Märkte & Kurse

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Original-Research: Multitude AG - from NuWays AG

14.11.2025 / 10:32 CET/CEST
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Classification of NuWays AG to Multitude AG

     Company Name:                Multitude AG
     ISIN:                        CH1398992755

     Reason for the research:     Update
     Recommendation:              BUY
     from:                        14.11.2025
     Target price:                EUR 11.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Frederik Jarchow / Julius Neittamo

Resilient Q3 Profitability // Convincing CMD; chg

  * EBT came in at a resilient EUR 7.1m

  * Partnership business was strong, Fee and Commission Income at EUR 4m

  * CMD 2025 offered a sound outlook

Yesterday, Multitude reported resilient Q3'25 results and presented, at the
2025 CMD, a strongoutlook for their business for the years to come. While
Consumer Banking's performance led to anoverall decrease in sales, bottom
line results were nevertheless lifted by the promising partnershipbusiness,
the strong performance of the Wholesale Banking segment and the
continuouslydecreasing impairment levels. Noteworthy, the company also
increased its stake in Lea Bank to29.47%. Here are the Q3'25 results in
further details:

Overall, sales decreased by 10% yoy to EUR 58.5m, well below our expectations
(eNuW EUR 66.7m).The sales per segment were as follows:

  * Consumer Banking: EUR 44m, -17% yoy (eNuW EUR 52.4m)

  * SME Banking: EUR 8.8m, +2% yoy (eNuW EUR 9m)

  * Wholesale Banking: EUR 5.7m, +62% yoy (eNuW EUR 5.3m)

The sales decline in Consumer Banking was mainly driven by two main factors:
1) the divestmentswithin the Consumer Banking segment and 2) adverse
macroeconomic conditions, most notably thelower interest rate environment.
For the Group, net interest income amounted to EUR 46.9m, belowour estimates
(eNuW EUR 55.7m).

EBT came in at EUR 7.1m 13.3% yoy, below our expectations (eNuW EUR 7.9m).
Despite the soft top-lineperformance, EBT was resilient however, aided
notably by the flourishing partnership business andthe continuously
declining impairment losses. In the partnership business, the net fee
andcommission income was a strong EUR 3.5m (eNuW EUR 2.7m) for Q3'25, which has
already addedsome EUR 8m for 9M'25. Impairment losses on an absolute and
relative level declined, coming inat EUR 19m
(eNuW EUR 20m), despite the loan book increasing, driven by an increasing
quality of loanbook paired with improved risk management.

Due to the company's divestments in Consumer Banking, we cut our Q4'25 sales
estimates for thatsegment and now project FY25 sales to come in at EUR 249.4m
(previously EUR 267.1m). We also slightlyadjust our estimates upwards for the
fee and commission income and Wholesale Banking sales, butremain cautious on
the impairment losses as impairments in Q4 are historically higher.
Following ourrevisions, our net profit estimate for FY25 projects Multitude
to still over-achieve the guidance,at EUR 26.5m (eNuW). As a reminder,
Multitude guides for this year a net profit between EUR 24 -26m.

Going forward the company will - as presented during yesterday´s very
convincing CMD - base its growth strategy on three pillars: Organic growth,
partnerships and M&A. Worth highlighting is inparticular Multitude's outlook
on the partnership business.

As a reminder: The partnership model is capital-light and highly scalable,
as Multitude does notoriginate loans but rather supports loan origination,
handles client onboarding, provides thetechnology, and delivers the
operating backbone for its partners. For instance, under a B2Cpartnership
model, a partner can sell Ferratum products under its own brand, while
Multitudesupplies the technology platform and underwriting capabilities. In
this arrangement, the partnerdoes the loan origination, manages the user
interface and customer relationships, while Multitudetakes care of the rest.

Multitude plans to deploy several partnership models across all three of its
business segments.This growth strategy is particularly attractive because it
allows Multitude to scale without taking onbalance sheet risk. Notably, the
fee and commission income business has grown from virtuallyzero last year to
a robust EUR 8m in 9M'25. In Q3'25 alone, net fee and commission income
reachedEUR 3.5m, significantly exceeding our expectations of EUR 2.7m (eNuW).
The strong and clear financialresults support the convincing growth story.

Despite a challenging macroeconomic environment, Multitude continues to
reinvent itself and findsinnovative profitability growth avenues through new
business models.

We were also convinced by the Wholesale Banking business, which is already
demonstratingstrong growth and profitability. In Q3'25, the segment grew 62%
yoy and contributed a robust EUR1.4m to group EBT. The segment is broadly
divided into two sub-segments: Secured Debt providescustom financing
solutions while Payment Services is seen to generate recurring fee
income.Under Secured Debt, Multitude focuses on overlooked deals that fall
outside the comfort zone oftraditional competitors. These customers often
have highly specific financing needs that requiretailor-made solutions,
where few banks are ready to step in. The Wholesale Banking segmentbenefits
from strong operating leverage and is therefore seen as a strong driver to
bottom-line.

Overall, the Multitude 2025 CMD offered a very positive note on the
company's strategy of smartprofitable growth. In our view, the primary
growth driver is the rapid expansion of the Partnershipbusiness, which
continues to expand profitability. Secondly, the strong performance of
theWholesale Banking segment further supports the group's earnings momentum,
combining fastrevenue growth with solid operating leverage. Third, the
company's continuously decreasingimpairment levels support improved
bottom-line, earnings stability and predictability. Finally,continued
progress in cost efficiency for the Group, driven by increased automation
and a leanerorganisational structure, is seen to further strengthen
profitability.

While we lower our PT to EUR 11 per share following the adjustments of our
estimates, we reiterate BUY and remain particularly convinced by the
Multitude story presented during 2025 CMD. Multitude hence remains a NuWays
Alpha pick.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=646bc4146cb2ae0fd0a54972a72fa27a
For additional information visit our website:
https://www.nuways-ag.com/research-feed

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
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2230122 14.11.2025 CET/CEST

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