio, %*	2.7	2.0		2.3	2.1
Return on equity excl. intangible assets (RoTE), %*	23.3	25.8		25.7	27.4
Return on equity excl. intangible assets, given a Common Equity Tier 1 ratio according to the Board's target and deducted dividend from the capital base, (RoTE), %*	30.2	32.3		32.7	33.9
to analyse the Group's performance. Calculations and reconciliation against information in the financial statements of these performance measures are provided on the website under "Financial reports." Definitions of performance measures are provided on the website under "Financial data."
Group results* Fourth quarter 2019, October–December
Operating income The Group's operating income increased 7 per cent to SEK 945 million (883). Net interest income increased 4 per cent to SEK 741 million (715), with interest income amounting to SEK 846 million (802) and interest expense to SEK -105 (-87). Fee & commission income amounted to SEK 55 million (56) and fee & commission expense to SEK -16 million (-16), resulting in a total net commission for the banking operations of SEK 39 million (40).					+7%	OPERATING INCOME

Group results*

Fourth quarter 2019, October–December

Operating income

Net expense from financial transactions amounted to SEK -16 million (-27), primarily comprising changes in value of investments in interest-bearing securities, equities and exchange-rate differences. Other operating income, mainly comprising remuneration from lending operations, amounted to SEK 64 million (53).

Operating expenses

The Group's expenses before credit losses increased SEK 1 million to SEK -370 million (-369) and was the result of a continued costs focus and ongoing efficiency enhancements, particularly in the Norwegian market, to address the lower income margin. Personnel expenses rose SEK 5 million to SEK –163 million (-159) year-on-year. General administrative costs excluding personnel expenses increased SEK 2 million to SEK -153 million (-151), and depreciation, amortisation and impairment of intangible and tangible assets rose SEK 8 million to SEK -21 million (-13). IFRS 16 resulted in an increase of SEK 7 million in depreciation, amortisation and impairment for the quarter, while general administrative costs declined. Other operating expenses fell SEK 13 million to SEK -33 million (-46). Viewed in relation to the operations' income, the cost level (excluding Insurance) amounted to 39.5 per cent (40.7 per cent). RESURS HOLDING AB | YEAR END REPORT JANUARY - DECEMBER 20194

Credit losses totalled SEK -210 million (-140) and the credit loss ratio was 2.7 per cent (2.0 per cent). The fourth quarter includes an extra credit provision of SEK 35 million regarding parts of the Norwegian market. Credit losses totalled SEK -175 million and the credit loss ratio was 2.2 per cent excluding the extra credit provision.

The risk-adjusted NBI margin totalled 8.6 per cent (10.2 per cent). The risk-adjusted NBI margin was 9.1 per cent excluding the additional reserve for the extra credit provision. The lower margin was mainly due to the performance of the Norwegian consumer loan market, certain price pressure and lower margins due to higher average loans.

Profit

Operating profit declined 3 per cent to SEK 364 million (375). Operating profit excluding the extra credit provision increased 7 per cent to SEK 399 million. Net profit for the quarter increased 2.0 per cent to SEK 289 million (284). Tax expense for the quarter amounted to SEK -75 million (-91).

Full-year 2019, January–December

Operating income and expenses

The Group's operating income increased 7 per cent to SEK 3,679 million (3,437), primarily due to growth in lending. Net interest income increased 6 per cent to SEK 2,902 million (2,739), with interest income amounting to SEK 3,311 million (3,063) and interest expense to SEK -409 (-324). Fee & commission income amounted to SEK 223 million (218) and fee & commission expense to SEK -60 million (-57). This resulted in a total net commission for the banking operations of SEK 162 million (161).

The Group's expenses before credit losses increased 2 per cent to SEK –1,447 million (-1,416). Viewed in relation to the operations' income, the cost level (excluding Insurance) continued to improve and amounted to 39.1 per cent (40.5 per cent).

Credit losses totalled SEK -669 million (-535) and the credit loss ratio was 2.3 per cent (2.1 per cent). The risk-adjusted NBI margin was 9.4 per cent (10.6 per cent). Credit losses include an extra credit provision of SEK 35 million regarding parts of the Norwegian market. Credit losses totalled SEK -634 million and the credit loss ratio was 2.1 per cent excluding the extra credit provision.

Profit

Operating profit increased 5 per cent to SEK 1,563 million (1,487). Operating profit excluding the extra credit provision increased 7 per cent to SEK 1,598 million. Tax expense for the year amounted to SEK -346 million (-343). Net profit for the year amounted to SEK 1,216 million (1,143).

C/I RATIO (excl. Insurance) 39.5%

OPERATING INCOME FOR THE QUARTER

SEK ^m945

*excluding the extra credit provision

Financial position at 31 December 2019*

Comparative figures for this section refer to 31 December 2018, except for cash flow for which comparative figures refer to the same period in the preceding year.

On 31 December 2019, the Group's financial position was strong, with a capital base of SEK 5,071 million (4,281) in the consolidated situation, comprising the Parent Company, Resurs Holding, and the Resurs Bank Group. The total capital ratio was 16.3 per cent (14.7 per cent) and the Common Equity Tier 1 ratio was 13.6 per cent (13.4 per cent). During the period, Resurs Bank and the consolidated situation changed the method for calculating operational risk from the basic indicator method to the standardised method, which strengthened the capital ratio in the third quarter of 2019 by 0.5 of a percentage point. In December, Resurs Holding AB issued Additional Tier 1 Capital of a nominal SEK 300 million, which strengthened the total capital ratio by approximately 1.0 percentage point. The Board of Resurs Holding AB decided in December to strengthen the financial capital target for the total capital ratio, raising it from 14 per cent to more than 15 per cent. This strengthening meets the regulatory buffer requirement by a good margin.

Lending to the public on 31 December 2019 totalled SEK 31,345 million (27,957), corresponding to a 12 per cent annual increase and a 11 per cent annual increase excluding currency effects. This solid growth was driven by both the banking segment and is in line with the Group's financial target of lending growth of more than 10 per cent.

In addition to capital from shareholders and bond investors, the operations are financed by deposits from the public. The Group's strategy is to actively work with various sources of financing in order to use the most suitable source of financing at any given time and to create diversified financing in the long term.

Deposits from the public on 31 December 2019 rose 19 per cent to SEK 24,409 million (20,578). Financing through issued securities totalled SEK 7,672 million (7,832). Liquidity remained healthy and the liquidity coverage ratio (LCR) was 264 per cent (146 per cent) in the consolidated situation. The minimum statutory LCR ratio is 100 per cent. Lending to credit institutions on 31 December 2019 amounted to SEK 4,129 million (3,704). Holdings of treasury and other bills eligible for refinancing, as well as bonds and other interest-bearing securities, totalled SEK 3,048 million (2,272).

Cash flow from operating activities amounted to SEK 1,014 million (-450) for the period. Cash flow from deposits amounted to SEK 3,624 million (2,457) and the net change in investment assets totalled SEK -783 million (331). Cash flow from investing activities for the year totalled SEK -103 million (-134) and cash flow from financing activities SEK -372 million (1,470). Since year-end bonds of a nominal SEK 1,600 million have been issued under Resurs Bank's MTN programme, of wich SEK 300 million was Tier 2 bonds. During the year Resurs Holding AB issued Additional Tier 1 Capital of SEK 300 million.

Intangible assets amounted to SEK 2,063 million (1,974), and primarily comprise the goodwill that arose in the acquisition of Finaref and Danaktiv in 2014 and yA Bank in 2015.

Dividends

The Board proposes that the 2020 Annual General Meeting resolve on dividends of SEK 2.10 per share. According to the company's model of semi-annual dividend payments, dividends of SEK 1.80 per share were paid in autumn 2019. Accordingly, the proposed dividend together with the dividend decided in autumn 2019 entails an increase of 8 per cent compared with dividends in the preceding year. The total proposed dividend for the AGM to adopt on 29 April 2020 amounts to SEK 420 million. The Resurs share will be traded ex-dividend from 30 April 2020. The record date is proposed as 4 May 2020 and the dividend will be paid on 7 May 2020. The Board intended to convene another Extraordinary General Meeting in the autumn this year to resolve on dividends.

TOTAL CAPITAL RATIO

16.3%

LENDING TO THE PUBLIC

Trend in lending to the public in SEK billion.

LIQUIDITY COVERAGE RATIO 264%

Payment Solutions

Fourth quarter 2019, October–December

Full-year 2019, January–December

PERCENTAGE OF OPERATING INCOME JAN-DEC 2019

ABOUT PAYMENT SOLUTIONS

LENDING TO THE PUBLIC

Trend in lending to the public in SEK billion.

Payment Solutions

Strong offering and innovative technological developments attracted new and closer partnerships					PERCENTAGE OF OPERATING INCOME JAN DEC 2019
Fourth quarter 2019, October–December
Resurs's targeted efforts to develop innovative solutions that increase sales and customer loyalty generated healthy profitable growth in Payment Solutions' Nordic markets during the quarter. This growth was primarily driven by higher volumes from Resurs's retail finance partners.					41%
Interest in Resurs's central e-commerce checkout combined with retailers' local management of inventories and sales, Click & Collect, and in the new push function Resurs Checkout for flexible purchasing decisions, increased steadily during the year. A new and upgraded version of Resurs's partner portal was also launched in the autumn, enabling retailers to quickly and easily capture all sales statistics in real time regardless of sales channel. In a bid to promote a move towards more circular business models, Resurs launched a tailored subscription service during the quarter that targets the specific customer needs of several retail finance partners. The number of retail finance partners also steadily increased throughout the Nordic region during the year. A large number of retail finance partners also decided to expand their strategic partnerships with Resurs, such as Bauhaus and Mio.					ABOUT PAYMENT SOLUTIONS The Payment Solutions segment is comprised of retail finance, credit cards and factoring. Within retail finance, Resurs is the leading partner for sales-driving
There was a high pace in Resurs's technological development for digitising payments and mobile platforms to help the consumer make purchases and payments. For example, Resurs Checkout continued to be integrated in more POS systems. Furthermore, technological developments using AI added a high level of tangible value during the year, for instance in Credit Cards where tailored customer offerings identified inactive card users who would otherwise, in all likelihood, be about to end their commitment with Resurs. Digitisation of invoice handling also increased in factoring, with the business continuing to perform positively during the year.					finance, payment and loyalty solutions in the Nordic region. Credit cards includes the Resurs credit cards (with Supreme Card being the foremost) as well as cards that enable retail finance
Lending to the public on 31 December 2019 increased 9 per cent to SEK 11,426 million (10,508). Growth was mainly driven by higher volumes from existing retail finance partners. Operating income totalled SEK 397 million (374), up 6 per cent year-on-year. Operating income less credit losses amounted to SEK 305 million (323). The risk-adjusted NBI margin was 10.7 per cent (12.5 per cent), mainly due to changes in the customer mix. Credit losses for the quarter increased both in absolute terms and as a share of lending, driven by both an increased loan portfolio and developments in the Norwegian market.				PUBLIC 10.5	partners to promote their own brands. LENDING TO THE 11.4
Full-year 2019, January–December
Lending to the public on 31 December 2019 increased 9 per cent to SEK 11,426 million (10,508). Operating income increased 7 per cent to SEK 1,529 million (1,425) as an effect of higher business volumes. Operating income less credit losses amounted to SEK 1,317 million (1,239). The risk-adjusted NBI margin was 12.0 per cent (12.5 per cent). Credit losses in absolute terms increased year-on-year as a result of higher lending. Measured as a share of lending, credit losses were in line with the preceding year. The negative development in the Norwegian market was offset by the positive trend in credit losses in Sweden.				Q4-18	Q4-19 Trend in lending to the public in SEK billion.	+9%

Performance measures —	Payment Solutions
SEKm unless otherwise specified	Oct-Dec 2019	Oct-Dec 2018	Change	Jan-Dec 2019	Jan–Dec 2018	Change
Lending to the public at end of the period	11,426	10,508	9%	11,426	10,508	9%
Operating income	397	374	6%	1,529	1,425	7%
Operating income less credit losses	305	323	-6%	1,317	1,239	6%
Risk-adjusted NBI margin, %	10.7	12.5		12.0	12.5

Performance measures — Payment Solutions

Consumer Loans

Fourth quarter 2019, October–December

Full-year 2019, January–December

ABOUT CONSUMER LOANS

Consumer Loans' customers are offered unsecured loans, also known as consumer loans. Consumer loans are normally used to finance larger purchases, extend existing loans or to finance general consumption.

