ANNUAL
REPORT
2023
Part 1 - Annual review
Multitude SE in brief 4
The year 2023 in brief 6
Remarks from the CEO 8
Multitude’s history 12
What is Multitude? 14
Why investors trust us 18
ESG Report 21
Legal and regulatory environment 86
Part 2 - Financial review
Board of Directors’ report 2023 90
Financial key figures and ratios 92
Business unit highlights 94
Ferratum 94
CapitalBox 98
Sweep Bank 102
Wholesale banking 106
Key developments and progress 2023 110
Shares of the company 119
Consolidated financial statements 2023 (audited) 124
Multitude SE separate financial statements 2023 (audited) 252
Contents
3
Multitude SE
in brief
Multitude SE in brief
Multitude (“Multitude”, “Company”, “we”, “the Group” are used interchangeably for the purpose of
this report) 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. We provide services through three independent business units, supported by our internal
Banking-as-a-Service (BaaS) growth platform. In 2023, our business units comprised Ferratum
(consumer lending), CapitalBox (SME lending), and SweepBank (banking app). In 2024, SweepBank
will become an underlying enabler of a broadened offering at Ferratum (from consumer lending
to consumer banking) and CapitalBox (from SME lending to SME banking) to better serve our
customers. In November 2023, we announced our plan to form a new business unit in 2024 that
offers wholesale banking that would be managed by Multitude Bank on behalf of the Group. As a
Group, we employ over 700 people in 25 countries and provide services in 16 countries. In 2023,
we achieved a combined turnover of EUR 230 million. Our company was founded in Finland in
2005 and is listed on the Prime Standard segment of the Frankfurt Stock Exchange under the
symbol ‘FRU’.
Strategic integration in 2024
During 2024, SweepBank’s assets will become an integral part of the well-established business
units Ferratum and CapitalBox. SweepBank will maintain its identity in the mobile banking and
shopping sector, ensuring customers retain the brand’s familiarity. Simultaneously, they will gain
access to new product offerings through Ferratum and CapitalBox.
The wholesale banking offering is emerging as new independent business unit with-
in the Group. This business unit has a twofold offering: Secured Debt (formerly called
Warehouse lending) and Payment Solution. After successfully piloting these products in 2023, the
teams, processes, and technology are poised for expansion in 2024.
4
COMPANY FACTS
OUR BUSINESS UNITS THROUGHOUT 2023
5
Year in brief
The year 2023 in brief
KEY HIGHLIGHTS:
• We reached our ambitious guidance: EUR 45.6 million EBIT
• Interest income increased by 8.5% from EUR 212.5 million in 2022 to EUR 230.5 million in 2023
• Net profit increased by 39.6% from EUR 11.8 million in 2022 to EUR 16.4 million in 2023
• Basic earnings per share increased by 34.2% from EUR 0.38 in 2022 to EUR 0.51 in 2023
6
SIGNIFICANT EVENTS:
• The Board of Directors of Multitude SE proposed a transfer of the company’s registered office
from Finland to Switzerland via a temporary location in Malta
• Multitude strengthened its commitment to sustainability by joining the Partnership for Carbon
Accounting Financials (PCAF)
• We initiated an all-employees shareholder programme to strengthen employee ownership
• We announced our new guidance for the next three years: Net profit to reach EUR 30 million in 2026
• We announced changes in our Group structure during November 2023 Capital Markets Day,
which will take place from January 2024 onwards
• SweepBank business unit will no longer be reported
• Instead of reporting under SweepBank, Wholesale Banking will be reported going forward as
a separate business unit (wholesale banking was previously reported under SweepBank during
the year 2023)
• SweepBank assets will be integrated into Ferratum and CapitalBox business units
• The Board of Directors proposes to the Annual General Meeting 2024 to distribute a dividend
of EUR 0.19 per share
7
Remarks
from the CEO
Dear Shareholders,
Nineteen years ago, Multitude’s story began with a group of visionary individuals in Helsinki,
Finland. We wondered why the financial sector had yet to evolve to address the modern customer’s
needs. The finance world seemed to trail behind as other industries swiftly embraced digital
solutions. Identifying a genuine need, we took matters into our own hands. Our goal was to
design fully digital, user-friendly, and fast solutions tailored to the financial needs of consumers
and SMEs often overlooked by traditional banks. These three principles have guided us strongly
from the start, shaping the core of the Multitude approach.
Since founding, I’ve had the honour of being the CEO and working with an incredible, talented
and committed team. Together, we share a dream: to help our customers, who traditional banks
ignore, achieve their dreams and goals. Our mission is to change the financial industry, making it
faster, easier, and more environmentally friendly. This mission drives all our actions and inspires
the Multitude team daily, fuelling our motivation and energy for nearly two decades. To clarify
our goal, we’ve defined our vision as becoming the most valued financial platform for overlooked
customers. This vision gives us a shared direction and a metric against which we can measure our
progress.
At Multitude, we work smart by leveraging abundant data and cutting-edge technology technol-
ogies such as AI and Machine Learning to enhance every aspect of our operations, spanning from
marketing to risk management.
Thanks to our agile way of working and our commitment to finding the best talent from anywhere
in the world, our team can move fast and quickly improve where needed. Multitude’s technology
is based on advanced microservice architecture and cloud-based systems, ensuring our solutions
are both powerful and ready to scale. Most importantly, our focus lies in ensuring our customers
enjoy exceptional experiences with our products and constantly looking for areas of improvement.
It’s how we work at Multitude, and these are the principles we believe in.
We recognise that 2023 was a tough year for many companies, including the players in the
FinTech sector. Despite this, it was a year of continuous success for our growth platform and
business units. Our target customer segments grew in our business units, partly because many
other banks and financial institutions began changing their services and treating some customers
8
unfavourably. As a result, many valuable customers were left without service from their usual
banks. This led to increased customer demand and intake on our side, driving our revenue up by
8.5% to reach EUR 230.5 million in 2023. Our EBIT grew by 44.8% during the same period, reaching
EUR 45.6 million. We are proud to say that we’ve met our ambitious guidance of increasing
EBIT by 50% per year for the third consecutive year! The main contributors to the EBIT growth
were stable credit risk management, fixed costs management, and increased sales, offsetting
the higher funding costs and allowing us to diversify effectively. This remarkable achievement
strongly indicates that we’ve chosen and executed our strategy well.
Over the past year, many of you have inquired about the remarkable success of our business,
especially when some of our industry peers are facing challenging times. My answer is straightforward:
we have revitalised our commitment to a laser-sharp focus on supporting SMEs, consumers, and
institutional customers, which other banks often overlook. Keeping our operations simple, swift,
and driven by technology and data enables our customers access to exceptional financial services.
We have also observed a positive direction sparked by a transformative change within our teams.
Our people have raised their expectations of each other, fostering more direct communication, even
on challenging topics, and have shown a healthy increase in overall enthusiasm and ownership. This
is due to a combination of factors: our investment in internal training programs, positive customer
feedback, improved share and bonus programmes, and our general success and high performance.
At the end of 2023, Multitude had its third Capital Markets Day, where we presented two strategic
decisions and changes that have significantly contributed to improving our future operations. First,
we integrated SweepBank into our established operations, enhancing our business units in consumer
lending (Ferratum) and SME lending (CapitalBox). SweepBank will keep its name in the mobile banking
and shopping sector, ensuring customers continue to enjoy the brand they know while benefiting
from new product offerings from Ferratum and CapitalBox. This strategic move expands our potential
and paves the way for introducing new products and innovations to benefit our customers.
Our second decision was to launch a new business unit at the beginning of 2023, Wholesale
Banking. It has two products: Secured Debt, previously recognised as warehouse lending, and a
comprehensive payment solution infrastructure initially developed to cater to our internal business
needs. We are now prepared to extend the availability of our Payment Solution to external FinTech
firms and banking institutions.
9
Jorma Jokela
Founder and CEO, Multitude SE
During the preceding year’s Capital Market Day, we presented the revised total addressable
markets for each of our business units. We still have a small market share, which indicates, that
we are at the beginning of our story. The total addressable market, as measured by portfolio size,
stood at EUR 25 billion in consumer banking, EUR 15 billion in SME banking, and EUR 16 billion in
wholesale banking.
Multitude’s FinTech growth platform is the backbone of our strategy. Centralising compliance, our
banking licence, technology stack, and customer management allow our business units to focus
on enhancing their customer experiences and sales. In the future, we will have three business units
operating independently on our platform: Ferratum for consumer banking, CapitalBox for SME
banking, and wholesale banking, managed by Multitude Bank, for banking, lending, and payment
services to larger companies. SweepBank’s customers, now part of the consumer and SME units,
will enjoy an enriched array of services.
In line with our platform’s emphasis on scalability and exploring new ventures, we invested in Sortter
Oy at the beginning of 2023. Sortter is a leading Scandinavian financial services comparison
platform. Our investment signals our readiness to embrace new opportunities. Whether Sortter
becomes a new business unit or a catalyst for growth, we see significant opportunities to support its
accelerated development and expand our global reach and Multitude’s growth platform. Every step
we take, whether through our current business units or future ones, is a part of our commitment to
support customers overlooked by traditional banks.
Looking ahead, our strategy for profitable growth builds on three pillars: organic growth, acquisitions,
and partnerships.
• For organic growth, we aim to significantly enhance our AI applications and further automate
our processes while broadening our product offerings for customers. This approach will
improve our services and help us manage costs more effectively. Our newly launched wholesale
banking unit will be crucial to our future success.
• Through acquisitions, we plan to expand our profitable growth into new countries and introduce
new products.
• Partnerships are equally vital, enabling us to expand our product range through new distribution
channels and enhance our offerings with embedded finance solutions.
Investing in our business is more than just developing products and solutions or improving our
operations. Investing time, money, and effort into our culture and people is just as important.
As I finish this letter, I want to share Multitude’s management’s dream with you: To increase its
valuation to EUR 1 billion within the next five years. Thank you to the team, supporters, and investors
for a fantastic year exceeding many expectations. We’re excited to keep working hard to increase
value for our shareholders.
Best regards,
10
Multitude’s
history
Our journey to positive impact
In 2005, our Founder and CEO, Jorma Jokela, drew inspiration from an article about the Grameen
Bank in Bangladesh—a pioneering institution serving overlooked people with small loans. This
visionary concept led him to realise the transformative potential of merging finance with mobile
technology, an unexplored frontier in the Western world at the time. Through digital distribution of
financial services, he could effectively address the needs of Europe’s underserved people. Ferratum, a
pioneering digital consumer lender, was born. Some years later, we broadened the consumer offering
with banking and applied the same approach of serving the underserved to businesses through
CapitalBox. In 2024, we extended it even further to other FinTechs through a new wholesale banking
offering.
