Resurs Holding — Interim / Quarterly Report 2018

Nov 6, 2018

Interim Report January—September 2018

1 July—30 September 2018*

• Lending to the public rose 18% to SEK 27,470 million
• Operating income increased 15% to SEK 881 million
• Operating profit increased 8% to SEK 394 million
• Earnings per share rose 9% to SEK 1.53
• C/I before credit losses (excl. Insurance) was 39.2% (39.0%)
• The credit loss ratio was 2.1% (1.8%)

1 January—30 September 2018*

• Lending to the public rose 18% to SEK 27,470 million
• Operating income increased 12% to SEK 2,554 million
• Operating profit increased 8% to SEK 1,112 million
• Earnings per share rose 9% to SEK 4.30
• C/I before credit losses (excl. Insurance) was 40.5% (41.3%)
• The credit loss ratio was 2.1% (1.8%)

"We delivered yet another quarter of strong profitable growth. We are continuing to develop and launch new and innovative solutions for our retail finance partners and customers."

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 5.8 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 third quarter of 2018, the Group had 783 employees and a loan portfolio of SEK 27.5 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 key ratios are provided on the website under "Financial data." The figures in parentheses refer to 30 September 2017 in terms of financial position, and to the year-earlier period in terms of profit/loss items.

STATEMENT BY THE CEO

YET ANOTHER QUARTER OF STRONG PROFITABLE GROWTH

We continued to deliver strong profitable growth in yet another quarter. The loan portfolio increased 18 per cent year-on-year to SEK 27.5 billion in the third quarter. This strong growth continues to be driven by both the banking segment and all geographic markets. The performance is well in line with our financial target of lending growth of more than 10 per cent. We are growing faster than the market and continuously increasing our market shares.

Profit after tax for the quarter increased 9 per cent to SEK 306 million. As in previous quarters this year, credit losses increased in the third quarter compared with the yearearlier period, mainly as a result of the new reporting standard IFRS 9. We can see that going forward the underlying credit risk is stable for the Group as a whole.

Digitisation — the main competitive tool

We are continuing to develop and launch new and innovative solutions for our retail finance partners and customers. Digitisation has been the most important tool for many years and we are at the forefront of these advances.

An example is the launch of our Click & Collect service in Payment Solutions during the quarter. This is a digital solution that allows a manufacturer, supplier, franchise group or groups of individual retailers to quickly and easily offer a central e-commerce checkout combined with local management of inventories and store checkout. Click & Collect is an omni-channel solution that provides a seamless customer journey between e-commerce and physical store. For example, Crescent and Monark, that jointly have about 50 independent stores, chose our solution during the quarter.

We are also continuing to develop and digitise our work process and sales tools. Our proprietary credit engine is a robust tool for increasing growth while retaining good control of credit lending. For us, it is a new tool with which to cultivate the market and we are continuously working on integrating it into the operations. As a result, we adjusted our prices in Sweden at the start of the quarter, which led to higher lending growth but margins that were too low according to our targets. For this reason, we have now adjusted the credit engine to manage more flexible pricing for various channels, which creates the conditions for higher margins in Consumer Loans during the fourth quarter.

Credit engine also offers a simpler and more automated application process for customers. Since its launch in Sweden, the percentage of automatic responses to loan applications has risen from 50 to 97 per cent. This is positive for both our customers and us since it reduces manual processing and significantly accelerates the application process. The speed of the application process is just as important a factor as price for customers in their choice of bank.

Further development of sales tools

We have already introduced machine learning/artificial intelligence (AI) in credit lending and we are now advancing this to strengthen our sales. We launched AI in Supreme Card in the quarter. The algorithms mean that we can more quickly and with better precision identify behaviour patterns among our existing customers and we can thus more effectively tailor attractive activities and offers. We will continue to fine-tune algorithms and work processes in future quarters.

Overall, we delivered another quarter of strong profitable growth. We are continuing to develop our offering to our customers and retail finance partners, and we look forward to continuing to grow and capture market shares in all geographic markets.

LENDING TO THE PUBLIC SEK 27 470 million

LENDING GROWTH

+18%

NET PROFIT FOR THE QUARTER

+9%

Kenneth Nilsson, CEO Resurs Holding AB

PERFORMANCE MEASURES

SEKm unless otherwise specified	Jul–Sep 2018	Jul–Sep 2017	Change	Jan–Sep 2018	Jan–Sep 2017	Change	Jan–Dec 2017
Operating income	881	769	15%	2,554	2,283	12%	3,091
Operating profit*	394	364	8%	1,112	1,026	8%	1,397
Net profit for the period	306	280	9%	860	791	9%	1,080
Earnings per share, SEK	1.53	1.40	9%	4.30	3.95	9%	5.40
C/I before credit losses, %*	39.5	39.7		41.0	41.9		41.4
C/I before credit losses (excl. Insurance), %*	39.2	39.0		40.5	41.3		40.8
Common Equity Tier 1 ratio, %	13.8	14.0		13.8	14.0		13.6
Total capital ratio, %	15.3	16.0		15.3	16.0		15.5
Lending to the public	27,470	23,218	18%	27,470	23,218	18%	24,069
NIM, %*	10.3	10.5		10.5	10.6		10.6
Risk-adjusted NBI margin, %*	10.2	11.1		10.5	11.1		11.1
NBI margin, %*	12.3	12.8		12.6	12.9		12.9
Credit loss ratio, %*	2.1	1.8		2.1	1.8		1.8
Return on equity excl. intangible assets (RoTE), % Return on equity excl. intangible assets, given a Common Equity Tier 1 ratio of 12.5 per cent and deducted dividend from the capital base, (RoTE), %	28.5 34.6	26.5 31.4		27.2 33.1	24.6 30.1		25.3 30.3
International Financial Reporting Standards (IFRS) or in the capital adequacy rules. Management believes that the performance measures make it easier for investors 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 key ratios are provided on the website under "Financial data." GROUP RESULTS*
THIRD QUARTER 2018, JULY—SEPTEMBER Operating income The Group's operating income increased 15 per cent to SEK 881 million (769). Net
interest income increased 16 per cent to SEK 698 million (603), with interest income amounting to SEK 780 million (672) and interest expense to SEK -82 (-68). Fee & commission income amounted to SEK 55 million (56) and fee & commission expense to SEK -14 million (-18), resulting in a total net commission for the banking operations of SEK 40 million (39).					NET INTEREST INCOME + 16%

GROUP RESULTS*

THIRD QUARTER 2018, JULY—SEPTEMBER

Operating income

SEK 96 million (86). Net expense from financial transactions amounted to SEK -4 million (-6), 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 50 million (48).

Operating expenses

The Group's expenses before credit losses increased 14 per cent to SEK -348 million (-305). Personnel expenses rose SEK 22 million to SEK -145 million (-122) year-on-year, mainly a result of the recruitment of new employees in IT, Marketing and Business Support. General administrative costs excluding personnel expenses increased SEK 9 million to SEK -138 million (-129), mainly a result of market initiatives. Other operating expenses totalled SEK -52 million (-44). Viewed in relation to the operations' income, the cost level (excluding Insurance) amounted to 39.2 per cent (39.0 per cent).

Credit losses totalled SEK -139 million (-100) and the credit loss ratio was 2.1 per cent (1.8 per cent). The increase was primarily because provisions in all new lending growth have been made since year-end according to the new reporting standard IFRS 9 and credit losses in the Norwegian company yA Bank increased, which was partly offset by lower credit losses in other parts of the Group. The risk-adjusted NBI margin was 10.2 per cent (11.1 per cent). The decline was due to the increased credit loss ratio and the decline in the NBI margin in Consumer Loans in Sweden since the introduction of the credit engine at the end of the second quarter. For this reason, we have now finetuned the credit engine, which creates the conditions for higher margins in the fourth quarter. However, the risk-adjusted NBI margin in Payment Solutions strengthened during the quarter. However, the risk-adjusted NBI margin in Payment Solutions strengthened during the quarter.

Profit

Operating profit increased 8 per cent to SEK 394 million (364). Net profit for the quarter increased 9 per cent to SEK 306 million (280). Tax expense for the period amounted to SEK -88 million (-84).

NINE MONTHS 2018, JANUARY—SEPTEMBER

Operating income and expenses

The Group's operating income increased 12 per cent to SEK 2,554 million (2,283), primarily due to growth in lending. Net interest income increased 13 per cent to SEK 2,024 million (1,784), with interest income amounting to SEK 2,261 million (1,980) and interest expense to SEK -237 million (-196). Fee & commission income amounted to SEK 162 million (187) and fee & commission expense to SEK -41 million (-48). This resulted in a total net commission for the banking operations of SEK 121 million (138).

The Group's expenses before credit losses increased 9 per cent to SEK -1,047 million (-957). Viewed in relation to the operations' income, the cost level (excluding Insurance) continued to improve and amounted to 40.5 per cent (41.3 per cent) for the first nine months of the year.

Credit losses totalled SEK -395 million (-301) and the credit loss ratio was 2.1 per cent (1.8 per cent). The increase was primarily because provisions in all new lending growth have been made since year-end according to the new reporting standard IFRS 9 and lending growth has remained high throughout the period. The risk-adjusted NBI margin was 10.5 per cent (11.1 per cent).

Profit

Operating profit increased 8 per cent to SEK 1,112 million (1,026). Net profit for the period amounted to SEK 860 million (791). Tax expense for the period amounted to SEK -252 million (-235).

NET PROFIT FOR THE QUARTER +9%

OPERATING PROFIT FOR THE PERIOD

FINANCIAL POSITION AT 30 SEPTEMBER 2018*

Comparative figures for this section refer to year-end 2017, except for cash flow for which comparative figures refer to the same period in the preceding year.

On 30 September 2018, the Group's financial position was strong, with a capital base of SEK 4,274 million (3,905) in the consolidated situation, comprising the Parent Company, Resurs Holding AB, and the Resurs Bank Group. The total capital ratio was 15.3 per cent (15.5 per cent) and the Common Equity Tier 1 ratio was 13.8 per cent (13.6 per cent).

Lending to the public at 30 September 2018 amounted to SEK 27,470 million (24,069). The restated comparative figure (according to Note G2) on 1 January 2018 was SEK 23,648 million, which entails an increase of 16 per cent for the period and 12 per cent excluding currency effects. Lending to the public at 30 September totalled SEK 23,218 million, which included IFRS 9 effects entailing a 18 per cent annual increase and a 15 per cent annul increase excluding currency effects. This strong growth was driven by both the banking segment and all geographic markets and is well in line with the Group's financial target of lending growth of more than 10 per cent.

In addition to capital from shareholders, the operations are financed by deposits from the public, the issued MTN bonds and the securitisation of certain loan receivables (ABS financing). 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 30 September 2018 rose 11 per cent to SEK 20,096 million (18,033). Financing through issued securities totalled SEK 7,889 million (5,597). Liquidity remained healthy and the liquidity coverage ratio (LCR) was 198 per cent (201 per cent) in the consolidated situation. The minimum statutory LCR ratio is 100 per cent. Lending to credit institutions at 30 September 2018 amounted to SEK 3,214 million (2,794). Holdings of treasury and other bills eligible for refinancing, as well as bonds and other interest-bearing securities, totalled SEK 3,130 million (2,578).

