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 € 7.1m
• Partnership business was strong, Fee and Commission Income at € 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 € 58.5m, well below our expectations (eNuW € 66.7m).The sales per segment were as follows:

• Consumer Banking: € 44m, -17% yoy (eNuW € 52.4m)
• SME Banking: € 8.8m, +2% yoy (eNuW € 9m)
• Wholesale Banking: € 5.7m, +62% yoy (eNuW € 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 € 46.9m, belowour estimates (eNuW € 55.7m).

EBT came in at € 7.1m 13.3% yoy, below our expectations (eNuW € 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 € 3.5m (eNuW € 2.7m) for Q3’25, which has already addedsome € 8m for 9M’25. Impairment losses on an absolute and relative level declined, coming inat € 19m
(eNuW € 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 € 249.4m (previously € 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 € 26.5m (eNuW). As a reminder, Multitude guides for this year a net profit between € 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 € 8m in 9M’25. In Q3’25 alone, net fee and commission income reached€ 3.5m, significantly exceeding our expectations of € 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 €1.4m 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 € 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: 251114multitude
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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