EQS-News: Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation

EQS-News: Multitude SE

/ Schlagwort(e): Sonstiges

Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation (News mit Zusatzmaterial)

15.05.2024 / 08:00 CET/CEST

Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.

Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation

Helsinki, 15 May 2024 – Multitude SE, a listed European FinTech company, offering digital lending and online banking services to consumers, small and medium-sized businesses, and other FinTechs (ISIN: FI4000106299, WKN: A1W9NS) (“Multitude”, “Company” or “Group”) announces that in 2023 the Group changed its accounting policies, particularly regarding the presentation of the financial statements as well as corrected certain identified errors. These changes led to the presentation of the 2023 financial statements in the new format, including the restatement of the comparative statements for the year ended on 31 December 2022.

This document aims to provide an overview of these changes, their reasons, and the impact into comparative interim periods of Q1 2023, H1 2023, and 9M 2023 (see sections a) and b)).

In addition to these changes, Multitude restructured its organisational structure as of 1 January 2024. As a result, there is a restatement of comparative interim disclosures of reportable segments for the comparative periods of Q1 2023, H1 2023, 9M 2023 and full year 2023 (see section c).

a) Change in accounting policy - Adoption of new presentation:

In 2023, the Group undertook a strategic initiative to enhance the presentation of its financial statements, with the aim of providing reliable and more relevant information about the Group’s financial position and performance, aligning the presentation of primary statements with the common practice within the financial industry. As a result, the Group, starting with the financial year ended on 31 December 2023:

• changed the presentation of the statement of financial position from current / non-current classification to presentation based on the order of liquidity;
• has restructured the statement of profit or loss to present the net interest income, net fair value and foreign exchange gains and losses and other items;
• made corresponding changes in the presentation of the statement of cash flows, to align it with the financial industry and to include the cash flows of operating financial assets and financial liabilities in the cash flows from operating activities in line with IAS 7.

These adjustments need to be read in conjunction with the annual consolidated financial statements for 2023.

b) Correction of prior period errors:

The following corrections have been made:

1. Inclusion of collection costs in the calculation of expected credit losses

Previously, the Group recognised collection costs as incurred and presented them in general and administrative expense. Debt collection costs are considered incremental and directly attributable to the recovery of cash flows of the granted loans in the event of a default, and as such, they should rather be incorporated into the estimate of the expected credit losses. After the correction, debt collection costs are included in the calculation of expected credit losses by incorporating them in the net expected cash flows of loans to customers to which the collection costs directly relate to.

2. Classification of reminder fees as interest income

The Group has revised its treatment of reminder fees. Historically, these fees have been classified as fee and commission income in the statement of profit or loss and accounted for under IFRS 15. Reminder fees are a standard feature of loans to customers, and they are collected from the inception of the loan contract over the lifetime of loan similarly to interest. From the financial year ended 31 December 2023 onwards, the Group accounts for these fees in line with IFRS 9 and factors the reminder fees in the calculation of interest income by applying the effective interest method.

3. Scoring costs

Scoring costs consist of credit information, credit rating and similar checks conducted when a client applies for a loan or product and reaches a certain stage in this process. Historically, scoring costs have been recognised as incurred and presented in general and administrative expense. However, whenever such scoring costs relate to a loan which is granted to the client, the costs should be treated as a directly attributable transaction cost to such loan and should be included in the loan balance at inception and in the calculation of the effective interest rate of that loan, thus decreasing the interest income. This restatement only applies to scoring costs related to loans issued.

These changes, together with any potential impact in recognised deferred taxes, have been applied consistently, by adjusting the comparative period and the opening balances for the earliest period presented for each affected financial statement line item.

The following tables show the restatement of consolidated statements of financial position for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).

Restatement of condensed interim consolidated statement of financial position for Q1 2023

EUR ’000

Reported 31 March 2023

Adjustment amount

Adjustment number

Restated 31 March 2023

Old FSLI

New FSLI

ASSETS

ASSETS

Non-current assets

Deferred tax assets

Deferred tax assets

6,817

394

6

7,211

Loans to customers

Loans to customers

107,897

401,837

1, 5

509,734

Other non-current financial assets

Debt investments

32,061

(7,494)

3

24,567

Current assets

Loans to customers

Loans to customers

404,167

(404,167)

1

-

Other current financial assets

Other financial assets

17,185

5,275

2, 3

22,460

Prepaid expenses and other current assets

Prepaid expenses and other assets

1,004

2,218

2

3,222

Total assets

Total assets

838,527

(1,936)

-

836,591

EQUITY

EQUITY

Retained earnings

Retained earnings

78,561

(1,936)

4, 5

76,625

Total equity

Total equity

183,401

(1,936)

-

181,465

LIABILITIES

LIABILITIES

Non-current liabilities

Deposits from customers

Deposits from customers

123,639

460,767

6, 9

584,406

Lease liabilities

Lease liabilities

2,670

1,551

7

4,221

Current liabilities

Deposits from customers

Deposits from customers

457,118

(457,118)

6

-

Lease liabilities

Lease liabilities

1,551

(1,551)

7

-

Trade payables

Provisions, accruals and other liabilities

6,610

10,395

8, 9

17,005

Accruals and other current liabilities

Provisions, accruals and other liabilities

14,044

(14,044)

8

-

Total liabilities

Total liabilities

655,126

-

-

655,126

Total equity and liabilities

Total equity and liabilities

838,527

(1,936)

-

836,591

Description of adjustments to condensed interim consolidated statement of financial position for Q1 2023

Number

Amount
EUR ’000

Description

1

404,167

Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

2

2,218

Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.

3

7,494

Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.

4

394

An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.

5

2,330

An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.

6

457,118

Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

7

1,551

Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

8

14,044

Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.

