Resurs Holding (Hold, TP: SEK22.00) - Roll credits
In Q1, Resurs’s loan-loss ratio (LLR) rose to the top of its 30-year range of 1–3%, driven by a significant increase in delayed payments. In our view, this data point says little about Resurs’s long-term credit losses, but still hints to mid-term difficulties. In our view, the stock still lacks significant near-term catalysts, with little upside potential on the margin outlook. We have cut our 2023–2025e EPS by 4–15% on higher credit losses. Thus, we have cut our target price to SEK22 (26) and reiterate our HOLD.Resurs Holding, which operates through subsidiaries Resurs Bank and Solid Foersaekring, is engaged in retail finance in the Nordic region, offering payment solutions, consumer loans and niche insurance products. Co.'s operations are divided into three business segments: Payment Solutions; Consumer Loans and Insurance. Payment Solutions offers sales-supporting financing, payment and loyalty solutions to retail businesses as well as credit cards to the public. Consumer Loans focuses primarily on lending to consumers. Insurance offers insurance policies to consumers. As of Dec 31 2015, Co. had total assets of SEK25,565,420 and total deposits of SEK16,433,531.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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