Multitude SE Reports Strong Growth in 2024
Key takeaways:
The company continues to perform well, maintaining a robust cash position.
Group revenue has risen by 17.0%, reaching EUR 128.8 million.
All business units are reporting at least double-digit revenue growth.
On track to meet EBIT guidance of EUR 67.5 million (+50%) for 2024.
Multitude SE, a leading European FinTech firm, has shown impressive financial results in the first half of 2024. The company provides digital lending and online banking services to a wide range of clients, including consumers, small and medium-sized enterprises (SMEs), and other fintech companies. Recently, it released its financial results.
Financial Performance Overview
In the first half of 2024, Multitude SE experienced substantial growth across several key metrics. The company reported a remarkable EBIT increase of 34.5%, totaling EUR 28.3 million, compared to EUR 21.0 million during the same period last year. Overall revenue climbed 17.0%, reaching EUR 128.8 million, up from EUR 110.1 million in H1 2023. Additionally, the net annual return (AR) saw a significant rise of 25.2%, now amounting to EUR 697.4 million.
Key Financial Highlights
In the first half of 2024, net interest income increased by 8.8%, reaching EUR 110.1 million. Although there was a slight decline in consolidated net profit for the period, dropping to EUR 7.3 million from EUR 7.6 million the previous year—primarily due to one-off bond expenses—the overall growth trend for Multitude SE remains strong.
Commitment to Risk Management
A critical factor in Multitude’s consistent performance is its strong focus on risk management. The company maintained stable assets totaling EUR 986.8 million, slightly down from EUR 990.9 million at the end of the last fiscal year. Multitude has effectively managed its loan impairment ratio, which currently stands at 3.8%, demonstrating solid asset quality compared to industry standards.
Capital and Funding Strategies
In the second quarter of 2024, Multitude issued a four-year unsecured bond worth EUR 80 million, successfully refinancing its existing bond due in 2025. This strategic move not only lowered funding costs—evidenced by a 75 basis point reduction in premium—but also improved the company's operational liquidity.
Strong Growth Across Business Divisions
Each of Multitude’s business units has shown impressive growth. The newly established Wholesale Banking unit reported an extraordinary 170.1% increase in NET AR, reaching EUR 104 million in H1 2024. EBIT for this segment surged from EUR 0.3 million in H1 2023 to EUR 2.4 million this year. Furthermore, the Consumer Banking unit increased its lending volume by 8.3%, achieving EUR 462.8 million, along with a 44.2% EBIT rise to EUR 28.4 million.
Growth in SME Banking
Additionally, the SME Banking sector experienced notable growth, with NET AR rising by 43.1% to EUR 130.2 million. While this rapid growth required higher loan loss provisions—slightly affecting earnings—the long-term growth potential of these divisions is well recognized in the company’s strategic outlook.
2024 Outlook
As Multitude SE looks to the future, it remains committed to its financial targets for 2024. The company aims for an EBIT forecast of EUR 67.5 million, reflecting a 50% increase in earnings compared to the previous year. CEO Jorma Jokela expresses confidence in the potential for further growth across all business units and highlights the significance of strategic planning for ongoing profitability and risk management.
Focus on Financial Stability
As Multitude SE advances towards its medium-term financial objectives, it is evident that the diversification of its operations has provided a greater level of resilience. The company continues to prioritize financial stability while actively mitigating risks associated with its business activities.
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 specializing in digital lending and online banking services for various market segments, particularly 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 across 25 countries. In 2023, Multitude achieved a turnover of 230 million euros 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.