Cash flow from operating activities amounted to SEK -1,394 million (1,716) for the year. Cash flow from deposits amounted to SEK 1,595 million (-490) and the net change in investment assets totalled SEK -464 million (40). Cash flow from investing activities for the period totalled SEK -107 million (-48) and cash flow from financing activities was SEK 1,845 million (1,505). Since year-end, outstanding bonds issued under Resurs Bank's MTN programme have been expanded by SEK 1,400 million and ABS financing expanded by SEK 800 million.

Intangible assets amounted to SEK 2,029 million (1,877), and primarily comprise the goodwill that arose in the acquisition of Finaref and Danaktiv in 2014 and yA Bank in 2015.

* 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 key ratios are provided on the website under "Financial data."

TOTAL CAPITAL RATIO

15.3%

Trend in lending to the public in SEK billion.

LIQUIDITY COVERAGE RATIO

SEGMENT REPORTING

RESURS HOLDING'S THREE SEGMENTS

Resurs Holding has divided its operations into three business segments, based on the products and services offered: Payment Solutions, Consumer Loans and Insurance

Payment Solutions delivers finance, payment and loyalty solutions that drive retail sales, as well as credit cards to the public. Consumer Loans focuses primarily on lending to consumers. Insurance includes the wholly owned subsidiary Solid Försäkring, active within consumer insurance. For the first nine months of 2018, Payment Solutions accounted for 41 per cent of the Group's operating income, while Consumer Loans and Insurance accounted for 54 and 5 per cent, respectively.

PERCENTAGE OF OPERATING INCOME JAN—SEP 2018

PAYMENT SOLUTIONS

Continued strong growth with stable margins

THIRD QUARTER 2018, JULY—SEPTEMBER

Payment Solutions reported sustained strong profitable growth in the quarter, despite the long, hot summer that presented challenges for parts of the retail sector.

During the quarter, Payment Solutions successfully initiated several partnerships with new retail finance partners, while existing partnerships progressed positively. One of the partnerships initiated in the Finnish market was Stark Bygghandel with 26 stores and significant e-commerce. In Norway, a partnership was started with Babycare with 50 stores and No 1 Fitness with 26 gyms. Collaborations were also initiated with a number of e-commerce partners during the quarter, for example, Zave Värmepumpshopen in Sweden and Norway, Grooming.se and Barbershop.se. It was particularly gratifying that the latter two companies chose to return to Resurs after having been with a competitor for some time.

The Click & Collect solution was launched during the quarter. This is a digital solution that allows a manufacturer, supplier, franchise group or groups of individual retailers to quickly and easily offer a central e-commerce checkout combined with local management of inventories and store checkout. Click & Collect is an omni-channel solution that provides a seamless customer journey between e-commerce and physical store. Crescent and Monark, which together have about 50 independent stores, joined Click & Collect in the quarter.

The strategy of selling Supreme Cards in inbound calls to Business Support to a greater extent has resulted in higher profitability in the card business. The reason for this is that activities targeting existing, loyal customers have increased and costs have fallen. AI was launched in Supreme Card during the quarter, meaning that we can identify behaviour patterns among existing customers more quickly and with better precision, and can thus more effectively customise attractive activities and offerings.

Operating income increased 14 per cent to SEK 361 million (315). The increase was mainly related to higher business volumes. Operating income less credit losses amounted to SEK 331 million (273), and the risk-adjusted NBI margin was 13.1 per cent (12.2 per cent). The higher margin was driven by lower credit losses that were primarily the result of the volatility entailed by the new reporting standard IFRS 9.

NINE MONTHS 2018, JANUARY—SEPTEMBER

On 30 September 2018, lending to the public increased 13 per cent to SEK 10,185 million (9,052), a 9 per cent increase in constant currencies. Growth was mainly driven by higher volumes from existing retail finance partners in all markets. Operating income totalled SEK 1,052 million (937), up 12 per cent year-on-year, primarily related to increased business volumes.

Operating income less credit losses amounted to SEK 915 million (826), and the riskadjusted NBI margin was 12.5 per cent (12.3 per cent).

ABOUT PAYMENT SOLUTIONS

The Payment Solutions segment is comprised of retail finance and credit cards. Within retail finance, Resurs is a leading partner for sales-driving 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 partners to promote their own brands.

Trend in lending to the public in SEK billion.

PERFORMANCE MEASURES — PAYMENT SOLUTIONS

SEKm unless otherwise specified	Jul–Sep 2018	Jul–Sep 2017	Change	Jan–Sep 2018	Jan–Sep 2017	Change	Jan–Dec 2017
Lending to the public at end of the period	10,185	9,052	13%	10,185	9,052	13%	9,419
Operating income	361	315	14%	1,052	937	12%	1,268
Operating income less credit losses	331	273	21%	915	826	11%	1,115
Risk-adjusted NBI margin, %	13.1	12.2		12.5	12.3		12.2
Credit loss ratio, %	1.2	1.9		1.9	1.7		1.7

CONSUMER LOANS

Strong growth in all countries

THIRD QUARTER 2018, JULY—SEPTEMBER

NINE MONTHS 2018, JANUARY—SEPTEMBER

ABOUT CONSUMER LOANS

PERFORMANCE MEASURES — CONSUMER LOANS

					RESURS HOLDING AB INTERIM REPORT JAN—SEP 2018
CONSUMER LOANS Strong growth in all countries THIRD QUARTER 2018, JULY—SEPTEMBER Consumer Loans another strong quarter with growth of 22 per cent compared with the third quarter of 2017. All markets performed strongly, with Finland growing the most in per cent and Sweden and Norway the most in absolute terms. The proprietary credit engine was launched in Sweden, Norway and Finland and is a robust tool for increasing growth while retaining good control of credit lending. For us, it is a new tool with which to cultivate the market and we are continuously working on integrating it into the operations. It resulted in adjustments to prices in Sweden at the start of the quarter, which led to higher lending growth but margins that were too low. For this reason, the credit engine was adjusted during the quarter to manage more flexible pricing for various channels, which creates the conditions for higher margins in Consumer Loans during the fourth quarter. The introduction of the credit engine also entailed continued digitisation and efficiency enhancements in processes. For example, more than half of all loans paid are now e signed and the segment is reporting continuous increases. Furthermore, the percentage of automatic responses from the credit engine has risen from 50 to 97 per cent. Digitisation is enhancing the efficiency of internal processing and accelerating the application process, which generates positive effects for both the customer and Resurs. The speed of the application process is just as important a factor as price for customers in their choice of bank. Operating income increased 15 per cent year-on-year to SEK 478 million (417). The increase was mainly related to higher business volumes. Operating income less credit losses rose 3 per cent to SEK 369 million (360), and the risk-adjusted NBI margin amounted to 8.7 per cent (10.4 per cent). The decline was due to the margin effect since the price adjustments in Sweden described above and credit losses for the quarter increasing to 2.6 per cent (1.7 per cent). The increase was mainly attributable to the Norwegian subsidiary yA Bank and the introduction of the new reporting standard IFRS 9. We can see that the underlying credit risk for Consumer Loans remains stable and we believe that the level will normalise in the fourth quarter. NINE MONTHS 2018, JANUARY—SEPTEMBER On 30 September 2018, lending to the public increased 22 per cent to SEK 17,285 million (14,166), a 18 per cent increase in constant currencies. Operating income for the period increased 14 per cent to SEK 1,386 million (1,220). Operating income less credit losses rose 9 per cent to SEK 1,127 million (1,031), and the risk-adjusted NBI margin amounted to 9.5 per cent (10.3 per cent). The decline was mainly attributable to effects in the third quarter. PERFORMANCE MEASURES — CONSUMER LOANS					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. Consumer Loans also helps consumers to consolidate their loans with other banks, in order to reduce their monthly payments or interest expense. Resurs currently holds approximately SEK 17.3 billion in outstanding consumer loans. 14.2 Q3-17 Trend in lending to the public in SEK billion.	LENDING TO THE PUBLIC +22%	17.3 Q3-18
	Jul–Sep	Jul–Sep	Change	Jan–Sep	Jan–Sep	Change	Jan–Dec
SEKm unless otherwise specified Lending to the public at end of the period	2018 17,285	2017 14,166	22%	2018 17,285	2017 14,166	22%	2017 14,650
Operating income	478	417	15%	1,386	1,220	14%	1,656
Operating income less credit losses	369	360	3%	1,127	1,031	9%	1,397
Risk-adjusted NBI margin, %	8.7	10.4		9.5	10.3		10.3
Credit loss ratio, %	2.6	1.7		2.2	1.9		1.9
							8

INSURANCE

Continued stable performance and strong growth in technical result

THIRD QUARTER 2018, JULY—SEPTEMBER

In the third quarter, Insurance reported a continued positive performance and continued to work together with its partners during the quarter on increasing conversion both online and physical stores for long-term growth. Insurance also continued its focused efforts on cultivating new customers in all Nordic markets and signed agreements with companies including Orio. Orio, formerly Saab Automobile Parts, is a global spare part supplier with affiliated workshops. Insurance is now an insurance provider for Saab's roadside assistance Saab 3D Assistans that increases the safety of Saab car owners on the road. The launch of brokerage of Chubb Nordic's children's and accident insurance was prepared for the Nordic market during the quarter.

The important category of bicycles in the Product line performed well and the number of new registrations of bicycle insurance increased 8 per cent compared with the same quarter in the preceding year. Insurance continued to develop the digital marketing of its customer communication to cost efficiently drive conversion rates and establish longterm relationships with policyholders.

Premium earned, net, increased 4 per cent to SEK 210 million (203) in the third quarter, mainly attributable to the Security product line. Operating income for the quarter rose 28 per cent to SEK 50 million (39). Interest income fell SEK 1 million compared with the year-earlier quarter. Net income from financial transactions increased to SEK 6 million (-1), primarily as a result of the positive trend in the equity portfolio.

The technical result increased 14 per cent to SEK 21 million (19) year-on-year, due to improved profitability in the Security, Product and Motor business lines. Operating profit increased 46 per cent to SEK 27 million (19) year-on-year. The total combined ratio improved to 90.6 per cent (91.5 per cent), primarily due to a lower claims ratio.

NINE MONTHS 2018, JANUARY—SEPTEMBER

Premium earned, net, increased 2 per cent year-on-year to SEK 616 million (606). This increase was primarily attributable to the Security and Motor business lines. Operating income for the period increased by 6 per cent to SEK 140 million (132). Net expense from financial transactions declined year-on-year due to lower market values for both the equities and bond portfolio and amounted to SEK 4 million (10).

The technical result increased 23 per cent to SEK 62 million (50) year-on-year, mainly due to increased profitability in the Travel and Security business lines. Operating profit increased 12 per cent to SEK 70 million (63) year-on-year as a result of increased operating income and good cost control. The total combined ratio improved to 90.7 per cent (92.5 per cent), primarily attributable to the positive trend in the claims ratio.

ABOUT INSURANCE

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.

Insurance products are divided into four business lines: Travel, Security, Motor and Product. The company partners with leading retail chains in various sectors, and has about 2.3 million customers across the Nordic region.

