Multitude: Q2 preview; partnership business to support profitability - NuWays AG Research
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Multitude: Q2 preview; partnership business to support profitability - NuWays AG Research

Multitude will report its Q2'26 results this Thursday. Consumer Banking interest income is expected at € 42.8m (-15% yoy, +4.5% qoq; eNuW), with the first sequential growth since Q4'24, though still impacted by divestments from FY25. SME Banking should post interest income of € 9.2m (+6% yoy, +4.2% qoq; eNuW), while Wholesale Banking is seen at € 7.8m (+70% yoy, +12.6% qoq; eNuW), driven by continued expansion of the secured debt book. The unit's loan portfolio was recently strengthened by a € 16m facility to UAB Nordecum, a Lithuanian digital consumer lender. Its contribution to Q2 should only be marginal, however, as the deal was announced on 17 June. At group level we expect interest income of € 59.8m (-6% yoy, +5% qoq; eNuW).

Multitude sees profitability to be H2-weighted. Our estimates would put H1'26 profitability at € 10.3m, making the € 30m guidance challenging, yet achievable, as three incremental drivers should build through H2: the Sortter consolidation, residual earn-outs from the FY25 divestments, and Wholesale Banking, where interest income grew 76% yoy in Q1'26 at a fraction of group cost of risk. We model net profit to land at € 29.3m (eNuW) for FY26. Mind you, Multitude has exceeded guidance in each of the last four years.

We make only minor adjustments to our model ahead of the report, which do not lead to any changes in our valuation. At € 5.30/share, the stock trades at FY26e P/E of 5.3x (adj. for perpetuals), which we regard as undemanding for a business generating ~19% RoTE with an increasingly capital-light revenue mix (eNuW). We confirm our BUY rating with a PT of € 11.
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