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Original-Research: Multitude AG - from NuWays AG

19.05.2026 / 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

Multitude Q1 preview; soft quarter expected due to divestments

Multitude will report its Q1'26 results Thursday. Here is what to expect:

Consumer Banking interest income is expected down 30% yoy to EUR 36.3m (eNuW),
as the company divested its Micro Loan businesses in 2025 as part of a
deliberate de-risking strategy. Additionally, lagged effects of prior
rate-cutting cycles are seen to have continued weighing on net interest
compression. In March 2025, Sweden lowered the interest rate cap from
reference rate +40pp to reference rate +20pp for unsecured consumer credit,
likely further impacting yields in Q1'26.

CapitalBox interest income is seen at EUR 8.1m, down 6% yoy (eNuW). The latest
available Eurostat data, for Q4'25, showed EU-27 business registrations at
an index of 112.5, up 4.8% yoy, while bankruptcy declarations reached an
index of 195.9, up 11% yoy.

Wholesale Banking continues to be the standout growth driver, seen up 50%
yoy to EUR 5.9m (eNuW), building on the FY25 trajectory of +46% yoy. The
business unit targets overlooked institutional deals outside the expertise
of traditional banks, with a well-collateralised and scalable model.

The strong partnership business and good performance of associates should
offset the divestments and headwinds from softer market conditions. Net fee
and commission income is seen at EUR 5.5m, up 185% yoy and accelerating 5% qoq
(eNuW). The partnership model is highly net profit margin accretive given
its capital-light setup. Income from associates, led by Lea Bank and
Sortter, is expected to be EBT accretive with EUR 0.6m (eNuW), having
contributed EUR 3m in FY25 and EUR 1m in Q4'25 to net operating income. Note
that from Q1'26 onwards, income from associates will be reported below
operating income.

Given the above, net profit is seen at EUR 5.5m, a decline of 23.9% yoy and
reflecting a margin of 10.9% and (eNuW).

On the macro backdrop, the rate environment has shifted relative to
expectations earlier this year. The ECB held rates unchanged at its April
meeting, acknowledging that upside risks to inflation and downside risks to
growth have intensified, driven by the Iran conflict. A Reuters poll
conducted 8-13 May, showed 59 of 70 economists expect a rate hike to 2.25%
in June, while nearly half are expecting at least one further increase later
this year. A stagflationary scenario later this year would compress lending
volumes while increasing the risk of impairments, especially in the
high-yield lending market.

The path to FY26 guidance of EUR 30m is likely to be heavily H2-weighted. The
guidance remains achievable, as the effects from divestments progressively
ease, while Wholesale Banking and the partnership business are expected to
continue on their strong performance. Nevertheless, the abovementionned
macro backdrop remains a risk. We do not make any changes ahead of results
and keep our BUY rating with a PT of EUR 11.

You can download the research here:
https://eqs-cockpit.com/c/fncls.ssp?u=bc8abfaa1ba22f23fe355233a56de422
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
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2329510 19.05.2026 CET/CEST

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