The World Savings and Retail Banking Institute reports in their latest study back in 2022 that more
than 13 million adult EU citizens still lack access to formal financial services, with room for Europe’s
savings and retail banks to continue contributing to financial inclusion. This alarming discrepancy in
access has resulted in a growing segment of the population with dwindling options at their disposal.
We aim to make a threefold positive impact. By extending financial access to these overlooked
customers, we enable them to have bank accounts and navigate financial challenges effectively.
Simultaneously, our services for businesses foster economic growth, job creation, and
entrepreneurship. Furthermore, our initiatives contribute to cultivating financial literacy and
expertise, opening pathways to economic prosperity and, ultimately, wealth accumulation for
previously marginalised people.
MULTITUDE’S HISTORY
12
Some of the most significant milestones in our history:
• Founded in 2005 in Finland and originally named Ferratum, we pioneered digital financial solutions.
From the beginning, we focused on fast, easy, and entirely digital consumer loans. This approach
built the foundation of our core values, which still apply today.
• Within just a few years, we expanded rapidly across Europe. Between 2006 and 2011, we entered
multiple markets each year while diversifying our product portfolio for consumers from bullet
loans to instalment loans and credit limits.
• In 2012, we were granted a banking licence, enabling further EU expansion. This strategic
milestone led to significant growth opportunities, one of the biggest being in Germany. In
addition, it gave us a significant competitive edge and capital efficiency by allowing us to fund
growth through deposit funding.
• Completing our Initial Public Offering in 2015 on the Frankfurt Stock Exchange in Prime Standard
was another pivotal milestone for us and allowed us to raise substantial capital. We also began our
expansion into SME lending by offering businesses rapid digital working capital financing.
• In 2016, we launched fully digital banking solutions to consumers, providing them with an even
broader range of financial services.
• Despite the challenges of the COVID-19 pandemic in 2019-2021, we were able to show our
resilience and adaptability by strategically focusing on European markets.
• In 2021, we rebranded from Ferratum to Multitude. We also introduced a dynamic, agile approach
to working while unveiling a transformative business strategy of being a growth platform that
nurtures Ferratum, CapitalBox, and SweepBank as independent business units. We aimed for
robust and profitable growth from 2021 to 2024.
In November 2023, Multitude announced the integration of the SweepBank business unit into its
existing business units, Ferratum and CapitalBox, including the launch of a new business unit
for wholesale banking managed by Multitude Bank. The integration of SweepBank aims to
streamline our operations and enhance our capabilities across various financial industry sectors
to serve our customers better.
13
What is
Multitude?
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. We provide services through three independent business units, supported by our internal
Banking-as-a-Service (BaaS) growth platform.
In 2023, our business units comprised Ferratum (consumer lending), CapitalBox (SME lend-
ing), and SweepBank (banking app). In 2024, SweepBank will become an underlying en-
abler of a broadened offering at Ferratum (from consumer lending to consumer banking)
and CapitalBox (from SME lending to SME banking) to better serve our customers. In No-
vember 2023, we announced the plan to form a new business unit in 2024 that would offer
wholesale banking managed by Multitude Bank on behalf of the Group.
As a Group, we employ over 700 people in 25 countries and provide services in 16 countries. In
2023, we achieved a combined turnover of EUR 230 million. Our company was founded in Finland
in 2005 and is listed in the Prime Standard of the Frankfurt Stock Exchange under the symbol
‘FRU’.
14
How we, as Multitude Group, will reach our ambitious vision
of building the most valuable financial platform
for overlooked customers
We built the core of our strategy, the growth platform, from value-adding components,
such as our technology stack, compliance framework, Multitude Bank’s banking processes
and licence, and various centralised functions that support business operations.
How we define overlooked customers
At Multitude, overlooked customers are individuals or businesses that may not meet traditional
financial players’ criteria. Alternatively, many financial service providers, from conventional to
neo banks, do not have the experience and tools to assess them properly. Such overlooked
customers might have a limited credit history, irregular income, or unconventional financial
needs. These are all reasons to be overlooked by traditional banks and lenders.
In addition, underserved communities, including those in rural or low-income areas, may also be
overlooked due to limited access to financial services or discriminatory practices. Addressing
the needs of these overlooked customers takes us back to the original spark of inspiration
that led to founding of Multitude, Nobel Prize winner Dr Muhammad Yunus, with his Grameen
Bank in Bangladesh. These overlooked customers require innovative approaches and inclusive
financial products to access potentially life-changing, essential banking and lending services.
Through our robust and proven combination and experience in credit risk scoring and a digital-
only approach, we are ideally positioned to address the needs of many of these overlooked
and underserved customers.
Multitude growth platform
We designed our services to be accessible to anyone, anywhere, anytime and built our business
on these principles from the first day of operations. Our commitment to them remains as strong
as ever. The core enabler for us today is our growth platform, an internal provider of Banking-as-
a-Service (BaaS). As a vital enabler of scalability, our centralised and standardised operations to
offer BaaS are built on its six elements:
• Compliance framework
• Banking licence
• Technology stack
• Big data and AI
• Product library
• Customer management systems and processes
15
Multitude’s growth platform generates value through these core elements that our customers can
leverage. Complemented with a solid track record, despite macroeconomic challenges and changes
during our history, we continue to build an ecosystem of sustainable finance for our customers.
These customers comprise our internal business units and external institutional customers. The pri-
mary value that we unlock for customers derives from one or multiple of the following factors:
• Faster and leaner execution of their business
• Attractive funding conditions through our access to deposit funding
• Benefiting from our global pool of talents with over 40 nationalities
• Cross-selling opportunities between customers
• Scalability through the combined power of all the above
2024 GROWTH PLATFORM2024 GROWTH PLATFORM
an internal Banking-as-a-Service platform for our business
units, is key to enabling our growth and scalability
16
Our growth platform as an engine empowers us to create the most valuable financial platform
for overlooked customers. The underlying technology of this platform was developed by more
than 200 internal technology and IT professionals and is based on:
• A highly available cloud-native infrastructure
• Flexible domain-driven design
• Automated business processes and workflows
• Unified identity and access management
• Fast and secure APIs
• Scalable event-driven architecture
• Real-time monitoring
• Data integration and data analytics
• A vast number of external integrations
A variety of mobile and web platforms aim to transcend the hassle of physical banking and
manual financial transactions. Over the past 18 years, we have developed proprietary data and
credit scoring algorithms that deliver instant credit decisions digitally. Our technology and data,
paired with the regulatory experience from global operations over so many years, brings us a
significant competitive advantage in large-scale financial industry disruption as it allows us to make
fully risk-assessed scoring at a pace and scale unmatched by traditional banks, neo-banks, or the
general lending industry. In 2023, through the internal customers of our growth platform, Sweep-
Bank, Ferratum and CapitalBox, our platform served over 400,000 customers in 16 countries.
Multitude in 2024
At Multitude, we embark on an ambitious three-year plan to expand our growth platform’s
customer base significantly. Alongside our established consumer banking unit, Ferratum,
catering to individuals and our SME banking unit, CapitalBox, serving small and medium-sized
enterprises, we introduce a new offering of wholesale banking, managed by Multitude Bank.
This new banking service targets larger companies and was previously integrated into
SweepBank alongside our shopping and financing app and prime lending services.
The service of wholesale banking will become its own unit as we integrate SweepBank, with
its offerings other than wholesale banking, into Ferratum and CapitalBox. This integration
optimises our operations as a Group, enhancing our capabilities across various financial
sectors. SweepBank, retaining its identity in mobile banking and shopping, will offer
customers access to new products through Ferratum and CapitalBox. The wholesale banking
services focus on Secured Debt and Payment Solution and are set for significant expansion
in 2024 following successful piloting in 2023.
In 2024, we look forward to delivering innovative financial services through our three
independent business units: Ferratum for consumer banking, CapitalBox for SME banking,
and the new business unit managed by Multitude Bank offering wholesale banking. Our
commitment to driving organic growth, alongside strategic partnerships and acquisitions,
underscores our dedication to extending our value chain and global presence. We anticipate
financing these initiatives primarily through self-generated free cash flow, ensuring sustainable
growth and innovation in the years ahead.
17
Why investors
trust us
With a proven track record of profitable growth in the FinTech
megatrend, our investment case is unique
19 years track record of profitable growth in FinTech and digitalisation
megatrends
Since our foundation 19 years ago, we have been one of the pioneers and become a market leader
in the FinTech megatrend with our fully digitalised financial platform. Our lending and investment
portfolio has grown by 15% per year on average since 2017, reaching EUR 638 million at the end of
2023. We are growing highly profitably and aim to improve our net profit by a factor of 2.5 to at
least EUR 30 million by 2026.
Unique business platform to support growth along the FinTech and financial
services value chain
We offer highly regulated, independent financial and banking services in 16 individually regulated
countries and across multiple segments. Our business model is based on a unique financial
platform which allows us to offer fully digitalised, fast, easy, and green financial services to
customers overlooked and underserved by other financial institutions. This platform provides a
state-of-the-art compliance framework and technology, a banking licence, makes targeted use
of AI and big data, and is perfectly tailored to customer needs. In 2023, approx. 400,000 cus-
tomers accessed services across three segments in the FinTech value chain: consumer lending
(Ferratum), SME lending (CapitalBox), and an app for shopping and financing (SweepBank). In
2024, we integrate SweepBank into Ferratum and CapitalBox, and a new business unit, Whole-
sale Banking managed by Multitude Bank, will emerge.
Significant organic and inorganic potential for further profitable growth
The growth of our platform is built on three fundamentals: organic growth, partnerships and
acquisitions. Organic growth will be driven by enhanced customer centricity, a more direct
approach, and a continued product and country portfolio expansion. Partnerships will be
established based on sales alliances, the offering of additional services, and embedded finan-
cial solutions. Acquisitions will help us enter new countries and products, enhance our offering
in existing markets, and attract new segments into the growth platform. In addition, substantial
economies of scale will support our profitability.
18
Sound financial basis and robust risk management to support growth
In addition to high resilience through diversification of activities, Multitude’s strategic focus remains
on the financial stability and risk minimisation of our business model. As a result, we reported solid
cash and cash equivalents of EUR 284 million at the end of 2023. The Group’s net equity ratio, one
of the most important measures of capital adequacy, stood at 26% and our total equity stood at
EUR 184 million. Our coverage ratio for impaired loans (ILCR) stood at 16.6%.
Clear commitment to value generation supported by focused ESG strategy and values
In everything we do, we focus on increasing value for all our stakeholders: our employees,
customers, partners, and shareholders. Our profitable growth is expected to increase our company’s
value sustainably. At the same time, Multitude’s shareholders also benefit from the fact that we
allow them to participate appropriately in the company’s success with a payout ratio of 25 to 50%
of our net profits. A clear commitment to sustainability also flanks our growth strategy. This com-
mitment is documented in a detailed sustainability strategy and ambitious sustainability targets to
minimise our environmental footprint by 2025 and 2030.