TECHNICAL RESULT

Trend in technical result in SEKm.

PERFORMANCE MEASURES — INSURANCE

SEKm unless otherwise specified	Jul–Sep 2018	Jul–Sep 2017	Change	Jan–Sep 2018	Jan–Sep 2017	Change	Jan–Dec 2017
Premium earned, net	210	203	4%	616	606	2%	800
Operating income	50	39	28%	140	132	6%	174
Technical result	21	19	14%	62	50	23%	74
Operating profit	27	19	46%	70	63	12%	83
Combined ratio, %	90.6	91.5		90.7	92.5		91.8

SIGNIFICANT EVENTS SOME OF RESURS'S NEW

JANUARY—SEPTEMBER 2018

Resolution on dividends in Resurs Holding and buyback authorisation

The Annual General Meeting held on 27 April 2018 resolved on a dividend of SEK 1.80 per share, totalling SEK 360 million. Including the dividend of SEK 1.50 paid on 3 November 2017, the 2017 dividend amounts to SEK 3.30, which amounts to 61 per cent of earnings per share, a total of SEK 660 million. The Resurs share was traded ex rights from 30 April 2018. The record date was 2 May 2018 and the dividend was paid on 7 May 2018.

The Meeting also resolved to authorise the Board to acquire own shares on the stock exchange for the period until the next Annual General Meeting. The authorisation to buy back shares encompasses up to 5 per cent of the shares in the company.

Resurs Bank intends to carry out an intra-Group cross-border merger with yA Bank AS

The Boards of Resurs Bank and yA Bank decided in April 2018 to approve a joint merger plan and merger statement for a cross-border merger between the companies. The merger is expected to be completed not later than 31 December 2018. The proposed merger enables more efficient utilisation of internal resources and transfer of knowledge, a broader range of products under the Resurs brand and optimised capital and liquidity utilisation within the Resurs Group.

The implementation of the merger entails that the regulatory capital requirement is lowered by 0.6 percentage points due to the lower buffer requirement, in absolute terms this corresponds to SEK 160 million. At the same time, the capital ratio was strengthened by 0.3 percentage points due to the decline in currency exposure, corresponding to SEK 70 million.

Resurs Bank expanded and extended ABS financing

The ABS financing was expanded in January 2018, and a new 18-month revolving period commenced. For Resurs Bank, this means that external financing increased from SEK 2.1 billion to SEK 2.9 billion.

AFTER THE END OF THE PERIOD

Resolution on half-year dividends in Resurs Holding

The Extraordinary General Meeting held on 5 October 2018 resolved to pay a cash dividend of SEK 1.65 per share to shareholders, totalling SEK 330 million. The record date was 9 October 2018 and the dividend was paid on 12 October 2018.

RETAIL FINANCE PARTNERS IN 2018:

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.

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 and Visa 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), operations in Denmark through branch office Resurs Bank filial af Resurs Bank (Vallensbæk Strand) and operations in Norway through branch office Resurs Bank AB NUF (Oslo), and also via Resurs Bank's subsidiary yA Bank AS.

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. Cross-border operations are conducted in other markets.

Employees

There were 783 full-time employees within the Group at 30 September 2018, down 36 since 30 June 2018 and up 31 since 30 September 2017. The main increase was in IT, Marketing and Business Support. The decline since 30 June 2018 was primarily due to temporary staff for the summer whose employment ended.

Capital Market Day 2018

Resurs Holding will arrange a Capital Market Day for investors, analysts and the media on Wednesday, 21 November 2018. The event will be held at IVA Conference Centre in Stockholm.

The purpose of the Capital Market Day is to provide further insight into Resurs Holding's operations, strategy and financial performance. Presentations will be held by Kenneth Nilsson, President and CEO, and Peter Rosén, CFO and Head of IR, together with other senior executives.

Registration information is available from Resurs Holding's website.

NUMBER OF EMPLOYEES

783

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 66.55.

The ten largest shareholders with direct ownership on 30 September 2018 were:	Percentage of share capital
Waldakt AB (fam. Bengtsson)	28.8%
Cidron Semper S.A.R.L (Nordic Capital)	17.4%
Swedbank Robur Fonder	8.6%
Andra AP-fonden	2.4%
SEB fonder	1.9%
Handelsbanken fonder	1.9%
Vanguard	1.4%
Catea Group AB	1.2%
AFA Försäkring	1.2%
Avanza Pension	1.1%
Total	65.9%

Financial targets

Financial targets	Mid-term targets	Jan-Sep 2018
Annual lending growth	more than 10%	18%
Risk-adjusted NBI margin excl. Insurance	about 10 to 12%	10.5%
C/I before credit losses excl. Insurance and adjusted for nonrecurring costs	under 40%	40.5%
Common Equity Tier 1 ratio	more than 12.5%	13.8%
Total capital ratio	more than 15%	15.3%
Return on tangible equity (RoTE) adjusted for nonrecurring costs 1)	about 30%	33.1%
Dividend	at least 50% of profit for the year	n/a

1) Adjusted for Common Equity Tier 1 of 12.5 per cent and dividends deducted from the capital base for the current year.

Financial Calendar

• 29 October 2019 Interim report Jan-Sep 2019
• 21 November 2018 Capital Market Day 2018
• 5 February 2019 Year-end report for Jan-Dec 2018
• 19 March 2019 Annual Report 2018
• 24 April 2019 Interim report for Jan-Mar 2019
• 25 April 2019 2019 Annual General Meeting
• 23 July 2019 Interim report Jan-Jun 2019

NEXT REPORT 5 FEBRUARY

THE BOARD'S ATTESTATION

			RESURS HOLDING AB INTERIM REPORT JAN—SEP 2018
THE BOARD'S ATTESTATION
Company and Group companies.	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
Helsingborg, 5 November 2018
Kenneth Nilsson, CEO
Board of Directors,
Jan Samuelson, Chairman of the Board
Martin Bengtsson	Mariana Burenstam Linder	Fredrik Carlsson
Anders Dahlvig	Christian Frick	Lars Nordstrand
Marita Odélius Engström	Mikael Wintzell
			13

Condensed income statement

Condensed income statement
SEK thousand	Note	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Interest income	G6	779,868	671,714	2,260,833	1,980,212	2,686,820
Interest expense	G6	-81,691	-68,265	-236,591	-196,374	-268,156
Fee & commission income		54,668	56,210	161,576	186,838	233,945
Fee & commission expense, banking operations		-14,216	-17,562	-40,744	-48,480	-63,130
Premium earned, net Insurance compensation, net	G7 G8	209,047 -59,240	202,191 -69,318	613,458 -171,645	604,088 -193,162	798,339 -248,738
Fee & commission expense, insurance operations		-53,745	-47,307	-164,793	-178,112	-226,423
Net income/expense from financial transactions		-3,600	-6,270	-21,276	-3,117	-8,969
Other operating income	G9	49,727	47,719	153,170	131,593	187,657
Total operating income		880,818	769,112	2,553,988	2,283,486	3,091,345
General administrative expenses	G10	-282,512	-251,953	-869,004	-790,312	-1,065,752
Depreciation, amortisation and impairment of non-current assets		-13,823	-8,828	-35,743	-26,140	-35,283
Other operating expenses		-51,775	-44,349	-142,455	-140,710	-179,626
Total expenses before credit losses		-348,110		-305,130 -1,047,202		-957,162 -1,280,661
Earnings before credit losses		532,708	463,982	1,506,786	1,326,324	1,810,684
Credit losses, net	G11	-139,046	-99,880	-394,954	-300,544	-413,454
Operating profit/loss		393,662	364,102	1,111,832	1,025,780	1,397,230
Income tax expense		-87,975	-83,635	-252,265	-235,052	-317,197
Net profit for the period		305,687	280,467	859,567	790,728	1,080,033
Attributable to Resurs Holding AB shareholders		305,687	280,467	859,567	790,728	1,080,033
Basic and diluted earnings per share, SEK	G17	1.53	1.40	4.30	3.95	5.40
Condensed statement of comprehensive income SEK thousand		Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Net profit for the period		2018 305,687	2017 280,467	2018 859,567	2017 790,728	2017 1,080,033
Other comprehensive income that will be classfied to profit/loss
Translation differences for the period, foreign operations		-31,415	21,858	178,497	-65,555	-107,179
		11,912	-9,624	-75,465	11,394	21,693
		-2,621	2,117	16,602	-2,507	-4,772
						989,775
		283,563	294,818	979,201	734,060	989,775
Hedge accounting 1) Hedge accounting - tax 1) Comprehensive income for the period Attributable to Resurs Holding AB shareholders		283,563	294,818	979,201	734,060 1) Refers to a hedge of a net investment in a foreign subsdiary and consists of equity at the time for acquisition, given capital contributions and profit

Condensed statement of comprehensive income

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Net profit for the period	305,687	280,467	859,567	790,728	1,080,033
Other comprehensive income that will be classfied to profit/loss
Translation differences for the period, foreign operations	-31,415	21,858	178,497	-65,555	-107,179
Hedge accounting 1)	11,912	-9,624	-75,465	11,394	21,693
Hedge accounting - tax 1)	-2,621	2,117	16,602	-2,507	-4,772
Comprehensive income for the period	283,563	294,818	979,201	734,060	989,775
Attributable to Resurs Holding AB shareholders	283,563	294,818	979,201	734,060	989,775

Condensed statement of financial position

SEK thousand revaluated1) Assets 66,902 61,539 61,539 62,657 870,091 842,731 842,731 841,070 3,214,228 2,794,283 2,794,283 3,000,937 G12 27,469,905 23,647,823 24,068,795 23,218,416 2,259,655 1,735,266 1,735,266 1,869,127 27,871 35,902 35,902 34,524 78,104 76,368 76,368 68,218 2,028,646 1,877,167 1,877,167 1,871,384 55,930 39,954 39,954 39,961 4,362 5,688 5,688 5,984 276,899 269,344 169,404 165,559 262,510 224,175 224,175 236,128 36,615,103 31,610,240 31,931,272 31,413,965 1,900 20,095,758 18,033,013 18,033,013 17,959,598 949,425 1,155,573 1,155,573 1,039,840 329,900 154,467 154,467 280,252 515,907 455,123 455,123 440,380 G13 25,174 24,660 6,951 6,595 7,889,465 5,597,271 5,597,271 5,111,827 341,452 340,044 340,044 340,820 30,147,081 25,760,151 25,742,442 25,181,212 1,000 1,000 1,000 1,000 2,087,236 2,088,504 2,088,504 2,088,142 105,442 -14,192 -14,192 19,398 4,274,344 3,774,777 4,113,518 4,124,213 6,468,022 5,850,089 6,188,830 6,232,753 36,615,103 31,610,240 31,931,272 31,413,965	Note	30 Sep 2018	1 Jan 2018	31 Dec 2017	30 Sep 2017
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 Intangible assets Property, plant & equipment Reinsurers' share in technical provisions Other assets Prepaid expenses and accrued income TOTAL ASSETS Liabilities, provisions and equity Liabilities and provisions Liabilities to credit institutions Deposits and borrowing from the public Other liabilities Accrued expenses and deferred income Technical provisions Other provisions Issued securities Subordinated debt Total liabilities and provisions Equity Share capital Other paid-in capital Translation reserve Retained earnings incl. profit for the period Total equity TOTAL LIABILITIES, PROVISIONS AND EQUITY 1) Revaluation of Lending to the public, Other assets and Other provisions have been made as of 1 January 2018 due to IFRS 9. For additional information see Note G2. See Note G14 for information on pledged assets, contingent liabilities and commitments.

