Ladies and gentlemen, welcome to the Hoist Finance Q1 report 2018. Today I am pleased to present CEO Klaus-Anders Nysteen, CFO Christer Johansson, and Head of Investor Relations, Michael Fischier . For the first half of this call, all participants will be in a listen-only mode, and afterwards there will be a question and answer session. Speakers, please begin.
Thank you. A very good morning to all of you. It's the Stockholm office in Hoist Finance. There is blue sky outside and the sun up above, a very nice day in Sweden, of course. This is Klaus-Anders Nysteen, I am the CEO. Today with me in the office I got a couple of colleagues. One is our CFO.
Morning. Christer Johansson. Michel Fischier, Head of Investor Relations. Good morning.
Yeah. These are the three people that you will talk to today or listen to. Before we start with today's presentation, I thought it could be useful just to quickly introduce ourselves because we are new to you at least in our current roles. My name is Klaus-Anders Nysteen. I am 60 days into the job now. Prior to joining Hoist Finance, I was CEO in Lindorff, one of the competitors of Hoist, now joined with Intrum as I am sure you all are aware of. Before joining Lindorff, I have almost 30 years of experience in different multinationals. 15 years as CFO and 15 years as CEO. Different industries. I have also been head of a retail bank in Norway. That's really me.
Thank you, Klaus-Anders. Christer Johansson here. I am, of course, very excited to take on the role as CFO for Hoist Finance. I've been with the company for more than four years. I know the company very well, and I feel strongly committed to our mission, and I look forward to working together with our management team in executing on our strategy.
Let's start then. We are of course very happy to present the Q1 numbers for you, and you see the agenda. I think it's page number three. Even though it's still early days for me, 60 days into the job, and I haven't even utilized my 100-day CEO program period, still, I thought it could be useful to share a few reflections at least on strategy. We will definitely revert later into the fall with a full Capital Markets Day. Anyways, a few initial observations around direction and strategy might be useful for you. Definitely also spend time with the numbers, and Christer will take us through all the details, and we will round things off with a bit of questions and answers. Yeah, 60 days into the job. I've been able to see all our markets, meet all our employees.
I met with several clients. To share with you a couple of observations then. First of all, I think we have really great people in Hoist Finance that makes me really happy and comfortable. There is lots of enthusiasm, lots of talent, and that's great. I also think we have a very good approach to collection. Having an amicable approach, holistic approach, where we put the best interests to our customers first, I think it's very important. Really happy to see that in all markets. I also see things that we can do, and of course that upside, potentially if we like, is definitely embedded in the way we think about strategy. On page number five, we have a couple of sort of illustrations that I think are very important.
When I meet with clients and our employees, I find it useful actually to think about our purpose and remind ourselves what our role is in society at large. I think definitely the starting point here is credit. We don't think of it very often, but almost behind every transaction out there is credit involved somehow. We all know, of course, that sometimes people actually default on their credit, on their loans. We are the specialists out there who are there to find the solution, a way forward, a way ahead for people. If I'm to summarize, I would say that for society, in a way, we are here to ensure that credit is available and actually affordable. That's one important element. Secondly, for our clients, we are here to ensure that they are being repaid.
If they wouldn't be repaid, why would they offer credit and at what cost? That's definitely important. Perhaps even more importantly, I find the fact that we engage with so many people every day, talking on the phone, interacting with real people and finding a way forward for them in a place and a time where they struggle with non-performing loans, I think is extremely meaningful. Helping people to get by and to get on with their lives is actually something I take a lot of pride in, and I think we should all do in terms of what we do as a company. Moving on then to the next page. We have, based on this, made one change in sort of the mission vision value statements.
We used to have a vision in Hoist Finance that we were the debt restructuring partner in Europe, that doesn't really capture the very essence of what we do. That's more related to our position in the industry. We have now, as a team, decided that our new vision for Hoist Finance is to helping people keep their commitments. I think that really captures, again, the very essence, the very core of what we do as a company. I take a lot of pride in that in actually finding a way forward. Our position is definitely the same. It is to be a trusted partner for the financial institutions in Europe. We do focus on financial institutions, the big banks in Europe, and that's really what we do the best.