9

3,649

Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

Restatement of condensed interim consolidated statement of financial position for H1 2023

EUR ’000

Reported 30 June 2023

Adjustment amount

Adjustment number

Restated 30 June 2023

Old FSLI

New FSLI

ASSETS

ASSETS

Non-current assets

Deferred tax assets

Deferred tax assets

6,536

394

5

6,930

Loans to customers

Loans to customers

109,750

408,794

1, 6

518,544

Other non-current financial assets

Debt investments

41,809

(3,424)

3, 4

38,385

Investments accounted for using the equity method

Investments accounted for using the equity method

1,012

16

3

1,028

Current assets

Loans to customers

Loans to customers

411,067

(411,067)

1

-

Other current financial assets

Other financial assets

12,029

4,662

2, 4

16,691

Prepaid expenses and other current assets

Prepaid expenses and other assets

4,411

(1,254)

2

3,157

Total assets

Total assets

826,512

(1,879)

824,633

EQUITY

EQUITY

Retained earnings

Retained earnings

78,226

(1,879)

5, 6

76,347

Total equity

Total equity

181,501

(1,879)

179,622

LIABILITIES

LIABILITIES

Non-current liabilities

Deposits from customers

Deposits from customers

149,206

423,922

7, 10

573,128

Lease liabilities

Lease liabilities

3,649

1,916

8

5,565

Current liabilities

Deposits from customers

Deposits from customers

418,214

(418,214)

7

-

Lease liabilities

Lease liabilities

1,916

(1,916)

8

-

Trade payables

Provisions, accruals and other liabilities

6,703

10,250

9, 10

16,953

Accruals and other current liabilities

Provisions, accruals and other liabilities

15,958

(15,958)

9

-

Total liabilities

Total liabilities

645,011

-

-

645,011

Total equity and liabilities

Total equity and liabilities

826,512

(1,879)

-

824,633

Description of adjustments to condensed interim consolidated statement of financial position for H1 2023

Number

Amount
EUR ’000

Description

1

411,067

Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

2

1,254

Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.

3

16

Reclassification of capitalised cost incurred to purchase investment in Sortter from Debt investment in Investment accounted via equity method

4

3,408

Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.

5

394

An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.

6

2,273

An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.

7

418,214

Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

8

1,916

Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

9

15,958

Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.

10

5,708

Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

Restatement of condensed interim consolidated statement of financial position for 9M 2023

EUR ’000

Reported 30 September 2023

Adjustment amount

Adjustment number

Restated 30 September 2023

Old FSLI

New FSLI

ASSETS

ASSETS

Non-current assets

Deferred tax assets

Deferred tax assets

6,348

394

6

6,742

Loans to customers

Loans to customers

111,193

434,831

1, 5

546,024

Other non-current financial assets

Debt investments

43,368

(3,046)

3

40,322

Current assets

Loans to customers

Loans to customers

437,046

(437,046)

1

-

Other current financial assets

Other financial assets

11,604

1,744

2, 3

13,348

Prepaid expenses and other current assets

Prepaid expenses and other assets

1,477

1,302

2

2,779

Total assets

Total assets

819,534

(1,821)

-

817,713

EQUITY

Equity

Retained earnings

Retained earnings

82,798

(1,821)

4, 5

80,977

Total equity

Total equity

184,368

(1,821)

-

182,547

LIABILITIES

LIABILITIES

Non-current liabilities

Deposits from customers

Deposits from customers

192,164

364,148

6, 9

556,312

Lease liabilities

Lease liabilities

3,353

1,942

7

5,295

Current liabilities

Deposits from customers

Deposits from customers

355,504

(355,504)

6

-

Lease liabilities

Lease liabilities

1,942

(1,942)

7

-

Trade payables

Provisions, accruals and other liabilities

10,615

10,953

8, 9

21,568

Accruals and other current liabilities

Provisions, accruals and other liabilities

19,597

(19,597)

8

-

Total liabilities

Total liabilities

635,167

-

-

635,167

Total equity and liabilities

Total equity and liabilities

819,534

(1,821)

-

817,713

Description of adjustments to condensed interim consolidated statement of financial position for 9M 2023

Number

Amount
EUR ’000

Description

1

437,046

Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

2

1,302

Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.

3

3,046

Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.

4

394

An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.

5

2,215

An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.

6

355,504

Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

7

1,942

Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.

8

19,597

Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.

9

8,644

Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

The following tables show the restatement of consolidated statements of profit or loss for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).

Restatement of condensed interim consolidated statement of profit or loss for Q1 2023

EUR ’000

Reported Q1 2023

Adjustment amount

Adjustment number

Restated Q1 2023

Old FSLI

New FSLI

Interest revenue

Interest income

53,248

988

2, 6, 7, 9

54,236

Fees

Fee and commission income

774

(772)

6

2

Impairment loss on loans to customers

Impairment loss on loans to customers

(19,817)

(1,062)

3, 4

(20,879)

Bank and lending costs

General and administrative expense

(3,044)

3,044

1

-

Selling and marketing expense

Selling and marketing expense

(3,309)

(61)

11

(3,370)

General and administrative expense

General and administrative expense

(6,160)

(2,881)

1, 3, 7, 8, 10, 11

(9,041)

Profit before interests and taxes (EBIT)

Profit before interest expense and taxes (EBIT)

9,607

(744)

8,863

Finance income

Interest income

320

(320)

2

-

Finance costs

Interest expense

(7,043)

3,130

5, 8, 9

(3,913)

Finance costs

Fair value and foreign exchange gains and losses

-

(1,918)

5

(1,918)

Profit before income tax

Profit before income tax

2,885

148

3,033

Income tax expense

Income tax expense

(662)

(90)

10

(752)

Profit for the period

Profit for the period

2,223

58

2,281

Description of adjustments to condensed interim consolidated statement of profit or loss for Q1 2023

Number

Amount
EUR ’000

Description

1

3,044

Bank and lending costs line item has been merged with general and administrative expenses.

2

320

Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.

3

1,120

Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.

4

58

Impairment loss adjustment due to change in ECL estimate for collection costs.

5

1,918

A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.

6

772

Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.

7

118

Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.

8

1,225

Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.

9

13

Finance cost has been renamed to interest expense and reclassified to net interest income.

10

90

Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense.