LENDING TO THE PUBLIC

Trend in lending to the public in SEK billion.

Performance measures — Consumer Loans

Consumer Loans					PERCENTAGE OF OPERATING INCOME JAN-DEC 2019
Stable growth in lending despite challenging Norwegian market
Fourth quarter 2019, October–December
Overall, Consumer Loans reported continued healthy growth in lending in the fourth quarter of the year, particularly with the Finnish market distinguishing itself by reporting its best ever growth. The average loan in the Nordic region is steadily increasing and was at slightly more than SEK 100,000 in the fourth quarter. This leads to a lower NBI margin but also entails a lower credit risk. New functionality is continuously added to the credit engine, which has played an important role in the development towards higher average loans, so as to offer an automatic application process, and the share of automated responses is now stable at almost 100 per cent. In turn, the share of loans granted that were signed electronically increased during the quarter to approximately 90 per cent in the Nordic region.					53% ABOUT CONSUMER LOANS Consumer Loans' customers are offered unsecured loans, also
The Norwegian market remains challenging since the effect of the new statutory requirements and the implementation of the Gjeldsregistret changed market conditions. A likely consequence of the changes is higher credit losses in the Norwegian market, which is why an additional reserve was made in the fourth quarter. The assessment is that the increased credit losses will only affect one part of Resurs's Norwegian credit portfolio and that the effect will probably materialise in 2020, mainly in the first half of the year. Looking ahead, there are many opportunities as the Norwegian market stabilises to design an offering that meets both the new rules of play and that delivers customer and business value.					known as consumer loans. Consumer loans are normally used to finance larger purchases, extend existing loans or to finance general consumption. Consumer Loans also helps consumers to consolidate their loans with other banks, in order to reduce their monthly
Lending to the public on 31 December 2019 increased 14 per cent to SEK 19,919 million (17,449), a 13 per cent increase in constant currencies. The strongest performance in percent was the Finnish market, followed by Sweden and Denmark. Operating income increased by 2 per cent in the quarter to SEK 490 million (478). Operating income less credit losses amounted to SEK 371 million (388), and the risk-adjusted NBI margin was 7.5 per cent (8.9 per cent). The trend in the risk-adjusted NBI margin was mainly due to the performance of the Norwegian market and lower margins due to higher average loans. Credit losses for the quarter increased both in absolute terms and as a share of lending, driven by both an increased loan portfolio and developments in the Norwegian market.					payments or interest expense. Resurs currently holds SEK 19.9 billion in outstanding consumer loans. LENDING TO THE PUBLIC
					17.4	19.9
Full-year 2019, January–December						+14%
Lending to the public on 31 December 2019 rose 14 per cent to SEK 19,919 million (17,449). Operating income for the period increased 4 per cent to SEK 1,943 million (1,864). Operating income less credit losses declined 2 per cent to SEK 1,486 million (1,515), and the risk-adjusted NBI margin amounted to					Q4-18 Q4-19
8.0 per cent (9.5 per cent). The trend in the risk-adjusted NBI margin was mainly due to the performance of the Norwegian market and lower margins due to higher average loans. Credit losses increased both in absolute terms and as a share of lending, driven by both an increased loan portfolio and developments in the Norwegian market.					Trend in lending to the public in SEK billion.
Performance measures —	Consumer Loans
SEKm unless otherwise specified	Oct-Dec 2019	Oct-Dec 2018	Change	Jan-Dec 2019	Jan–Dec 2018	Change
Lending to the public at end of the period	19,919	17,449	14%	19,919	17,449	14%
Operating income	490	478	2%	1,943	1,864	4%
Operating income less credit losses	371	388	-4%	1,486	1,515	-2%
Risk-adjusted NBI margin, %	7.5	8.9		8.0	9.5

Insurance

Fourth quarter 2019, October–December

Full-year 2019, January–December

PERCENTAGE OF OPERATING INCOME JAN-DEC 2019

ABOUT INSURANCE

Performance measures — Insurance

Insurance PERCENTAGE OF OPERATING INCOME JAN-DEC 2019 Ending the year with the strongest ever operating profit Fourth quarter 2019, October–December 6% Insurance continued to increase both its premium earned and earnings in the fourth quarter, with all four Insurance product lines reporting a positive performance. After the acquisition of a business that previously provided the company's car guarantee products, work on driving additional growth intensified and the segment reported strong growth for the period. A new partner was launched in the Security business line during the quarter, and many prospective ABOUT INSURANCE partners were cultivated to further strengthen the business area, which performed very well during the quarter. The Travel business line displayed solid growth despite the challenging performance for most of the industry. Two partner agreements were renegotiated during the quarter, which will broaden the product range. Premium earned, net, increased 9 per cent to SEK 232 million (213). All business areas reported a positive performance, although the increase was primarily due to the Security and Motor business lines. Operating income for the quarter rose 62 per cent to SEK 60 million (37). Net income from financial transactions was SEK 5 million (-12). Insurance products are The technical result increased 29 per cent to SEK 35 million (27) compared with the year-earlier quarter, primarily as a result of growth in the Security and Motor business lines and improved profitability in the Motor business line. partners with leading retail Operating profit rose 26 per cent to SEK 39 million (13) year-on-year. The total combined ratio improved to 87.8 per cent (88.9 per cent), as a result of growth in premium earned and the positive has about 2.3 million trend in the claims ratio. region. Full-year 2019, January–December Premium earned, net, increased 8 per cent compared with the preceding year to TECHNICAL RESULT SEK 898 million (829). This increase was primarily attributable to the Motor and Security business lines. Operating income increased 27 per cent to SEK 225 million (178), of which SEK 18 million referred to the 35 non-life insurance operations. The capital market was highly favourable during the year, which resulted in higher market values for both the equities and bond portfolios as well as an increase in net 27 income from financial transactions of SEK 19 million (-8) year-on-year. The technical result increased 17 per cent year-on-year to SEK 104 million (88), primarily driven by growth in the Security and Motor business lines, improved profitability in the Motor business line and good cost control. Operating profit rose SEK 44 million or 53 per cent to SEK 127 million (83) as a result of the higher operating income. The total combined ratio improved to 89.6 per cent (90.2 per cent), mainly as a result of growth in premium earned and the positive trend in the claims ratio in the Motor and Product business lines. Q4-18 Q4-19 Trend in operating profit in SEKmillion. Performance measures — Insurance Oct-Dec Oct-Dec Change Jan-Dec Jan–Dec SEKm unless otherwise specified 2019 2018 2019 2018 Premium earned, net 232 213 9% 898 829 Operating income 60 37 62% 225 178 Technical result 35 27 29% 104 88 Operating profit 39 13 199% 127 83 Combined ratio, % 87.8 88.9 89.6 90.2				RESURS HOLDING AB YEAR END REPORT JANUARY - DECEMBER 2019




						Non-life insurance is offered within the Insurance segment under the Solid Försäkring brand. The focus is on niche coverage, with the Nordic region as the main market.

						divided into four business lines: Travel, Security, Motor and Product. The company
						chains in various sectors, and customers across the Nordic



							Change
							8%
							27%
							17%
							53%

Significant events

January–December 2019

Strengthened capital target for Resurs Holding

Resurs Holding AB (publ) decided in December to strengthen its financial capital target for total capital ratio. This strengthening clearly exceeds the higher regulatory buffer requirements implemented in the second half of 2019 and that was adjusted again at the end of the year. The total capital ratio was raised from more than 14 per cent to more than 15 per cent.

Resurs Holding issued Additional Tier 1 Capital

In December, Resurs Holding AB issued Additional Tier 1 Capital of SEK 300 million. The notes have a perpetual tenor with a first call option after five years and a temporary write-down mechanism. The notes pay a floating rate coupon of 3 months STIBOR + 5.50 per cent and is listed on Nasdaq Stockholm. Resurs Holding also made an unconditional shareholders' contribution of SEK 200 million to Resurs Bank.

Resolution on half-year dividends and new Board Chairman of Resurs Holding

The Extraordinary General Meeting held on 2 October 2019 resolved to pay a cash dividend of SEK 1.80 per share to shareholders, totalling SEK 360 million. The Meeting also elected Board member Martin Bengtsson as Chairman of the Board, in accordance with the Nomination Committee's proposal, after former Chairman Jan Samuelson declined re-election at the Annual General Meeting. Board member Christian Frick also left the Board. RESURS HOLDING AB | YEAR END REPORT JANUARY - DECEMBER 20199

Resurs Holding recruits new CFO and Head of Investor Relations

Jonas Olin was recruited as the new CFO and Head of Investor Relations, and Deputy CEO of Resurs Holding. He will take office in April 2020 and become a member of Group Management. Christina Kassberg is serving as Interim CFO during the period between Peter Rosén leaving the company on 31 October 2019 and Jonas Olin taking up his new role in April 2020.

Strengthened capital position due to Resurs Bank changing its method for measuring operational risk

The Board of Directors of Resurs Bank decided in September 2019 to change the method for measuring operational risk when calculating its capital requirements. This decision meant that Resurs Bank changed its method for calculating operational risk from the basic indicator method to the standardised method, which strengthened the capital position by 0.5 of a percentage point.

Resurs Bank became a new payment solutions partner for Svensk Handel's members

In August 2019, Svensk Handel chose Resurs as its partner for payment solution offers for its members for stores, e-commerce and omni-retail.

Bauhaus decided to continue its partnership with Resurs Bank

Resurs and BAUHAUS have enjoyed a successful partnership for many years and in June 2019 BAUHAUS decided to extend its collaboration with Resurs.

Resurs Bank extends its ABS financing

The ABS financing (securitisation) was expanded in June 2019, and a new 18-month revolving period commenced.