Our mission is your trust, as that's been sort of the payoff for quite some time. The values is based on trust, transparency, results, uniqueness, skills, and teamwork. Definitely that is something that we keep close to our hearts and minds. Based on vision mission, going into the work that we did, I don't know, the last two weeks now related to strategy, our starting point was what we observe and see happening in the marketplace, in our industry. That's on page number seven. We do see three important trends. First one is growth, second is consolidation, and the third is the market maturation that we see. Quickly then on growth, we definitely see good growth in the years to come, estimated here to be double digits, and happy to see that, of course. Now the growth in different asset classes vary.
We see that "new asset classes," is growing faster than the old traditional core for Hoist Finance, which has been unsecured consumer. That also is important for us to have in mind given when we are outlining our strategy. We definitely see market consolidation. I wouldn't say every week, but at least more or less every quarter, there's smaller and larger deals happening in the industry. I think that today we have probably around 10, 15 names that have a pan-European presence out there. Five years from now, that list is going to be significantly shorter. I would guess that five years from now, probably around five names, more than 10, definitely. We want to be part of this consolidation. We want to be one of the consolidators in the marketplace.
Point number three here is market maturation. I think you all agree, you probably heard also other companies saying that the U.K. is one of the more mature markets in Europe. That's definitely how we see it too. The other markets are maturing quite rapidly. I think we this time included Spain as one of the more mature markets, actually. I think that's fine. I happen to like mature markets quite a lot. Those markets are quite mature, quite rational. We know the competitors. They behave in a way which we understand. That's all good. The sellers are typically quite sophisticated too. In a way, prices up, but also risks down. That's something we appreciate. That just means that the ordinary forces are at play, being most effective, most efficient, having a value proposition that works in those markets.
We like mature markets. That brings me to the next page number eight. That just briefly talks about our history as a company. We go back to 1994. We quite early on got our credit market license. We have been able over the years to diversify our funding. We did the listing in 2015, very important milestone in the life of the company. Now looking ahead, for us, I clearly see that size matters in individual markets. We definitely want to try to take the leading position in the prioritized markets and benefit from scale in the markets. We set ourselves out the ambition to be industry leader in terms of operational efficiency and digitalization. That's a clear and important trend and ambition for us. Last but not least, we can capitalize on having the industry-leading funding costs.
We definitely have lower costs than all our peers. That brings me then to slide number nine, which is now the cornerstones of our strategy. You can see the hexagon there. We will come back in more detail in the fall and outline to you our thinking more specifically for the strategy. A few key words, a few key takeaways perhaps now. On market leadership, I said that size matters. I think it's quite clear for us that the synergies are much stronger and more important within the markets than across the markets. Addressing the six largest markets in Europe, we actually address 80% of the market potential. For us, the prioritized markets would be the U.K., Italy, Germany, Poland, France, and Spain because those are the largest markets in Europe.
Again, we can address 80% of the potential in the market by being relevant and large in those markets. We focus on a few markets rather than many. We also specialize. We specialize for finance institutions. We don't do retail, we don't do utilities and telcos. We are regulated as a bank. We understand banks. We partner up with banks, so it makes a lot of sense for us to be specialized. As the industry matures and becomes more sophisticated and more professional, more and more is related to content. We need to move away from just talking about data, we're talking about knowledge. We want to put our knowledge to use and necessarily be more effective and efficient than competitors. It could also be more digital.
Our industry hasn't been at least leading within the financial sector. We can definitely step up, also just by the fact that we have a more focused model should help us in achieving our ambition in digital. I mentioned that we have unique funding. We have a very robust balance sheet. Christer will talk more to the balance sheet later. Having a cost of funding, which is two percentage points lower than the peer average, I think gives us a unique position in terms of having competitive advantage. With the One Hoist Finance initiative, we are taking important steps now to simplify our organization, to work in a more lean and effective way, and to harmonize our processes across markets and hence becoming more effective and more efficient.
That was just for you to get a glimpse under the hood and to understand a bit more around our thinking and strategy, then you know what to expect also when you see us again in person in our capital markets day. On the next page, we summarize the first quarter. We are quite pleased with the growth in this quarter. The Q1 portfolio acquisitions was the strongest Q1 ever for Hoist Finance. We saw 48% year-over-year growth. The last 12 months portfolio growth is now 27%. A good growth in the quarter. We have taken cautious, prudent, and disciplined steps into new asset classes. We have knowledge, we have skills in several asset classes already.
