Original-Research: Multitude AG - from NuWays AG
Classification of NuWays AG to Multitude AG
Q1 miss on cost ramp up, but fundamentals remain intact Multitude released its Q1'26 results yesterday. Q1 displayed Multitude's momentum in the de-risking strategy, moving the business towards a more diversified, lower-risk earnings mix driven by Wholesale Banking, partnerships and fee-based income stream. While profitability was dragged by elevated funding and OPEX, the underlying business developped better than expected. Interest income came in stronger than anticipated. Interest income was € 56.7m, down 12% yoy (+13% beat vs eNuW). Per segment, Consumer Banking displayed q/q growth for the first time since Q4'24, with € 41m or -21% yoy (+13% beat vs eNuW). CapitalBox was back to growth with € 8.8m, up 3% yoy (+9% beat vs eNuW). Wholesale Banking, the fast-growing profitable segment, was very strong with € 6.9m, up 76% yoy (+17% beat vs eNuW). For the group, net interest income was € 45.0m, down 17% yoy (+8% beat vs eNuW). Interest expense was € 11.7m, up 13% yoy, higher than eNuW € 8.6m, driven by the full quarter contribution of the 2025 Tier 2 notes and aggregate higher deposit costs, as the deposit base grew by € 159m in Q1'26 alone to a total of € 1.19bn. Net fee and commission income was € 4.7m, up a strong 141% yoy. This came in slightly below our expectations for the quarter (eNuW: € 5.5m), though not a cause for concern given the inherent q/q volatility in this line. Share of results of associates was € 1.1m, up 108% yoy (vs eNuW € 0.6m), as Lea Bank and Sortter continued to perform well. Wednesday, Multitude announced increasing its stake in Sortter from 19.97% to a majority stake. Valuation and precise ownership numbers were not disclosed. In FY25, Sortter generated revenues of € 17.2m, posting a net profit of € 1.6m. Sortter has displayed consistent strong double digit growth with +69% sales CAGR between 2021-25. Sortter's financials and business model suggest significant operating leverage potential. Importantly, impairment losses were € 18m, down 19% yoy, well below eNuW of € 20.1m. The impairment loss ratio on the loan book ran at a 7.3% annualised, a continued improvement reflecting portfolio de-risking and Wholesale Banking's near-zero loss rate on its fully collateralised book. OPEX excl. impairments was noticeably elevated, with the cost-to-income ratio at 55% vs 45% in Q1'25, driven by the ramp-up of partnerships and Wholesale Banking, which Multitude sees as necessary investments to fuel growth. Net profit was € 4.4m, down 39% yoy and 20% below eNuW, with the shortfall largely attributable to higher than anticipated interest expense and OPEX. Multitude reiterated the € 30m FY26 guidance, implying a meaningful H2 weighting. FY26e net profit is seen at € 29.4m (eNuW). While the ramp-up of product portfolio is elevating the cost base, the fundamentals are developing better than expected. Thus, we keep our PT of € 11 based on residual income model and reiterate our BUY rating. You can download the research here: multitude-ag-2026-05-22-previewreview-en-f335f For additional information visit our website: https://www.nuways-ag.com/research Contact for questions: NuWays AG - Equity Research Web: www.nuways-ag.com Email: research@nuways-ag.com LinkedIn: https://www.linkedin.com/company/nuwaysag Adresse: Mittelweg 16-17, 20148 Hamburg, Germany ++++++++++ Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte. Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse. ++++++++++ The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. | ||||||||||||||||||
2331918 22.05.2026 CET/CEST
© 2026 EQS Group
