Original-Research: Multitude AG (von NuWays AG): BUY

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

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 EUR

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 EUR 41m or -21% yoy

(+13% beat vs eNuW). CapitalBox was back to growth with EUR 8.8m, up 3% yoy

(+9% beat vs eNuW). Wholesale Banking, the fast-growing profitable segment,

was very strong with EUR 6.9m, up 76% yoy (+17% beat vs eNuW).

For the group, net interest income was EUR 45.0m, down 17% yoy (+8% beat vs

eNuW). Interest expense was EUR 11.7m, up 13% yoy, higher than eNuW EUR 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 EUR 159m in Q1'26

alone to a total of EUR 1.19bn.

Net fee and commission income was EUR 4.7m, up a strong 141% yoy. This came in

slightly below our expectations for the quarter (eNuW: EUR 5.5m), though not a

cause for concern given the inherent q/q volatility in this line.

Share of results of associates was EUR 1.1m, up 108% yoy (vs eNuW EUR 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 EUR 17.2m, posting a net profit of EUR 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 EUR 18m, down 19% yoy, well below eNuW of

EUR 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 EUR 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 EUR 30m FY26 guidance, implying a meaningful H2

weighting. FY26e net profit is seen at EUR 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 EUR

11 based on residual income model and reiterate our BUY rating.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=828c50bef57d827632399c669b39e563

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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2331918 22.05.2026 CET/CEST

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