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Original-Research: Multitude AG - from NuWays AG

11.03.2026 / 09:00 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
Target price: EUR 11
Target price on sight of: 12 months
Last rating change:
Analyst: Julius Neittamo

Strong profitability expected, set to overachieve guidance

Multitude will report its Q4'25 preliminary results tomorrow. Here is what
to expect:

Q4'25 interest income is expected to fall 7% yoy to EUR62.8m, driven by
Consumer Banking, where interest income is projected to decline 14.7% yoy to
EUR45.9m (eNuW). The decrease is explained by segment divestments realised in
Q3'25 and by the lagged effects of a lower interest environment. As
mentioned in our previous note, top line is likely to continue facing
negative impacts through Q1'26, though a stable interest rate environment
going forward should provide a solid base for an improvement in FY26e. In
February, the ECB left its rates unchanged for a fifth consecutive time
while projecting headline inflation at 1.9% for 2026, slightly down from
2.1% in 2025. A Reuters poll conducted on 9-12 February showed a strong
consensus among economists, with 66 out of 74 expecting the deposit rate to
stay at 2% at least through 2026.

CapitalBox is seen increasing 1% yoy to EUR 9m (eNuW). The segment is also
impacted by the aforementioned prior rate cuts. Further, CapitalBox operates
in a rather soft market, as Eurostat data show business registrations up
+0.5% qoq versus +2.5% qoq for bankruptcy declarations, suggesting
macro-driven volume pressure on top of the group's deliberate de-risking.

Wholesale Banking, piloted in 2023, has quickly evolved into a strong growth
avenue, that is set to increase 60% yoy to EUR7.9m (eNuW), on the back of an
already strong performance in 9M'25 (+63.5% yoy). Here, Multitude targets
overlooked deals outside the expertise of traditional banks, serving
customers with specific, tailor-made financing needs.

The net fee and commission income is seen at EUR 4m, up 14.3% sequentially and
nearly doubled yoy. The partnership business is highly net profit margin
accretive, thanks to its capital-light and scalable setup. Mind you, the
partnership model beat our estimates every quarter in FY25, where
significant upside is still seen for FY26e with +39.7% yoy expected.

On cost base, impairment losses are seen to continue on their long-term
downward trend, declining 3.6% yoy to EUR 22m. Multitude's loan book quality
has been steadily improving over the years, as impairment levels have gone
down from 31.5% to 15.2% in a seven-year span, despite the loan book
increasing from EUR 468m to EUR 880m in the same timeframe.

Net profit is seen at EUR 6.3m, reflecting a margin of 10% (eNuW). While this
is a yoy decline from Q4'24 (EUR 7.5m), it is acknowledged that the comparable
quarter was very strong thanks to a more favorable interest rate
environment. The Q4'25 results should nevertheless position Multitude to
overachieve its full year net income guidance of EUR 24-26m, at EUR 26.5m.
Dividends of EUR0.31 per share are expected (vs. EUR0.44 last year incl. a EUR0.20
extraordinary component).

We do not make any changes ahead of the results and keep our BUY rating with
a PT of EUR 11, based on our residual income model.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=a5d7c015e7f9bc8141bacba98d0bd930
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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