Resurs Bank was awarded an investment grade rating from Nordic Credit Rating (BBB-, stable outlook)

In May 2019, Resurs Bank was awarded an investment grade rating of BBB-, stable outlook from Nordic Credit Rating.

Mio chose Resurs Bank to take its omni-retail to the next level

Following an extensive procurement process involving the largest providers in the market, Mio decided in May 2019 to continue with Resurs as its strategic partner to take its omni-retail to the next level.

Resurs Bank began commercial partnership with Dicopay and enters new customer segment

In March 2019, Resurs entered into a commercial partnership with Dicopay and also became a part-owner of the company. With this partnership, Resurs is entering into a new customer segment and can now offer Resurs Checkout to a new group of small businesses.

Resurs Bank issued subordinated Tier 2 bonds of SEK 300 million

In March 2019, Resurs Bank issued subordinated Tier 2 bonds of SEK 300 million. These subordinated bonds were issued under Resurs Bank's MTN programme and have a tenor of ten years. There is the option of prematurely redeeming the bonds after five years.

Resurs Bank invested in newly established Kivra Oy

In February 2019, Resurs strengthened its partnership by investing in Kivra's new Finnish joint venture.

SOME OF RESURS'S RETAIL FINANCE PARTNERS:

After the end of the period

There were no significant events after the end of the period.

Other information

Risk and capital management

The Group's ability to manage risks and conduct effective capital planning is fundamental to its profitability. The business faces various forms of risk including credit risks, market risks, liquidity risks and operational risks. The Board has established operational policies with the aim of balancing the Group's risk taking, and to limit and control risks. All policies are updated as necessary and revised at least once annually. The Board and CEO are ultimately responsible for the Group's risk management. In general, there have been no significant changes regarding risk and capital management during the period. A more detailed description of the bank's risks, liquidity and capital management is presented in Note G3 Liquidity, Note G4 Capital Adequacy, and in the most recent annual report. RESURS HOLDING AB | YEAR END REPORT JANUARY - DECEMBER 201910

Information on operations

Resurs Holding AB is a financial holding company. Operating activities are conducted in the wholly owned subsidiaries Resurs Bank AB, with subsidiaries, and Solid Försäkrings AB. Resurs Bank AB conducts banking operations in the Nordic countries. Operations are primarily consumer-oriented and are licensed by the Swedish Financial Supervisory Authority. Consumer lending is subdivided into retail finance loans, consumer loans, MasterCard credit cards, and deposits. Retail finance loans are offered to finance both traditional in-store purchases and online purchases. Operations in Finland are conducted through branch office Resurs Bank AB Suomen sivuliike (Helsinki), in Denmark through branch office Resurs Bank filial af Resurs Bank (Vallensbæk Strand) and in Norway through branch office Resurs Bank AB NUF (Oslo).

Solid Försäkring provides non-life insurance products in Sweden, other Nordic countries and, to some extent, other European countries. Solid Försäkring offers traditional speciality insurance. Solid Försäkring conducts operations in Norway, Finland and Switzerland via branches. Crossborder operations are conducted in other markets.

Employees

There were 750 full-time employees within the Group at 31 December 2019, up 13 since 30 September 2019 and down 15 since the end of 2018. The decline compared with the previous year was due to the reduction in the number of employees in both Resurs Bank Norway and Denmark. This took place through retirement and not replacing people who left the company. The increase since September was due to expanding the number of IT personnel.

NUMBER OF EMPLOYEES 750

Information about the Resurs share

Information about the Resurs share
Resurs Holding's share is listed on Nasdaq Stockholm, Large Cap. The final price paid for the Resurs share at the end of the period was SEK 60.15.
The ten largest shareholders with direct ownership on 31 December 2019*) were:		Percentage of share capital
Waldakt AB (Bengtsson family)		28.9%
Swedbank Robur Fonder		7.4%
AFA Försäkring		3.4%
XACT Fonder		3.2%
Erik Selin		2.8%
Handelsbanken Fonder		2.8%
Norges Bank		2.2%
Avanza Pension		2.1%
SEB Fonder		2.0%
Vanguard		1.9%
Total *) Information on indirect holdings through companies, etc. may not be available in certain cases.		56.7%
Financial targets
Performance measures	Mid-term targets	Outcome Jan-Dec 2019

	more than 10%	12%
Annual lending growth Risk-adjusted NBI margin, excl. Insurance	about 10-12%	9.4%
C/I before credit losses (excl. Insurance and adjusted for nonrecurring costs	under 40%	39.1%
Common Equity Tier 1 ratio	more than 11.5%	13.6%
Total capital ratio	more than 15%	16.3%
Return on tangible equity (RoTE) adjusted for nonrecurring costs 1)	about 30%	32.7%
Dividend 2)	at least 50% of profit for the year	64%
1)Adjusted for the Common Equity Tier 1 ratio according to the Board's target and dividends deducted from the capital
base for the current year. 2) The Board proposes that the 2020 Annual General Meeting resolve on dividends of SEK 2.10 per share (1.95). According to the company's model of semi-annual dividend payments, dividends of SEK 1.80 per share (1.65) were paid in autumn 2019.			NEXT INTERIM REPORT:
Financial calendar			28 APRIL

Financial targets

Performance measures	Mid-term targets	Outcome Jan-Dec 2019
Annual lending growth	more than 10%	12%
Risk-adjusted NBI margin, excl. Insurance	about 10-12%	9.4%
C/I before credit losses (excl. Insurance and adjusted for nonrecurring costs	under 40%	39.1%
Common Equity Tier 1 ratio	more than 11.5%	13.6%
Total capital ratio	more than 15%	16.3%
Return on tangible equity (RoTE) adjusted for nonrecurring costs 1)	about 30%	32.7%
Dividend 2)	at least 50% of profit for the year	64%

Financial calendar

The Board's assurance

			RESURS HOLDING AB YEAR END REPORT JANUARY - DECEMBER 2019
The Board's assurance
This year-end report has not been audited.
The Board of Directors and the CEO certify that this interim report provides a fair review of the Group's and the Parent Company's operations, financial position and results and describes the significant risks and uncertainties faced by the Parent Company and Group companies.
Helsingborg, 3 February 2020
Kenneth Nilsson, CEO
Board of Directors,
Martin Bengtsson, Chairman of the Board
Johanna Berlinde	Mariana Burenstam Linder	Fredrik Carlsson
Anders Dahlvig	Lars Nordstrand	Marita Odélius Engström
Mikael Wintzell





			12

Summary financial statements - Group

Condensed Income statement

Statement of comprehensive income

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Net profit for the period	289 390	283 848	1 216 310	1 143 415

Other comprehensive income that will be classfied to profit/loss
Translation differences for the period, foreign operations	-23 116	-92 710	33 162	85 787
Hedge accounting 1)		26 041		-49 424
Hedge accounting - tax 1)		-5 729		10 873
Comprehensive income for the period	266 274	211 450	1 249 472	1 190 651

Portion attributable to Resurs Holding AB shareholders	263 307	211 450	1 246 505	1 190 651
Portion attributable to additional Tier 1 capital holders	2 967		2 967
Comprehensive income for the period	266 274	211 450	1 249 472	1 190 651

Statement of financial position

31 Dec 31 Dec Note 2019 2018 220,799 63,215 1,758,835 1,009,021 4,128,953 3,703,650 G12 31,344,787 27,956,576 1,288,954 1,262,568 28,290 27,317 95,823 68,556 Intangible fixed assets 2,063,405 1,973,681 Tangible assets 139,871 56,228 Reinsurers' share in technical provisions 3,876 4,267 Other assets 253,526 422,728 Prepaid expenses and accrued income 421,629 407,665 TOTAL ASSETS 41,748,748 36,955,472 Liabilities, provisions and equity Liabilities and provisions Liabilities to credit institutions 94,900 149,900 Deposits and borrowing from the public 24,409,032 20,578,153 Other liabilities 1,015,578 1,010,465 Accrued expenses and deferred income 211,861 183,080 Technical provisions 585,557 532,115 Other provisions G13 20,337 22,861 Issued securities 7,672,347 7,832,186 Subordinated debt 597,890 298,171 Total liabilities and provisions 34,607,502 30,606,931 Equity 1,000 1,000 Other paid-in capital 2,082,505 2,086,305 Translation reserve 66,206 33,044 Additional Tier 1 instruments 300,000 Retained earnings incl. profit for the period 4,691,535 4,228,192 Total equity 7,141,246 6,348,541 TOTAL LIABILITIES, PROVISIONS AND EQUITY 41,748,748 36,955,472 See Note G14 for information on pledged assets, contingent liabilities and commitments.	SEK thousand Assets Cash and balances at central banks Treasury and other bills eligible for refinancing Lending to credit institutions Lending to the public Bonds and other interest-bearing securities Subordinated debt Shares and participating interests



























	Share capital

Statement of changes in equity

capital in capital reserve Tier 1 earnings incl. instruments profit for the year 1,000 2,088,504 -14,192 4,113,518 -438,681 Impact of revaluation of credit loss reserves due to IFRS 9 implementation - tax effect 99,940 1,000 2,088,504 -14,192 0 3,774,777 1,000 2,088,504 -14,192 0 3,774,777 -2,199 -360,000 -330,000 1,143,415 47,236 1,000 2,086,305 33,044 0 4,228,192 1,000 2,086,305 33,044 0 4,228,192 Option premium received/repurchased -3,800 -3,800 Dividends according to General Meeting -390,000 -390,000 -360,000 Issued additional Tier 1 instruments 300,000 300,000 Cost additional Tier 1 instruments -2,967 -2,967 Net profit for the period 1,216,310 1,216,310 Other comprehensive income for the year 33,162 33,162 Equity at 31 December 2019 1,000 2,082,505 66,206 300,000 4,691,535 7,141,246 All equity is attributable to Parent Company shareholders.	SEK thousand	Share	Other paid	Translation	Additional	Retained	Total equity

	Initial equity at 1 January 2018 according to IAS 39						6,188,830
	Impact of revaluation of credit loss reserves due to IFRS 9 implementation						-438,681
							99,940
	Equity at 1 January 2018 according to IFRS 9						5,850,089
	Initial equity at 1 January 2018 Owner transactions						5,850,089
	Option premium received/repurchased						-2,199
	Dividends according to General Meeting						-360,000
	Dividends according to Extraordinary General Meeting						-330,000
	Net profit for the year						1,143,415
	Other comprehensive income for the year						47,236
	Equity at 31 December 2018						6,348,541
	Initial equity at 1 January 2019						6,348,541
	Owner transactions

	Dividends according to Extraordinary General Meeting						-360,000

Cash flow statement (indirect method)

Operating activities				2019 1,562,697 3,306,307 -383,662 896,641 -287,503 2,171,835 -3,694,769 -143,140 -55,000 3,623,920 -3,238,044 2,455,395 -106,353 1,013,844	2018 1,486,560 3,061,912 -320,663 735,250 -435,187 1,786,623 -4,477,411 -707,013 149,900 2,456,827 -1,423,084 1,754,259 9,521 -450,378
Operating profit - of which, interest received - of which, interest paid Adjustments for non-cash items in operating profit Tax paid Cash flow from operating activities before changes in operating assets and liabilities Changes in operating assets and liabilities Lending to the public Other assets Liabilities to credit institutions Deposits and borrowing from the public Acquisition of investment assets 1) Divestment of investment assets 1) Other liabilities Cash flow from operating activities Investing activities Acquisition of intangible and tangible fixed assets Divestment of intangible and tangible fixed assets Cash flow from investing activities Financing activities Dividends paid Issued securities Option premium received/repurchased Additional Tier 1 instruments
