11

61

Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

Restatement of condensed interim consolidated statement of profit or loss for H1 2023

EUR ’000

Reported H1 2023

Adjustment amount

Adjustment number

Restated
H1 2023

Old FSLI

New FSLI

Interest revenue

Interest income

108,033

2,053

2, 6, 7, 9

110,086

Fees

Fee and commission income

1,495

(1,487)

6

8

Impairment loss on loans to customers

Impairment loss on loans to customers

(40,197)

(2,012)

3, 4

(42,209)

Bank and lending costs

General and administrative expense

(5,960)

5,960

1

-

Selling and marketing expense

Selling and marketing expense

(7,044)

(120)

11

(7,164)

General and administrative expense

General and administrative expense

(11,191)

(4,267)

1, 3, 7, 8, 10, 11

(15,458)

Profit before interests and taxes (EBIT)

Profit before interest expense and taxes (EBIT)

20,909

127

-

21,047

Finance income

Interest income

771

(771)

2

-

Finance costs

Interest expense

(12,346)

3,514

5, 8, 9

(8,832)

Finance costs

Fair value and foreign exchange gains and losses

-

(2,563)

5

(2,563)

Profit before income tax

Profit before income tax

9,346

307

-

9,653

Income tax expense

Income tax expense

(1,865)

(192)

10

(2,057)

Profit for the period

Profit for the period

7,481

115

-

7,596

Description of adjustments to condensed interim consolidated statement of profit or loss for H1 2023

Number

Amount
EUR ’000

Description

1

5,960

Bank and lending costs line item has been merged with general and administrative expenses.

2

771

Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.

3

2,127

Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.

4

115

Impairment loss adjustment due to change in ECL estimate for collection costs.

5

2,563

A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.

6

1,487

Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.

7

235

Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.

8

981

Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.

9

30

Finance cost has been renamed to interest expense and reclassified to net interest income.

10

192

Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense.

11

120

Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

Restatement of condensed interim consolidated statement of profit or loss for 9M 2023

EUR ’000

Reported 9M 2023

Adjustment amount

Adjustment number

Restated 9M 2023

Old FSLI

New FSLI

Interest revenue

Interest income

165,222

3,236

2, 6, 7, 9

168,458

Fees

Fee and commission income

2,171

(2,124)

6

47

Impairment loss on loans to customers

Impairment loss on loans to customers

(61,452)

(2,920)

3, 4

(64,372)

Bank and lending costs

General and administrative expense

(8,913)

8,913

1

-

Selling and marketing expense

Selling and marketing expense

(10,821)

(176)

11

(10,997)

General and administrative expense

General and administrative expense

(16,708)

(6,232)

1, 3, 7, 8, 10

(22,940)

Profit before interests and taxes (EBIT)

Profit before interest expense and taxes (EBIT)

32,470

697

33,201

Finance income

Interest income

1,428

(1,428)

2

-

Finance costs

Interest expense

(18,781)

4,574

5, 8, 9

(14,207)

Finance costs

Fair value and foreign exchange gains and losses

-

(3,670)

5

(3,670)

Profit before income tax

Profit before income tax

15,151

173

15,324

Income tax expense

Income tax expense

(2,796)

-

(2,796)

Profit for the period

Profit for the period

12,355

173

12,528

Description of adjustments to condensed interim consolidated statement of profit or loss for 9M 2023

Number

Amount EUR ’000

Description

1

8,913

Bank and lending costs line item has been merged with general and administrative expenses.

2

1,428

Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.

3

3,093

Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.

4

173

Impairment loss adjustment due to change in ECL estimate for collection costs.

5

3,670

A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.

6

2,124

Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.

7

353

Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.

8

940

Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.

9

36

Finance cost has been renamed to interest expense and reclassified to net interest income.

10

176

Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

The following tables show the restatement of consolidated statements of cash flows for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).

Restatement of condensed interim consolidated statement of cash flows for Q1 2023

EUR ’000

Reported Q1 2023

Adjustment amount

Adjustment number

Restated Q1 2023

Old FSLI

New FSLI

Profit for the year

Profit for the period

2,223

58

1

2,281

Adjustments for:

Adjustments for:

Impairments on loans

Impairment loss on loans to customers

19,817

1,063

1, 4, 2

20,879

Depreciation and amortisation

Depreciation and amortisation

3,416

265

3

3,681

Finace costs, net

Net interest income

5,505

(55,828)

6

(50,323)

Fair value and foreign exchange gains and losses

Fair value and foreign exchange gains and losses

1,918

5, 11

1,918

Tax on income from operations

Income tax expense

662

90

4

752

Other adjustments

Other adjustments

388

(265)

3

122

Working capital changes:

Changes in operating assets:

Increase (-) / Decrease (+) in current receivables

Increase (-) / Decrease (+) in Other Assets

(4,399)

(1,633)

12, 14, 16

(6,032)

Increase (-) / Decrease (+) in Loans to Customers

-

(21,151)

2, 10, 15, 17

(21,151)

Increase (-) / Decrease (+) in Other Financial Assets

-

(3,460)

18

(3,460)

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

-

994

8, 12

994

Changes in operating liabilities:

Changes in operating liabilities:

Deposits from customers

Increase (+) / decrease (-) in Deposits from customers

-

80,847

7, 14

80,847

Increase (+) / Decrease (-) in trade payables and other liabilities

Increase (+) / decrease (-) in Other liabilities

(3,339)

4,767

16, 17, 18

(1,429)

Interest paid

Interest paid

(2,623)

697

13

(1,926)

Interest received

Interest received

91

48,313

6, 13, 15

48,405

Income taxes paid

Income taxes paid

159

-

-

159

Movements in gross portfolio

(23,222)

23,222

10

-

Net cash from operating activities

Net cash from operating activities

(1,322)

79,896

-

78,575

Cash flows from investing activities

Cash flows from investing activities

Proceeds from sale of investments and other assets

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

1,233

(1,233)

8

-

Purchase of tangible and intangible assets

Purchase of tangible assets

-

(242)

9

(242)

Purchase of tangible and intangible assets

Purchase of intangible assets

(2,642)