It's not like it's totally new territory. Having both performing and non-performing mortgage portfolios in the U.K., for instance, just demonstrates that we have the skills. We are building those skills internally. In terms of financial performance, our total operating income ended at SEK 684 million, which is a growth of 13%. The underlying profit before tax grew by 8%, adjusted for a performance fee that we had in the first quarter 2017. 13% top-line growth and 8% growth on the profit before tax line. The return on equity at 18%. Also very happy, I would say, with collection performance of 108%. A significant overperformance this quarter. I think this is actually the best number ever for the company. That's good. Outlook, we do see a very positive market out there. There is a healthy pipeline. There are deals to be made.
For us, becoming more digital and more effective and efficient is definitely top of our agenda. Growth, number one, and number two will be then becoming more efficient and effective. With that, I think I leave it to Christer to take us through the details in the quarter. Over to you and the financial update, Christer.
Thank you, Klaus-Anders. Starting on page 11, before turning to the financial development of the first quarter, I'd like to touch upon our new segment reporting and our adaptation to new reporting standards. Turning to page 12. As communicated, we have implemented a new organization in Hoist Finance, and this organization is based on both function and country. Since internal steering has been revised, there is also a need to update the external segment reporting, which was based on regions. The new segment reporting is based on country, and we will, in external presentation, group the smaller segments into one. In practice, this means that we will report financials for the U.K., Italy, Germany, and Poland separately. Together with a grouped segment containing Spain, France, Belgium, the Netherlands, and Greece.
In addition to this, we will present a sixth segment, Central Functions, which is very similar to the corresponding segment in previous years. This segment also contains our treasury function and our funding costs. Those funding costs are then allocated to the other segments through our internal funds transfer pricing model. The net of allocated and actual funding costs will thus end up as part of total operating income in the segment Central Functions. With that said, on our segment reporting, I'd like to turn to page number 13 to describe our adaptation to the new reporting standards. Before going into detail, let's reiterate our communication in the year-end report. The adaptation to new reporting standards does not have any significant impact on our balance sheet or on our capital adequacy. Neither does it change our expected profitability going forward.
However, as you may have seen in our previous analyst call, which is also available on our website, the adaptation has led to adjustments in how we present the income statement. New structure is aligned with IFRS 9. It is also aligned with the way we, as a regulated financial institution, present our statutory accounts. Consequently, we will no longer present a separate operating income statement. With that said, I'd like to make a few more detailed comments on the new structure. Amounts previously recorded on the line net revenue from acquired loan portfolios will now be split into two new lines. The first line is interest income from acquired loan portfolios, which is based on the effective interest rate. The effective interest rate is determined at the acquisition of the portfolio and is based on the expected future cash flows of the portfolio.
This line is not affected by revaluations, nor is it affected by shortfall or excess collections versus expectations. The second line is impairment gains and losses. On this line, over and under performance as well as revaluation is reported. For the first quarter of 2018, impairment gains and losses amounted to SEK 103 million, of which SEK 99 million is the result of collections coming in well ahead of projections for the period. As Klaus-Anders mentioned, this corresponds to a collection performance of 108%. The remaining part of impairment gains and losses, which amounted to SEK 4 million, is the net effect of changes to future collection projections. These SEK 4 million are what we would previously refer to as revaluations. It might be worthwhile pointing out that since previous periods are not restated, comparing net interest income with the previous year is not relevant.
Net operating income, however, is a like-for-like comparison and so is the expense side. As a final comment, please note that in our quarterly report, we provide a bridge to EBIT margin, which is still one of our financial targets. With that, I'd like to take you through the first quarter's financial development, turning to page number 14. Starting with net operating income, we show a healthy increase of 13% year-on-year. The performance is driven by growth in acquired loan portfolios, as well as the strong collection performance described on the previous page. Total operating expenses have increased by a similar rate. This level is elevated by a few short-term circumstances combined with a strategic agenda which we have outlined earlier in this call. I will get back to the cost development in more detail on the next page.
I should mention already at this point that the weakening of the Swedish krona against our key currencies, euro, sterling, and zloty, has inflated both income, cost, and balance sheet items by some 4%-5%. Net operating profit amounted to SEK 170 million, which corresponds to an increase of 8%. As previously mentioned, looking at profits from participation in joint ventures, these have decreased compared to the same period last year. The main reason being that in Q1 2017, we received a performance fee based on our solid work in aiding the Bank of Greece. As a consequence, profit before tax is unchanged compared to the same period last year, but adjusting for this performance fee, profit before tax is up nearly 8%. Return on equity of 18% in the first quarter is somewhat below our target of 20%.
