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 € 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 € 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 € 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 € 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 € 0.6m (eNuW), having contributed € 3m in FY25 and € 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 € 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 € 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 € 11.

You can download the research here: multitude-ag-2026-05-19-previewreview-en-9726d
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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