Multitude will report its Q2'26 results this Thursday. Consumer Banking interest income is expected at € 42.8m (-15% yoy, +4.5% qoq; eNuW), with the first sequential growth since Q4'24, though still impacted by divestments from FY25. SME Banking should post interest income of € 9.2m (+6% yoy, +4.2% qoq; eNuW), while Wholesale Banking is seen at € 7.8m (+70% yoy, +12.6% qoq; eNuW), driven by continued expansion of the secured debt book. The unit's loan portfolio was recently strengthened by a € 16m facility to UAB Nordecum, a Lithuanian digital consumer lender. Its contribution to Q2 should only be marginal, however, as the deal was announced on 17 June. At group level we expect interest income of € 59.8m (-6% yoy, +5% qoq; eNuW).
The partnership & brokerage business is set to continue growing strongly. Fee and commission income is seen at € 5.9m (+97% yoy; eNuW), giving a total revenue of € 65.7m (-1% yoy, +7% qoq; eNuW), which would put the fee and commission income share at 9.0% of revenue (+4.4pp yoy; eNuW). Group net operating income should be at € 55.2m (+1% yoy; eNuW), where net fee and commission income (€ +2.9m yoy; eNuW) partially offsets the yoy decline of net interest income (€ -3.8m yoy; eNuW). Net operating income looks set to be further supported by results from associates; eNuW € 1.1m.
Mind you, Multitude increased its ownership in Sortter to a majority stake on May 20th, which should have been consolidated from that date. This is not yet reflected in our model, as neither the stake nor the closing date has been disclosed thus far. Sortter generated revenues of € 17.2m, posting a net profit of € 1.6m in FY25, thus the inorganic lift to the fee and commission income line can already be material in Q2'26. In Q1'26, Sortter contributed € 0.2m to results from associates.
Profitability should come in resilient, but dragged by increased costs. Cost income ratio jumped to 55% in Q1'26 (+10pp yoy, +7pp qoq), driven by the ramp-up of partnerships and Wholesale Banking, which Multitude sees as necessary investments to fuel growth. Cost income ratio is seen at 53% in Q2'26 (+5pp yoy, -2pp qoq; eNuW), while impairments are seen to continue on their downward trend with € 19.1m (-5.7% yoy; eNuW), as Multitude continues its de-risking strategy. Q2'26 EBT of € 6.8m is seen at -15% yoy (eNuW) with a margin of 10.3% (-1.7pp yoy; eNuW), while net profit should be € 5.9m (-15% yoy; eNuW), with a margin of 9.0% (-1.4pp yoy; eNuW).
Multitude sees profitability to be H2-weighted. Our estimates would put H1'26 profitability at € 10.3m, making the € 30m guidance challenging, yet achievable, as three incremental drivers should build through H2: the Sortter consolidation, residual earn-outs from the FY25 divestments, and Wholesale Banking, where interest income grew 76% yoy in Q1'26 at a fraction of group cost of risk. We model net profit to land at € 29.3m (eNuW) for FY26. Mind you, Multitude has exceeded guidance in each of the last four years.
We make only minor adjustments to our model ahead of the report, which do not lead to any changes in our valuation. At € 5.30/share, the stock trades at FY26e P/E of 5.3x (adj. for perpetuals), which we regard as undemanding for a business generating ~19% RoTE with an increasingly capital-light revenue mix (eNuW). We confirm our BUY rating with a PT of € 11.
ISIN: CH1398992755