19
20
Multitude
Group ESG
Report 2023 –
Responsible
Financial
Services for the
Overlooked
Customer
ESG Report 2023
22
About the ESG Report 2023 24
Responsible financial services for the overlooked customer 25
Our ESG priorities 29
Our material topics 30
Towards a net-zero digital future 32
Our people 44
Serving our communities 56
Creating value and protecting the wellbeing of our customers 57
Governance and ethics 62
EU Taxonomy disclosure 71
GRI Index 2023 76
Contents
ESG Report 2023
23
ESG Report
2023
About the ESG Report 2023
We are proud to present our ESG Report 2023, highlighting our commitment to ESG principles
and sustainable transformation within our operations and the society we impact through financial
products and services.
This report marks the third ESG report under our new name and strategy as Multitude Group, with
our growth platform and mission to democratise financial services through digitalisation, making
them fast, easy, and green.
The ESG Report 2023 provides insight into the environmental, social, and governance matters we
manage through our programmes, strategies, and performance indicators. This report covers our
activities in 2023 and serves to meet the obligations under Chapter 3a of the Finnish Accounting
Act 1336/1997, based on Directive 2014/95/EU.
In producing this report, we used the Global Reporting Initiative (GRI) standards and emerging
regulatory frameworks, to show transparency and alignment with good practice.
Recognising that there are linkages between ESG reporting and enabling effective strategy
development towards sustainable business practices, we are resolute in advancing disclosure that
addresses stakeholder information needs.
For investor related queries, please contact lasse.makela@multitude.com.
ESG Report 2023
24
Responsible financial services for the
overlooked customer
Our business model as a growth platform providing financial services to the overlooked customer
is ESG-led. Our mission drives an approach that enables financial and social inclusion, supports
global climate ambitions, and limits potential carbon emissions through the absence of a physical
branch network.
We demonstrated sustainable value creation through our inclusive product offering with three
business units: Ferratum (consumer lending), CapitalBox (SME lending), and SweepBank (shopping
and financing app). The products of these business units each serve a unique customer segment
with unique needs for banking and finance. A new independent business unit is emerging within
Multitude Group in 2024. The business unit has a twofold offering: Secured Debt (formerly called
Warehouse lending) and Payment Solution. After successfully piloting these products in 2023, the
teams, processes, and technology are poised for expansion in 2024.
Wider access to finance and positive impact generation through our activities is underpinned by
value drivers derived from our diverse skills, technological know-how, strong partnerships, and
responsible lending approach.
Through our value drivers, product and service offerings, and ESG priorities, we responsibly serve
the overlooked customer while contributing to local economic growth. This means continuous
cognisance of the evolving needs of stakeholders and driving a transformative strategy that
embeds ESG principles in our processes.
ESG Report 2023
25
Our business activities enable positive impact generation
Our journey and external environment
We formalised our ESG journey in 2021 by establishing initial ESG governance mechanisms and
the Group ESG Steering Committee. We then concentrated on defining ESG policies, focus areas,
ambitions, and capacity building at all levels of our organisation.
Our focus has expanded to enhanced monitoring of impacts, risks, and opportunities and
strengthening our governance and transparency as regulation and disclosure frameworks
advancing ESG transparency increase.
The Corporate Sustainability Reporting Directive’s (CSRD) approaching implementation date
has been a key driver of the EU sustainability programme’s direction. In addition, the issue of
greenwashing risk is increasingly prominent as balancing transparency and elimination of
greenwashing rises in priority. We are resolute in pursuing a transparent reporting approach
strengthened by comprehensive stakeholder engagement in accordance with our values.
In an era of geopolitical, economic, climate risk and heightened environmental degradation, we are
positioning ourselves for transitional financial services and product delivery approaches. Building
on our efforts to develop strong governance and policies, we identify opportunities to support
responsible and sustainable practice through finance and banking.
In no event should the ESG Risk Rating be construed as investment advice or expert opinion as defined by the
applicable legislation.
Our ESG approach
At the inception of our ESG programme, we outlined three goals for 2025 that would guide
our mission-underpinned progress. The goals addressed social matters, including stakeholder
wellbeing, measuring employee and customer happiness, and the fairness of our practices.
Even though our digital-first business model enables reduced environmental impact and risk,
we set out to be part of the solution, measuring our footprint and monitoring it using a target
setting. In this regard, we considered impacts through our own operations and our core business,
lending.
In addition, to support the effective integration of ESG principles, we aim to embed ESG-
conscious practices through strong policies, procedures, and governance.
ESG ratings
Morningstar Sustainalytics regularly assesses our
ESG performance to determine an ESG risk score
based on disclosure. Our ESG risk rating has
improved in the past two years, and as at 31
December 2023, Multitude received an ESG Risk
Rating of 21.4. We were assessed to be at Medium
risk of experiencing material financial impacts
from ESG factors.
ESG Report 2023
27
ESG Goals & Progress Highlights
ESG Report 2023
28
2024 and beyond
Considering the increased pace of ESG matter relevance, stakeholder demand and business
strategy evolution, we continuously advance our ESG ambition. We seek to be a responsible
financial services provider for overlooked customers by providing a sustainable product and
service offering with robust customer selection and a fair and transparent customer journey.
To us, responsible financial services also means deploying technologies that support and enable
businesses a green, socially sustainable transition toward lower carbon levels. To be a FinTech
providing responsible financial services for the overlooked customer, the Group must be able to
demonstrate environmental future-proofing of services and products, measure what matters, and
show leadership in embedding ESG.
We are well positioned by offering digital, paperless, and cardless banking and services, utilising
cloud technology and working in a hybrid model to reflect ESG performance that aligns with the
global transition.
Our ESG priorities
Social parameter-aligned access to financial services
The wellbeing of our customers and employees is a central pillar in our approach to ESG. It is a
key area where our ability to be a responsible financial services provider is most evidenced. This
means enabling socially inclusive products and services and protecting vulnerable customers
through responsible lending and customer education. Our largest business unit, Ferratum,
pioneered the Responsible Lending Index to monitor customer protection as part of our focus
on wellbeing.
As a company, we also monitor and benefit from the diversity of skill sets, nationalities, genders,
and ages. Thus, we have set targets accordingly. We want to strengthen our wellbeing-monitoring
and leverage knowledge across teams to achieve an insight-driven approach to managing social
matters.
Future-proofing environmental impact
We consider the rising imperative to address environmental challenges. To future-proof our
impact, we need to understand it. By understanding our impact and setting targets, we can be
part of the solution. Thus, in 2022, we started reporting on our carbon emissions. We began
monitoring the emissions from our operations and lending, commencing with SME lending. In
2023, we set targets on climate action to position ourselves as a low-carbon finance provider for
overlooked customers.
Transformative governance
We can only achieve our environmental and social objectives through good governance. We embed
ESG-conscious practices with governance, fostering transformation.
We recognised the pivotal role of governance when embedding ESG early on in our journey. We
set up an ESG Steering Committee comprising Leadership team members and co-chaired by
our Group CEO and Group ESG Officer. This commitment from top management laid a strong
foundation for ESG and transparent communication across stakeholders and sets expectations
for the organisation to follow. Our activities drive ESG integration further, including sustainable
finance and materiality determination.
ESG Report 2023
29
Our material topics – Defining what matters
During 2023, we conducted a double-materiality assessment addressing the outside-in and
inside-out impacts of ESG matters. Our approach to materiality assessment is informed by EU
regulations and voluntary reporting standards, such as the Global Reporting Initiative (GRI). The
Corporate Sustainability Reporting Directive (CSRD) comes into effect in January 2024, requiring
company reporting based on double-materiality perspectives of ESG impacts as well as risks and
opportunities emanating from company activities. CSRD differentiates between outside-in and
inside-out views of ESG matters, with the former assessment referred to as financial materiality
assessment and the latter as impact materiality assessment.
Our approach to materiality
As a first step, we mapped our value chain to identify material matters. We mapped issues across
our value drivers, including technology know-how and the customer journeys in our business
units.
To gather insights on relevant ESG matters, we followed a stakeholder engagement process that
included internal focus groups and investor engagement. We used several sources of industry
information to support identifying potentially relevant material matters and to ensure regulatory
alignment and reference to topics outlined in the EU reporting standards (CSRD).
We scored a long list of potential material matters considering business model impacts and
risks, potential strategy evolution, and emerging ESG matters. We conduct our ESG scoring in
consultation with our Group Risk and the ESG Steering Committee.
We based scoring on the relevant value chain elements and assessed financial and impact
materiality for these elements. In 2023, our materiality assessment accounted for time horizon
differences, addressing impacts and risks over the short and medium term. We plan to integrate
a long-term impacts and opportunities assessment in future iterations.
We aim to review the materiality assessment methodology regularly, subject to emerging best
practices and relevant jurisdictional requirements.
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30
Material topics
Loans to carbon intensive sectors
IT infrastructure energy consumption
Contract worker protection
Financing the transition
to a low carbon economy
Cloud transition
Access to financial services
Employee work-life balance
Employee upskilling
Product transparency
Health and safety
Responsible marketing
Employee anti-harrassment
Customer fairness
Whistleblowing policy
Corporate culture
Bribery and corruption
Cybercrime controls
Data protection
Note: To assess impact materiality, we identified topics having potential and actual impacts on people and the environment
from both positive and negative perspectives. In assessing financial materiality, topics with potential financial implications
were considered from a risk perspective. Certain topics have been identified as having both potential and negative
impact and others have only potentially positive impact for people and the environment
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Towards a net – zero digital future:
Low carbon banking and finance for the overlooked customer
We recognise the gravity and urgency of the climate crisis and its societal and economy-wide
implications. Thus, we seek to manage risks, identify opportunities, and reduce negative climate and
environmental-related impacts.
We outlined ambitions to understand and reduce our environmental footprint. As a first step, we must
understand and manage the footprint of our own operations. As a second step, on account of financial
institutions’ predominantly indirect impact on climate change, we address emissions from our financing
activities. Finally, we seek to protect our ability to service and create value for our customers against
the physical and transition risks arising from climate and identify opportunities in the next phase of our
approach. These areas drive our environmental priority to bring low-carbon banking and finance to the
overlooked customer.
Managing environmental impact and risks
We utilise a data-driven
approach guided by our
Environmental Policy to
manage emissions from
our operations, mainly the
emissions of our global
offices, employee commuting
patterns, and purchases.
We measure and disclose
emissions associated with our
business lending activities
following the Partnership for
Carbon Accounting Financials
(PCAF) methodology, allowing
us to benchmark in line with
industry standards.
We assess vulnerability
and perform customer
due diligence to ensure
a preparedness against
climate risk.