242

9

(2,400)

Net cash used in investing activities

Net cash used in investing activities

(1,409)

(1,233)

26

(2,642)

Cash flows from financing activities

Cash flows from financing activities

Perpetual bonds interest

Repayment of perpetual bonds interest

(1,365)

-

-

(1,365)

Repayment of finance lease liabilities

Repayment of lease liabilities

(562)

-

-

(562)

Deposits from customers

Increase (+) / decrease (-) in Deposits from customers

79,204

(79,204)

7

-

Net cash used in financing activities

Net cash used in financing activities

77,277

(79,204)

7

(1,928)

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at beginning of the period

153,325

-

-

153,326

Exchange gains/(losses) on cash and cash equivalents

Exchange gains/(losses) on cash and cash equivalents

(701)

541

11

(160)

Net increase/(decrease) in cash and cash equivalents

Net increase/decrease in cash and cash equivalents

74,546

(541)

11

74,005

Cash and cash equivalents at the end of the period

Cash and cash equivalents at the end of the period

227,171

-

-

227,171

Description of adjustments to condensed interim consolidated statement of cash flows for Q1 2023

Number

Amount
EUR ’000

Description

1

58

Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.

2

1,210

Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.

3

265

Impairment on non-financial assets has been reclassified from other adjustments line.

4

90

An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.

5

2,459

Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss.

6

53,369

Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.

7

79,204

Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.

8

1,233

Reclassification of changes in derivative assets and liabilities.

9

242

Separation of purchase of tangible assets from purchase of intangible assets.

10

23,222

Reclassification of movement of loans to customers with subsequent renaming of line item.

11

541

Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.

12

239

Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.

13

697

Adjustment of net interest income with netting of interest received and interest paid line items.

14

1,643

Reclassification of change in prepayment related to issue costs to loans to customers.

15

4,359

Separation of movement on interest accrual from loans to customers.

16

229

Netting of other liabilities with other assets to match movement on the statement of financial position.

17

1,078

Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.

18

3,460

Netting of other liabilities to other financial assets to match movement on the statement of financial position.

Restatement of condensed interim consolidated statement of cash flows for H1 2023

EUR ’000

Reported H1 2023

Adjustment amount

Adjustment number

Restated H1 2023

Old FSLI

New FSLI

Profit for the year

Profit for the period

7,481

115

1

7,596

Adjustments for:

Adjustments for:

Impairments on loans

Impairment loss on loans to customers

40,197

2,013

1, 2

42,210

Depreciation and amortisation

Depreciation and amortisation

7,171

419

3

7,590

Finace costs, net

Net interest income

10,613

(111,867)

5, 6

(101,254)

Fair value and foreign exchange gains and losses

Fair value and foreign exchange gains and losses

2,563

5, 11

2,563

Tax on income from operations

Income tax expense

1,865

192

4

2,057

Other adjustments

Other adjustments

704

(419)

3

286

Working capital changes:

Changes in operating assets:

Movements in gross portfolio

Increase (-) / Decrease (+) in Loans to Customers

9,291

(60,582)

10, 12, 14, 16, 17

(51,291)

Increase (-) / Decrease (+) in Other Financial Assets

(17,279)

2, 4, 15, 17, 19

(17,277)

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

230

18

230

Increase (-) / Decrease (+) in Other Assets

(198)

8, 12

(198)

Changes in operating liabilities:

Changes in operating liabilities:

Deposits from customers

Increase (+) / decrease (-) in Deposits from customers

-

69,750

7, 14

69,750

Increase (+) / Decrease (-) in trade payables and other liabilities

Increase (+) / decrease (-) in Other liabilities

(2,288)

3,665

16, 18

1,377

Interest paid

Interest paid

(4,004)

(671)

13

(4,675)

Interest received

Interest received

457

99,209

6, 13, 15

99,666

Income taxes paid

Income taxes paid

(486)

-

-

(486)

Movements in gross portfolio

Increase (-) / Decrease (+) in Loans to Customers

(65,323)

65,323

10

-

Net cash from operating activities

Net cash from operating activities

5,678

52,463

-

58,143

Cash flows from investing activities

Cash flows from investing activities

Proceeds from sale of investments and other assets

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

(21)

21

8

-

Proceeds from sale of investments and other assets

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

(12,800)

12,800

19

-

Purchase of tangible and intangible assets

Purchase of tangible assets

-

146

9

146

Purchase of tangible and intangible assets

Purchase of intangible assets

(4,863)

(146)

9

(5,009)

Net cash used in investing activities

Net cash used in investing activities

(18,700)

12,821

45

(5,879)

Cash flows from financing activities

Cash flows from financing activities

Perpetual bonds interest

Repayment of perpetual bonds interest

(2,845)

(2,845)

Repayment of finance lease liabilities

Repayment of lease liabilities

(1,104)

-

-

(1,104)

Deposits from customers

Increase (+) / decrease (-) in Deposits from customers

66,002

(66,002)

7

-

Net cash used in financing activities

Net cash used in financing activities

57,589

(66,002)

7

(8,413)

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at beginning of the period

153,325

-

-

153,326

Exchange gains/(losses) on cash and cash equivalents

Exchange gains/(losses) on cash and cash equivalents

(1,186)

718

11

(469)

Net increase/(decrease) in cash and cash equivalents

Net increase/decrease in cash and cash equivalents

44,568

(718)

11

43,850

Cash and cash equivalents at the end of the period

Cash and cash equivalents at the end of the period

196,707

-

-

196,707

Description of adjustments to condensed interim consolidated statement of cash flows for H1 2023

Number

Amount
EUR ’000

Description

1

115

Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.

2

2,128

Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.

3

419

Impairment on non-financial assets has been reclassified from other adjustments line.

4

192

An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.

5

3,281

Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss.

6

108,586

Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.

7

66,002

Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.

8

21

Reclassification of changes in derivative assets and liabilities.

9

146

Separation of purchase of tangible assets from purchase of intangible assets.