				-103,966	-136,382
				1,343	2,154
				-102,623	-134,228

				-750,000	-690,000
				-213,887	2,205,138
				-3,800	-2,199
				297,033
Subordinated debt				298,950	-42,664
Cash flow from financing activities				-371,704	1,470,275

Cash flow for the year				539,517	885,669
Cash & cash equivalents at beginning of the year 2)				3,766,865	2,855,822
Exchange rate differences				43,370	25,374
Cash & cash equivalents at end of the year 2)				4,349,752	3,766,865

Adjustment for non-cash items in operating profit
Credit losses				669,454	535,071
Depreciation, amortisation and impairment of intangible and tangible fixed assets				87,642	49,039
Profit/loss tangible assets				-269	244
Profit/loss on investment assets 1)				-20,089	3,853
Change in provisions				50,476	75,337
Adjustment to interest paid/received				29,863	6,639
Currency effects				74,035	59,688
Other items that do not affect liquidity				5,529	5,379
Sum non-cash items in operating profit 1) Investment assets are comprised of bonds and other interest-bearing securities, treasury and other bills eligible for refinancing, subordinated debt and				896,641	735,250
shares and participating interest. 2) Liquid assets are comprised of lending to credit institutions and cash and balances at central banks.
SEK thousand	1 Jan 2019	Cash flow		Non cash flow items 31 Dec 2019
			Accrued acquisition costs	Exchange rate
Issued securities	7,832,186	-213,887	4,758	differences 49,290	7,672,347
Additional Tier 1 instruments		297,033			297,033
Subordinated debt	298,171	298,950	769		597,890
Total	8,130,357	382,096	5,527	49,290	8,567,270

SEK thousand	1 Jan 2019	Cash flow		Non cash flow items 31 Dec 2019
			Accrued acquisition	Exchange
			costs	rate
				differences
Issued securities	7,832,186	-213,887	4,758	49,290	7,672,347
Additional Tier 1 instruments		297,033			297,033
Subordinated debt	298,171	298,950	769		597,890
Total	8,130,357	382,096	5,527	49,290	8,567,270

Notes to the condensed financial statements

G1. Accounting principles

Financial Reporting and with applicable provisions of the Swedish Annual Accounts Act for Credit Institutions and Securities Companies and the Swedish Reports in Credit Institutions and Securities Companies (FFFS 2008:25), as well as Accounting Rules for Corporate Groups.

In addition to IFRS 16, no new IFRS or IFRIC interpretations have entered into force since January 1, 2019. IFRS 16 replaces IAS 17 from 1 January 2019. Under the new standard, existing leases and right-of-use agreements are to be capitalised as assets and liabilities in the statement of financial position, with the associated effect that the cost in profit or loss is divided between depreciation in operating profit and interest expense in net financial items. The Group will be primarily affected by the right-of-use assets attributable to leases for premises and vehicle leases. For further information regarding current leases, see the Annual Report for 2018. Regarding the effect of IFRS 16, see note G2.

When the financial statements for 2019 were prepared, the company decided to on changes in the credit quality of the financial assets, in accordance with IFRS 9. Refer to Note G11 for credit losses, Note G12 for lending to the public and Note G13 for other provisions.

G2. Effect of IFRS 16, Leasing

The Group will be primarily affected by the right-of-use assets attributable to leases for premises and vehicle leases. The right-of-use asset has initially been measured at an amount corresponding to the lease liability, adjusted for any prepaid or accrued lease fees related to the lease agreement.

The right-of-use asset is reported in the item property, plant and equipment and the lease liability is reported in the item other liabilities in the statement of financial position.

The liability for unutilised lease obligations on 1 January 2019 amounts SEK 107 million and for unutilised right-of-use assets SEK 112 million. Equity has not been affected by the transition to IFRS 16. The average margin loan rate as at 1 January 2019 is 1.3 per cent.

G3. Financing - Consolidated situation

A core component of financing efforts is maintaining a well-diversified financing structure with access to several sources of financing. Access to a number of sources of financing means that it is possible to use the most appropriate source of financing at any particular time.

The main type of financing remains deposits from the public. This type of financing has been offered to customers in Sweden, Norway and Germany. Deposits, which are analysed on a regular basis, totalled SEK 24,647 million (20,773), whereof in Sweden SEK 11,391 million (14,056), in Norway SEK 6,601 million (6,337) and in Germany SEK 6,655 million (381). The lending to the public/deposits from the public ratio for the consolidated situation is 127 per cent (135 per cent).

Resurs Bank has a funding programme for issuing bonds, the programme amounts to SEK 8,000 million (8,000). Within the programme, Resurs Bank has been working successfully to issue bonds on a regular basis and sees itself as an established issuer on the market. Resurs Bank has primarily issued bonds in Sweden but also in Norway. At 31 December 2019 the program has eleven outstanding issues at a nominal amount of SEK 5,450 million (4,250). Of the eleven issues, nine are senior unsecured bonds and two issues are a subordinated loan of SEK 600 million (300).

Liquidity - Consolidated situation

Liquidity risk includes the risk of not being able to meet liquidity commitments without significantly higher costs.The consolidated situation, must maintain a liquidity reserve and have access to an unutilised liquidity margin in the event of irregular or unexpected liquidity flows.

responsibilities and monitoring and include a contingency plan. The purpose of the contingency plan is to make preparations for various courses of action should the liquidity situation trend unfavourably. The contingency plan includes, controlled and audited by independent functions.

Liquidity comprises both a liquidity reserve and another liquidity portfolio that is monitored on a daily basis. The main liquidity risk is deemed to arise in the event multiple depositors simultaneously withdraw their deposited funds. An internal model is used to set minimum requirements for the amount of the liquidity reserve, calculated based on deposit volumes, the proportion covered by deposit insurance and relationship to depositors. The model also takes into account the future maturities of issued securities. The Board has stipulated that the liquidity reserve may never fall below SEK 1,300 million. Apart from the liquidity reserve, there is an intraday liquidity requirement of at least 4 per cent of deposits from the public, a minimum SEK 700 million.There are also other liquidity requirements regulating and controlling the business.

Tier 1 capital comprises Common Equity Tier 1 capital and other Tier 1 capital. In December 2019, Resurs Holding AB issued Additional Tier 1 Capital of a nominal SEK 300 million. This Additional Tier 1 Capital is subordinated debt that meets some of the requirements to be eligible as Tier 1 capital when calculating the amount of the capital base. The accounting principle chosen means that the Additional Tier 1 Capital is to be classified as equity and payment to holders of these instruments, such as interest, is recognised in equity.

The Parent Company has prepared its interim report in accordance with the requirements in the Annual Accounts Act (AAA) and the Swedish Financial Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The same accounting and valuation principles were applied as in the latest Annual report.

For detailed accounting principles for the Group, see the Annual report for 2018.

Resurs Bank AB Group and its Parent Company Resurs Holding AB.

The interim information on pages 2-31 comprises an integrated component of this financial report.

As at 31 December 2019, the liability for unutilised lease obligations amounts to SEK 91 million and for unutilised right-of-use assets SEK 95 million. The income statement has been affected by the fact that the lease payments (General administrative expenses) have been distributed between interest expense, SEK 1,355 thousand and depreciation amounting SEK 29,576 thousand. The tax effect has a positive impact of SEK 147 thousand. The total impact on the financial result is SEK 496 thousand. As at 31 December 2019 the average margin loan rate amounted to 1,3 per cent.

and performance measures.

Resurs Bank has, outside the programme issued subordinated loan of SEK 200 million (200). Resurs Holding issued Additional Tier 1 Capital of a nominal SEK 300 million (0).

In May 2019, Resurs Bank was awarded BBB- with stable prospects of the rating company Nordic Credit Rating. Until the balance sheet date, no change of credit rating had taken place. Access to Nordic Credit Ratings analyses can be found on the website www.nordiccreditrating.com.

Resurs Bank has completed a securitisation of loan receivables, a form of structured financing, referred to as Asset Backed Securities (ABS). This took place by Consumer Loans 1 Limited. The acquisition of loan receivables by Resurs Consumer Loans was financed by an international financial institution. In June 2019, an agreement was signed to extend the existing financing and Resurs Bank has for a period of 18 months (revolving period), the right to continue sale of certain additional loan receivables to Resurs Consumer Loans. At 31 December 2019 a total of appoximately SEK 3.6 billion in loan receivables had been transferred to Resurs Consumer Loans. Resurs Bank and Resurs Consumer Loans have provided security for the assets that form part of the securitisation. At the balance sheet date, the external financing amounted to SEK 2.9 billion (2.9) of the ABS financing. RESURS HOLDING AB | YEAR END REPORT JANUARY - DECEMBER 201917

The liquidity reserve, totalling SEK 1,918 million (1,899), is in accordance with Swedish Financial Supervisory Authority regulations on liquidity risk management (FFFS 2010:7) and applicable amendments thereto for the consolidated situation. Accordingly, assets are segregated, unutilised and of high quality. The liquidity reserve largely comprises assets with the highest credit quality rating.

In addition to the liquidity reserve, the consolidated situation has other liquid assets primarily comprised of cash balances with other banks. These assets are of high credit quality and total SEK 4,982 million (3,688) for the consolidated situation. Accordingly, total liquidity amounted to SEK 6,900 million (5,588) corresponds to 28 per cent (27 per cent) of deposits from the public. The Group also has unutilised credit facilities of NOK 50 million (50).

Liquidity Coverage Ratio (LCR) for the consolidated situation is reported to the authorities on a monthly basis. The LCR shows the ratio between high qualitative assets and net outflow during a 30-day stressed period. A ratio of 100 per cent means the assets managed the stress test scenario and is also the authority's limit. As at 31 December 2019, the ratio for the consolidated situation is 264 per cent (146 per cent). For the period January to December 2019, the avarage LCR measures 200 per cent for the conslidated situation.

All valuations of interest-bearing securities were made at market values that take into account accrued interest.

credit facilities of NOK 50 million (50).

per cent for the conslidated situation.