Environmental initiative milestones
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32
Environmental initiative milestones
METRICS
AND TARGETS
2022
• Publishing Scope 2 and 3 emissions
2023
• Scope 2 and 3 2025 targets set
• Net zero targets for Scope 2 and 3 emissions set
• Relative targets for emissions arising from SME lending portfolio set
• Corporate loans and investment emissions reporting
RISK
MANAGEMENT
2022
• Publishing Multitude Group ESG Policy
2023
• Advancing climate risk assessment for corprate loans and investments
• Reporting on climate risk preparedness to the Banking Authority
• Publishing Multitude Bank ESG Risk Policy
GOVERNANCE
AND STRATEGY
2022
• Board of Directors approval of Group-wide Environmental Policy
• ESG Steering Committee engagement on climate and impact risks
2023
• Group- wide double materiality assessment integrating climate topic
• Piloting IT infrastructure climate risk assessment
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Taking responsibility for our direct operational activities
As a FinTech, our core business activities inherently enable net-zero ambitions. Our digital platform
offers cardless banking and paperless processes, eliminates the need for physical branches, and
empowers our customers to reduce their negative environmental impacts.
We strive to support the low-carbon economy transition by effectively measuring our footprint,
leveraging digital tools, and utilising a data-driven approach to climate impact assessment while
maintaining close engagement with stakeholders on data collection.
Scope 2 Emissions
In 2023, we took further steps to measure emissions from our global offices, building on our 2022
inaugural carbon footprint measurement programme. We engaged colleagues from across our
European, North American, and Asia Pacific offices to collect data on building emissions, covering
Scope 2 emissions from electricity, heating, and cooling. We also started to delve into our Scope 1
emissions arising from stationary combustion fuel in 2023, and did not identify any emissions from
this source.
To increase the use of renewable energy, we want to improve our selection of office electricity
service providers and energy sources. As of 2023, our offices in Finland, Sweden, and Switzerland
use 100% renewable energy sources.
Climate action roadmap
- Set up our
inaugural
Group-wide
carbon emissions
measurement
programme
- Reporting
on own
operations
emissions
and financed
emissions
- Net zero
Scope 2
emissions
- Net zero
Scope 3
Purchased
emissions
- Reduce SME loan
carbon intensity
by 20%
- Reduce Scope 3
Purchased
emissions by 20%
- Reduce Scope 2
emissions by 30%
2022
2025
2023
2030
2035
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34
Guided by the Group Environmental Policy, we encourage our offices to implement proactive
actions to minimise our negative environmental impact. Such actions include installing LED
lighting with motion sensors and water control valves, providing recycling bins for office waste,
and limiting paper use when possible. Where paper is needed, we supply our offices with
FSC-certified paper supporting a zero-deforestation harvest process and fair wages for forestry
workers. Buildings we lease as our office space in selected countries receive a BREEAM rating
of “Very Good” to “Excellent”.
To complement the Environmental Policy, we aim to publish further guidelines for employees to
drive environmentally friendly practices across our offices.
Scope 3 emissions
Our scope 3 emissions mainly relate to employee commuting, upstream spend data, and downstream
lending activities. For spend data, we collect company transaction data on purchased products
and services from various suppliers across different categories. We calculate emissions against the
appropriate inflation-adjusted emission factors in line with the Greenhouse Gas Protocol Technical
Guidance.
Hybrid working for a greener workplace
Our Hybrid Work Policy accommodates flexible work locations, with some people working
fully remote where we do not have local offices. For the employees who work at the office at
any time of the week, we encourage public transportation by providing public transportation
passes where feasible.
In 2023, we launched a survey to measure our carbon footprint arising from employees
commuting between work and home. We asked employees six questions on commuting
patterns, such as modes of transport, frequency of office commute per week, and distance
travelled. The responses feed directly into our carbon accounting programme and strategic
planning on climate action.
Group Environmental Policy
In 2022, we published our first ESG Policy incorporating the Board-approved Environmental Policy.
It describes our commitments and strategies to responsibly manage and reduce environmental
impacts and embed ESG-conscious practices in daily operations. In managing our impact on the
environment, we commit to:
• Promoting initiatives to minimise environmental degradation and support sustainable natural
resource management
• Contributing to global efforts in combatting climate change
• Educating employees on climate and environmental matters
• Integrating environmental criteria into our processes and governance
• Complying with applicable environmental regulations
• Improving our environmental performance monitoring to align with best practices and the
expectations of our stakeholders
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Managing our financed emissions
As a financial sector player, we understand that indirect emissions from our financing activities
dominate most of our climate impacts. Financed emissions are the GHG emissions from investee
and lending entities’ activities attributed to the financial institution providing the capital.
Understanding and measuring financed emissions is a key step to a financial institution’s climate
action journey, as this enables understanding climate-related transition risks and opportunities. It
also serves as a basis for setting targets and developing transparent disclosures. We work with a
carbon footprint measurement partner that supports our journey, taking accountability in earnest
regarding our financing activities.
We use an industry-standard methodology for measuring and disclosing emissions applicable to
financial institutions to understand our financed emissions. We selected the Partnership for Carbon
Accounting Financials (PCAF) Methodology as the most suitable framework.
Multitude strengthens commitment to sustainability by joining
Partnership for Carbon Accounting Financials (PCAF)
In 2023, we officially signed to become a signatory of PCAF, solidifying our commitment to
transparently measure and disclose our Scope 3 financed emission and our climate action.
PCAF is a global collaboration comprising over 440 financial institutions spanning six continents,
focused on harmonising assessments and disclosures of greenhouse gas emissions associated
with loans and investments.
The PCAF methodology provides Multitude with a standardised and internationally recognised
framework to align our portfolio with the Paris Climate Agreement and enables transparency
and accountability in greenhouse gas accounting.
We aim to follow best practice approach by following detailed methodological guidance as
outlined by PCAF to measure our emissions for corporate loans and investments and SME loans.
For our lending activities, we initially assessed emissions associated with Multitude’s SME lend-
ing segment and in 2023 have since expanded this assessment to include corporate loans and
investments.
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Data score
We source required data from reported emissions of investees and borrowers to apply the standard
and measure financed emissions. Considering that data availability varies across markets and
companies, PCAF provides a scoring system to enable financial institutions to communicate reported
data accuracy based on acceptable data on a scale of 1 to 5 (1 being best and 5 worst).
The quality score is determined by the usage of data of different qualities using three different options:
Option 1: Borrower or investee company reported emissions
Option 2: Physical activity-based emissions
Option 3: Economic activity-based emissions
Such a scoring approach ensures that data limitations do not deter a transparent inventory of
financial institutions’ financed emissions and encourage progress over time. Emissions reported
by the borrower and verified by a third party receive the highest score of 1. When using proxy
information in the absence of direct and verified borrower reporting, scoring is adjusted accordingly.
We navigate the existing data gaps by relying on approximates where necessary in assessing
the carbon footprint of our loans, either by applying sector-level or country-level proxies when
company-level data is unavailable, particularly for SME loans where SMEs may not be subject to
mandatory reporting requirements.
We expect to make progress as we continuously update our methodologies and align with
available, evolving best practices.
PCAF formula
The PCAF calculation methodology and formula used to calculate financed emissions from
borrowers and investees’ emissions:
Financed emissions Attribution factor Emissions
M
i
ii
(with
i = borrower or investee)
= x
Outstanding amount
Business loans
Corporate
loans and bonds
i
Total equity + debt
i
Enterprise value
including cash (EVIC)
*
* Outstanding loan amount is referring to loans outstanding as at 31 December 2023 excluding accrued interest
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37
Data
quality
Options to estimate
the financed emissions
When to use each option Multitude Score
Score 1 Option 1:
Reported emissions
1a Verified emissions of the
company is available
Score 2 1b Unverified emissions
calculated by the company
is available
Option 2:
Physical activity-based
emissions
2a Emissions calculated using
primary physical activity
data of the company’s
energy consumption and
emission factors specific to
the primary data
Score 3 2b Emissions are calculated
using primary physical
activity data of the
company’s production and
emission factors specific to
that primary data
Score 4 Option 3:
Economic activity-based
emissions
3a Emission factors for the
sector per unit of revenue
are known (e.g., tCO2e per
euro or dollar of revenue
earned in a sector)
84% of SME Loans
100% of Corporate Loans and
Investments - Warehouse
lending
Score 5 3b Emission factors for the
sector per unit of asset (e.g.,
tCO2e per euro or dollar of
asset in a sector) are known
16% of SME Loans
3c Emission factors for the
sector per unit of revenue
(e.g., tCO2e per euro or
dollar of revenue earned in
a sector) and asset turnover
ratios for the sector are
known.
General description of data quality score for listed equity and corporate bonds.
Adapted from PCAF (2022). The Global GHG Accounting and Reporting Standard
Part A: Financed Emissions. Second Edition.
Attribution factor
The attribution factor is the share of total emissions of the borrower or investee to the loans or
investment. Following the Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting
and Reporting Standards, we calculate the attribution factor specific to the earmarked asset classes.
For us, this comprises small business loans, corporate loans, and bond investments. We align the
observation period with the financial accounting period.
For loans to unlisted companies, including SME loans, we use total equity and debt for attribution
and, in its absence, sectoral asset turnover ratios.
In the case of listed company loans, we used EVIC, the sum of the market capitalisation of ordinary
shares at fiscal year-end, preferred shares at fiscal year-end, and the book values of total debt and
minorities’ interests with no cash or cash equivalents deductions.
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38
Emissions
We calculated emissions using sector and revenue information for PCAF Score 4. In instances
where updated revenue information was available, the PCAF Score was 4. Otherwise, we used
sectoral asset turnover, resulting in a PCAF Score 5.
SME portfolio
In 2023, we undertook efforts to refine our SME portfolio data quality, having commenced reporting
on these emissions in 2022.
Our 2023 work to improve the data quality scores for SME loans resulted in a large part of the
portfolio scoring a data quality score of 4 over 5, the lowest possible quality score. In 2022, 94%
of SME loans were at a data quality score level of 5, with only 6% at a data quality score level of
4. In 2023, this improved substantially with 84% of the SME loans portfolio at a data quality score
level of 4. This demonstrates the impact of our commitment to data enhancement in managing
our carbon footprint.
Our data refinement included excluding dormant accounts (non-repayment in the past 12 months).
In addition, we revised our definitions of “latest available information” in cases where financial
information on companies is unavailable.
While improved data quality score levels supported our broader quality refinement efforts, in
2023, we observed a substantial increase in SME financed emissions as an outcome. In 2024, the
Group will consider revised baseline and target setting to account for the change in overall data
quality as we continue to progress in our efforts as a signatory of the Partnership for Carbon
Accounting Financials.
Corporate loans and investments – Warehouse Lending
In 2023 we have expanded assessment of financed emissions to include corporate loans and
investments. Up-to date revenue information was available resulting in PCAF data quality score of
4 for the entire portfolio.
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39
Our carbon emissions and targets
In 2023, we set net-zero targets for our spend-based emissions by 2035 and scope 2 emissions
targets for our global offices by 2030. Net zero is the achievement of a state where company
activities do not have a net impact on the climate change arising from greenhouse gas emissions.