Acquisitions in Q1, which is normally a slow quarter, was strong and amounted to SEK 904 million compared to SEK 611 million in the same period last year. When combined with the mentioned FX movement, this translates into a portfolio growth of 27% over the last 12 months, taking us up to a carrying value on acquired loan portfolios of SEK 16.1 billion. I'd now like to turn to slide 15 and discuss cost and operational efficiency development in more detail. As Klaus-Anders outlined in the beginning, our focus going forward is growth and operational efficiency. As shown on the previous page, total expenses increased by 15%, of which a third is the result of SEK depreciation. Starting with collection cost, on an FX-adjusted basis, two current circumstances stand out. Number one, collection performance has been strong, and this is in itself a cost driver, since some costs vary with collection. Number two, legal collection activities, which is part of collection cost, was above recent average.
This is largely due to the regulatory changes in the Polish market. To adapt to these changes, we have worked through our back book and increased our legal activities over the last three quarters. This particular risk mitigating effort is now nearing its end. When it comes to personnel and administrative expenses, the FX-adjusted increase should instead be understood in the context of two strategic considerations. Firstly, this is in part driven by our decision to expand into new asset classes, and we are indeed investing into people and routines to capture such growth opportunities. The recently acquired performing loan portfolio in the U.K. gives us comfort that this will indeed pay off.
Secondly, the cost increase is also driven by our decision to accelerate our digital transformation, and we are ramping up our competence to become the digital leader of our industry. As part of this, we are also reviewing some of our past investments, and we are confident that the higher ambition level will support our long-term operational efficiency. To be realistic, this will be realized gradually over time. With that, I'd like to turn to slide 16. On page 16, the segment presentation may be new, but the fact that we are well diversified across markets has, of course, not changed. As seen on the left-hand side, the U.K. and Italian markets are our two largest markets in terms of loan portfolio. Together with Poland, they are also the ones where we have seen the strongest growth over the last 12 months.
On the contrary, in Germany, growth has been modest. Looking at contribution to group operating income, Italy stands out with an increase of 59%. This reflects a combination of underlying growth and rather strong collection performance in Q1 2018. In the U.K., the income growth of only 9% is affected by positive portfolio valuations of SEK 14 million in Q1 2017. On the right-hand side, which illustrates distribution and development of profit before tax, I'd like to make two comments. Firstly, as you may remember, we have in December 2017, partly as a result of modest growth, initiated a consolidation of our two German sites into one. Although this is progressing as planned, it has not yet had any effect on the cost level in Germany. That statement will be largely true also for Q2.
Secondly, as already mentioned, the level of legal collection activities in Poland was high in Q1, one can note that since interest income is now calculated based purely on parameters related to gross collection, periods with high expenses will not be offset on the revenue side. Now let's turn to page 17. As illustrated, our funding cost is not only very competitive, it's actually improving further, and interest expense in relation to NPL book value is now well below 2%. That is, of course, the result of systematic efforts over many years with the launch of EUR deposits in Germany being one of the more recent milestones. During Q1, we have attracted another EUR 120 million in that offer, bringing the total up to EUR 220 million. We expect this attractive funding source to continue to grow, which also improves the currency matching between assets and liabilities.
Now let's turn to capital and liquidity ratios on page 18. With regards to capitalization, our CET1 ratio stands at 11.4, which is right in the middle of our targeted range. From this level, there is a significant buffer to regulatory requirements. As you can see in the second chart, our capital ratios have decreased slightly since year-end 2017. This is partly an effect of us having deployed capital into new loan portfolios and partly an effect of existing loan portfolios translating into a larger value as measured in SEK. The liquidity reserve remains strong and has increased by around SEK 200 million since the beginning of the year. All in all, we are well capitalized with a strong liquidity portfolio ready to capture growth going forward, that's a great way to hand over to Klaus-Anders again.
Well, thanks for that, Christer. If you then turn to page 20 in the presentation, it shouldn't come as a surprise what our summary and key takeaways and priorities are. Number 1, we definitely see a positive and healthy market out there. Lots of good transactions to be made, healthy and strong pipeline. We see that consolidation is a key trend, and also market saturation. Our priorities really are around growth and also becoming more operationally effective. That's takeaway number 2. Number 3 is our steps into adjacent asset classes. We have already capabilities and skills in other portfolios outside consumer unsecured, and we have taken important steps in Q1 and we will continue to take steps into these portfolios.