SEK thousand	31 Dec 2019	31 Dec 2018
Liquidity reserve as per FFFS 2010:7 definition
Securities issued by sovereigns	184,378	49,117
Securities issued by municipalities	830,219	729,974
Lending to credit institutions		250,000
Bonds and other interest-bearing securities	903,264	870,196
Summary Liquidity reserve as per FFFS 2010:7	1,917,861	1,899,287

Other liquidity portfolio
Cash and balances at central banks	220,799	63,215
Securities issued by municipalities	699,902	100,033
Lending to credit institutions	4,061,272	3,425,045
Bonds and other interest-bearing securities		100,043
Total other liquidity portfolio	4,981,973	3,688,336

Total liquidity portfolio	6,899,834	5,587,623

Other liquidity-creating measures
Unutilised credit facilities	52,895	51,225

SEK thousand
				31 Dec 2019	31 Dec 2018
Liquidity reserve as per FFFS 2010:7 definition
Securities issued by sovereigns				184,378	49,117
Securities issued by municipalities				830,219	729,974
Lending to credit institutions					250,000
Bonds and other interest-bearing securities				903,264	870,196
Summary Liquidity reserve as per FFFS 2010:7				1,917,861	1,899,287
Other liquidity portfolio
Cash and balances at central banks				220,799	63,215
Securities issued by municipalities				699,902	100,033
Lending to credit institutions				4,061,272	3,425,045
Bonds and other interest-bearing securities					100,043
Total other liquidity portfolio				4,981,973	3,688,336
Total liquidity portfolio				6,899,834	5,587,623
Other liquidity-creating measures
Unutilised credit facilities				52,895	51,225
Liquid assets according to LCR
31/12/2019
	TOT	SEK	EUR	DKK

	193,433		127,548
	184,378		120,318	30,211	NOK 65,885 33,849
	1,530,121	1,273,617	76,652		179,852
	374,185		196,880		177,305

	529,079 2,811,196	529,079 1,802,696	521,398	30,211	456,891


	TOT	SEK	EUR	DKK

	63,215 49,117		24,662	24,455
	729,974	556,093
	188,624	100,099	42,498		63,215 173,881 46,027

	572,680	531,730			40,950
	1,603,610	1,187,922	67,160	24,455
				31 Dec	NOK 324,073 31 Dec
				2019 2,811,196
SEK thousand Level 1 assets Cash and balances with central banks Securities or guaranteed by sovereigns, central banks, MDBs and international org. Securities issued by municipalites and PSEs Extremely high quality covered bonds Level 2 assets High quality covered bonds Total liquid assets 31/12/2018 SEK thousand Level 1 assets Cash and balances with central banks Securities or guaranteed by sovereigns, central banks, MDBs and international org. Securities issued by municipalites and PSEs Extremely high quality covered bonds Level 2 assets High quality covered bonds Total liquid assets SEK thousand Total liquid assets Net liquidity outflow					2018 1,603,610
LCR measure				1,025,759 264%	1,031,174 146%

SEK thousand	31 Dec 2019	31 Dec 2018
Total liquid assets	2,811,196	1,603,610

Net liquidity outflow	1,025,759	1,031,174

LCR measure	264%	146%

G4. Capital adequacy - Consolidated situation

2018: 5 %, 2019: 10 %, 2020: 15 %, 2021: 20 %, 2022: 25 %, 2023: 25 %

Capital base

G4. Capital adequacy - Consolidated situation
Capital requirements are calculated in accordance with European Parliament and Council Regulation EU 575/2013 (CRR) and Directive 2013/36 EU (CRD IV). The Directive was incorporated via the Swedish Capital Buffers Act (2014:966), and prudential requirements and capital buffers (FFFS 2014:12). The capital requirement calculation below comprises the statutory minimum capital requirement for credit risk, credit valuation adjustment risk, market risk and operational risk.	Credit risk is calculated by applying the standardised method under which the asset items of the consolidated situation are weighted and divided between 17 different exposure classes. The total risk-weighted exposure amount is multiplied by 8 per cent to obtain the minimum capital requirement for credit risk. The capital requirement for operational risk is from 20 September 2019 calculated by the standardised method. Under this method, the capital requirement for operational risks is 12 per cent of the income indicator (meaning average operating income for capital base requirement for bonds and other interest-bearing securities.
The combined buffer requirement for the consolidated situation comprises a capital conservation buffer and a countercyclical capital buffer. The capital conservation buffer requirement amounts to 2.5 per cent of the risk-weighted assets. The countercyclical capital buffer requirement is weighted according to geographical requirements, which amounts to 2,5 per cent of the risk-weighted assets for Swedish and Norwegian exposures. The countercyclical capital buffer requirements increased from 2 per cent to 2.5 per cent for Norwegian exposures from 31 December 2019. For Danish exposures a countercyclical capital buffer requirement of 1 per cent of risk-weighted assets is effective from 30 September 2019 and to 1,5 per cent from June 2020 and is proposed at 2 per cent from 30 December 2020. The Group currently does not need to take into a buffer requirement for its business areas in Finland. The consolidated situation calculates the capital requirement for credit risk,	Resurs Bank has applied to the Swedish Financial Supervisory Authority for permission to apply the transition rules decided at EU level in December 2017. Under the transition rules, a gradual phase-in of the effect of IFRS 9 on capital adequacy is permitted, regarding both the effect of the transition from IAS 39 as at 1 January 2018 and the effect on the reporting date that exceeds the amount when IFRS 9 is first applied to stage 1 and stage 2. The phase-in period is as follows: 2018: 5 %, 2019: 10 %, 2020: 15 %, 2021: 20 %, 2022: 25 %, 2023: 25 % In December 2019, Resurs Holding AB issued Additional Tier 1 Capital of a nominal SEK 300 million. The notes have a perpetual tenor with a first call option after five years and a temporary write-down mechanism.
credit valuation adjustment risk, market risk and operational risk.
Capital base
SEK thousand	31 Dec 2019	31 Dec 2018
Common Equity Tier 1 capital
Equity
Equity, Group	6,841,246	6,348,541
Additional Tier 1 instruments classified as equity	300,000
Equity according to balance sheet	7,141,246	6,348,541

Proposed dividend Additional/deducted equity in the consolidated situation	-420,000 -463,076	-390,000 -413,335
Equity, consolidated situation	6,258,170	5,545,206
Adjustments according to transition rules IFRS 9:
Initial revaluation effect	287,930	321,804
Less:
Additional value adjustments	-2,743	-2,039
Intangible fixed assets	-2,020,278	-1,945,773
Additional Tier 1 instruments classified as equity	-300,000
Shares in subsidiaries	-120	-120
Total Common Equity Tier 1 capital	4,222,959	3,919,078
Tier 1 capital
Common Equity Tier 1 capital	4,222,959	3,919,078
Additional Tier 1 instruments	300,000
Total Tier 1 capital	4,522,959	3,919,078

Tier 2 capital
Dated subordinated loans	548,003	362,227
Total Tier 2 capital	548,003	362,227

Total capital base	5,070,962	4,281,305

Capital requirement

Capital requirement
SEK thousand	31 Dec 2019		31 Dec 2018
	Risk weighted exposure	Capital require ment1)	Risk weighted exposure	Capital require ment1)
	amount		amount
Exposures to institutions	830,818	66,465	748,532	59,883
Exposures to corporates	412,282	32,983	366,130	29,290
Retail exposures	21,171,101	1,693,688	19,027,139	1,522,171
Exposures in default	3,095,205	247,616	2,666,279	213,302
Exposures in the form of covered bonds	90,122	7,210	86,879	6,950
Exposures to institutions and companies with short-term credit rating			99,943	7,995
Equity exposures Other items	96,404 513,701	7,712 41,096	80,001 545,212	6,400 43,618
Total credit risks	26,209,633	2,096,770	23,620,115	1,889,609
Credit valuation adjustment risk	30,589	2,447	45,050	3,604

Market risk
Currency risk	0	0	0	0
Operational risk	4,849,713	387,977	5,552,748	444,220
Total riskweighted exposure and total capital requirement	31,089,935	2,487,194	29,217,913	2,337,433
1)Capital requirement information is provided for exposure classes that have exposures.
Capital ratio and capital buffers			31 Dec	31 Dec
			2019	2018
Common Equity Tier 1 ratio, %			13.6	13.4
Tier 1 ratio, %			14.6	13.4
Total capital ratio, %			16.3	14.7
Common Equity Tier 1 capital requirement incl. buffer requirement, % - of which, capital conservation buffer requirement, %			9.0 2.5	8.6 2.5
- of which, countercyclical buffer requirement, %			2.0	1.6
Common Equity Tier 1 capital available for use as buffer, %			7.3	6.7

Leverage ratio The leverage ratio is a non-risk-sensitive capital requirement defined in calculated by the Tier 1 capital as a percentage of the total exposure measure. Regulation (EU) no 575/2013 of the European Parliament and of the Council. The consolidated situation currently only has a reporting requirement to the Swedish Financial Supervisory Authority, but will have a quantitative including items that are not recognised in the balance sheet and is requirement of 3 per cent in 2021 when the updates to CRR come into effect.

SEK thousand			31 Dec 2019	31 Dec 2018
Tier 1 capital			4,522,959	3,919,078
Leverage ratio exposure Leverage ratio, %			42,031,894 10.8	37,406,727 10.5

Capital ratio and capital buffers

	31 Dec	31 Dec
	2019	2018
Common Equity Tier 1 ratio, %	13.6	13.4
Tier 1 ratio, %	14.6	13.4
Total capital ratio, %	16.3	14.7
Common Equity Tier 1 capital requirement incl. buffer requirement, %	9.0	8.6
- of which, capital conservation buffer requirement, %	2.5	2.5
- of which, countercyclical buffer requirement, %	2.0	1.6
Common Equity Tier 1 capital available for use as buffer, %	7.3	6.7

Leverage ratio

SEK thousand	31 Dec 2019	31 Dec 2018
Tier 1 capital	4,522,959	3,919,078
Leverage ratio exposure	42,031,894	37,406,727
Leverage ratio, %	10.8	10.5

G5. Segment reporting

Oct-Dec 2019
SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	307,088	536,706	4,388	-2,540	845,642
Interest expense	-28,390	-79,146	-4	2,540	-105,000
Provision income	93,425	26,100		-64,243	55,282
Fee & commission expense, banking operations	-15,880				-15,880
Premium earned, net			231,874	-404	231,470
Insurance compensation, net			-55,488		-55,488
Fee & commission expense, insurance operations			-125,221	65,977	-59,244
Net income/expense from financial transactions	-8,803	-11,599	4,741	-23	-15,684
Other operating income	49,266	17,891	22	-3,531	63,648
Total operating income	396,706	489,952	60,312	-2,224	944,746
of which, internal 1)	39,199	26,156	-63,131	-2,224	0
Credit losses, net	-91,243	-118,712			-209,955
Operating income less credit losses	305,463	371,240	60,312	-2,224	734,791
Expenses excluding credit losses 2)			-21,027
Operating profit, Insurance 3)			39,285

G5. Segment reporting The CEO of Resurs Holding AB is the chief operating decision maker for the Group. Management has established segments based on the information that is dealt with by the Board of Directors and used as supporting information for allocating resources and evaluating results. The CEO assesses the performance of Payment Solutions, Consumer Loans and Insurance. The CEO evaluates segment development based on net operating income less credit losses, net. Oct-Dec 2019 SEK thousand Interest income Interest expense Provision income Fee & commission expense, banking operations Premium earned, net	The Insurance segment is evaluated at the operating profit/loss level, as this same principles as those used for the consolidated financial statements. Assets monitored by the CEO refer to lending to the public. Payment Solutions 307,088 -28,390 93,425 -15,880	Consumer Loans 536,706 -79,146	Insurance 4,388 -4	Intra-Group adjustment -2,540	Total Group