Emission category (Tons CO
2
e) 2022 2023 Target
Scope 2: Indirect emissions
Purchased electricity and heating 196 254
30% reduction by 2025,
Net zero by 2030
Total 196 254
Scope 3: Indirect emissions
A. Business operations
Business travel - 103
Purchased goods and services 8,575 5,395
20% reduction by 2025,
Net zero by 2035
Fuel- and energy-related activities - 35
Employee commuting* - 1,787
Total 8,575 7,319
B. Financed emissions
SME lending 21,300 43,005
Corporate loans and investments - Warehouse
lending
- 6,053
Total 21,300 49,058
Total emissions 30,071 56,631
Emissions per €M revenue 141 246
Emissions per €M financed through corporate
loans and investments - Warehouse lending
- 95
Emissions per €M financed through SME loan** 203 412
20% intensity
reduction by 2025
Emissions per employee*** 46 86
Notes: * In 2023, we started to assess emissions stemming from employee commuting.
** Emissions figures for SME loans in 2022 have been revised post reporting year to account for PCAF 4 data.
*** Employees total is full time equivalent (FTE) as at 31 December 2023 (658 employees).
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Protecting our operations
- Managing climate risks
We further seek to protect operations by assessing climate-related risks relevant to our organisation.
In 2023, we started mapping the impacts of climate risks on existing risk categories within our
banking activities and addressing climate risk in a Group-wide materiality assessment.
Our Group-wide ESG Risk Policy and a dedicated ESG Risk Policy for Banking activities outline
the framework for identifying, assessing, and managing ESG risks, including risks stemming from
climate change, further support our climate risk management.
Physical risks impact assessment – IT infrastructure
We conducted a preliminary assessment of the physical impacts of climate change in 2023 as
part of the Multitude Bank ESG risk assessment activities, focusing on critical IT infrastructure,
commencing with a pilot assessment of data centres.
The assessment result further informs the decision-making processes regarding climate risk
assessment with plans to widen the scope of assessment to address further processes and
infrastructural migration.
In 2023, we migrated from premise solutions to cloud solutions, enhancing our Infrastructure as a
Service (IaaS). The latest move strengthens our global growth through cost efficiency, scalability,
flexibility, and security while supporting our commitment to reducing our carbon footprint and
climate-related transitional risk.
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We recognise that a comprehensive approach to climate risk management will require an extension
of the scope of the climate risk assessment processes and integrating these further into a broader
risk management framework. Furthermore, it will require increased Board engagement and
formalised monitoring. Through a double-materiality assessment, we aim to strengthen climate
risk governance and further address potential climate risk exposures arising from lending and
infrastructure.
Financing activity ESG due diligence
We have started undertaking ESG due diligence on certain customer segments as part of our effort
to steer our lending portfolio towards more sustainable decisions. Multitude Bank implements an
in-house ESG tool assessing social and environmental issues across five risk assessment categories:
country, sector, incident, policy, and borrower level.
The sector assessment incorporates an exclusion list of sectors deemed unacceptable for loans
and investments due to the severity of potential and environmental impacts and scoring based on
the climate impact of respective sectors.
We use incident reporting in our assessment and evaluate further specific borrower-level indicators
based on potential material topics. The final risk score supports our borrower engagement on ESG
and monitoring of potential borrower-related risks.
Presently, the pilot tool outcomes form part of our risk review, and we are considering expanding
the scope of usage during 2024.
Multitude Bank corporate lending ESG assessment
HIGH
1.
Assessment
and scoring
2.
Borrower company
monitoring and
engagement
MEDIUM
LOW
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Our people
As a FinTech offering products and services in an era of redefined ways of work and increasingly
scarce skills, our approach to people development is a key driver of our long-term sustainability.
Our people are at the heart of achieving our vision to build the most valuable financial platform
for overlooked customers. Our values of candor, entrepreneural spirit, respect and winning teams
underpin our approach.
We aim to cultivate a workplace where our people thrive and achieve individual and collective
success, with meaningful work underpinned by our agile and hybrid way of working. This includes
providing tools that enable career growth and building collaborative teams where everyone has
a voice.
A key contributor to our ability to deliver on our ambitions is the diversity of our people,
over 40 nationalities across 25 countries, bringing multiple experiences and skills to our
value proposition. Our recruitment approach demonstrates our commitment to diversity and
inclusion: we source talent where it is.
Our people further support our progress in driving positive societal outcomes and reducing
negative impacts on communities and the environment.
Engaging our people
Employee engagement is an important pillar of our approach. We foster a culture of openness
and encourage employees to engage with leaders and each other in accordance with our values.
Engagement works both ways, and we seek to empower every individual to use their voice in a
supportive and fair environment.
In driving a culture of engagement, our people regularly have exchanges with our Leadership
Team through bi-weekly meetings. During the meetings, the Leadership Team provides updates on
organisational developments and gives further insight into current topics by answering questions
presented in the Q&A segment. Bi-weekly meetings are, in addition, used for training and
information sharing on employee social impact initiatives and benefits.
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Driving employee happiness – Navigating change to achieve excellence
On average, employees
received 17 hours of
training in 2023
Since 2020 and as part of monitoring wellbeing, we have been using the employee net promoter
score, eNPS, to measure the happiness and satisfaction of our people.
We conduct a bi-annual survey to determine our eNPS, gathering insights from the employees’
perspectives and identifying areas for improvement. Our eNPS has gradually improved, reflecting
our evolution of migrating to an agile model and transitioning from a norming phase to a
performance-driven engaged phase.
We set an eNPS target of 25 by 2025. We achieved the objective in 2023, reflecting our efforts to
enhance employee experience through engagement and responsiveness to their needs, including
leadership training and improved transparency.
The conducted eNPS surveys have further provided insights into what our people value. Things
mentioned include our hybrid working model, flexibility, growth opportunities, autonomy, and
thriving culture built on shared values, vision, and mission.
Nurturing our people
Cultivating the development of our people is integral to our success and the delivery of our vision.
Our approach benefits from a shift to a hybrid working model and agile teams. We transitioned from
a central hub model to sourcing diverse talent where it is, irrespective of geographical boundaries.
We have people located on three continents with more than 25 locations. Our largest offices
are Malta, Philippines, Germany, Lithuania, and Slovakia.
for our employees, our efforts are aimed at bringing high quality training for our people. Training
and development opportunities are made available through various platforms and formats such as
internships, leader meetups and regular educational information sharing.
We grow our people through internal development
programmes with on-demand courses made available
to support skills development and strengthening
of core competencies. Recognising the importance
of continuous career development opportunities
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45
In 2023, we launched a customised course crafted explicitly for our leaders. The foundational
leadership course aligns seamlessly with our core competencies, values, and culture. Over 50
leaders participated in this program, marking a significant milestone in our commitment to lead-
ership development. We set this initiative to be an enduring force, strategically shaping the
growth of current and future leaders. We are dedicated to expanding on this robust foundation
and will unveil additional modules in 2024 and beyond. This continuous evolution underscores
our unwavering dedication to cultivating skilled and visionary leaders within our organisation.
As a FinTech, we are well positioned to utilise our efficiency to support our people. We use AI to
optimise our processes and enable our people and leaders to focus on value-adding activities
and objectives beyond automation capabilities.
Leaders’ Annual Meetup
In 2023, all key personnel gathered for a week-long face-to-face meeting in Jūrmala, Latvia,
fostering a unique opportunity to collaborate and connect. The core focus of this event was to
unite our key team members, allowing in-depth exploration of our history, work methodologies,
values, and vision.
The event featured a series of workshops and keynote speakers addressing crucial topics such
as next-level agile methodologies, improvement and innovation strategies, and the concept
of extreme ownership. A highlight was a speaker who shared a personal adverse experience,
emphasising the importance of ownership and providing a unique and impactful perspective.
Recognising the dynamic landscape of the FinTech industry, we emphasised the need for
adaptive leadership skills, particularly in the context of our evolving hybrid work environment.
This event served as a platform for reinforcing strong collaboration, decision-making, and com-
munication skills essential for leading teams effectively. Furthermore, the week included an
in-person leadership training session where leaders delved into areas such as business strategy
and core competencies. Workshops to develop business, leadership, and life skills were integral
to this training.
This holistic experience brought key personnel together to strengthen connections, explore
crucial topics, and equip leaders with the skills necessary to succeed in the ever-evolving
FinTech landscape.
Building on the event’s success, we decided to institute similar gatherings annually. The aim is
to ensure all key leaders stay synchronised with the organisation’s trajectory and foster ongoing
collaboration, alignment, and a shared understanding of our collective goals. This annual
tradition will be pivotal for our Leadership Team, providing a dedicated space to reinforce
connections, exchange insights, and collectively steer the company towards continued success.
Online learning
We have introduced online learning opportunities for our people to enhance their learning and de-
velopment experience.
Our employees have unlimited access to the LinkedIn Learning platform, containing over 16,000
courses. We regularly highlight courses to employees, and leaders support teams in developing
learning pathways to address role competencies. Our employees benefit from the wide range of
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46
courses available. Using a 2023 survey focused on learning and development needs, we identified
an increased appetite for access to online learning platforms. Furthermore, our technical employees
also leverage Udemy to access supplementary technical courses, enhancing their competence and
staying abreast of the latest industry developments.
We also utilise an online course platform offering a range of compliance, ethics and ESG-related
courses. It provides engaging, relevant training on our internal policies, including cybersecurity,
anti-bribery and corruption. We further use this platform for company-tailored training conducted
by specialists.
Onboarding training
Our commitment to supporting employee development extends throughout their journey with
us. From the onset, all employees undergo a comprehensive onboarding process, delivered either
in-person or online. This dual-phased onboarding covers essential topics, including employee
benefits, agile working, cybersecurity awareness, and data protection.
Moreover, we recognise the importance of fostering a strong organisational culture. Hence, we
conduct group onboarding sessions, encompassing discussions about our culture, values, way of
working our rich history and future direction. This holistic approach ensures that every employee
is well-equipped with the knowledge and understanding needed to thrive within our community.
To facilitate continuous learning, our internal learning platform provides ongoing access to the
onboarding training also after the initial phase. This allows employees to revisit and reinforce their
understanding of key topics, fostering a culture of continual growth and development.
Knowledge sharing platforms
Our teams regularly participate in knowledge-sharing sessions to complement specialised skills
and knowledge. In addition, we regularly use our internal platform to circulate information on
various topics, such as data protection and financial education, developed by specialist functions
for cross-functional learning and awareness.
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Total employees Managers Other employees Females Males
68% 70% 84% 60% 39%
Insights and development frameworks that
leverage actionable data to inform strategic
decisions for employees’ continuous improvement.
Peer recognition and seamless collaboration
with colleagues, fostering a culture of
shared achievement.