As the point 4, there is a key trend in our industry as well as in other industries that digital needs to be our key priority and so also for Hoist. With that summary and takeaways, we conclude our presentation and we will hand over to the operator.
Thank you. Ladies and gentlemen, if you have a question for the speakers, please press zero followed by the one on your telephone keypad. Once again, to register for a question, it's zero followed by the one. There will be a brief pause whilst questions are being registered. Thank you. Our first question comes from Viktor Lindeberg from Carnegie. Please go ahead. Your line is open.
Yes. Thank you. Good morning, guys. A couple of questions from my side, starting maybe from the top of the
This is to some extent driven by our Polish business and our Italian business. With regards to vintage, it's a mix.
All right. Okay. On these collections, I think it was almost SEK 100 million of extra collections. Can you estimate what incremental margin you have on these collections? Obviously, as you mentioned, there is a slight cost related to collecting as well, but I suppose it should be very nice margins coming in on this. Is that something you can estimate and help us with?
I'd say that, of course there is some level of cost here, but indeed, we're very happy to see such strong performance, and it supports our P&L. Your assumption is correct.
Yeah. Okay. Going forward, when you have provided the ERC curve, just to understand the housekeeping question on this, you don't assume any outperformance or is there an element of outperformance incorporated in your ERC profile?
No.
Perfect. I have a few more, I can get back in line if there are other analysts also having questions.
Thank you.
Thank you. Once again, it's 01 to register for a question. The next question comes from Adedapo Oguntade from Morgan Stanley. Please go ahead. Your line is open.
Yes, thanks for taking my question. Morning. My first question is just interested in the strong growth you are seeing in the U.K., given it's a mature market, how sustainable do you think this is?
Right. You're right. The U.K. is definitely a mature market. We're happy to see growth in that market. I think one important aspect we should have in mind is that in many ways, our biggest competitor isn't really the other competitors in the industry. It's the in-house collection that the banks are doing themselves. That's partially the driver we're going to see in many markets, also many mature markets that specialists are beating generalists in this space. As long as we continue to invest in knowledge, skills, IT, digital solutions, I think banks will continue to outsource and offload their underperforming loans to specialists like ourselves.
Are you seeing any benefits from the implementation of IFRS 9 from beginning of January? Are you seeing any benefits from that?
Hi, it's Christer Johansson here again. I think it's really too early to tell if this will have an impact. We've seen a strong market and that's great. If it's down to IFRS 9 or not, I think time will tell.
No, I agree. I've been able to, as I said, see a lot of clients lately. We cannot really quantify the effect of this at this point in time. It is one of the trends that may have a positive impact on volumes.
Just coming back to the U.K. on slide 16, the acquired loan portfolio in the U.K. increased by 36% year-over-year, but the net operating income is just 8% higher. Maybe if you just give some comments on that.
Yes. In the new segment reporting, we are disclosing fewer lines than before. What you should be aware of then that in the net operating income, we also include portfolio revaluations. It happened to be the case that in Q1 2017 in the U.K., we had a bit of positive portfolio revaluations, which we didn't have in Q1 2018. That will impact how you view the U.K. here.
Okay. What's the nature of the portfolio evaluation, if I may just add?
As we've communicated earlier, of course, we review all portfolio projections on an ongoing basis and revise them when needed, and this can be a mix of reasons. I don't remember the particular reason in Q1 2017 in the U.K.
One final one. I think in your release, you mentioned a forward flow agreement with an Italian bank. If you could give any details on that.
I don't think we will give a lot of detail on forward flows. I think we are really happy to see that forward flows is increasing. It creates a lot of clarity, transparency for us in terms of earnings visibility. It cements the relationship with the banks. It's a modern way for banks to deal with non-performing loans. We are happy to see that forward flows is increasing. I don't want to share any details on the Italian bank transaction specifically.
Okay. Thank you.
Thank you.
Great.
Thank you. The next question is a follow-up question from Viktor Lindeberg from Carnegie. Please go ahead. Your line is open.
Okay, thanks. Just coming back to the P&L, looking at the underlying amortization level in relation to gross collections. I think it was in Q4, 44%, and now in Q1 it's 47%. If we exclude outperformance, it's at 50%. Can you give us any hint or guidance on how we should think about this trend going forward? Was it a touch elevated in Q1, or is this the new base level you think, going forward? Has there been any effects coming in from you changing or adapting to new accounting rules in this number or this ratio?