10

65,323

Reclassification of movement of loans to customers with subsequent renaming of line item.

11

718

Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.

12

177

Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.

13

671

Adjustment of net interest income with netting of interest received and interest paid line items.

14

3,748

Reclassification of change in prepayment related to issue costs to loans to customers.

15

10,048

Separation of movement on interest accrual from loans to customers.

16

3,895

Netting of other liabilities with other assets to match movement on the statement of financial position.

17

12,207

Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.

18

230

Netting of other liabilities to other financial assets to match movement on the statement of financial position.

19

12,800

Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.

Restatement of condensed interim consolidated statement of cash flows for 9M 2023

EUR ’000

Reported 9M 2023

Adjustment Amount

Adjustment number

Restated 9M 2023

Old FSLI

New FSLI

Profit for the year

Profit for the period

12,356

172

1

12,528

Adjustments for:

Adjustments for:

Impairments on loans

Impairment loss on loans to customers

61,452

2,920

1, 2

64,372

Depreciation and amortisation

Depreciation and amortisation

11,582

(85)

3

11,497

Finance costs, net

Net interest income

16,435

(170,686)

5, 6

(154,251)

Fair value and foreign exchange gains and losses

Fair value and foreign exchange gains and losses

-

3,670

5, 11

3,670

Tax on income from operations

Income tax expense

2,492

304

4

2,796

Other adjustments

Other adjustments

347

85

3

432

Working capital changes:

Changes in operating assets:

Movements in gross portfolio

Increase (-) / Decrease (+) in Loans to Customers

20,805

(121,739)

10, 12, 14, 16, 17

(100,934)

Increase (-) / Decrease (+) in Other Financial Assets

-

(19,214)

2, 4, 15, 17, 19

(19,215)

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

-

819

18

819

Increase (-) / Decrease (+) in Other Assets

-

3,524

8, 12

3,524

Changes in operating liabilities:

Changes in operating liabilities:

Deposits from customers

Increase (+) / decrease (-) in Deposits from customers

-

52,935

7, 14

52,935

Increase (+) / Decrease (-) in trade payables and other liabilities

Increase (+) / decrease (-) in Other liabilities

(3,034)

9,025

16, 18

5,991

Interest paid

Interest paid

(7,545)

(83)

13

(7,628)

Interest received

Interest received

819

158,340

6, 13, 15

159,159

Income taxes paid

Income taxes paid

(547)

(547)

Movements in gross portfolio

Increase (-) / Decrease (+) in Loans to Customers

(115,421)

115,421

10

-

Net cash from operating activities

Net cash from operating activities

(259)

35,408

35,149

Cash flows from investing activities

Cash flows from investing activities

Proceeds from sale of investments and other assets

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

4,774

(4,774)

8

-

Proceeds from sale of investments and other assets

Increase (-) / Decrease (+) in Derivative Financial Instruments (net)

(14,600)

14,600

19

-

Purchase of tangible and intangible assets

Purchase of tangible assets

-

(126)

9

(126)

Purchase of tangible and intangible assets

Purchase of intangible assets

(8,036)

126

9

(7,910)

Net cash used in investing activities

Net cash used in investing activities

(18,879)

9,826

45

(9,052)

Cash flows from financing activities

Cash flows from financing activities

Perpetual bonds interest

Repayment of perpetual bonds interest

(4,426)

-

-

(4,426)

Repayment of finance lease liabilities

Repayment of lease liabilities

(1,802)

-

-

(1,802)

Deposits from customers

Increase (+) / decrease (-) in Deposits from customers

46,316

(46,316)

7

-

Net cash used in financing activities

Net cash used in financing activities

34,232

(46,316)

7

(12,084)

Cash and cash equivalents at beginning of the period

Cash and cash equivalents at beginning of the period

153,326

-

-

153,326

Exchange gains/(losses) on cash and cash equivalents

Exchange gains/(losses) on cash and cash equivalents

(1,380)

1,082

11

(298)

Net increase/(decrease) in cash and cash equivalents

Net increase/decrease in cash and cash equivalents

15,094

(1,082)

11

14,012

Cash and cash equivalents at the end of the period

Cash and cash equivalents at the end of the period

167,040

-

-

167,040

Description of adjustments to condensed interim consolidated statement of cash flows for 9M 2023

Number

Amount
EUR ’000

Description

1

172

Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.

2

3,092

Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.

3

85

Impairment on non-financial assets has been reclassified from other adjustments line.

4

304

An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.

5

4,752

Finance cost, net has been split between net interest income and fair values and foreign exchange gain or loss in the statement of profit or loss.

6

165,934

Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.

7

46,316

Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.

8

4,774

Reclassification of changes in derivative assets and liabilities.

9

126

Separation of purchase of tangible assets from purchase of intangible assets.

10

115,421

Reclassification of movement of loans to customers with subsequent renaming of line item.

11

1,082

Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.

12

1,250

Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.

13

83

Adjustment of net interest income with netting of interest received and interest paid line items.

14

6,619

Reclassification of change in prepayment related to issue costs to loans to customers.

15

7,677

Separation of movement on interest accrual from loans to customers.

16

9,844

Netting of other liabilities with other assets to match movement on the statement of financial position.

17

8,895

Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.

18

819

Netting of other liabilities to other financial assets to match movement on the statement of financial position.

19

14,600

Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.

c) Changes in organisational structure

In November 2023, Multitude announced plans to improve its organisational structure and introduce a new business unit, Wholesale banking. This was done by reorganising part of the SweepBank business. Operational since January 1, 2024, the new business unit is active under the Multitude Bank brand and offers two products: Secured Debt and a Payment Solution.

Simultaneously, in its financial reports, the Group renamed the Ferratum business unit to the Consumer banking business unit while keeping the brand Ferratum. CapitalBox’s business unit was renamed SME banking, keeping CapitalBox as the brand name. The reorganisation led to the reallocation of revenues, direct expenses and receivables of Prime Loans to Ferratum, Sales Finance to CapitalBox and the redistribution of overhead costs among the three business units. These changes have been incorporated into the segment reporting, and the financial results of business units for the comparative periods have been restated to ensure comparability.