Condensed statement of changes in equity

Condensed statement of changes in equity Share Other paid Translation Retained Total equity capital in capital reserve earnings incl. SEK thousand profit for the period Initial equity at 1 January 2017 1,000 2,088,610 76,066 3,933,485 6,099,161 Owner transactions Option premium received/repurchased -468 -468 Dividends paid -600,000 -600,000 Net profit for the period 790,728 790,728 Other comprehensive income for the period -56,668 -56,668 Equity at 30 September 2017 1,000 2,088,142 19,398 4,124,213 6,232,753 Initial equity at 1 January 2017 1,000 2,088,610 76,066 3,933,485 6,099,161 Owner transactions Option premium received/repurchased -106 -106 Dividends paid -600,000 -600,000 Dividends according to Extraordinary General Meeting -300,000 -300,000 Net profit for the period 1,080,033 1,080,033 Other comprehensive income for the period -90,258 -90,258 Equity at 31 December 2017 1000 2,088,504 -14,192 4,113,518 6,188,830 Initial equity at 1 January 2018 according to IAS 39 1,000 2,088,504 -14,192 4,113,518 6,188,830 Impact of revaluation of credit loss reserves due to IFRS 9 implementation -438,681 -438,681 Impact of revaluation of credit loss reserves due to IFRS 9 implementation - tax effect 99,940 99,940 Equity at 1 January 2018 according to IFRS 9, adjusted 1,000 2,088,504 -14,192 3,774,777 5,850,089 Initial equity at 1 January 2018 1,000 2,088,504 -14,192 3,774,777 5,850,089 Owner transactions Option premium received/repurchased -1,268 -1,268 Dividends paid -360,000 -360,000 Net profit for the period 859,567 859,567 Other comprehensive income for the period 119,634 119,634 Equity at 30 September 2018 1,000 2,087,236 105,442 4,274,344 6,468,022 All equity is attributable to Parent Company shareholders.			RESURS HOLDING AB INTERIM REPORT JAN—SEP 2018

Cash flow statement (indirect method)

SEK thousand				Jan-Sep	Jan-Dec	Jan-Sep
Operating activities				2018	2017	2017
Operating profit				1,111,832	1,397,230	1,025,780
- of which, interest received				2,259,674	2,685,979	1,973,287
- of which, interest paid				-89,092	-266,765	-70,071
Adjustments for non-cash items in operating profit				676,324	459,128	452,599
Tax paid Cash flow from operating activities before changes in operating assets and liabilities				-335,050 1,453,106	-356,251 1,500,107	-289,031 1,189,348
Changes in operating assets and liabilities Lending to the public				-3,311,709	-3,520,949	-2,548,326
Other assets				-492,149	-170,045	63,321
Liabilities to credit institutions					-1,700	200
Deposits and borrowing from the public				1,594,857	-316,281	-490,219
Acquisition of investment assets				-1,038,879	-1,110,747	-722,598
Divestment of investment assets				575,255	1,262,719	763,104
Other liabilities				-174,153	275,943	28,520
Cash flow from operating activities				-1,393,672	-2,080,953 -1,716,650
Investing activities
Acquisition of non-current assets, intangible assets and property, plant & equipment				-108,443	-86,165	-48,917
Divestment of non-current assets, intangible assets and property, plant & equipment				1,348	707	602
Cash flow from investing activities				-107,095	-85,458	-48,315
Financing activities
Dividends paid				-360,000	-900,000	-600,000
Issued securities				2,206,109	2,301,863	1,805,011
Option premium received/repurchased				-1,268	-106	-468
Subordinated debt					300,000	300,000
Cash flow from financing activities				1,844,841	1,701,757	1,504,543
Cash flow for the period				344,075	-464,654	-260,422
Cash & cash equivalents at beginning of the year				2,855,822	3,351,128	3,351,128
Exchange rate differences				81,233	-30,652	-27,112
Cash & cash equivalents at end of the period				3,281,130	2,855,822	3,063,594
Adjustment for non-cash items in operating profit
Credit losses				394,954	413,454	300,544
Depreciation and impairment of property, plant & equipment				35,743	35,283	26,140
Profit/loss tangible assets				408		-92
Profit/loss on investment assets				-3,606	-24,463	-26,443
Change in provisions				60,714	-7,496	-22,701
Adjustment to interest paid/received				148,873	3,246	121,656
Currency effects				35,925	33,705	49,413
Other items that do not affect liquidity				3,313	5,399	4,082
Sum non-cash items in operating profit				676,324	459,128	452,599
Investment assets are comprised of Bonds and other interest-bearing securities, Treasury and other bills eligible for refinancing, Subordinated debt and Shares and participating interest.
Liquid assets are comprised of Lending to credit institutions and Cash and balances at central banks.
SEK thousand	1 Jan 2018	Cash flow		Non cash flow items		30 Sep 2018
			Change in opening	Accrued acquisition	Exchange rate
			balance	costs	differences
Issued securities	5,597,271	2,206,109		5,293	80,792	7,889,465
Subordinated debt	340,044		-3,000	1,020	3,388	341,452
Total	5,937,315	2,206,109	-3,000	6,313	84,180	8,230,917

SEK thousand	1 Jan 2018	Cash flow	Non cash flow items		30 Sep 2018
		Change in opening balance	Accrued acquisition costs	Exchange rate differences
Issued securities	5,597,271	2,206,109	5,293	80,792	7,889,465
Subordinated debt	340,044		-3,000 1,020	3,388	341,452
Total	5,937,315	2,206,109 -3,000	6,313	84,180	8,230,917

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

G1. Accounting principles

G2. Effect of IFRS 9

Summary of effects on statement of financial position

NOTES TO THE CONDENSED FINANCIAL STATEMENTS
G1. Accounting principles
Interim Financial Reporting and with applicable provisions of the Swedish Annual Accounts Act for Credit Institutions and Securities Companies and	Alongside the significant PD changes described above, the bank uses a is attributable to stage 2 even if there is no significant increase in PD.
guidelines on Annual Reports in Credit Institutions and Securities Companies (FFFS 2008:25), as well as the Swedish Financial Reporting Corporate Groups.	The calculation of the lifetime for credit cards and other revolving credits is based on predictive models about the future limit use and statistical repayment plans. The models are based on internal historical data where different models are used for homogeneous groups of credits with similar explanatory variables.
Except from IFRS 9, see below, no new IFRS or IFRIC interpretations, effective as from 1 January 2018, have had any material impact on the Group. As of the current fiscal year, IFRS 9 Financial Instruments will replace IAS 39 Financial Instruments. For calculating credit loss reserves, IFRS 9 is based on calculating the expected credit losses, as opposed to	The assets for lending to credit institutions are deemed to have very low credit risk and are not considered to have been exposed to increased credit risk, which is why lending to credit institutions has not been impaired.
the previous model based on credit loss events that have occurred. 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	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 latest Annual report. Information about how the new IFRS 9 rules are expected to impact the Group, and calculations and expectations regarding Resurs Holding AB	The Group will be primarily affected by the right-of-use assets attributable to leases for premises and vehicle leases. The Group has chosen to apply the forward-looking method and will not restate the comparative year in accordance with the standard. The Group is in the process of evaluating several options in connection with the transition but has not yet made a
information is found below.	final decision. For further information about current leases, see Note G 13
	in the Annual Report. For detailed accounting principles for the Group, see the Annual report for 2017. The interim information on pages 2-34 comprises an integrated component
To determine whether there is a significant increase in risk, and thus a transfer to stage 2, the bank starts by assessing the change in the expected life PD (Probability of Default) of the credit. In order for there to be a significant increase in risk, a change in start PD must amount to the total of a given threshold and a percentage change in the start PD. In addition, the bank also uses an absolute change in PD that entails that if a lifetime PD increases by a given percentage point, which varies depending on product category, then it is attributable to stage 2.	of this financial report.
	as opposed to the previous model that was based on credit loss events that have occurred. In the item Other assets, the current tax asset was changed.
G2. Effect of IFRS 9 Summary of effects on statement of financial position In the condensed statement of finacial postition, Lending to the public, Other assets and Other provisions were impacted since the credit loss reserves under IFRS 9 are calculated on expected credit losses, SEK thousand	31 Dec 2017 according to Adjustment Adjustment Adjustment 1 Jan 2018 earlier accounting principles Lending to Current tax Other the public asset provisions
Assets
Lending to the public	24,068,795 -420,972 23,647,823
Other assets Liabilities and provisions	169,404 99,940 269,344
Other provisions Equity	6,951 17,709 24,660

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. The largest share of deposits is in Sweden, but deposits are also offered in Norway by yA Bank. Deposits, which are analysed on a regular basis, totalled SEK 20,234 million (18,147), whereof in Sweden SEK 13,664 million (12,817) and in Norway SEK 6,570 million (5,330). The lending to the public/deposits from the public ratio for the consolidated situation is 136 per cent (133 per cent).

Resurs Bank has a funding programme for issuing bonds, the programme amounts to SEK 8,000 million (5,000). 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. The programme has ten outstanding issues at a nominal amount of SEK 4,250 million (2,850) and NOK 400 million (400).

Of the ten issues, nine are senior unsecured bonds and one issue is a subordinated loan of SEK 300 million. Resurs Bank has, outside the programme, issued subordinated loan of SEK 200 million (200). yA Bank has, outside the programme, issued NOK 600 million (600) in senior unsecured bonds and subordinated loan NOK 40 million (40).