1. Performance 2. Engagement
A personalised learning path can be charted
to tailor each employees’ unique career goals,
ensuring the learning development aligns with
their skills and aspirations.
3. Learning
New people enablement platform
We launched a new people enablement platform to drive the next stage of our people development
strategy. The platform’s goal is to enhance employee satisfaction, productivity and growth, and
support our valuable employees’ retention.
We consider it critical to advance our people enablement resources in a manner responsive to
our evolving context, with a versatile platform addressing the need for instant feedback and
constant growth. The new platform offers the flexibility for advancing our efforts on performance
development and training with easily accessible tools for employees across the organisation.
We recognise the impact of fair and accurate feedback on employee engagement, performance,
retention, and growth. Thus, we have invested fully into the platform offering, equipping our peo-
ple with tools for performance management, engagement, and tailored learning.
The Multitude Academy
We have established an internal knowledge resources platform that serves as a hub for training
materials curated by employees for employees. This platform offers a diverse array of resources
aimed at maximising learning opportunities within the organisation. Among the available materials
are in-house curated newsletters, blogs, videos, and podcast episodes covering topics ranging
from customer relations and ESG to leadership.
The Multitude Academy releases a monthly newsletter to keep employees informed and engaged.
This communication provides up-to-date information on the latest learning assets available in the
Academy and any pertinent recommendations or announcements regarding training materials.
This proactive approach ensures that employees stay well-informed and can readily access the
wealth of knowledge resources at their disposal.
Multitude coaching guild
Multitude has established a coaching guild that provides a platform for trainers in the organisation
to collaborate and leverage experiences across various functions. The guild addresses topics such
as training development, monitoring, and opportunities for collaboration. Guild members actively
engage in educational content and formats and benefit from an open environment to engage in
training in their teams.
Employees who received performance review in 2023
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Competency-based performance discussions
We conduct bi-annual competency-based performance discussions and career development
reviews to foster continuous growth and development within our workforce. These sessions
provide valuable feedback, incorporating ongoing coaching and aligning on goals, challenges, and
opportunities for career advancement.
In 2023, as part of our strategic HR framework, we took a significant stride by collaboratively
developing core competencies with our high-performing individuals. These competencies serve
as our DNA, offering clear benchmarks for performance measurement in each role. They define
our expectations and serve as guiding principles for decision-making regarding investments in our
people and for monitoring organisational performance.
To support employees on their journey to acquire and develop these core competencies, we launched
the Core Competencies Training and Awareness Programme in 2023. This comprehensive training
initiative utilised various platforms, including videos, blogs, podcasts, and online Q&A sessions with
the Human Resources team. This multi-faceted approach ensures that our employees have diverse
resources at their disposal to enhance their skills and contribute to our overall success.
Multitude Core Competencies Model
Our bespoke Core Competency Model serves as a compass for guiding each employee’s understanding
of what can lead to individual success within the company and our overall success.
Our six core competencies underscore the essential knowledge, skills, and attributes that are
important for success in any given role. Each role also has specific competencies defined to ensure
the appropriateness of performance management objectives.
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Workforce diversity and inclusion
We are proud of our diversity across several areas, including skills, gender, age, and nationality,
representing more than 40 nationalities. Our diversity reflects our customers and supports our
ability to address their unique needs across more than 19 markets.
We seek to cultivate a culture where every individual is valued, can make a meaningful impact and
experience substantial growth within the company. This culture means providing opportunities to
learn and develop towards strengthening our diversity and inclusivity.
Our workforce comprises 51% male and 49% female. We have set 2025 targets for diversity at the
Board and management levels, with 38% targeted respectively. In implementing our development
programmes and initiatives to grow our leaders and identify talent, we are confident in our
progress towards these objectives. As of 31 December 2023, 36% of our management and 33% of
our Board are female.
We respect each other’s differences. That means having a zero-tolerance approach to discrimination
based on gender, gender identity, race, age, sexual orientation, ethnicity, nationality, country of
origin, religion/non-religion, skills, work experience, socio-economic background, family structure
or marital status.
Our Hybrid Working Policy further supports our efforts in diversity and inclusion, providing
flexibility and freedom for employees to work how and where they work best. The policy is
guided by our value of customer centricity in relation to our people, acknowledging that there is
no one-size-fits-all approach to ways of working.
Our Group Diversity and Inclusion Statement outlines our foundational pillars, dedication, and
targets for diversity and inclusion. The statement addresses our fair remuneration practices and
support for women in the workplace regarding maternity leave and career development.
Our Group’s Equal Opportunities Policy, Code of Business Conduct, Ethics, and Anti-harassment
Policies further support a working environment that is fair and free of discriminatory practices or
harassment.
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Employee gender diversity
Male 336
Female 321
Not disclosed 1
Total 658
Employee age diversity
Under 30 years old Between 30 to 50 years old Over 50 years old
Head count Percentage Head count Percentage Head count Percentage
Male 76 11.50% 236 35.86% 24 3.64%
Female 93 14.13% 213 32.37% 15 2.27%
Not disclosed 1 0.15% 0 0 0 0
Diversity by employee category
Female
managers
Male
managers
Female
board
members
Male
board
members
36% 64% 33% 67%
Embracing diversity and inclusion is the cornerstone of our innovation, growth, scalability, and
sustainable success, and in 2024, we will continue driving actions to strengthen our approach.
Gender breakdown: Employees and board members
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Multitude Diversity and Inclusion week
In 2023 we launched our diversity and inclusion programme during EU Diversity month.
The initiative was focused on starting a conversation on diversity and inclusion and how our
people define it.
Multitude hosted a Diversity and Inclusion week to celebrate and bring special attention to
diversity and inclusion in everyday work, highlighting different themes such as bias and
actions for positive impact on inclusion.
During Diversity and Inclusion week, the Group released a new online course on diversity
and inclusion to support employees in defining actions to support inclusion in the workplace
and in interacting and connecting with customers as well as rethinking and innovating new
products.
A survey was conducted asking people what diversity and inclusion means to them and whether
they think our culture demonstrates inclusivity. The results of the survey indicated our people
are confident in our approach to diversity and inclusion. We aim to use insights on strengths
and weaknesses of our efforts on diversity and inclusion to drive internal engagement on further
initiatives.
>80% agree that Multitude values a diverse and inclusive environment
Other organised programmes included the launch of a special episode on diversity and inclusion
within the Multitude Academy’s podcast programme where colleagues from our teams across
the world held a conversation on diversity and inclusion.
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Protecting our people
As our greatest asset, our people are at the heart of our success. It means we must ensure a
thriving and happy work environment that places their health, safety, and wellbeing first.
We encourage our teams to be cognisant of protecting the wellbeing of colleagues, acting
responsibly, reasonably preventing harm, and adapting to situations as required. Our hybrid working
approach further enables us to provide flexibility in taking care of the safety and wellbeing of our
people.
We aim to protect employee rights as enshrined in the International Labour Organisation (ILO)
Fundamental Principles and Rights at Work and local country laws. We also regularly monitor our
wellbeing frameworks to ensure continued compliance.
Our approach to health and safety is holistic and includes mental health. We build an open culture
regarding mental health with some of our large hubs offering specialised support and Group-
wide initiatives, including workshops, to drive mental health awareness. We aim to maintain a safe
and dignified work environment free from all forms of harassment, intimidation and exploitation
underpinned by our zero-tolerance approach to harassment.
We have procedures based on applicable local laws to ensure respect for employee privacy. Our
whistleblowing mechanism allows employees to anonymously report any violation of privacy and
human rights, thus providing a protection framework for the reporting person.
Our people benefits
Work-life balance and hybrid work
We recognise that a supporting and flexible working environment is important for attracting highly
skilled employees and maintaining their wellbeing and retention.
We surveyed employees and organised roundtable discussions, which indicated an alignment of
the hybrid model with our values. In 2022, in alignment with our inclusive organisational culture
and consultation with our people, we decided to shift to a hybrid way of work and implemented
the Hybrid Working Policy.
Matching Share Plan and new Employee Shareholder Program
In 2021, we established a Matching Share Plan to foster collective growth and enable our people
to gain from our company’s overall performance. Our employees in the EEA area, Switzerland,
the UK, and Canada are eligible for the plan and can invest up to 10% of their annual gross salary
towards purchasing our shares. After a two-year holding period, we match the shares 1:1.
The Matching Share Plan has been a success with our people. To date 402 participants have
benefitted, with up to 49,723 gross shares received.
In December 2023, we launched a new Employee Shareholder Program to supplement the existing
Matching Share Plan. In the new program, each employee received 50 free shares, underscoring
the shared ownership that unites our organisation and enables stronger alignment with our people
on our value creation objectives.
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Total no. of employee as of 31 December 2023 658
Employees contract type by gender
Permanent, full
time and part
time
Temporar y, full
time-fixed term,
internship
Total
Male 323 13 336
Female 312 9 321
Not disclosed 1 0 1
Employees contract type by region
Permanent, full
time and part
time
Temporar y, full
time-fixed term,
internship
Total
EU 575 21 596
America 4 0 4
Asia 57 1 58
New employee hires
By gender
Male Female Not disclosed Total
97 88 0 185
By region
EU America Asia Total
146 0 39 185
By age group
Under 30
years old
Between 30 to
50 years old
Over 50 years
old
Total
86 91 8 185
Employees turnover
By gender Male Female Not disclosed Total
Number of employee turnover 82 87 0 169
Percentage of employee turnover 12.46% 13.22% 0
By region EU America Asia Total
Number of employee turnover 151 3 15 169
Percentage of employee turnover 21% 36.70% 31.50%
By age group
Under 30
years old
Between 30 to
50 years old
Over 50 years
old
Total
Number of employee turnover 58 104 7 169
Percentage of employee turnover 8.81% 15.80% 1.06%
Employee information
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Serving our communities
Charity of choice
Apart from our role as a key player in the financial ecosystem, we strive to create a positive impact
for communities in our countries of operation.
In 2023, we supported non-profit organisations through our annual Charity of Your Choice
initiative. Organisations that received our support included those working in animal welfare, with
at-risk children, humanitarian health, community development, and environmental protection. The
selection of charities demonstrates our support for a wide range of causes and showcases the
meaningful societal change we aim to drive through positive collective action.
The initiative, which has been running for its third consecutive year, follows a robust voting
process in which employees can nominate their favourite local charity from the above-mentioned
categories. After deliberation, employees vote during a live all staff call. We give organisations
that receive ten or more votes in each category a set donation amount. Charities with less than ten
votes receive an equally distributed amount of donation.
In 2023, 13 charities in seven countries received a combined contribution of EUR 17,000,
tallying the total contribution since the initiative’s inception to more than EUR 70,000.
