Resurs (RESURS) Q2 2024 earnings summary

Executive summary

• Operating income rose 4% year-over-year, reaching SEK 899 million in Q2 and SEK 1,780 million for H1 2024, driven by strong Payment Solutions momentum and stable loan book growth.

• Operating profit dropped to SEK 59 million in Q2 and SEK 77 million for H1, mainly due to higher credit losses and SEK 73 million in non-recurring costs.

• Net profit for H1 2024 was SEK 54 million, with no interim dividend proposed due to low results.

• Board recommended shareholders accept a SEK 23.50/share public offer from CVC, Waldakt, or Ronneby UK Limited.

• Operating expenses rose 11% year-over-year in Q2, mainly from higher IT and personnel costs.

Financial highlights

• Operating income for Q2 2024 was SEK 899 million, up 4% year-over-year; net interest income for H1 was SEK 1,454 million, up 6%.

• Credit losses for Q2 were SEK 396 million, with a credit loss ratio of 4.0%; for H1, credit losses surged 55% to SEK 853 million, ratio at 4.3%.

• Operating expenses in H1 rose 20% to SEK 850 million, mainly due to IT and personnel.

• Cost/income ratio increased to 43.8% in Q2 and 47.8% for H1.

• Return on equity dropped to 2.0% (13.3%).

Outlook and guidance

• Gradual improvements expected as macroeconomic environment stabilizes, with focus on Payment Solutions growth and profitability in Consumer Loans.

• Efficiency programs and cost optimization expected to deliver SEK 80 million in annual savings from 2025.

• Strategic investments in IT and product development to continue.