The following tables show the restatement of profit or loss disclosure of operating and reportable segments for interim periods of Q1 2023, H1 2023, 9M 2023 and full year 2023 due to the change in accounting policy, amendment of prior period error and change in organisational structure.

Restatement of operating and reportable segments for Q1 2023

Old FSLI

New FSLI

Reported Ferratum Q1 2023

Restatement amount

Restatement number

Restated Consumer banking Q1 2023

Reported Capital Box Q1 2023

Restatement amount

Restatement number

Restated SME banking Q1 2023

Reported Sweep Bank Q1 2023

Restatement amount

Restatement number

Restated Wholesale banking Q1 2023

Interest revenue

Interest income

43,377

4,537

9, 16, 19, 25, 30

47,913

5,475

45

17, 20

5,521

4,397

(3,595)

18, 21, 30

801

Servicing fee revenue

Fee and commission income

754

(752)

9, 31

2

-

-

-

-

20

(20)

31

-

Impairment loss on loans to customers

Impairment loss on loans to customers

(15,467)

(4,593)

3, 13, 32

(20,060)

(786)

(30)

4, 14

(816)

(3,564)

3,562

15, 32, 33

(3)

Bank and lending costs

General and administrative expense

(2,548)

2,548

6

-

(281)

281

7

-

(215)

215

8

-

Personnel expense

Personnel expense

(5,172)

(1,233)

34

(6,405)

(1,442)

(223)

35

(1,665)

(1,788)

1,456

34, 35

(332)

Selling and marketing expense

Selling and marketing expense

(2,536)

(198)

22, 36

(2,734)

(606)

(4)

23, 37

(610)

(167)

141

24, 36, 37

(26)

General and administrative expense

General and administrative expense

(3,924)

(3,429)

5, 6, 10, 13, 16, 22, 38

(7,353)

(851)

(425)

7, 11, 14, 17, 23, 39

(1,275)

(1,385)

973

8, 12, 15, 18, 24, 38, 39

(412)

Depreciation and amortisation

Depreciation and amortisation

(1,949)

(1,469)

40

(3,418)

(198)

(42)

41

(240)

(1,534)

1,511

40, 41

(23)

Other income, net

Other income

(2)

31

26, 42

29

-

(6)

27, 43

(6)

-

(4)

42, 43

(5)

Other income, net

Other expense

-

(19)

26

(19)

-

(2)

27

(2)

-

-

-

-

Profit (loss) before interests and taxes (‘EBIT’)

Profit before interest expense and taxes (EBIT)

12,533

(4,577)

-

7,955

1,311

(406)

907

(4,236)

4,238

-

-

Allocated finance costs, net

Interest expense

(3,096)

169

10, 19, 29, 45

(2,927)

(953)

101

11, 20, 29, 45

(853)

(1,252)

1,119

12, 21, 44, 45

(133)

Unallocated foreign exchange losses, net

Fair value and foreign exchange gains and losses

-

(1,579)

1, 25, 29

(1,579)

-

(339)

2, 29

(339)

-

-

-

-

Profit before income taxes

Profit before income tax

9,437

(5,987)

-

3,450

358

(644)

-

(285)

(5,488)

5,357

-

(133)

Description of adjustments to operating and reportable segments for Q1 2023

Number

Amount
EUR ’000

Description

1

1,171

Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.

2

251

Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.

3

35

Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.

4

23

Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

5

90

Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.

6

2,548

Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.

7

281

Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.

8

215

Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.

9

772

Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.

10

715

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.

11

220

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.

12

289

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.

13

874

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.

14

44

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

15

201

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.

16

96

Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.

17

12

Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

18

10

Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.

19

187

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.

20

58

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.

21

76

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.

22

47

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.

23

11

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.

24

3

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.

25

13

Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.

26

19

Gross up of other income and expense previously reported at net value in Ferratum business unit.

27

2

Gross up of other income and expense previously reported at net value in CapitalBox business unit.

28

395

Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.

29

88

Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.

30

3,661

Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.

31

20

Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.

32

3,754

Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

33

9

Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

34

1,233

Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

35

223

Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.

36

151

Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

37

7

Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

38

1,272

Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

39

9

Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

40

1,469

Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

41

42

Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

42

12

Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

43

8

Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

44

755

Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

45

150

Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

Restatement of operating and reportable segments for H1 2023

Old FSLI

New FSLI

Reported Ferratum H1 2023

Restatement amount

Restatement number

Restated Consumer banking H1 2023

Reported Capital Box H1 2023

Restatement amount

Restatement number

Restated SME banking H1 2023

Reported Sweep Bank H1 2023

Restatement amount

Restatement number

Restated Wholesale banking H1 2023

Interest revenue

Interest income

87,710

9,387

9, 16, 19, 25, 30

97,097

11,000

165

17, 20, 47

11,166

9,322

(7,500)

18, 21, 30, 47

1,823

Servicing fee revenue

Fee and commission income

1,449

(1,442)

9, 31

8

-

-

-

-

45

(45)

31

-

Impairment loss on loans to customers

Impairment loss on loans to customers

(29,076)

(10,667)

3, 13, 32

(39,742)

(2,413)

(50)

4, 14

(2,462)

(8,709)

8,704

15, 32, 33

(5)

Bank and lending costs

General and administrative expense

(4,916)

4,916

6

-

(549)

549

7

-

(495)

495

8

-

Personnel expense

Personnel expense

(10,385)

(2,319)

34

(12,704)

(2,803)

(601)

35

(3,404)

(3,604)

2,920

34, 35

(683)

Selling and marketing expense

Selling and marketing expense

(5,311)

(396)

22, 36

(5,707)

(1,402)

(14)

23, 37

(1,416)

(331)

290

24, 36, 37

(41)

General and administrative expense

General and administrative expense

(7,280)

(5,137)

5, 6, 10, 13, 16, 22, 38

(12,417)

(1,458)

(852)

7, 11, 14, 17, 23, 39

(2,310)

(2,454)