Yes. I think as communicated earlier here, we do not expect that there will be any or there will not be an effect to expected profitability as a result of transition into new reporting standards. This is more of a case than presenting it a bit differently. With regards to guidance on amortization levels, we've not given that previously, the reason for not doing so is that this can vary a little bit depending on what kind of portfolios you acquire and how that plays out over time. It could be a little bit tricky to guide on that.
Yeah. Okay. Just to understand if I understood you correctly when you had the formal presentation today, you commented on that, or at least alluded to that with the new effective interest rate method focusing on gross collections. The amortization level, is that sort of affected by that? Let's say that you go for more legal activities in the U.K. or in Poland, then it will affect the OpEx and burden earnings. Whereas in the past you have sort of capitalized this or adjusted the amortization rate. Is that correctly understood?
That's very well described, Viktor. Thanks a lot. You're absolutely right. The way we account for revenues now post transitioning into IFRS 9 is it means that the revenue side will be disconnected, you can say, from the cost level.
Okay.
If you have a quarter with very high cost then it will burden the P&L. Of course, over time, we do expect that these things will even out.
Perfect. Absolutely. Looking more on the costs in the business now, you report an EBIT margin of 34%, it's down by 4 percentage points year-over-year. You have this medium-term target of 40%, I understand that you in 2018 had sort of a transition year when you reorganized Germany, for instance, and you have higher collections in Poland. Is it possible for you to quantify how much in Q1 related to having this elevated OpEx, just to get a sense of where you are underlying or where you think you are underlying?
As you say, there's quite a steep increase of expenses than overall. Roughly you can think of this as one third being FX related, one third being current circumstances or temporary circumstances, and one third being related to the strategic considerations that we've described. I think that's high level. That's how you should view it.
That's when you think year-over-year in increasing OpEx, just to understand.
Yeah.
Okay, perfect. I have two nitty-gritty questions then I'm done for today. First, maybe not so much questions for you, Klaus-Anders now, more nitty-gritty, unfortunately.
All right. Good.
The Q1 ratio, you mentioned it was affected by FX, you should have hedges mitigating this. Just to understand, was this a quarter where you did not get the full benefit of that, or is it a mismatch on the asset side versus the liability and equity side?
Yes. We do as you say, we do have a mismatch between the asset and liabilities on the FX side, and this is exactly what we are hedging. The way we have implemented our hedging strategy means that we are protecting our equity from effects due to FX changes. That strategy we've been applying over the last few years, and it's been working well. This, however, does not mean that you cannot have any impact on the capital adequacy, since the capital adequacy is also a function of the risk exposure amount. Even though equity is hedged, the risk exposure amount will increase as SEK is depreciated.
Okay.
The way we've dealt with that is that we've included a buffer for this in our capitalization targets or range. These are variations that we can sort of stand in that range where we operate. As you saw, we are in the middle of the range now.
Yeah
It's not a big surprise as such.
Yeah. I got it. It was the ratio that was affected, not the absolute level of the equity then.
Exactly.
On the final from my side, maybe for Michel. I was looking at the slide now, slide number seven, I think it was, on the market outlook. I think if I read it correctly, the unsecured deal value stands at SEK 3 billion or just below SEK 3 billion in 2017. Just looking back to the capital markets there, you provided a slide where you anticipated growth of 7% or so per year going forward, that suggests that you should be closer to SEK 3.5 billion or SEK 3.3 billion maybe in 2017. Just to get a better understanding, has the market not developed as favorably as you were hoping for? Is it a change of definition, or is there something else behind this somewhat lower number than what I would have thought?
It's always hard to make predictions, especially about the future, is a famous quote. The market has progressed according to our expectations. You can also see that in our growth, in our numbers. What we've mentioned previously, I think we mentioned it on our Q4 results, is that when looking at the market now, we see a continued healthy growth on unsecured consumer loans coming to market, and you should expect us to grow in that segment. We see that growth being outpaced by consumer secured, SME unsecured, and SME secured. What we have done and what we are doing is of course being prepared and well prepared to capture that growth going forward.
All right. That was all from me. Thank you so much.
Thank you, Viktor.
Thank you. There appear to be no further questions. I'll return the conference back to you, speakers.
All right. Thank you all. It was Christer's and my first presentation. We are happy to do this, of course, and we are enthusiastic about the prospects, and we think we have a good future ahead. Thanks for participating, and have a great day.