					845,642
				2,540	-105,000
		26,100		-64,243	55,282
					-15,880
			231,874	-404	231,470
Insurance compensation, net			-55,488		-55,488
Fee & commission expense, insurance operations			-125,221	65,977	-59,244
Net income/expense from financial transactions	-8,803	-11,599	4,741	-23	-15,684
Other operating income	49,266	17,891	22	-3,531	63,648
Total operating income	396,706	489,952	60,312	-2,224	944,746
of which, internal 1)	39,199	26,156	-63,131	-2,224	0
Credit losses, net	-91,243	-118,712			-209,955
Operating income less credit losses	305,463	371,240	60,312	-2,224	734,791

Expenses excluding credit losses 2)			-21,027
Operating profit, Insurance 3)			39,285
Oct-Dec 2018
SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	295,178	505,614	2,969	-1,740	802,021
Interest expense	-27,302	-61,859	-13	1,740	-87,434
Provision income	84,470	32,355		-60,565	56,260
Fee & commission expense, banking operations	-16,346				-16,346
Premium earned, net			213,094	-398	212,696
Insurance compensation, net			-54,566		-54,566
Fee & commission expense, insurance operations			-112,185	56,633	-55,552
Net income/expense from financial transactions	-7,204	-8,411	-12,028	990	-26,653
Other operating income	44,870	10,547		-2,477	52,940
Total operating income	373,666	478,246	37,271	-5,817	883,366
of which, internal 1)	33,430	26,882	-54,495	-5,817	0
Credit losses, net	-50,305	-89,812			-140,117
Operating income less credit losses	323,361	388,434	37,271	-5,817	743,249

Expenses excluding credit losses 2)			-24,114
Operating profit, Insurance 3)			13,157

Segment reporting

SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	1,200,330	2,103,848	15,283	-8,877	3,310,584
Interest expense	-116,177	-301,578	-32	8,877	-408,910
Provision income	357,070	111,616		-245,993	222,693
Fee & commission expense, banking operations	-60,442				-60,442
Premium earned, net			898,481	-1,972	896,509
Insurance compensation, net			-222,941		-222,941
Fee & commission expense, insurance operations			-485,560	243,476	-242,084
Net income/expense from financial transactions	-17,848	-23,513	18,932	-107	-22,536
Other operating income	166,394	52,793	570	-13,412	206,345
Total operating income	1,529,327	1,943,166	224,733	-18,008	3,679,218
of which, internal 1)	140,615	110,021	-232,628	-18,008	0
Credit losses, net	-212,520	-456,934			-669,454
Operating income less credit losses	1,316,807	1,486,232	224,733	-18,008	3,009,764
Expenses excluding credit losses 2)			-97,281
Operating profit, Insurance 3)			127,452

Jan-Dec 2019
SEK thousand	Payment	Consumer	Insurance	Intra-Group	Total Group
Interest income	Solutions 1,200,330	Loans 2,103,848	15,283	adjustment -8,877	3,310,584
Interest expense	-116,177	-301,578	-32	8,877	-408,910
Provision income	357,070	111,616		-245,993	222,693
Fee & commission expense, banking operations	-60,442				-60,442
Premium earned, net			898,481	-1,972	896,509
Insurance compensation, net			-222,941		-222,941
Fee & commission expense, insurance operations			-485,560	243,476	-242,084
Net income/expense from financial transactions	-17,848	-23,513	18,932	-107	-22,536
Other operating income	166,394	52,793	570	-13,412	206,345
Total operating income	1,529,327	1,943,166	224,733	-18,008	3,679,218
of which, internal 1)	140,615	110,021	-232,628	-18,008	0

Credit losses, net Operating income less credit losses	-212,520 1,316,807	-456,934 1,486,232	224,733	-18,008	-669,454 3,009,764

Expenses excluding credit losses 2)			-97,281
Operating profit, Insurance 3)			127,452

Jan-Dec 2018
SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	1,121,384	1,935,502	12,629	-6,661	3,062,854
Interest expense	-107,272	-223,362	-52	6,661	-324,025
Provision income	325,477	119,331		-226,972	217,836
Fee & commission expense, banking operations	-57,090				-57,090
Premium earned, net			828,678	-2,524	826,154
Insurance compensation, net			-226,211		-226,211
Fee & commission expense, insurance operations			-429,776	209,431	-220,345
Net income/expense from financial transactions	-21,182	-19,694	-7,745	692	-47,929
Other operating income	163,937	52,082		-9,909	206,110
Total operating income	1,425,254	1,863,859	177,523	-29,282	3,437,354
of which, internal 1)	117,630	111,898	-200,246	-29,282	0

Credit losses, net	-186,442	-348,629			-535,071
Operating income less credit losses	1,238,812	1,515,230	177,523	-29,282	2,902,283
Expenses excluding credit losses 2)			-94,110

Operating profit, Insurance 3) 1) Inter-segment revenues mostly comprise mediated payment protection insurance, but also remuneration for Group-wide functions that are calculated according to the			83,413

2) Reconciliation of expenses excluding credit losses against income statement	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK thousand	2019	2018	2019	2018
As per segment reporting
Expenses excluding credit losses as regards Insurance segment Not broken down by segment	-21,027	-24,114	-97,281	-94,110
Expenses excluding credit losses as regards banking operations	-349,353	-344,407	-1,349,786	-1,321,613
Total	-370,380	-368,521	-1,447,067	-1,415,723

As per income statement
General administrative expenses	-316,387	-309,235	-1,200,762	-1,178,239
Depreciation, amortisation and impairment of intangible and tangible fixed assets	-21,270	-13,296	-87,642	-49,039
Other operating expenses Total	-32,723 -370,380	-45,990 -368,521	-158,663 -1,447,067	-188,445 -1,415,723


3) Reconciliation of operating profit against income statement	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK thousand	2019	2018	2019	2018
As per segment reporting
Operating profit, Insurance Not broken down by segment	39,285	13,157	127,452	83,413
Operating profit as regards banking operations	325,126	361,571	1,435,245	1,403,147
Total	364,411	374,728	1,562,697	1,486,560

As per income statement Operating profit	364,411	374,728	1,562,697	1,486,560
Total	364,411	374,728	1,562,697	1,486,560


Lending to the public	Payment	Consumer		Insurance Total Group
SEK thousand	Solutions
		Loans
31/12/2019 31/12/2018	11,425,811 10,507,819	19,918,976 17,448,757		31,344,787 27,956,576

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
As per segment reporting
Operating profit, Insurance	39,285	13,157	127,452	83,413
Not broken down by segment
Operating profit as regards banking operations	325,126	361,571	1,435,245	1,403,147
Total	364,411	374,728	1,562,697	1,486,560

As per income statement
Operating profit	364,411	374,728	1,562,697	1,486,560
Total	364,411	374,728	1,562,697	1,486,560

Lending to the public
SEK thousand	Payment Solutions	Consumer Loans	Insurance Total Group
31/12/2019	11,425,811	19,918,976	31,344,787
31/12/2018	10,507,819	17,448,757	27,956,576

G6. Net interest income/expense

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Interest income
Lending to credit institutions	315	207	2,333	3,357
Lending to the public	841,961	800,474	3,294,988	3,052,213
Interest-bearing securities	3,366	1,340	13,263	7,284
Total interest income	845,642	802,021	3,310,584	3,062,854

Interest expense
Liabilities to credit institutions	-2,629	-4,162	-9,162	-7,316
Deposits and borrowing from the public	-76,669	-60,561	-297,370	-234,512
Issued securities	-19,764	-19,530	-80,182	-68,429
Subordinated debt	-5,644	-1,051	-20,553	-10,815
Other liabilities	-294	-2,130	-1,643	-2,953
Total interest expense	-105,000	-87,434	-408,910	-324,025

Net interest income/expense	740,642	714,587	2,901,674	2,738,829

G7. Premium earned, net

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Premium earned	243,923	247,040	937,163	912,807
Premiums for specified reinsurance	-5,353	-5,584	-24,207	-25,075
Change in provision for unearned premiums and unexpired risks	-7,117	-28,656	-16,441	-61,466
Reinsurers' share in change in provision for unearned premiums and unexpired risks	17	-104	-6	-112
Total premium earned, net	231,470	212,696	896,509	826,154

G8. Insurance compensation, net

SEK thousand	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
Interest income	2019	2018	2019	2018
Lending to credit institutions	315	207	2,333	3,357
Lending to the public	841,961	800,474	3,294,988	3,052,213
Interest-bearing securities	3,366	1,340	13,263	7,284
Total interest income	845,642	802,021	3,310,584	3,062,854
Interest expense
Liabilities to credit institutions Deposits and borrowing from the public	-2,629 -76,669	-4,162 -60,561	-9,162 -297,370	-7,316 -234,512
Issued securities	-19,764	-19,530	-80,182	-68,429
Subordinated debt	-5,644	-1,051	-20,553	-10,815
Other liabilities	-294	-2,130	-1,643	-2,953
Total interest expense	-105,000	-87,434	-408,910	-324,025
Net interest income/expense	740,642	714,587	2,901,674	2,738,829
G7. Premium earned, net
SEK thousand	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
	2019	2018	2019	2018
Premium earned	243,923	247,040	937,163	912,807
Premiums for specified reinsurance Change in provision for unearned premiums and unexpired risks	-5,353 -7,117	-5,584 -28,656	-24,207 -16,441	-25,075 -61,466
Reinsurers' share in change in provision for unearned premiums and unexpired risks	17	-104	-6	-112
Total premium earned, net	231,470	212,696	896,509	826,154
	Oct-Dec	Oct-Dec	Jan-Dec
	2019 -53,524 1,893	2018 -51,162 2,238	2019 -202,585 7,810
	-51,631	-48,924	-194,775
	1,551	510	-4,270
	-508	10	-445
	1,043	520	-4,715
	773	-906	-411
	773	-906	-411

	-5,784	-5,364	-23,446
	111 -5,673	108 -5,256	406 -23,040
	-55,488	-54,566	-222,941	Jan-Dec 2018 -205,003 7,829 -197,174 -11,343 -224 -11,567 1,634 1,634 -19,484 380 -19,104 -226,211

	Oct-Dec	Oct-Dec	Jan-Dec
	2019	2018	2019
	49,418	47,751	174,787
G8. Insurance compensation, net SEK thousand Claims paid, gross Less reinsurance share Total claims paid, net Change in provision for losses incurred and reported, gross Less/additional reinsurance share Total change in provision for losses incurred and reported, net Change in provision for losses incurred but not reported (IBNR), gross Total change in provision for losses incurred but not reported (IBNR), net Operating expenses for claims adjustment, gross Less reinsurance share Total operating expenses for claims adjustment, net Total insurance compensation, net G9. Other operating income SEK thousand Other income, lending to the public Other operating income Total operating income	14,230 63,648	5,189 52,940	31,558 206,345	Jan-Dec 2018 170,069 36,041 206,110

G9. Other operating income

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Other income, lending to the public	49,418	47,751	174,787	170,069
Other operating income	14,230	5,189	31,558	36,041
Total operating income	63,648	52,940	206,345	206,110