1,723

8, 12, 15, 18, 24, 38, 39

(731)

Depreciation and amortisation

Depreciation and amortisation

(4,432)

(2,588)

40

(7,020)

(438)

(82)

41

(520)

(2,719)

2,670

40, 41

(50)

Other income, net

Other income

164

8

26, 42

172

(5)

17

27, 43

12

(4)

15

42, 43

11

Other income, net

Other expense

-

-

26

-

-

(40)

27

(40)

-

-

-

-

Not allocated

Profit (loss) for the period from investment in associates

-

-

-

-

-

-

-

-

-

12

46

12

Profit (loss) before interests and taxes (‘EBIT’)

Profit before interest expense and taxes (EBIT)

27,923

(8,238)

-

19,686

1,932

(908)

-

1,027

(8,949)

9,285

-

335

Allocated finance costs, net

Interest expense

(5,500)

(1,115)

10, 19, 29, 45

(6,615)

(1,638)

(223)

11, 20, 29, 45

(1,862)

(2,198)

1,842

12, 21, 44, 45

(355)

Unallocated foreign exchange losses, net

Fair value and foreign exchange gains and losses

-

(2,104)

1, 25, 29

(2,104)

-

(459)

2, 29

(459)

-

-

-

-

Profit before income taxes

Profit before income tax

22,423

(11,457)

-

10,967

294

(1,590)

-

(1,293)

(11,147)

11,127

-

(20)

Description of adjustments to operating and reportable segments for H1 2023

Number

Amount, EUR ’000

Description

1

1,838

Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.

2

401

Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.

3

69

Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.

4

46

Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

5

192

Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.

6

4,916

Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.

7

549

Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.

8

495

Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.

9

1,487

Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.

10

638

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.

11

128

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.

12

215

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.

13

1,539

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.

14

128

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

15

461

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.

16

191

Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.

17

24

Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

18

20

Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.

19

454

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.

20

135

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.

21

182

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.

22

90

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.

23

24

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.

24

6

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.

25

30

Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.

26

-

Gross up of other income and expense previously reported at net value in Ferratum business unit.

27

40

Gross up of other income and expense previously reported at net value in CapitalBox business unit.

28

236

Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.

29

58

Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.

30

7,607

Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.

31

45

Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.

32

9,197

Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

33

32

Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

34

2,319

Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

35

601

Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.

36

306

Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

37

10

Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

38

1,595

Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

39

351

Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

40

2,588

Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

41

82

Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

42

8

Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

43

23

Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

44

1,535

Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

45

274

Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

46

12

Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy.

47

54

Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.

Restatement of operating and reportable segments for 9M 2023

Old FSLI

New FSLI

Reported Ferratum 9M 2023

Restatement amount

Restatement number

Restated Consumer banking 9M 2023

Reported Capital Box 9M 2023

Restatement amount

Restatement number

Restated SME banking 9M 2023

Reported Sweep Bank 9M 2023

Restatement amount

Restatement number

Restated Wholesale banking 9M 2023

Interest revenue

Interest income

133,881

14,304

9, 16, 19, 25, 30

148,185

16,771

290

17, 20, 47

17,061

14,569

(11,358)

18, 21, 30, 47

3,211

Servicing fee revenue

Fee and commission income

2,105

(2,057)

9, 31

47

-

-

-

-

67

(67)

31

-

Impairment loss on loans to customers

Impairment loss on loans to customers

(44,076)

(15,832)

3, 13, 32

(59,908)

(4,408)

(51)

4, 14

(4,459)

(12,968)

12,962

15, 32, 33

(5)

Bank and lending costs

General and administrative expense

(7,323)

7,323

6

-

(793)

793

7

-

(797)

797

8

-

Personnel expense

Personnel expense

(15,560)

(3,360)

34

(18,920)

(4,242)

(890)

35

(5,132)

(5,395)

4,250

34, 35

(1,145)

Selling and marketing expense

Selling and marketing expense

(8,213)

(517)

22, 36

(8,730)

(2,205)

(17)

23, 37

(2,221)

(404)

357

24, 36, 37

(46)

General and administrative expense

General and administrative expense

(10,837)

(7,583)

5, 6, 10, 13, 16, 22, 38

(18,419)

(2,196)

(1,227)

7, 11, 14, 17, 23, 39

(3,422)

(3,675)

2,579

8, 12, 15, 18, 24, 38, 39

(1,098)

Depreciation and amortisation

Depreciation and amortisation

(6,901)

(3,680)

40

(10,581)

(690)

(107)

41

(797)

(3,906)

3,787

40, 41

(119)

Other income, net

Other income

(335)

337

26, 42

2

-

-

27, 43

-

-

-

42, 43

-

Other income, net

Other expense

-

(335)

26

(335)

-

(2)

27

(2)

-

-

-

-

Not allocated

Profit (loss) for the period from investment in associates

-

-

-

-

-

-

-

-

-

34

46

34

Profit (loss) before interests and taxes (‘EBIT’)

Profit before interest expense and taxes (EBIT)

42,741

(11,400)

-

31,342

2,237

(1,211)

-

1,027

(12,509)

13,341

-

832

Allocated finance costs, net

Interest expense

(8,650)

(2,009)

-

(10,659)

(2,440)

(460)

-

(2,900)

(3,271)

2,624

-

(648)

Unallocated foreign exchange losses, net

Fair value and foreign exchange gains and losses

-

(3,058)

-

(3,058)

-

(612)

-

(612)

-

-

-

-

Profit before income taxes

Profit before income tax

34,091

(16,467)

-

17,625

(203)

(2,283)

-

(2,486)

(15,780)

15,965

-

184

Description of adjustments to operating and reportable segments for 9M 2023

Number

Amount, EUR ’000

Description

1

2,483

Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.

2

508

Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.

3

103

Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.

4

69

Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

5

-

Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.

6

7,323

Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.

7

793

Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.

8

797

Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.

9

2,124

Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.

10

610

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.

11

124

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.

12

207

Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.

13

2,218

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.

14

222

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

15

653

Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.

16

286

Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.

17

36

Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.

18

31

Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.

19

860

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.

20

243

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.

21

325

Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.