Resurs Bank has completed a securitisation of loan receivables, a form of structured financing, referred to as Asset Backed Securities (ABS). This took subsidiaries Resurs Consumer Loans 1 Limited. In January 2018 the financing expanded and at 30 September 2018 a total of appoximately SEK 3.7 billion in loan receivables had been transferred to Resurs Consumer Loans. The acquisition of loan receivables by Resurs Consumer Loans was financed by an international financial institution. 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. 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 (2.1) of the ABS financing. RESURS HOLDING AB | INTERIM REPORT JAN—SEP 201819

Liquidity - Consolidated situation

	RESURS HOLDING AB INTERIM REPORT JAN—SEP 2018
Liquidity - Consolidated situation
Liquidity risk includes the risk of not being able to meet liquidity commitments without significantly higher costs.The consolidated situation, comprised of the Parent Company Resurs Holding AB and the Resurs Bank AB Group, must maintain a liquidity reserve and have access to an unutilised liquidity margin in the event of irregular or unexpected liquidity flows.	There are also other liquidity requirements regulating and controlling the business. The liquidity reserve, totalling SEK 1,801 million (1,744), 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
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, among other things, risk indicators and action functions.	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 4,137 million (3,113) for the consolidated situation. Accordingly, total liquidity amounted to SEK 5,938 million (4,857). Total liquidity corresponded to 29 per cent (27 per cent) of deposits from the public. The Group also has unutilised credit facilities of NOK 50 million (50).
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 1,200 million. Apart from the liquidity reserve, there is an intraday liquidity requirement of at least 4 per cent of deposits from	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 30 September 2018, the ratio for the consolidated situation is 198 per cent (201 per cent). For the period January to September 2018, the average LCR measures 204 per cent for the consolidated situation. All valuations of interest-bearing securities were made at market values
the public, a minimum SEK 600 million.	that take into account accrued interest.
		30 Sep	31 Dec	30 Sep
SEK thousand		2018	2017	2017
Liquidity reserve as per FFFS 2010:7 definition Securities issued by sovereigns		50,230	48,268	47,854
Securities issued by municipalities		689,264	664,222	663,122
Lending to credit institutions		244,000	183,000	103,000
Bonds and other interest-bearing securities		817,342	848,957	878,863
Summary Liquidity reserve as per FFFS 2010:7		1,800,836	1,744,447	1,692,839
Other liquidity portfolio
Cash and balances at central banks		66,902	61,539	62,657
Lending to credit institutions Bonds and other interest-bearing securities		2,925,704 1,144,666	2,443,075 608,096	2,733,073 720,712
Total other liquidity portfolio		4,137,272	3,112,710	3,516,442
Total liquidity portfolio		5,938,108	4,857,157	5,209,281
Other liquidity-creating measures
Unutilised credit facilities		54,290	50,055	51,025
In evaluating liquid assets for LCR reporting, the following assessment of liquid asset quality is made before each value judgement in accordance with
SEK thousand		30 Sep	31 Dec	30 Sep
Liquid assets, Level 1		2018 1,438,902	2017 1,215,652	2017 1,134,636
Liquid assets, Level 2		835,079	649,904	624,790
Total liquid assets		2,273,981	1,865,556	1,759,426
Net liquidity outflow		1,050,177	855,945	840,677
LCR measure		198%	201%	194%
For the period January to September 2018, the average LCR measure is 204 % in the consolidated situation.
Stress tests are carried out on a regular basis to ensure that there is liquidity in place for circumstances that deviate from normal conditions. One recurring stress test is significant outflows of deposits from the public.

SEK thousand	30 Sep 2018	31 Dec 2017	30 Sep 2017
Liquid assets, Level 1	1,438,902	1,215,652	1,134,636
Liquid assets, Level 2	835,079	649,904	624,790
Total liquid assets	2,273,981	1,865,556	1,759,426
Net liquidity outflow	1,050,177	855,945	840,677
LCR measure	198%	201%	194%

G4. Capital adequacy - Consolidated situation

Capital base

G4. Capital adequacy - Consolidated situation Capital requirements are calculated in accordance with European The consolidated situation calculates the capital requirement for credit risk, Parliament and Council Regulation EU 575/2013 (CRR) and Directive
2013/36 EU (CRD IV). The Directive was incorporated via the Swedish is calculated by applying the standardised method under which the asset Capital Buffers Act (2014:966), and the Swedish Financial Supervisory items of the consolidated situation are weighted and divided between 17 different exposure classes. The total risk-weighted exposure amount is capital buffers (FFFS 2014:12). The capital requirement calculation below multiplied by 8 per cent to obtain the minimum capital requirement for comprises the statutory minimum capital requirement for credit risk, credit credit risk. The basic indicator method is used to calculate the capital valuation adjustment risk, market risk and operational risk. requirement for operational risk. Under this method, the capital requirement for operational risks is 15 per cent of the income indicator (meaning average operating income for the past three years). Three comprises the Resurs Bank AB Group and its Parent Company Resurs Holding AB. base requirement for bonds and other interest-bearing securities. These	credit valuation adjustment risk, market risk and operational risk. Credit risk
The combined buffer requirement for the consolidated situation comprises a capital conservation buffer and a countercyclical capital Resurs Bank has applied to the Swedish Financial Supervisory Authority for buffer. The capital conservation buffer requirement amounts to 2.5 per permission to apply the transition rules decided at EU level in December cent of the risk-weighted assets. The countercyclical capital buffer 2017. Under the transition rules, a gradual phase-in of the effect of IFRS 9 requirement is weighted according to geographical requirements, which on capital adequacy is permitted, regarding both the effect of the transition amounts to 2 per cent of the risk-weighted assets for Swedish and from IAS 39 as at 1 January 2018 and the effect on the reporting date that Norwegian exposures. The countercyclical capital buffer requirements will exceeds the amount when IFRS 9 is first applied to category 1 and category increase to 2.5 per cent for Swedish exposures from 19 September 2019. 2. The phase-in period is as follows:
A 3 per cent systemic risk buffer is included in the capital requirement for 2018: 5% the Norwegian subsidiary at an individual level, although not in the 2019: 10% combined buffer requirement for the consolidated situation. The Group 2020: 15% currently does not need to take into account a buffer requirement for its 2021: 20% other business areas in Denmark and Finland. However, a Danish 2022: 25% countercyclical capital buffer requirement of 0.5 per cent will apply from 2023: 25% 31 March 2019.
Capital base
SEK thousand	30 Sep 2018	31 Dec 2017	30 Sep 2017
Tier 1 capital Equity, Group Net profit for the period, Group Proposed dividend Foreseeable dividend Additional/deducted equity in the consolidated situation Additional/deducted net profit in the consolidated situation	5,608,455 859,567 -330,000 -165,000 -538,911 84,795	5,108,797 1,080,033 -360,000 -516,631 -23,470	5,442,025 790,728 -300,000 -150,000 -516,281 -50,404
Equity, consolidated situation (adjusted for proposed/foreseeable dividend)	5,518,906	5,288,729	5,216,068
Adjustments according to transition rules IFRS 9: Initial revaluation effect, net 95 % Dynamic effect category 1 and 2, net 95 %	321,804 12,505
Less: Additional value adjustments	-2,767	-2,211	-2,348
	-1,999,542	-1,846,399	-1,839,827
	-9,110	-8,171 -100	-4,367 -100
			3,369,426
Intangible assets Deferred tax asset Shares in subsidiaries Total Common Equity Tier 1 capital Total Tier 1 capital	-100 3,841,696 3,841,696	3,431,848 3,431,848	3,369,426
Tier 2 capital
Dated subordinated loans Total Tier 2 capital	432,594 432,594	473,231 473,231	484,084 484,084

Capital requirement

	30 Sep 2018 Risk	Capital	31 Dec 2017 Risk	Capital	30 Sep 2017 Risk	Capital
	weighted exposure	require ment1)	weighted exposure	require ment1)	weighted exposure	require ment1)
Exposures to institutions	amount 648,230	51,858	amount 146,633	11,731	amount 121,015	9,681
Exposures to corporates	343,923	27,514	346,486	27,719	302,013	24,161
Retail exposures	18,717,482	1,497,399	16,446,397	1,315,712	15,920,598	1,273,648
Exposures in default	2,513,885	201,111	1,806,015	144,481	1,709,445	136,756
Exposures in the form of covered bonds	81,623	6,530	84,801	6,784	87,786	7,023
Exposures to institutions and companies with short-term credit rating			373,659	29,893	441,418	35,313
Exposures in the form of units or shares in collective investment
undertakings (funds)	146,521	11,722	65,265	5,221	107,710	8,617
Equity exposures	80,061	6,405	79,978	6,398	79,997	6,400
Other items	279,659	22,373	243,081	19,446	210,505	16,840
Total credit risks	22,811,384		1,824,912 19,592,315	1,567,385	18,980,487	1,518,439
Credit valuation adjustment risk	24,163	1,933	4,948	396	7,327	586
Market risk
Currency risk	0	0	472,850	37,828	438,918	35,113
Operational risk	5,096,823	407,746	5,096,823	407,746	4,720,126	377,610
Total riskweighted exposure and total capital requirement	27,932,370		2,234,591 25,166,936	2,013,355	24,146,858	1,931,748
1) Capital requirement information is provided for exposure classes that have exposures.
				30 Sep	31 Dec	30 Sep
				2018	2017
				13.8	13.6
				13.8	13.6
				15.3	15.5
				8.6	8.6
				2.5	2.5
				1.6 7.3	1.6 7.5
						2017 14.0 14.0 16.0 8.5 2.5 1.5 8.0
Capital ratio and capital buffers Common Equity Tier 1 ratio, % Tier 1 ratio, % Total capital ratio, % Common Equity Tier 1 capital requirement incl. buffer requirement, % - of which, capital conservation buffer requirement, % - of which, countercyclical buffer requirement, % Common Equity Tier 1 capital available for use as buffer, % Leverage ratio The leverage ratio is a non-risk-sensitive capital requirement defined in Regulation (EU) no 575/2013 of the European Parliament and of the total assets including items that are not recognised in the balance sheet and is calculated by the Tier 1 capital as a percentage of the total					exposure measure. The bank currently has a reporting requirement to the Swedish Financial Supervisory Authority but no decision has yet been made regarding a quantitative requirement for the level of the leverage ratio. A quantitative requirement of 3 per cent is expected to be adopted.
SEK thousand				30 Sep 2018	31 Dec 2017	30 Sep 2017
Tier 1 capital				3,841,696	3,431,848	3,369,426
Leverage ratio exposure Leverage ratio, %				36,948,373 10.4	31,916,576 10.8	31,365,103 10.7

Capital ratio and capital buffers

	30 Sep 2018	31 Dec 2017	30 Sep 2017
Common Equity Tier 1 ratio, %	13.8	13.6	14.0
Tier 1 ratio, %	13.8	13.6	14.0
Total capital ratio, %	15.3	15.5	16.0
Common Equity Tier 1 capital requirement incl. buffer requirement, %	8.6	8.6	8.5
- of which, capital conservation buffer requirement, %	2.5	2.5	2.5
- of which, countercyclical buffer requirement, %	1.6	1.6	1.5
Common Equity Tier 1 capital available for use as buffer, %	7.3	7.5	8.0

Leverage ratio

SEK thousand	30 Sep 2018	31 Dec 2017	30 Sep 2017
Tier 1 capital	3,841,696	3,431,848	3,369,426
Leverage ratio exposure	36,948,373	31,916,576	31,365,103
Leverage ratio, %	10.4	10.8	10.7