IT internship program
We are committed to nurturing the skills of next-generation IT apprentices through training
and development initiatives. Our Information Technology hub, Multitude IT Labs, gives students
internship opportunities to equip them for the evolving job market. Guided by mentors, interns
gain hands-on working experience in different positions such as Testing Engineer and Software
Engineer. In 2023, 15 interns from Slovakia, Hungary, Russia, and Ukraine participated in the
programme, and six have since joined the team permanently after concluding their studies.
Women’s internship for Ukraine’s IT
As part of the IT Internship programme, we support young female IT talents from Ukraine as they
embark on their career while adjusting to a new life in times of crisis. Multitude IT Labs is proud to
be a part of the Digi Talents programme by the Slovakian organisation EMA – Development and
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Mobility Agency. Funded by the European Union, the Digi Talents labour mobility programme
offers 12-month employment at leading Slovakian ICT companies, providing all-inclusive support
for travel, immigration formalities, and accommodation.
Women’s Day campaign
As part of International Women’s Day, our consumer lending business unit celebrated its female
consumers worldwide by hosting a campaign highlighting female achievements in various arenas.
The campaign, which has been running for three consecutive years, includes unique competitions
ranging from corporate logo reimagination contests to aspiring women in life nominations and
further to global brand jingle competitions for young female musicians.
Creating value and protecting the wellbeing
of our customers
As a digital financial services provider for consumers and businesses and in line with our mission,
we seek to enable wider access to banking and finance. With simplified and faster access through
us, customers who have not adequately benefitted from traditional banking can obtain services
and finance that suits their needs.
SMEs can access one-stop, uncomplicated access to finance, and individuals can access a
financial safety net and easy and inclusive banking services. Access to finance extends to
companies through investments and loans in our Warehouse Lending business unit, further
supporting local economic growth.
We seek to act responsibly by providing products and services through our business units,
protecting customers, and minimising potential negative impacts on society. Ensuring that
we employ a cautious approach to customer selection and prevent over-indebtedness in our
communities is key to our long-term sustainability. Lending responsibly and recognising the
potential impacts and the financial risk of a lack of robust policies and procedures is a consistently
managed and material ESG issue.
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We recognise the potential impacts of providing digital-only financial products and services
related to protecting customer information and ensuring that customers have sufficient
information to support informed decision-making. We seek to ensure no hidden terms and conditions.
We manage impacts associated with product information by ensuring that our customer relations
teams use internal marketing guidelines and engage in best-practice labelling of financial products.
Customer education
As part of driving information access and product and service understanding, we undertake efforts
to educate customers, supporting financial product understanding.
Our consumer banking unit, Ferratum, addresses finance and banking foundational knowledge
in line with broader EU financial literacy ambitions. It aims for over 50% of its online content to
be educational* by 2025 and will likely achieve this goal already in 2024, as 60% of its planned
content across social media channels for 2024 is educational.
Responsible lending
Our business units implement protective procedures to prevent negative impacts on vulnerable
customers. The main criterion for being successful with a loan application is the ability to repay the
loan. We apply the following responsible lending principles:
• Only lending to customers that can repay the loan in full and on time
• Providing all legal documentation in a clear and transparent way for informed decision-
making, including information on risks associated with products
• Abiding by applicable consumer protection laws
• Ensuring a non-discriminatory customer selection process
• Preventing cycles of debt by only granting one loan to a customer at a time and adhering to
a one day “cooling off” period after repayment
• Not allowing loan roll-overs or granting advances to finance a customer’s unpaid interest or
fees until the customer has paid the outstanding loan**
Responsible Lending Index
Our commitment to responsible lending extends to monitoring our practices. In 2022, we launched
a Responsible Lending Index piloted by Ferratum, the business unit with our largest share of
consumer credit customers that aims to be a leader in responsible lending.
Components of the Index:
a. Gender bias in lending assessments
b. Default score measured by the 90 Days Past Due
c. Responsible Lending Survey
Each component’s score is weighted to determine the overall index score.
A higher score in the survey signals that customers benefit from the business unit’s commitment
to transparent product pricing and ensuring that they meet expectations of information provided
throughout the customer journey.
* Educational topics are defined as those containing information on financial product use non-specific to the Ferratum brand and contributing
to financial education in the communities we operate in.
** Does not apply to revolving loans due to their nature
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The current overall score is 4.4 out of 5, which we consider to be a high-performance level across
the components and an improvement from 4.3 in 2022. Our 2025 target is 4.5 and with gradu-
ally increasing response rates to the survey on responsible lending and continued commitment
to ensuring non-discriminatory lending practices, we are observing better scoring in the index
components.
Responsible marketing
We strive to adhere to strict marketing guidelines when selling products and services. These
guidelines cover the obligation to not advertise in a misleading, false, or deceptive manner and
to provide up-to-date information on product and service implications such as total credit and
borrower rates.
Where required, we ask our Legal and Compliance and Data Protection functions for approvals
prior to publication. We address compliance with marketing guidelines in business unit steering
committees. In 2023, we had no reports of incidents of non-compliance with regulations or internal
marketing guidelines.
Customer engagement
Each of our business units strives to provide a transparent customer experience, providing platforms
for customer engagement ranging from surveys, review platforms, and social media to grievance
mechanisms.
The consumer segment, in particular, uses external review platforms with customer service agents
responding to reviews. To ensure transparency and relevancy, we address frequently asked
questions through several communication channels, including customer updates and social media.
Our customer relations team conducts surveys to assess satisfaction with products and services
after onboarding or changes to customer policies and procedures. They conduct quarterly surveys
on customer satisfaction for all active customers and periodically throughout the customer journey.
Surveys comprise a combination of ratings or open-ended reviews, as required for the situation.
Customer relations process the feedback, supported by relevant stakeholder engagement and
response. Customer survey responses inform the customer relations process. Business unit
leadership meets quarterly to review reports and identify new services and product features that
address concerns.
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Business units address the effectiveness of the customer engagement process through:
1. Trained customer relations staff, providing adequate support
2. Transparent procedures to facilitate customer understanding of implications of product terms
3. Empathetic and customer-centric customer engagement
Ferratum Insights
Each year Multitude’s consumer lending business unit, Ferratum, conducts market wide en-
gagement through a Ferratum Insights survey. In 2023, the survey investigated real, public
data trends on financial topics supporting a deepened understanding of consumer behaviour
patterns across 13 European markets. This year’s survey focused on the impact of the current
inflation period within our operating markets. Participants provided insights on their spending
patterns, as well as shared their thoughts and concerns regarding the current inflation period.
“Ferratum Insights help us understand our clients’ needs of financial services and support.
We are living in turbulent times with millions of vulnerable households across Europe being
hit hard by inflation and all the implications of it. Unfortunately, inflation shows little sign
of abating. With the study we wanted to highlight this is indeed a global/Pan-European
phenomena.”
- Kristjan Kajakas, CEO at Ferratum.”
Visit www.multitude.com to learn more about the survey.
Customer grievance mechanisms
We make customer complaints procedures available on the website for each country where we
provide products and services. Reports on grievances reach relevant customer relations teams via
email, telephone, or their social media platforms in line with specific internal guidelines.
Customer relations teams undergo extensive training for dealing with customers and responding to
grievances. The customer relations team monitors complaints and reports them to the Leadership
Team. In addition, they form a part of Group risk assessments and reporting processes. Customers
can, in addition, report grievances with competent authorities.
Protecting customer data
We aim to comprehensively address potentially harmful impacts on customer wellbeing and
financial risks associated with losing customer data. These potential impacts inherently arise in
our business model of providing products and services online. We strive to ensure the responsible
collection, use, and storage of customer data in delivering customer value by implementing strong
data governance mechanisms.
We have implemented policies and procedures to ensure compliance with the requirements of
applicable data protection laws and best practices for protecting customers. We consider customer
In 2023, the Group achieved a Net Promoter Score of 60
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data protection as part of upholding human rights, as articulated in our Human Rights Statement
outlining our commitment to protecting the rights of our customers.
Protecting our customer’s data is important for all stages of the customer journey and all
functions dealing with customer data. Implementing strong mechanisms to protect customer
data enables us to retain our customer trust and achieve sustained legitimacy as a fully digital
financial services platform.
Our approach to upholding customer rights regarding their data comprises the following key activities:
• Transparency regarding data and incident handling through customer communication about
how data is used and protected in the event of a breach.
• Communicating in a timely manner with customers on policy and procedural changes regarding
the collection, handling, and storage of their data.
• Ensuring that data is collected and processed lawfully in accordance with applicable data
protection laws and stored for specified, explicit, and legitimate purposes.
• Working with carefully selected third party data processors who can demonstrate their
accountability and trustworthiness, having their efforts and focus on data quality, efficiency,
and security. We engage data processors who adhere to the highest standards of data
protection and privacy and monitor their compliance regularly. We ensure having a clear and
transparent relationship with our data processors, based on mutual respect and cooperation.
• Taking reasonable measures to ensure upholding data subjects’ rights.
• Adhering to strong general security requirements for processing personal data in the Group,
including but not limited to the pseudonymisation, anonymisation or encryption of personal data
and measures to prevent unauthorised access to data and other possible breaches.
• Monitoring data protection performance against internal policies and documented procedures
with regular audits to ensure continuous compliance and prevention of breaches and violations.
The Group Data Protection Officer oversees data protection policies, procedures and strategies
and monitors data protection performance.
We have detailed the terms on collection, use and retention of personal data in data protection
policies of the countries of operation and in accordance with regulatory requirements for the
operating entity providing products and services. Our customers can access the terms on protecting
their data through our affiliate privacy policies or branches, during their onboarding process, or on
the website. We have established and effected our general security requirements for processing
personal data.
Employees receive annual data protection training, and new employees receive the training as
part of the onboarding programme within the first two weeks of joining. We have implemented
additional training programs for employees who regularly process personal data.
In 2023, we had no records of substantiated customer complaints concerning breaches of customer
privacy.
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Governance and ethics
We are committed to demonstrating ethical conduct and strong governance in social and
environmental issues. Acting responsibly and with integrity is integral to our delivery of financial
products and services whilst ensuring the protection our stakeholders.
Our ESG governance structure, with accountability in all areas and levels of the organisation, aims
to support our efforts to be a sustainable growth platform that serves the overlooked customer.
We consider governance as an essential pillar in ESG integration. Thus, structures to measure
progress on ESG have been a priority since the inception of our ESG programme.
Our ESG governance mechanisms enable management’s active engagement on social and
environmental matters impacting our stakeholders. In partnership with functions, business units
and management, our dedicated ESG Officer is responsible for developing our environmental and
social issues strategies and has convened an ESG Steering Committee.
The ESG Steering Committee, chaired by the Group CEO and Group ESG Officer, enables
embedding the Group ESG strategy into organisational activities and provides functional
and business strategy expertise. The committee includes the Chief Financial Officer (CFO),
Chief Risk Officer (CRO), Chief Legal and Compliance Officer (CLCO), and business unit Chief
Executive Officers (CEOs).