G10. General administrative expenses

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Personnel expenses	-163,409	-158,693	-620,420	-607,086
Postage, communication and notification expenses	-34,039	-30,403	-132,890	-129,171
IT expenses	-47,422	-48,306	-184,604	-185,332
Cost of premises 1)	-6,088	-10,973	-20,522	-41,244
Consultant expenses	-18,059	-22,882	-64,819	-79,681
Other	-47,370	-37,978	-177,507	-135,725
Total general administrative expenses	-316,387	-309,235	-1,200,762	-1,178,239

G11. Credit losses, net

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Provision of credit reserves
Stage 1	3,066	12,437	-3,746	15,288
Stage 2	-14,329	18,407	-105,351	19,114
Stage 3	-46,914	35,294	-150,186	-235,908
Total	-58,177	66,138	-259,283	-201,506
Provision of credit reserves off balance (unutilised limit)
Stage 1	-2,897	2,047	-2,272	2,490
Stage 2	4,591	-335	4,318	-416
Stage 3
Total	1,694	1,712	2,046	2,074

Write-offs of stated credit losses for the period	-155,325	-212,309	-437,791	-354,004
Recoveries of previously confirmed credit losses	1,853	4,342	25,574	18,365
Total	-153,472	-207,967	-412,217	-335,639

Credit losses, net	-209,955	-140,117	-669,454	-535,071
off which lending to the public	-211,649	-141,829	-671,500	-537,145

G12. Lending to the public

SEK thousand Personnel expenses				Jan-Dec
	2019	2018	2019	2018
Postage, communication and notification expenses	-163,409 -34,039	-158,693 -30,403	-620,420 -132,890	-607,086 -129,171
IT expenses	-47,422	-48,306	-184,604	-185,332
Cost of premises 1)	-6,088	-10,973	-20,522	-41,244
Consultant expenses	-18,059	-22,882	-64,819	-79,681
Other	-47,370	-37,978	-177,507	-135,725
Total general administrative expenses	-316,387	-309,235	-1,200,762	-1,178,239
1) See note G2
G11. Credit losses, net
SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Provision of credit reserves
Stage 1	3,066	12,437	-3,746	15,288
Stage 2	-14,329	18,407	-105,351	19,114
Stage 3	-46,914	35,294	-150,186	-235,908
Total	-58,177	66,138	-259,283	-201,506
Provision of credit reserves off balance (unutilised limit)
Stage 1	-2,897	2,047	-2,272	2,490
Stage 2	4,591	-335	4,318	-416
Stage 3 Total	1,694	1,712	2,046	2,074

		-212,309	-437,791	-354,004
	-155,325
	1,853 -153,472	4,342 -207,967	25,574 -412,217

	-209,955 -211,649	-140,117 -141,829	-669,454 -671,500
Write-offs of stated credit losses for the period Recoveries of previously confirmed credit losses Total Credit losses, net off which lending to the public G12. Lending to the public SEK thousand			31 Dec 2019
			33,751,565	18,365 -335,639 -535,071 -537,145 31 Dec 2018 30,139,005
			471,861
			34,223,426	405,607 30,544,612
			23,687,686
			5,259,501
			5,276,239
			34,223,426	22,511,152 3,377,690 4,655,770 30,544,612

			-174,603
			-421,930
			-2,282,106
			-2,878,639
Retail sector Corporate sector Total lending to the public, gross Stage 1 Stage 2 Stage 3 Total lending to the public, gross Less provision for expected credit losses Stage 1 Stage 2 Stage 3 Total expected credit losses Stage 1			23,513,083
Stage 2			4,837,571
Stage 3			2,994,133	-167,847 -312,399 -2,107,790 -2,588,036 22,343,305 3,065,291 2,547,980

G13. Other provisions

SEK thousand	31 Dec 2019	31 Dec 2018
Reporting value at the beginning of the year	22,861	24,660
Provision made/utilised during the year	-2,128	-1,881
Exchange rate differences	-396	82
Total	20,337	22,861

Provision of credit reserves, unutilised limit, stage 1	11,925	9,762
Provision of credit reserves, unutilised limit, stage 2	1,719	6,016
Other provisions	6,693	7,083
Reported value at the end of the year	20,337	22,861

G14. Pledged assets, contingent liabilities and commitments

SEK thousand	31 Dec 2019	31 Dec 2018
Collateral pledged for own liabilities
Lending to credit institutions	161,910	166,728
Lending to the public 1)	3,556,373	3,617,840
Assets for which policyholders have priority rights 2)	1,045,193	940,173
Restricted bank deposits 3)	30,887	28,190
Total collateral pledged for own liabilities	4,794,363	4,752,931

Contingent liabilities
Guarantees		311
Total contingent liabilities	0	311

Other commitments
Unutilised credit facilities granted	27,546,215	27,533,519
Total other commitments	27,546,215	27,533,519

G15. Related-party transactions

G13. Other provisions SEK thousand			31 Dec	31 Dec
			2019	2018
Reporting value at the beginning of the year Provision made/utilised during the year			22,861 -2,128	24,660 -1,881
Exchange rate differences			-396	82
Total			20,337	22,861
Provision of credit reserves, unutilised limit, stage 1			11,925	9,762
Provision of credit reserves, unutilised limit, stage 2			1,719	6,016
Other provisions Reported value at the end of the year			6,693 20,337	7,083 22,861
G14. Pledged assets, contingent liabilities and commitments
SEK thousand			31 Dec 2019	31 Dec 2018
Collateral pledged for own liabilities
Lending to credit institutions			161,910	166,728
Lending to the public 1)			3,556,373	3,617,840
Assets for which policyholders have priority rights 2)			1,045,193	940,173
Restricted bank deposits 3) Total collateral pledged for own liabilities			30,887 4,794,363	28,190 4,752,931

Contingent liabilities Guarantees				311
Total contingent liabilities			0	311

Other commitments Unutilised credit facilities granted

	Ellos Group AB was included in this category up to 30 June 2019. The table below includes transactions with Ellos Group AB until 30 June 2019. Cidron Semper		27,546,215 27,546,215	27,533,519 27,533,519
	S.A.R.L sold its holdings to Ellos Group AB at the start of July 2019. Normal business transactions were conducted between the Resurs Group and these related companies and are presented below. The Parent Company only conducted
Total other commitments 1) Refers to securitisation. 2) Assets for which policyholders have priority rights in has previously been reported with deductions for technical provisions (net). As of 2018 Annual report, the item is reported without deductions for technical provisions. Comparative figures have been updated according to the same principal. 3) As of 31 December 2019, SEK 27,366 thousand (26,701) refers mainly to a reserve requirement account at Finlands Bank. G15. Related-party transactions Resurs Holding AB, corporate identity number 556898-2291, is owned at 31 December 2019 to 28.9 per cent by Waldakt AB. Of the remaining owners, no single owner holds 20 per cent or more. Cidron Semper S.A.R.L (Nordic Capital) had positions on the Board of Resurs Holding and was included in the Note Related-party transactions up to and including 2 October 2019. The former Board Chairman and one of the Board members declined re election and stepped down from the Board in October 2019. Companies with significant influence through direct or indirect ownership of the Resurs Group also have controlling or significant influence of NetOnNet AB, with which the Resurs Group conducted significant transactions during the period.	transactions with Group companies. Transaction costs in the table refer to market-rate compensation for the
Related-party transactions, significant influence
SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019
	-14,985	-115,867	-256,616
	-982	-651	-4,956
		9,436	18,525
	-10,689	-13,339	-45,034
	-424	-5,685	-13,845
Processing fees Fee & commission income Fee & commission expense General administrative expenses SEK thousand			31 Dec 2019

			-207,362	Jan-Dec 2018 -452,009 -6,390 36,912 -45,921 -27,232 31 Dec 2018 10,407 -953,166
			-32,644

	Oct-Dec	Oct-Dec	Jan-Dec
Other assets Deposits and borrowing from the public Other liabilities Transactions with key persons SEK thousand	2019 -19	2018 -61	2019 -87	-114,386 Jan-Dec 2018 -237
SEK thousand			31 Dec 2019	31 Dec 2018

SEK thousand	31 Dec 2019	31 Dec 2018
Deposits and borrowing from the public	-11,907	-39,827

G16. Financial instruments

SEK thousand			31 Dec 2019		31 Dec 2018
			Carrying amount	Fair value	Carrying amount	Fair value
Assets
Financial assets
Cash and balances at central banks			220,799	220,799	63,215	63,215
Treasury and other bills eligible for refinancing			1,758,835	1,758,835	1,009,021	1,009,021
Lending to credit institutions			4,128,953	4,128,953	3,703,650	3,703,650
Lending to the public Bonds and other interest-bearing securities			31,344,787 1,288,954	31,900,633 1,288,954	27,956,576 1,262,568	28,575,822 1,262,568
Subordinated loans			28,290	28,290	27,317	27,317
Shares and participating interests			95,823	95,823	68,556	68,556
Derivatives			110,707	110,707	190,175	190,175
Other assets			90,886	90,886	95,119	95,119
Accrued income			149,817	149,817	179,726	179,726
Total financial assets			39,217,851	39,773,697	34,555,923	35,175,169
Intangible fixed assets			2,063,405		1,973,681
Tangible assets			139,871		56,228
Other non-financial assets			327,621		369,640
Total assets			41,748,748		36,955,472

			31 Dec 2019		31 Dec 2018
SEK thousand			Carrying	Fair value	Redovisat	Verkligt
			amount		värde	värde
Liabilities
Financial liabilities Liabilities to credit institutions			94,900	94,900	149,900	149,900
Deposits and borrowing from the public			24,409,032	24,409,563	20,578,153	20,576,353
Derivatives			25,358	25,358	12,984	12,984
Other liabilities			572,107	572,107	648,507	648,507
Accrued expenses			172,310	172,310	145,162	145,162
Issued securities			7,672,347	7,714,123	7,832,186	7,860,533

			597,890	613,347	298,171
			33,543,944	33,601,708	29,665,063
			20,337		22,861
			1,043,221		919,007
			7,141,246		6,348,541
			41,748,748		36,955,472	305,973 29,699,412


		31 Dec 2019			31 Dec 2018
Subordinated debt Total financial liabilities Provisions Other non-financial liabilities Equity Total equity and liabilities For current receivables, current liabilities and variable-rate deposits, the carrying amount reflects the fair value. Financial assets and liabilities at fair value SEK thousand	Level 1	Level 2	Level 3	Level 1	Level 2

Financial assets at fair value through profit or loss: Treasury and other bills eligible for refinancing	1,758,835			1,009,021
Bonds and other interest-bearing securities	1,288,954			1,262,568
	28,290			27,317
	78,402	110,707	17,421	67,554	190,175
	3,154,481	110,707	17,421	2,366,460	190,175
Subordinated loans Shares and participating interests Derivatives Total
Financial liabilities at fair value through profit or loss:
Derivatives Total	0	-25,358 -25,358	0	0	-12,984 -12,984	Level 3 1,002 1,002 0