G5. Segment reporting

G5. Segment reporting					RESURS HOLDING AB INTERIM REPORT JAN—SEP 2018
The Group CEO 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 Group CEO assesses the performance of Payment Solutions, Consumer Loans and Insurance.	The Group CEO evaluates segment development based on net operating income less credit losses, net. The Insurance segment is evaluated at the Segment reporting is based on the same principles as those used for the consolidated financial statements.
Jul-Sep 2018
SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	283,994	494,870	2,682	-1,678	779,868
Interest expense	-26,463	-56,890	-16	1,678	-81,691
Provision income	83,755	30,790		-59,877	54,668
Fee & commission expense, banking operations	-14,216				-14,216
Premium earned, net			210,368	-1,321	209,047
Insurance compensation, net			-59,240		-59,240
Fee & commission expense, insurance operations			-109,552	55,807	-53,745
Net income/expense from financial transactions	-5,405	-4,026	5,660	171	-3,600
Other operating income	39,125	13,086	-7	-2,477	49,727
Total operating income	360,790	477,830	49,895	-7,697	880,818
of which, internal 1)	30,615	29,890	-52,808	-7,697	0
Credit losses, net	-29,882	-109,164			-139,046
Operating income less credit losses	330,908	368,666	49,895	-7,697	741,772
Expenses excl. credit losses 2)			-22,570
Operating profit, Insurance 3)			27,325
Jul-Sep 2017 SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	240,981	428,448	3,781	-1,496	671,714
Interest expense	-22,913	-46,786	-62	1,496	-68,265
Provision income	80,473	25,801		-50,064	56,210
Fee & commission expense, banking operations	-17,562				-17,562
Premium earned, net			203,091	-900	202,191
			-69,318
Insurance compensation, net					-69,318
Fee & commission expense, insurance operations			-97,371	50,064	-47,307
Net income/expense from financial transactions	-3,221	-1,942	-1,107		-6,270
Other operating income	37,413	11,699	5	-1,398	47,719
Total operating income of which, internal 1)	315,171 39,492	417,220 10,474	39,019 -47,668	-2,298 -2,298	769,112 0
Credit losses, net Operating income less credit losses	-42,270 272,901	-57,610 359,610	39,019	-2,298	-99,880 669,232
Expenses excl. credit losses 2) Operating profit, Insurance 3)			-20,264

Jul-Sep 2017

SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	240,981	428,448	3,781	-1,496	671,714
Interest expense	-22,913	-46,786	-62	1,496	-68,265
Provision income	80,473	25,801		-50,064	56,210
Fee & commission expense, banking operations	-17,562				-17,562
Premium earned, net			203,091	-900	202,191
Insurance compensation, net			-69,318		-69,318
Fee & commission expense, insurance operations			-97,371	50,064	-47,307
Net income/expense from financial transactions	-3,221	-1,942	-1,107		-6,270
Other operating income	37,413	11,699	5	-1,398	47,719
Total operating income	315,171	417,220	39,019	-2,298	769,112
of which, internal 1)	39,492	10,474	-47,668	-2,298	0
Credit losses, net	-42,270	-57,610			-99,880
Operating income less credit losses	272,901	359,610	39,019	-2,298	669,232
Expenses excl. credit losses 2)			-20,264
Operating profit, Insurance 3)			18,755

Segment reporting

SEK thousand	Payment Solutions	Consumer Loans	Insurance	Intra-Group adjustment	Total Group
Interest income	826,206	1,429,888	9,660	-4,921	2,260,833
Interest expense	-79,970	-161,503	-39	4,921	-236,591
Provision income	241,007	86,976		-166,407	161,576
Fee & commission expense, banking operations	-40,744				-40,744
Premium earned, net			615,584	-2,126	613,458
Insurance compensation, net			-171,645		-171,645
Fee & commission expense, insurance operations			-317,591	152,798	-164,793
Net income/expense from financial transactions	-13,978	-11,283	4,283	-298	-21,276
Other operating income	119,067	41,535		-7,432	153,170
Total operating income	1,051,588	1,385,613	140,252	-23,465	2,553,988
of which, internal 1)	84,200	85,016	-145,751	-23,465	0
Credit losses, net	-136,137	-258,817			-394,954
Operating income less credit losses	915,451	1,126,796	140,252	-23,465	2,159,034
Expenses excl. credit losses 2)			-69,996
Operating profit, Insurance 3)			70,256

Jan-Sep 2017

Segment reporting

SEK thousand Interest income Interest expense Fee & commission income Fee & commission expense, banking operations Premium earned, net Insurance compensation, net Fee & commission expense, insurance operations Net income/expense from financial transactions Other operating income Total operating income of which, internal 1) Credit losses, net Operating income less credit losses Expenses excl. credit losses 2) Operating profit, Insurance 3) 1) Inter-segment revenues mostly comprise mediated payment protection insurance, but also remuneration for Group-wide functions that are 2) Reconciliation of Expenses excl. credit losses against income statement. SEK thousand As per segment reporting Expenses excl. credit losses as regards Insurance segment Not broken down by segment Expenses excl. credit losses as regards banking operations	Payment Solutions 990,683 -93,783 297,029 -63,130 -12,372 149,950 1,268,377 98,552 -153,683 1,114,694 Jul-Sep 2018 -22,570	Consumer Loans 1,688,524 -180,099 109,724 -4,959 43,225 1,656,415 73,908 -259,771 1,396,644 Jul-Sep 2017	Insurance 13,495 -156 800,443 -248,738 -399,231 8,362 16 174,191 -164,822 174,191 -91,301 82,890 Jan-Sep	Intra-Group adjustment -5,882 5,882 -172,808 -2,104 172,808 -5,534 -7,638 -7,638 -7,638 Jan-Sep	Total Group 2,686,820 -268,156 233,945 -63,130 798,339 -248,738 -226,423 -8,969 187,657 3,091,345 0 -413,454 2,677,891
					Jan-Dec
			2018	2017	2017
		-20,264	-69,996	-69,519	-91,301
	-325,540	-284,866	-977,206	-887,643	-1,189,360
Total	-348,110		-305,130 -1,047,202		-957,162 -1,280,661
As per income statement
General administrative expenses	-282,512	-251,953	-869,004	-790,312	-1,065,752
Depreciation, amortisation and impairment of tangible and intangible assets	-13,823	-8,828	-35,743	-26,140	-35,283
Other operating expenses	-51,775	-44,349	-142,455	-140,710	-179,626
Total	-348,110		-305,130 -1,047,202		-957,162 -1,280,661
3) Reconciliation of Operating profit against income statement.
	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
SEK thousand	2018	2017	2018	2017	2017
As per segment reporting
Operating profit, Insurance	27,325	18,755	70,256	62,539	82,890
Not broken down by segment
Operating profit as regards banking operations	366,337	345,347	1,041,576	963,241	1,314,340
Total	393,662	364,102	1,111,832	1,025,780	1,397,230
As per income statement
Operating profit	393,662	364,102	1,111,832	1,025,780	1,397,230
Total	393,662	364,102	1,111,832	1,025,780	1,397,230
Assets Assets monitored by the Group CEO refer to Lending to the public.
Lending to the public
SEK thousand		Payment	Consumer	Insurance	Total
		Solutions	Loans		Group
30 Sep 2018		10,184,818	17,285,087		27,469,905
1 Jan 2018		9,270,137	14,377,686		23,647,823
31 Dec 2017		9,419,131	14,649,664		24,068,795
30 Sep 2017		9,052,008	14,166,408		23,218,416

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
As per segment reporting
Expenses excl. credit losses as regards Insurance segment	-22,570	-20,264	-69,996	-69,519	-91,301
Not broken down by segment
Expenses excl. credit losses as regards banking operations	-325,540	-284,866	-977,206	-887,643	-1,189,360
Total	-348,110		-305,130 -1,047,202		-957,162 -1,280,661
As per income statement
General administrative expenses	-282,512	-251,953	-869,004	-790,312	-1,065,752
Depreciation, amortisation and impairment of tangible and intangible assets	-13,823	-8,828	-35,743	-26,140	-35,283
Other operating expenses	-51,775	-44,349	-142,455	-140,710	-179,626
Total	-348,110		-305,130 -1,047,202		-957,162 -1,280,661

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
As per segment reporting
Operating profit, Insurance	27,325	18,755	70,256	62,539	82,890
Not broken down by segment
Operating profit as regards banking operations	366,337	345,347	1,041,576	963,241	1,314,340
Total	393,662	364,102	1,111,832	1,025,780	1,397,230
As per income statement
Operating profit	393,662	364,102	1,111,832	1,025,780	1,397,230
Total	393,662	364,102	1,111,832	1,025,780	1,397,230

Assets

Lending to the public

SEK thousand	Payment Solutions	Consumer Loans	Insurance	Total Group
30 Sep 2018	10,184,818	17,285,087		27,469,905
1 Jan 2018	9,270,137	14,377,686		23,647,823
31 Dec 2017	9,419,131	14,649,664		24,068,795
30 Sep 2017	9,052,008	14,166,408		23,218,416

G6. Net interest income/expense

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Interest income
Lending to credit institutions	1,004	929	3,150	2,273	3,234
Lending to the public	777,193	668,510	2,251,739	1,971,821	2,675,921
Interest-bearing securities	1,671	2,275	5,944	6,118	7,665
Total interest income	779,868	671,714	2,260,833	1,980,212	2,686,820
Interest expense
Liabilities to credit institutions	-819	2,165	-3,154	-810	-2,568
Deposits and borrowing from the public	-59,825	-56,629	-173,951	-157,961	-211,175
Issued securities	-18,221	-10,500	-48,899	-27,554	-40,790
Subordinated debt	-2,615	-3,487	-9,764	-9,811	-13,266
Other liabilities	-211	186	-823	-238	-357
Total interest expense	-81,691	-68,265	-236,591	-196,374	-268,156
Net interest income/expense	698,177	603,449	2,024,242	1,783,838	2,418,664

G7. Premium earned, net

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Premium earned	239,800	236,569	665,767	627,052	842,826
Premiums for specified reinsurance	-6,851	-7,320	-19,491	-19,191	-25,124
Change in provision for unearned premiums and unexpired risks	-24,046	-26,852	-32,810	-975	-16,137
Reinsurers' share in change in provision for unearned premiums and unexpired risks	144	-206	-8	-2,798	-3,226
Total premium earned, net	209,047	202,191	613,458	604,088	798,339

G8. Insurance compensation, net

SEK thousand	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Interest income	2018	2017	2018	2017	2017
Lending to credit institutions	1,004	929	3,150	2,273	3,234
Lending to the public	777,193	668,510	2,251,739	1,971,821	2,675,921
Interest-bearing securities	1,671	2,275	5,944	6,118	7,665
Total interest income	779,868	671,714	2,260,833	1,980,212	2,686,820
Interest expense
Liabilities to credit institutions	-819	2,165	-3,154	-810	-2,568
Deposits and borrowing from the public	-59,825	-56,629	-173,951	-157,961	-211,175
Issued securities	-18,221	-10,500	-48,899	-27,554	-40,790
Subordinated debt	-2,615	-3,487	-9,764	-9,811	-13,266
Other liabilities Total interest expense	-211 -81,691	186 -68,265	-823 -236,591	-238 -196,374	-357 -268,156
Net interest income/expense	698,177	603,449	2,024,242	1,783,838	2,418,664
G7. Premium earned, net
SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Premium earned	239,800	236,569	665,767	627,052	842,826
Premiums for specified reinsurance	-6,851	-7,320	-19,491	-19,191	-25,124
Change in provision for unearned premiums and unexpired risks Reinsurers' share in change in provision for unearned premiums and unexpired risks	-24,046	-26,852	-32,810	-975	-16,137
	144 209,047	-206 202,191	-8 613,458	-2,798 604,088	-3,226 798,339
	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017
	-54,692	-67,737	-153,841	-203,773
	1,923 -52,769	2,438 -65,299	5,591 -148,250	6,905 -196,868
	-2,385	154	-11,853	15,793
	-55 -2,440	154	-234 -12,087	1,124 16,917
					Jan-Dec 2017 -256,374 9,184 -247,190 15,399 1,208 16,607
	-375 -375	249 249	2,540 2,540	1,434 1,434
	-3,762	-4,587	-14,120	-15,014
	106 -3,656	165 -4,422	272 -13,848	369 -14,645
	-59,240	-69,318	-171,645	-193,162	988 988 -19,659 516 -19,143 -248,738
Total premium earned, net 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 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	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep
SEK thousand	2018	2017	2018	2017	Jan-Dec 2017
Other income, lending to the public Other operating income	42,083 7,644	37,191 10,528	122,318 30,852	113,557 18,036	151,875 35,782

