Multitude AG: Q2 Performance and Strategic Moves

Multitude AG reported its Q2'26 financial results, noting a mixed performance across different banking segments. Consumer Banking faced a decline with interest income at €41.2 million, showing an 18% year-on-year decrease. Conversely, SME and Wholesale Banking displayed growth, particularly in Wholesale with a 64% surge in interest income, credited to an expanding secured debt book.

The acquisition of Sortter significantly influenced the financials, contributing €2.9 million to fee and commission income. This addition boosted the group’s revenue mix, with total revenue reaching €65.3 million, slightly below expectations. Moreover, costs largely remained stable although marketing expenses saw an increase.

Strategically, Multitude focuses on de-risking its loan book, reflected in reduced impairments, pushing the cost of risk to a lower 6.8%. The Group confirmed a €12 target price and maintained a "BUY" recommendation, anticipating a growth trajectory, particularly from Sortter’s integration.