22

134

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.

23

36

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.

24

7

Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.

25

37

Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.

26

335

Gross up of other income and expense previously reported at net value in Ferratum business unit.

27

2

Gross up of other income and expense previously reported at net value in CapitalBox business unit.

28

538

Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.

29

104

Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.

30

11,569

Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.

31

67

Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.

32

13,717

Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

33

102

Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

34

3,360

Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

35

890

Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.

36

383

Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

37

19

Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

38

2,288

Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

39

604

Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

40

3,680

Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

41

107

Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

42

2

Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

43

2

Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

44

2,297

Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.

45

445

Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

46

34

Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy.

47

83

Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.

Restatement of operating and reportable segments for 2023

Old FSLI

New FSLI

Reported Ferratum 2023

Restatement amount

Restatement number

Restated Consumer banking 2023

Reported Capital Box 2023

Restatement amount

Restatement number

Restated SME banking 2023

Reported Sweep Bank 2023

Restatement amount

Restatement number

Restated Wholesale banking 2023

Revenue

Interest income

192,731

8,959

1

201,690

24,686

(988)

2

23,698

23,137

(18,066)

3

5,071

Not reported

Fee and commission income

-

63

4

63

-

-

-

-

-

-

-

-

Credit losses

Impairment loss on loans to customers

(62,760)

(19,889)

5

(82,649)

(6,635)

(120)

6

(6,755)

(16,197)

16,348

7

151

Not reported

Personnel expense

-

(25,425)

8

(25,425)

-

(7,022)

9

(7,022)

-

(1,629)

10

(1,629)

Not reported

Selling and marketing expense

-

(10,819)

11

(10,819)

-

(3,324)

12

(3,324)

-

(37)

13

(37)

Not reported

General and administrative expense

-

(25,559)

14

(25,559)

-

(4,830)

15

(4,830)

-

(1,587)

16

(1,587)

Not reported

Depreciation and amortisation

-

(13,781)

17

(13,781)

-

(1,069)

18

(1,069)

-

(167)

19

(167)

Not reported

Other income

-

8

20

8

-

14

21

14

-

8

22

8

Not reported

Other expense

-

(495)

23

(495)

-

(7)

24

(7)

-

-

-

-

Not reported

Profit (loss) for the period from investment in associates

-

-

-

-

-

-

-

-

-

6

25

6

EBIT (reported to CODM)

Profit before interest expense and taxes (EBIT)

59,079

(16,046)

-

43,033

1,735

(1,029)

-

706

(15,258)

17,074

-

1,816

Not reported

Interest expense

-

(16,582)

26

(16,582)

-

(4,402)

27

(4,402)

-

(1,254)

28

(1,254)

Not reported

Fair value and foreign exchange gains and losses

-

(3,557)

29

(3,557)

-

(771)

30

(771)

-

-

-

-

Not reported

Profit before income tax

59,079

(36,185)

-

22,894

1,735

(6,202)

-

(4,467)

(15,258)

15,820

-

562

Description of adjustments to operating and reportable segments for full year 2023

Number

Amount
EUR ’000

Description

1

8,959

Direct allocation of interest income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

2

988

Direct allocation of interest income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

3

18,066

Direct allocation of interest income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

4

63

Direct allocation of fee income to Consumer banking business adjusted for organisation change unit previously not reported in annual statement 2023.

5

19,889

Direct allocation of impairment losses on loans to customers to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

6

120

Direct allocation of impairment losses on loans to customers to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

7

16,348

Direct allocation of impairment losses on loans to customers to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

8

25,425

Direct allocation of personnel expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

9

7,022

Direct allocation of personnel expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

10

1,629

Direct allocation of personnel expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

11

10,819

Direct allocation of selling and marketing expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

12

3,324

Direct allocation of selling and marketing expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

13

37

Direct allocation of selling and marketing expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

14

25,559

Direct allocation of general and administrative expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

15

4,830

Direct allocation of general and administrative expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

16

1,587

Direct allocation of general and administrative expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

17

13,781

Direct allocation of depreciation and amortization to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

18

1,069

Direct allocation of depreciation and amortization to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

19

167

Direct allocation of depreciation and amortization to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

20

8

Direct allocation of other income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

21

14

Direct allocation of other income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

22

8

Direct allocation of other income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

23

495

Direct allocation of other expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

24

7

Direct allocation of other expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

25

6

Direct allocation of financial results from participation in associates to Wholesale banking business unit previously not reported in annual statement 2023.

26

16,582

Direct allocation of interest expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

27

4,402

Direct allocation of interest expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

28

1,254

Direct allocation of interest expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.

29

3,557

Direct allocation of foreign currency exchange losses to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.

30

771

Direct allocation of foreign currency exchange losses to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

Contact:

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 listed European FinTech company, offering digital lending and online banking services to consumers, small and medium-sized businesses, and other FinTechs overlooked by traditional banks. The services are provided through three independent business units, which are served by our internal Banking-as-a-Service Growth Platform. Multitude’s business units are consumer banking (Ferratum), SME banking (CapitalBox) and wholesale banking (Multitude Bank). Multitude Group employs over 700 people in 25 countries and offers services in 16 countries, achieving a combined turnover of 230 million euros in 2023. Multitude was founded in Finland in 2005 and is listed on the Prime Standard segment of the Frankfurt Stock Exchange under the symbol 'FRU'.

Datei: Restatement 2024 stock exchange release

15.05.2024 CET/CEST Veröffentlichung einer Corporate News/Finanznachricht, übermittelt durch EQS News - ein Service der EQS Group AG.
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Sprache:

Deutsch

Unternehmen:

Multitude SE

Ratamestarinkatu 11 A

00520 Helsinki

Finnland

E-Mail:

ir@multitude.com

Internet:

https://www.multitude.com/

ISIN:

FI4000106299

WKN:

A1W9NS

Börsen:

Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart, Tradegate Exchange; Stockholm

EQS News ID:

1903213

Ende der Mitteilung

EQS News-Service

1903213 15.05.2024 CET/CEST