G9. Other operating income

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Other income, lending to the public	42,083	37,191	122,318	113,557	151,875
Other operating income	7,644	10,528	30,852	18,036	35,782
Total operating income	49,727	47,719	153,170	131,593	187,657

G10. General administrative expenses

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Personnel expenses	-144,526	-122,489	-448,393	-389,153	-535,334
Postage, communication and notification expenses	-33,307	-33,064	-98,768	-105,402	-140,083
IT expenses	-46,016	-40,217	-137,026	-125,946	-159,178
Cost of premises	-10,584	-10,064	-30,271	-29,997	-40,377
Consultant expenses	-15,511	-15,122	-56,799	-53,591	-70,403
Other	-32,568	-30,997	-97,747	-86,223	-120,377
Total general administrative expenses	-282,512	-251,953	-869,004		-790,312 -1,065,752

G11. Credit losses

SEK thousand	Jul-Sep 2017	Jan-Sep 2017	Jan-Dec 2017
Individually assessed loan receivables under IAS 39
Write-offs of stated credit losses for the period	-185	-1,181	-3,379
Recoveries of previously confirmed credit losses	1,169	1,841	2,236
Transfer/reversal of provision for credit losses on utilised limit	-694	-3,599	5,387
Net result of individually assessed loan receivables for the period	290	-2,939	4,244
Collectively assessed loan receivables under IAS 39
Individually assessed loan receivables under IAS 39	-30,750	-86,111	-110,750
Write-offs of stated credit losses for the period	4,251	13,563	18,092
Transfers/reversal of provision for credit losses	-73,671	-225,057	-325,040
Net cost of collectively assessed homogeneous groups of loan receivables	-100,170	-297,605	-417,698
Net cost of credit losses for the period	-99,880	-300,544	-413,454

G12. Lending to the public

SEK thousand
	30 Sep 2018	1 Jan 2018	31 Dec 2017	30 Sep 2017
Retail sector	29,796,702	25,664,838	25,664,838	24,763,042
Corporate sector	378,533	371,258	371,258	337,582
Total lending to the public, gross	30,175,235 26,036,096		26,036,096 25,100,624
Stage 1	22,126,069	19,364,496
Stage 2	3,350,661	2,830,968
Stage 3	4,698,505	3,840,632
Total lending to the public, gross	30,175,235 26,036,096		26,036,096 25,100,624
Less provision for anticipated credit losses under IAS 39				-1,967,301 -1,882,208
Less provision for anticipated credit losses under IFRS 9
Stage 1	-186,009	-180,890
Stage 2	-334,701	-322,150
Stage 3	-2,184,620	-1,885,233
Total anticipated credit losses		-2,705,330 -2,388,273		-1,967,301 -1,882,208
Stage 1	21,940,060	19,183,606
Stage 2 Stage 3	3,015,960 2,513,885	2,508,818 1,955,399
Total net lending to the public	27,469,905 23,647,823		24,068,795 23,218,416
Doubtful receivables under IAS 39
Gross doubtful receivables for which interest is not entered as income until payment is made			3,850,501	3,642,694
Provision for anticipated credit losses			-1,967,301	-1,882,208
G13. Other provisions SEK thousand	30 Sep	1 Jan	31 Dec	30 Sep
Reporting value at the beginning of the year	2018 24,660	2018 6,951	2017 6,988	2017 6,988
Provision made/utilised during the period	-246	17,709	236	-233
Exchange rate differences	760		-273	-160
Total	25,174	24,660	6,951	6,595
Provision of credit reserves, unutilised limit, Stage 1 Provision of credit reserves, unutilised limit, Stage 2	11,699 6,368	12,151 5,558
Other provisions	7,107	6,951	6,951	6,595
Reported value at the end of the period	25,174	24,660	6,951	6,595

G13. Other provisions

SEK thousand	30 Sep 2018	1 Jan 2018	31 Dec 2017	30 Sep 2017
Reporting value at the beginning of the year	24,660	6,951	6,988	6,988
Provision made/utilised during the period	-246	17,709	236	-233
Exchange rate differences	760		-273	-160
Total	25,174	24,660	6,951	6,595
Provision of credit reserves, unutilised limit, Stage 1	11,699	12,151
Provision of credit reserves, unutilised limit, Stage 2	6,368	5,558
Other provisions	7,107	6,951	6,951	6,595
Reported value at the end of the period	25,174	24,660	6,951	6,595

G14. Pledged assets, contingent liabilities and commitments

SEK thousand			30 Sep	31 Dec	30 Sep
			2018	2017	2017
Collateral pledged for own liabilities Lending to credit institutions			209,255	204,909	143,992
Lending to the public 1)			3,604,812	2,653,185	2,639,073
Assets for which policyholders have priority rights 2)			406,341	551,886	539,548
Restricted bank deposits 3)			27,859	28,354	26,623
Total collateral pledged for own liabilities			4,248,267	3,438,334	3,349,236
Contingent liabilities
Guarantees Total contingent liabilities			311 311	1,563 1,563	2,043 2,043
Other commitments Unutilised credit facilities granted			27,667,862	26,348,967	26,005,204
Total other commitments			27,667,862	26,348,967 26,005,204
	NetOnNet AB, with which the Resurs Group conducted significant transactions during the period. Normal business transactions conducted during the period between the Resurs Group and these related companies are presented below. The Parent Company only conducted transactions with Group companies. Transaction costs in the table refer to market-rate compensation for the
	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
	2018	2017	2018	2017	2017
	-109,577	-116,418	-336,142	-346,786	-456,231
	-1,857	-1,830	-5,739	-4,952	-6,884
	9,008	9,260	27,476	27,625	36,846
	-10,610 -6,532	-10,068 -8,110	-32,582 -21,547	-34,633 -19,815	-46,024 -28,316
			30 Sep	31 Dec	30 Sep
G15. Related-party transactions Resurs Holding AB, corporate identity number 556898-2291, is owned at 30 September 2018 to 28.8 per cent by Waldakt AB and to 17.4 per cent by Cidron Semper S.A.R.L (Nordic Capital). Of the remaining owners, no single owner holds 20 per cent or more. There have not been any significant changes to key persons since publication of the 2017 annual report. Companies with significant influence through direct or indirect ownership of the Resurs Group also have controlling or significant influence of Ellos Group AB and Related-party transactions, significant influence SEK thousand Processing fees Fee & commission income Fee & commission expense General administrative expenses SEK thousand			2018	2017	2017
Other assets			6,448	9,194	6,765
			-872,062 -102,736	-1,325,083 -104,040	-1,228,414 -92,508
Deposits and borrowing from the public Other liabilities
Transactions with key persons	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
	2018	2017	2018	2017	2017
	-62	-113	-176	-329	-438
SEK thousand SEK thousand			30 Sep 2018	31 Dec 2017	30 Sep 2017

G15. Related-party transactions

Related-party transactions, significant influence

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Processing fees	-109,577	-116,418	-336,142	-346,786	-456,231
	-1,857	-1,830	-5,739	-4,952	-6,884
Fee & commission income	9,008	9,260	27,476	27,625	36,846
Fee & commission expense	-10,610	-10,068	-32,582	-34,633	-46,024
General administrative expenses	-6,532	-8,110	-21,547	-19,815	-28,316

SEK thousand	30 Sep 2018	31 Dec 2017	30 Sep 2017
Other assets	6,448	9,194	6,765
Deposits and borrowing from the public	-872,062	-1,325,083	-1,228,414
Other liabilities	-102,736	-104,040	-92,508

Transactions with key persons
SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
	-62	-113	-176	-329	-438

SEK thousand	30 Sep	31 Dec	30 Sep
	2018	2017	2017
Deposits and borrowing from the public	-40,552	-67,992	-73,669

G16. Financial instruments

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 loans Shares and participating interests				30 Sep 2018		31 Dec 2017		30 Sep 2017
				Carrying	Fair value	Carrying	Fair value	Carrying	Fair value
				amount		amount		amount
				66,902	66,902	61,539	61,539	62,657	62,657
				870,091	870,091	842,731	842,731	841,070	841,070
				3,214,228	3,214,228	2,794,283	2,794,283	3,000,937	3,000,937
				27,469,905	28,600,832	24,068,795	24,649,899	23,218,416	23,734,782
				2,259,655	2,259,655	1,735,266	1,735,266	1,869,127	1,869,127
				27,871	27,871	35,902	35,902	34,524	34,524
				78,104	78,104	76,368	76,368	68,218	68,218
Derivatives				65,668	65,668	33,577	33,577	37,221	37,221
Derivatives instruments hedge accounting						7,397	7,397
Other assets				93,962	93,962	101,064	101,064	90,347	90,347
Accrued income Total financial assets				26,867	26,867	32,277 34,173,253 35,304,180 29,789,199 30,370,303	32,277	51,423 29,273,940 29,790,306	51,423
Intangible assets				2,028,646		1,877,167		1,871,384
Tangible assets				55,930		39,954		39,961
Other non-financial assets				357,274		224,952		228,680
Total assets				36,615,103		31,931,272		31,413,965
SEK thousand				30 Sep 2018		31 Dec 2017		30 Sep 2017
				Carrying	Fair value	Carrying	Fair value	Carrying	Fair value
Liabilities				amount		amount		amount
Liabilities to credit institutions								1,900	1,900
Deposits and borrowing from the public				20,095,758	20,095,641	18,033,013	18,032,632	17,959,598	17,959,947
Derivatives				49,887	49,887	103,646	103,646	22,008	22,008
Derivatives instruments hedge accounting				32,036	32,036			2,902	2,902
Other liabilities				546,606	546,606	610,528	610,528	597,860	597,860
Accrued expenses				290,872	290,872	127,788	127,788	253,587	253,587
Issued securities				7,889,465	7,935,132	5,597,271	5,620,835	5,111,827	5,142,022
Subordinated debt				341,452	355,057	340,044	352,678	340,820	355,617
Total financial liabilities						29,246,076 29,305,231 24,812,290 24,848,107		24,290,502 24,335,843
Provisions				25,174		6,951		6,595
Other non-financial liabilities				875,831		923,201		884,115
Equity Total equity and liabilities				6,468,022 36,615,103		6,188,830 31,931,272		6,232,753 31,413,965
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		30 Sep 2018			31 Dec 2017			30 Sep 2017
	Level 1	Level 2	Level 3	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	870,091			842,731			841,070
	2,259,655			1,735,266			1,869,127
	27,871			35,902			34,524
	77,042		1,062	75,389		979	67,220		998
		65,668			33,577 7,397			37,221
					40,974	979	2,811,941	37,221	998
	3,234,659	65,668	1,062	2,689,288
		-49,887			-103,646			-22,008
		-32,036						-2,902
refinancing Bonds and other interest-bearing securities Subordinated loans Shares and participating interests Derivatives Derivatives instruments hedge accounting 1) Total Financial liabilities at fair value through profit or loss: Derivatives Derivatives instruments hedge accounting 1) Total	0	-81,923	0	0	-103,646	0	0	-24,910	0