		31 Dec 2019	31 Dec 2018
SEK thousand	Carrying amount	Fair value	Redovisat värde	Verkligt värde
Liabilities
Financial liabilities
Liabilities to credit institutions	94,900	94,900	149,900	149,900
Deposits and borrowing from the public	24,409,032	24,409,563	20,578,153	20,576,353
Derivatives	25,358	25,358	12,984	12,984
Other liabilities	572,107	572,107	648,507	648,507
Accrued expenses	172,310	172,310	145,162	145,162
Issued securities	7,672,347	7,714,123	7,832,186	7,860,533
Subordinated debt	597,890	613,347	298,171	305,973
Total financial liabilities	33,543,944	33,601,708	29,665,063	29,699,412
Provisions	20,337		22,861
Other non-financial liabilities	1,043,221		919,007
Equity	7,141,246		6,348,541
Total equity and liabilities	41,748,748		36,955,472

Financial assets and liabilities at fair value

SEK thousand	31 Dec 2019			31 Dec 2018
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets at fair value through profit or loss:
Treasury and other bills eligible for refinancing	1,758,835			1,009,021
Bonds and other interest-bearing securities	1,288,954			1,262,568
Subordinated loans	28,290			27,317
Shares and participating interests	78,402		17,421	67,554		1,002
Derivatives		110,707			190,175
Total	3,154,481	110,707	17,421	2,366,460	190,175	1,002

Financial liabilities at fair value through profit or loss:
Derivatives		-25,358			-12,984
Total	0	-25,358	0	0	-12,984	0

Financial instruments

Changes in level 3
SEK thousand	Jan-Dec 2019	Jan-Dec 2018
Shares and participating interests
Opening balance	1,002	979
Investments during the year	16,966
Disposal	-514
Exchange-rate fluctuations	-33	23
Closing balance	17,421	1,002

G17. Earnings per share

SEK thousand			Jan-Dec 2019	Jan-Dec 2018
Shares and participating interests
Opening balance			1,002	979
Investments during the year			16,966
Disposal Exchange-rate fluctuations			-514 -33	23
Closing balance			17,421	1,002

Determination of fair value of financial instruments
Level 1 Listed prices (unadjusted) on active markets for identical assets or	Level 3 Inputs for the asset or liability that are not based on observable market
liabilities.	data (i.e., unobservable inputs).
Level 2
Inputs that are observable for the asset or liability other than listed prices
included in Level 1, either directly (i.e., as price quotations) or indirectly (i.e.,
derived from price quotations).

Financial instruments measured at fair value for disclosure purposes
The carrying amount of variable rate deposits and borrowing from the public is deemed to reflect fair value.	For issued securities (ABS), fair value is calculated by assuming that duration ends at the close of the revolving period. Fair value has been classified as
	level 3.
For fixed rate deposits and borrowing from the public, fair value is calculated based on current market rates, with the initial credit spread for	The fair value of the portion of lending that has been sent to debt recovery
deposits kept constant. Fair value has been classified as level 2.	and purchased non-performing consumer loans is calculated by discounting
Fair value of subordinated debt is calculated based on valuation at the	calculated cash flows at the estimated market interest rate instead of at the original effective interest rate. Fair value has been classified as level 2.
listing marketplace. Fair value has been classified as level 1.
Fair value of issued securities (MTN) is calculated based on the listing	The carrying amount of current receivables and liabilities and variable rate loans is deemed to reflect fair value.
marketplace. Fair value has been classified as level 1.

	Assets for the derivative agreements total to SEK 111 million (190), while liabilities total SEK 25 million (13). Collateral corresponding to SEK 0 million (0) and SEK 95 million (150) was received. The net effect on loans to credit institutions total SEK 0 million (0) and liabilities to credit institutions total SEK 95 million (150).
Transfer between levels There has not been any transfer of financial instruments between the levels. Financial assets and liabilities that are offset or subject to netting agreements Derivative agreement has been made under the ISDA agreement. The amounts are not offset in the statement of financial position. Most of the derivatives at 31 December 2019 were covered by the ISDA Credit Support Annex, which means that collateral is obtained and provided in the form of bank deposits between the parties. G17. Earnings per share Basic earnings per share, before dilution, is calculated by dividing the profit attributable to Parent Company shareholders by the weighted average number of ordinary shares outstanding during the period.	During January - December 2019, there were a total of 200.000.000 shares with a quotient value of SEK 0.005 (0.005). There is no dilution effect as of 31 December 2019. Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
	2019	2018	2019
	289,390	283,848	1,216,310
Net profit for the period, SEK thousand Portion attributable to Resurs Holding AB shareholders	286,423	283,848	1,213,343
	2,967		2,967	2018 1,143,415 1,143,415
Portion attributable to additional Tier 1 capital holders Profit for the period	289,390	283,848	1,216,310	1,143,415

Average number of outstanding shares during the period Earnings per share, SEK	200,000,000 1.43	200,000,000 1.42	200,000,000 6.07	200,000,000 5.72

Parent company

Income statement

Income statement	Oct-Dec 2019 4,972 4,972	Oct-Dec 2018 4,203 4,203	Jan-Dec 2019 24,865	Jan-Dec 2018 25,511
SEK thousand
Net sales Total operating income Personnel expenses Other external expenses Depreciation, amortisation and impairment of tangible fixed assets

			24,865	25,511

	-4,665	-4,405	-20,444	-19,506
	-8,019	-5,772	-28,561	-25,487
				-57
Total operating expenses	-12,684	-10,177	-49,005	-45,050
Operating profit	-7,712	-5,974	-24,140	-19,539

Earnings from participations in Group companies	374,979	327,220	731,200	787,219
Other interest income and similar profit/loss items	15	285	135	674
Interest expense and similar profit/loss items	-938	-30	-1,020	-97
Total profit/loss from financial items	374,056	327,475	730,315	787,796
Profit/loss after financial items	366,344	321,501	706,175	768,257

Appropriations Tax on profit for the year	62,000 -11,463	65,000 -13,010	62,000 -8,139	65,000 -10,034
Net profit for the year	416,881	373,491	760,036	823,223
Net profit for the year	2019 416,881	2018 373,491	2019 760,036	2018 823,223
Other comprehensive income that will be reclassified to profit or loss
Comprehensive income for the year	416,881	373,491	760,036	823,223
Attributable to Resurs Holding AB shareholders	416,881	373,491	760,036	823,223

Statement of comprehensive income

SEK thousand	Oct-Dec 2019	Oct-Dec 2018	Jan-Dec 2019	Jan-Dec 2018
Net profit for the year	416,881	373,491	760,036	823,223
Other comprehensive income that will be reclassified to profit or loss
Comprehensive income for the year	416,881	373,491	760,036	823,223

Attributable to Resurs Holding AB shareholders	416,881	373,491	760,036	823,223

Balance sheet

Statement of changes in equity

			RESURS HOLDING AB YEAR END REPORT JANUARY - DECEMBER 2019
Statement of changes in equity	Share	Share	Additional	Retained	Profit/loss	Total equity
SEK thousand	capital	premium reserve	Tier 1 instruments	earnings	for the period
Initial equity at 1 January 2018	1,000	1,785,613	0	0	680,316	2,466,929
Owner transactions
Dividends according to General Meeting				-360,000		-360,000
Dividends according to Extraordinary General Meeting		-9,684		-320,316		-330,000
Appropriation of profits according to resolution by Annual General Meeting				680,316	-680,316	0
Net profit for the year					823,223	823,223
Equity at 31 December 2018	1,000	1,775,929	0	0	823,223	2,600,152

Initial equity at 1 January 2019	1,000	1,775,929	0	0	823,223	2,600,152
Owner transactions
Dividends according to General Meeting				-390,000		-390,000
Dividends according to Extraordinary General Meeting				-360,000		-360,000
Issued additional Tier 1 instruments			300,000			300,000
Cost additional Tier 1 instruments				-2,967		-2,967
Appropriation of profits according to resolution by Annual General Meeting				823,223	-823,223	0
Net profit for the year					760,036	760,036
Equity at 31 December 2019	1,000	1,775,929	300,000	70,256	760,036	2,907,221
Resurs Holding AB Ekslingan 9, Väla Norra Box 222 09
250 24 Helsingborg
Tel: +46 42 382000 E-post: [email protected] www.resursholding.se

AI assistant

Resurs Holding — Earnings Release 2019

3104_iss_2020-02-04_329611f0-f000-47cd-b8c8-ba28c967d2d2.pdf

Year-end Report January–December 2019

1 October–31 December 2019*

1 January—31 December 2019*

"Yet another successful year of stable and profitable growth."

ABOUT RESURS HOLDING

Yet another successful year of stable and profitable growth

Year distinguished by continued innovation and more strategic partnerships

Responsible credit lending in a challenging Norwegian market

Full focus on responsible business

Performance measures

Group results*

Fourth quarter 2019, October–December

Operating income

Operating expenses

Profit

Full-year 2019, January–December

Operating income and expenses

Profit

Financial position at 31 December 2019*

Dividends

Payment Solutions

Fourth quarter 2019, October–December

Full-year 2019, January–December

PERCENTAGE OF OPERATING INCOME JAN-DEC 2019

ABOUT PAYMENT SOLUTIONS

LENDING TO THE PUBLIC

Performance measures — Payment Solutions

Consumer Loans

Fourth quarter 2019, October–December

Full-year 2019, January–December

ABOUT CONSUMER LOANS

LENDING TO THE PUBLIC

Performance measures — Consumer Loans

Insurance

Fourth quarter 2019, October–December

Full-year 2019, January–December

PERCENTAGE OF OPERATING INCOME JAN-DEC 2019

ABOUT INSURANCE

Performance measures — Insurance

Significant events

January–December 2019

Strengthened capital target for Resurs Holding

Resurs Holding issued Additional Tier 1 Capital

Resolution on half-year dividends and new Board Chairman of Resurs Holding

Resurs Holding recruits new CFO and Head of Investor Relations

Strengthened capital position due to Resurs Bank changing its method for measuring operational risk

Resurs Bank became a new payment solutions partner for Svensk Handel's members

Bauhaus decided to continue its partnership with Resurs Bank

Resurs Bank extends its ABS financing

Resurs Bank was awarded an investment grade rating from Nordic Credit Rating (BBB-, stable outlook)

Mio chose Resurs Bank to take its omni-retail to the next level

Resurs Bank began commercial partnership with Dicopay and enters new customer segment

Resurs Bank issued subordinated Tier 2 bonds of SEK 300 million

Resurs Bank invested in newly established Kivra Oy

After the end of the period

Other information

Risk and capital management

Information on operations

Employees

Information about the Resurs share

Financial targets

Financial calendar

The Board's assurance

Summary financial statements - Group

Condensed Income statement

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Cash flow statement (indirect method)

Notes to the condensed financial statements

G1. Accounting principles

G2. Effect of IFRS 16, Leasing

G3. Financing - Consolidated situation

Liquidity - Consolidated situation

G4. Capital adequacy - Consolidated situation

2018: 5 %, 2019: 10 %, 2020: 15 %, 2021: 20 %, 2022: 25 %, 2023: 25 %

Capital base

Resurs Holding Earnings Release 2019