Multitude SE Reports 34.5% EBIT Growth in 2024
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Multitude SE Reports Significant Growth in 2024
Key takeaways:
Solid performance continues with a strong cash position.
Group revenue increases by 17.0% to EUR 128.8 million.
All business units delivering at least double-digit revenue growth.
On track for EBIT guidance of EUR 67.5 million (+50%) in 2024.
Multitude SE, a prominent European FinTech company, continues to demonstrate strong financial performance in the first half of 2024. Offering digital lending and online banking services to diverse clientele, including consumers, SMEs, and other fintech entities, the company recently published its financial results.
Overview of Financial Performance
In the first half of 2024, Multitude SE reported significant growth across various metrics. The company achieved an impressive EBIT increase of 34.5%, bringing the total to EUR 28.3 million, compared to EUR 21.0 million in the same period last year. Overall revenue surged by 17.0% to reach EUR 128.8 million, a notable rise from EUR 110.1 million in H1 2023. The net annual return (AR) also saw a substantial uptick of 25.2%, now totaling EUR 697.4 million.
Key Financial Figures
Highlights from the first half of 2024 include a notable increase in net interest income by 8.8%, which now stands at EUR 110.1 million. Despite a slight decline in consolidated net profit for the period to EUR 7.3 million, down from EUR 7.6 million in the previous year—largely attributed to one-off bond expenses—the overall growth trajectory of Multitude SE remains strong.
Strong Focus on Risk Management
One of the key aspects contributing to Multitude’s steady performance is its unwavering commitment to risk management. The company maintained stable assets totaling EUR 986.8 million, compared to EUR 990.9 million at the end of the previous fiscal year. Multitude has successfully managed its loan impairment ratio, currently at 3.8%, showcasing effective asset quality maintenance against industry benchmarks.
Capital and Funding Strategies
In the second quarter of 2024, Multitude issued a four-year unsecured bond worth EUR 80 million, effectively refinancing its existing bond maturing in 2025. This move not only reduced funding costs, evidenced by a 75 basis point drop in premium but also enhanced the company’s operational liquidity.
Robust Growth Across Business Units
Multitude’s business divisions exhibited remarkable growth individually. The newly launched Wholesale Banking unit marked a phenomenal 170.1% increase in NET AR to EUR 104 million in H1 2024. EBIT for this segment showed a significant upswing, rising from EUR 0.3 million in H1 2023 to EUR 2.4 million this year. Additionally, the Consumer Banking unit grew its lending volume by 8.3%, achieving a figure of EUR 462.8 million along with a 44.2% EBIT increase to EUR 28.4 million.
Growth in SME Banking
Moreover, the SME Banking sector observed a remarkable growth trajectory, with NET AR climbing by 43.1% to EUR 130.2 million. Although the swift growth necessitated increased loan loss provisions—slightly impacting earnings—the long-term growth potential of these divisions is well recognized within the company’s strategic outlook.
Outlook for 2024
Looking ahead, Multitude SE remains steadfast in its financial targets for 2024. The company aims to achieve an EBIT forecast of EUR 67.5 million, representing a 50% increase in earnings from the previous year. CEO Jorma Jokela expresses confidence in the potential for additional growth across all business units and emphasizes the importance of strategic planning for sustained profitability and risk management.
Commitment to Financial Stability
As Multitude SE progresses towards achieving its medium-term financial goals, it is clear that the diversification of its business activities has enabled a greater degree of resilience. The company continues to prioritize financial stability while actively reducing risks associated with its operations.
Contact Information
Lasse Mäkelä
Chief Strategy and IR Officer
Phone: +41 79 371 34 17
E-Mail: Lasse.makela@multitude.com
About Multitude SE
Multitude is a distinguished European FinTech company, focusing on digital lending and online banking services for various market segments, notably consumers and SMEs. Through its independent business units—Consumer Banking (Ferratum), SME Banking (CapitalBox), and Wholesale Banking (Multitude Bank)—the company successfully operates a Banking-as-a-Service Growth Platform, employing over 700 professionals in 25 countries. Multitude achieved a turnover of 230 million euros in 2023 and was founded in Finland in 2005.
Frequently Asked Questions
What is the current EBIT of Multitude SE?
The current EBIT of Multitude SE has increased to EUR 28.3 million in H1 2024, representing a growth of 34.5%.
How much did the revenue grow in H1 2024?
The revenue for Multitude SE grew by 17.0% to EUR 128.8 million in the first half of 2024.
What strategies has Multitude SE employed for risk management?
Multitude SE has maintained a low loan impairment ratio and focused on strategic asset management, contributing to stable financial performance.
What is the outlook for Multitude SE in 2024?
The company is on track to achieve its EBIT forecast of EUR 67.5 million in 2024, indicating a targeted 50% growth from the previous year.
What services does Multitude SE provide?
Multitude SE offers digital lending and online banking services through its divisions, serving consumers, SMEs, and fintechs.
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