Resurs (RESURS) Q3 2024 earnings summary

Executive summary

• Operating income rose 3% year-over-year to SEK 2,681 million for Jan–Sep 2024, with net interest income up 5% to SEK 2,196 million.

• Operating profit declined 72% year-over-year to SEK 205 million, mainly due to higher credit losses and non-recurring costs.

• Credit loss ratio increased to 4.1% (2.8%), reflecting ongoing macroeconomic pressures, though Q3 saw sequential improvement.

• Earnings per share fell to SEK 0.54 (2.73), or SEK 1.16 excluding items affecting comparability.

• Ronneby UK Limited completed a public offer, now holding 87% of shares; a new Board was elected in October.

Financial highlights

• Lending to the public was SEK 39,254 million, down 1% year-over-year.

• Operating income for Q3 2024 increased 2% to SEK 902 million; net profit for Q3 was SEK 103 million.

• Items affecting comparability totaled SEK 66 million in Q3, mainly advisory costs for the public offer.

• Cost/income ratio before credit losses was 47.3% (40.8%), or 42.2% excluding non-recurring items.

• Return on equity (ROE) for Jan–Sep was 2.7% (9.8%), or 4.6% excluding non-recurring items.

Outlook and guidance

• Management expects gradual improvement in credit losses as macroeconomic conditions stabilize and credit restrictions take effect.

• Focus remains on strengthening risk-adjusted margins and maintaining a diversified funding base.