SEK thousand	30 Sep 2018		31 Dec 2017		30 Sep 2017
	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
Liabilities
Liabilities to credit institutions					1,900	1,900
Deposits and borrowing from the public	20,095,758	20,095,641	18,033,013	18,032,632	17,959,598	17,959,947
Derivatives	49,887	49,887	103,646	103,646	22,008	22,008
Derivatives instruments hedge accounting	32,036	32,036			2,902	2,902
Other liabilities	546,606	546,606	610,528	610,528	597,860	597,860
Accrued expenses	290,872	290,872	127,788	127,788	253,587	253,587
Issued securities	7,889,465	7,935,132	5,597,271	5,620,835	5,111,827	5,142,022
Subordinated debt	341,452	355,057	340,044	352,678	340,820	355,617
Total financial liabilities			29,246,076 29,305,231 24,812,290 24,848,107		24,290,502 24,335,843
Provisions	25,174		6,951		6,595
Other non-financial liabilities	875,831		923,201		884,115
Equity	6,468,022		6,188,830		6,232,753
Total equity and liabilities	36,615,103		31,931,272		31,413,965

Financial assets and liabilities at fair value

SEK thousand		30 Sep 2018			31 Dec 2017			30 Sep 2017
	Level 1	Level 2	Level 3	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	870,091			842,731			841,070
Bonds and other interest-bearing securities	2,259,655			1,735,266			1,869,127
Subordinated loans	27,871			35,902			34,524
Shares and participating interests	77,042		1,062	75,389		979	67,220		998
Derivatives		65,668			33,577			37,221
Derivatives instruments hedge accounting 1)					7,397
Total	3,234,659	65,668	1,062	2,689,288	40,974	979	2,811,941	37,221	998
Financial liabilities at fair value through profit or loss:
Derivatives		-49,887			-103,646			-22,008
Derivatives instruments hedge accounting 1)		-32,036						-2,902
Total	0	-81,923	0	0	-103,646	0	0	-24,910	0

Financial instruments

Changes in level 3

Changes in level 3 SEK thousand Shares and participating interests Opening balance Exchange-rate fluctuations Closing balance Determination of fair value of financial instruments Level 1 Level 3 Listed prices (unadjusted) on active markets for identical assets or 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	Jan-Sep 2018 979 83 1,062	Jan-Dec 2017 1,039 -60 979	Jan-Sep 2017 1,039 -41 998
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 For issued securities (ABS), fair value is calculated by assuming that public is deemed to reflect fair value. 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 calculated cash flows at the estimated market interest rate instead of at the Fair value of subordinated debt is calculated based on valuation at the original effective interest rate. Fair value has been classified as level 2.
listing marketplace. Fair value has been classified as level 1. The carrying amount of current receivables and liabilities and variable rate Fair value of issued securities (MTN) is calculated based on the listing loans is deemed to reflect fair value. marketplace. Fair value has been classified as level 1.
Financial assets and liabilities that are offset or subject to netting agreements Derivative agreement has been made under the ISDA agreement. The Assets for the derivative agreements total to SEK 66 million (41), while amounts are not offset in the statement of financial position. Most of the liabilities total SEK 82 million (104). Collateral corresponding to SEK derivatives at 30 September 2018 were covered by the ISDA Credit 43 million (61) was provided and SEK 29 million (0) was received. The net Support Annex, which means that collateral is obtained and provided in effect on loans to credit institutions total SEK 14 million (61). the form of bank deposits between the parties.
G17. Earnings per share
Basic earnings per share, before dilution, is calculated by dividing the During January - September 2018, there were a total of 200,000,000 with a profit attributable to Parent Company shareholders by the weighted quotient value of SEK 0.005 (0.005). There is no dilution effect as of 30 average number of ordinary shares outstanding during the period. September 2018.
Jul-Sep Jul-Sep 2018 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Net profit for the period, SEK thousand 305,687 280,467	859,567	790,728	1,080,033
Average number of outstanding shares during the period 200,000,000 200,000,000 200,000,000 Earnings per share, SEK 1.53 1.40	4.30	200,000,000 200,000,000 3.95	5.40

Determination of fair value of financial instruments

Level 1

Level 2

Financial instruments measured at fair value for disclosure purposes

Level 3

Transfer between levels

Financial assets and liabilities that are offset or subject to netting agreements

G17. Earnings per share

	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Net profit for the period, SEK thousand	305,687	280,467	859,567	790,728	1,080,033
Average number of outstanding shares during the period		200,000,000 200,000,000 200,000,000		200,000,000 200,000,000
Earnings per share, SEK	1.53	1.40	4.30	3.95	5.40

PARENT COMPANY

Income statement

Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec 2018 2017 2018 2017 2017 9,358 7,767 21,308 15,220 20,050 9,358 7,767 21,308 15,220 20,050 -5,259 -3,763 -15,101 -12,806 -17,506 -8,529 -10,655 -19,714 -24,320 -32,695 -117 -57 -233 -276 -13,788 -14,535 -34,872 -37,359 -50,477 -4,430 -6,768 -13,564 -22,139 -30,427 330,000 459,999 660,000 251 -2 389 -2 -8 -19 -67 -314 -372 330,243 -21 460,321 -316 659,628 325,813 -6,789 446,757 -22,455 629,201 56,000 974 1,490 2,975 5,072 -4,885 326,787 -5,299 449,732 -17,383 680,316 Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec 2018 2017 2018 2017 2017 326,787 -5,299 449,732 -17,383 680,316 326,787 -5,299 449,732 -17,383 680,316 326,787 -5,299 449,732 -17,383 680,316	Income statement SEK thousand
	Net sales Total operating income Personnel expenses Other external expenses Depreciation, amortisation and impairment of non-current assets Total operating expenses Operating profit Earnings from participations in Group companies Other interest income and similar profit/loss items Interest expense and similar profit/loss items Total profit/loss from financial items Profit/loss after financial items Appropriations Tax on profit for the period Net profit for the period Statement of comprehensive income SEK thousand Net profit for the period Other comprehensive income that will be reclassified to profit or loss Comprehensive income for the period Attributable to Resurs Holding AB shareholders

Statement of comprehensive income

SEK thousand	Jul-Sep 2018	Jul-Sep 2017	Jan-Sep 2018	Jan-Sep 2017	Jan-Dec 2017
Net profit for the period	326,787	-5,299	449,732	-17,383	680,316
Other comprehensive income that will be reclassified to profit or loss
Comprehensive income for the period	326,787	-5,299	449,732	-17,383	680,316
Attributable to Resurs Holding AB shareholders	326,787	-5,299	449,732	-17,383	680,316

Balance sheet

Balance sheet SEK thousand Assets Non-current assets Property, plant & equipment Financial assets Participations in Group companies Total non-current assets Current assets Current receivables Receivables from Group companies Current tax assets Other current receivables Prepaid expenses and accrued income Total current receivables Cash and bank balances Total current assets TOTAL ASSETS Equity and liabilities Equity Restricted equity Share capital Non-restricted equity Share premium reserve Profit or loss brought forward	30 Sep 2018 2,053,390 2,053,390 341,237 886 773 614 343,510 167,015 510,525 2,563,915	31 Dec 2017 57 2,053,390 2,053,447 419,651 969 379 420,999 2,021 423,020	30 Sep 2017 100 2,053,390 2,053,490 7,966 7,353 257 543 16,119 9,133
			25,252 2,078,742
		2,476,467
	1,000	1,000	1,000
	1,785,613	1,785,613	2,073,934
	320,316		11,679
Net profit for the period	449,732	680,316	-17,383
Total non-restricted equity	2,555,661	2,465,929	2,068,230
Total equity	2,556,661	2,466,929	2,069,230
Provisions
Other provisions	342	261	225
Current liabilities
Trade payables	546	1,641	283
Liabilities to group companies	489	338	335
Current tax liabilities		3,694
Other current liabilities	1,811	531	1,501
Accrued expenses and deferred income	4,066	3,073	7,168
Total current liabilities	6,912	9,277	9,287
TOTAL EQUITY AND LIABILITIES	2,563,915	2,476,467	2,078,742

Statement of changes in equity

		RESURS HOLDING AB INTERIM REPORT JAN—SEP 2018
Statement of changes in equity
SEK thousand	Share capital	Share premium reserve	Retained earnings	Profit/loss for the period	Total equity
Initial equity at 1 January 2017	1,000	2,073,620	112,806	498,873	2,686,299
Owner transactions
Option premium received Dividends paid		314	-600,000		314 -600,000
Appropriation of profits according to resolution by Annual General Meeting Net profit for the period			498,873	-498,873 -17,383	0 -17,383
Equity at 30 September 2017	1,000	2,073,934	11,679	-17,383	2,069,230
Initial equity at 1 January 2017	1,000	2,073,620	112,806	498,873	2,686,299
Owner transactions
Option premium received		314			314
Dividends paid Dividends according to Extraordinary General Meeting		-288,321	-600,000 -11,679		-600,000 -300,000
Appropriation of profits according to resolution by Annual General Meeting			498,873	-498,873	0
Net profit for the year				680,316	680,316
Equity at 31 December 2017	1,000	1,785,613	0	680,316	2,466,929
Initial equity at 1 January 2018 Owner transactions	1,000	1,785,613	0	680,316	2,466,929
Dividends paid			-360,000		-360,000
Appropriation of profits according to resolution by Annual General Meeting			680,316	-680,316	0
Net profit for the period				449,732	449,732
The company has no pledged assets. Accourding to the Board's assessment, the company has no contingent liabilities.
For additional information, please contact:
Kenneth Nilsson, CEO, kenneth.nilsson@resurs.se; +46 42 382000 Peter Rosén, CFO, peter.rosen@resurs.se; +46 736 564934 Sofie Tarring, IR Officer, sofie.tarring@resurs.se; +46 736 443395
Resurs Holding AB
Ekslingan 9, Väla Norra Box 222 09
250 24 Helsingborg Phone: +46 42 382000 E-mail: resursholding@resurs.se www.resursholding.se

Pledged assets, contingent liabilities and commitments

For additional information, please contact:

Resurs Holding AB

THIS IS A TRANSLATION FROM THE SWEDISH ORIGINAL

Auditors' report of review of interim financial information

Resurs Holding AB, corporate identity number 556898-2291

Introduction

We have reviewed the condensed interim report for Resurs Holding AB as at September 30, 2018 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act for Credit Institutions and Securities Companies and for the parent company in accordance with the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act for Credit Institutions and Securities Companies regarding the group, and in accordance with the Swedish Annual Accounts Act regarding the parent company.

Helsingborg, November 5, 2018

Ernst & Young AB

Niklas Paulsson Authorized Public Accountant