Our ESG Steering Committee is the main forum for regular updates and decision-making on ESG
matters across functions. Monthly meetings cover topics including materiality assessment, ESG
target setting and monitoring, and social impact initiatives.
Our Group ESG Officer reports on the activities of the ESG Steering Committee and provides
regular updates on material ESG matters to the Group Board of Directors. The Group Board of
Directors oversees the monitoring of material ESG matters, ESG strategy development, and
reviews ESG policies.
We continuously engage stakeholders in further advancing ESG governance and transparency.
We are strengthening internal reporting mechanisms for ESG to comprehensively address
material issues and address evolving requirements on sustainability disclosure. We plan to
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increase the frequency and effectiveness of Board engagement in ESG and enhance internal
performance monitoring.
Risk Committee
The primary responsibility for managing risk lies at a functional level, with the CRO and Group Risk
Committee providing effective risk management oversight. The CRO assumes overall accountability
for monitoring our risk profile, including ESG risks, relative to the risk appetite prescribed by the
Board, and, with input from the ESG officer, periodically reports key developments to the Risk
Committee. The Risk Committee reports to the Board on risk matters, including ESG risks, with
ESG incorporated into the Risk Committee charter.
The CRO further provides guidance on ESG matters for the Risk function within the ESG Steering
Committee. The CRO oversees ESG as part of the monitored risks in the Risk Committee table and,
in addition, reviews the ESG Risk Policies of the Group.
The Group ESG Officer supports the Group Risk Function, provides input on integrating ESG into
the risk management framework as part of Group ESG strategy implementation, and coordinates
the ESG risk assessment.
Group Audit Committee
The Audit Committee is established to ensure proper functioning of corporate governance, including
overseeing of the financial reporting.
The Audit Committee monitors and assess the efficiency of the Company’s internal controls and
risk management systems, as well as reviews the Company’s non-financial report.
Internal Audit is responsible for the independent review of risk management and our overall control
environment. Its objective is to provide reliable, valued, and timely assurance to management and
the Audit Committee over the effectiveness of controls, mitigating current and evolving material
risks and, in doing so, enhancing the control culture within our Group.
Internal Audit uses outputs from our risk assessment process when developing its annual internal
audit plan. Internal Audit also reviews ESG risk processes, procedures and controls relating to ESG
risk management, governance, metrics, policies, and reporting as part of the internal audit plan.
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The Audit Committee reviews and approves internal audit plans, including those relating to ESG
controls. During 2023, Internal Audit reviewed ESG reporting with a planned expansion of audit-
ed topics towards a stronger internal ESG control framework.
Group People and Culture Committee
In 2022, with the inclusion of human resources matters, such as diversity and inclusion addressed
in its charter, we renamed the Remuneration Committee to the People and Culture Committee.
The People and Culture Committee reports regularly to the Board on its work. The task of the
People and Culture Committee is to ensure the proper functioning of corporate governance and
efficient preparation of matters pertaining to the performance review and remuneration of the
members of the Board, the CEO, other executives, and the remuneration schemes of the personnel.
Board skills and experience in ESG matters
We benefit from a Board with diverse knowledge, skills, and experience, including ethics,
corporate culture, risk management, and legal affairs. We recognise the integral role of the Board
in overseeing holistic strategic management, considering environmental and social impacts, risks,
and opportunities. We aim to maintain a skill level that meets regulatory requirements and furthers
responsible business practices in response to current and emerging societal issues.
Driving ethical business practices and culture
We are committed to demonstrating an ethical culture with responsible practices across all areas.
Our commitment includes ensuring continuous engagement with our values and expectations of
each other, e.g. through our core competency model.
Our Group policy framework, including policies related to employees and customers, supports
ethical business practices. These policies are in the Group ESG Policy and available through our
internal employee platform and our Group website.
We further prioritise awareness and education to enable an aligned understanding of our cultural
values. Training on the Code of Ethics and Business Conduct, Whistleblowing and the Core
Competencies model support us in strengthening our cultural framework.
We continuously monitor and gather feedback on our culture evolution through conversations
with employees, Group-wide meetings, team meetings, and surveys. Key surveys include the eNPS,
Security Culture, Learning and Development, and Diversity and Inclusion surveys.
Board composition and diversity
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Assessing ESG impacts in the value chain
We have implemented tools for ESG assessment in the value chain, with certain areas prioritised
for piloting. In 2023, we commenced considering ESG matters in corporate loans and investments,
piloting an ESG assessment tool incorporating human rights and environmental matters.
We will further develop the ESG assessment tool to capture additional asset classes, expand the
scope of issues assessed, and implement further process integration. The tool is currently limited
to our banking activities under Multitude Bank.
ESG in New Product Approval Process
We have developed a robust New Product Approval Policy (NPAP) incorporating ESG considerations
for Multitude Bank in line with European Banking Authority Guidelines on Internal Governance.
Incorporating ESG considerations into the NPAP process ensures abiding by an adequate risk
approach and the necessary degree of intervention in relation to ESG impacts in product development
when introducing new products or entering new markets.
Managing our supply chain impacts
In accordance with our Human Rights Statement, committing us to uphold the human rights
of persons impacted by our business operations, we are developing our human rights and
environmental assessment framework. In addition, we recognise potential risks associated with
human rights violations and aim to address material issues in line with regulatory requirements
and best practices.
We will integrate a human rights and environmental matter assessment in vendor compliance and
onboarding processes for vendors exceeding determined internal thresholds. In addition, we have
commenced ESG consideration in the RFP stage of vendor selection. We aim to formalise the ESG
assessment process and monitoring of salient human rights issues in the value chain.
Lobbying – Industry association involvement
We do not engage in direct lobbying or make donations to political organisations. Lobbying is
limited to contributions to and engagement within trade associations.
Our involvement in trade associations supports activities that benefit our customers and strategic
objectives. We do not endorse industry association positions and consider each issue case-by-case.
We strive to be transparent with regard to our contributions and are registered in the EU Transparency
Register.
Total trade association membership spend in 2023 EUR 204,721.11
Trade association membership
Note: Conversion to EUR is calculated by taking the average 12 months of foreign exchange reference rates for 2023
from the European Central Bank
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Anti-bribery and anti-corruption
We have implemented a zero-tolerance approach to bribery and corruption and describe it
comprehensively in our Code of Business Conduct and Ethics. It defines bribery as the offer,
promise, transfer, request or agreement to receive anything of value, whether directly or indirectly,
to or from any person, to induce that person to perform their roles improperly or to influence them
to obtain or retain business or an advantage in the conduct of business. It defines corruption as
misusing entrusted power or public office for private gain.
Employees are required to conduct an appropriate level of due diligence regarding suppliers and,
where necessary, include clauses relating to anti-bribery and corruption in agreements.
Whistleblowing
We are committed to fostering an ethical culture that enables stakeholder protection and
risk mitigation whilst fulfilling regulatory requirements, and thus, we have published a policy
addressing whistleblowing. The Whistleblowing Policy encourages reporting improper practices,
such as illegal activity within our Group and provides a clear framework for whistleblowing,
communicating on the investigation process, and whistleblower protection.
In 2023, we revised our Whistleblowing Policy to align with requirements under the EU
Whistleblowing Directive (Directive (EU) 2019/1937), which set new requirements for the provision of
internal whistleblowing platforms and the protection of whistleblowers.
A person who exposes improper practices such as serious misconduct, dishonest or illegal activity
within our Group is considered a “Whistleblower”. The Multitude Group Whistleblowing Policy
covers reporting of improper practices, which may include but are not limited to:
• A criminal offence, miscarriage of justice, corrupt practice, bribery, or an unethical act that has
occurred or is likely to occur or to have occurred
• A violation or suspected violation of law or a failure to comply with laws or regulations
• Deliberate concealment of any of the above-noted matters
• Human rights violations
Internal whistleblowing
We have an appropriate internal framework in place to report improper practices. For this purpose,
we have appointed a Whistleblowing Reporting Officer to receive and deal with such internal
disclosures. Employees can submit reports to the Whistleblowing Reporting Officer via email or
in person.
We have secured the internal email channel for whistleblowing through measures that ensure the
whistleblowers’ confidentiality and identity and protect any third party mentioned in a report. In
addition, non-authorised persons are unable to access the channel.
All good-faith disclosures, and where the whistleblower reasonably believes the information to be true,
the whistleblower is protected against detrimental action, including but not limited to any form of
retaliation and/or discrimination, and against revealing the identity of the said whistleblower, who can
only be revealed with the written consent of the whistleblower or if required under any applicable laws.
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External whistleblowing
The Multitude Group Whistleblowing Policy sets out the potential for external whistleblowing through
external competent authorities in accordance with the procedures outlined on their websites.
Communication and training on anti-corruption policies and procedures
We conduct regular training on anti-bribery, anti-corruption, and the Code of Business Conduct and
Ethics. We share information about policies through staff calls and provide training online for all
employees.
We make all policies available internally and on our public Multitude Group website.
Incidents
During the financial year ended 31 December 2023, there were no reported incidents related to anti-
corruption, anti-bribery, and whistleblowing.
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The Group Head of Information Security engages with the Leadership Team on cybersecurity
matters and reports regularly internally. These activities ensure cross-functional engagement and
continuous enhancement of infrastructure and data protection.
Through comprehensive capacity building and training, we want to foster a culture of awareness
for employees at all levels. We equip employees with skills and tools to report and, over time,
improve their knowledge of cybercrime risks through dedicated exercises, self-monitoring of score
progression, and team metrics.
We use multiple methods to address diverse training and engagement needs, including games
and audio-visuals with mandatory tests for each online course. We also regularly conduct phishing
tests to monitor employee risk scores.
We encourage employees to take responsibility for their learning with optional training available
for employees who want to upskill themselves in addition to regular mandatory training.
In October, our Group Information Security team held a cyber awareness month involving the
launch of online employee training modules on cybersecurity risks and weekly educational en-
gagement on preventing cybercrime.
As part of monitoring our success in embedding a strong culture of security awareness, we con-
duct a Security Culture Awareness Survey. The Security Culture Survey is a fundamental element
of our security awareness program. This survey helps us assess and understand our employees’
opinions regarding security within our organisation. It delves into the psychological and social
aspects that drive our collective behaviour regarding security.
Preventing cybercrime
As a digital financial platform, we are potentially vulnerable to cyber security threats in the context
of rising cybercrime within global financial systems. We manage this risk within our broader
risk management framework to ensure robust measures to combat cyber attacks. In addition,
preventing adverse impacts from cybersecurity threats to our stakeholders is a key element
of managing negative potential societal impacts associated with our business operations and
product and service offerings.
Cybercrime prevention is an essential contributor to our ability to maintain our customer trust
and prevent reputational risks. Our efforts aim beyond compliance to align with best practice and
frameworks.
We have implemented operational controls to monitor cyber risks to critical infrastructure supported
by governance mechanisms across the organisation. Our controls’ design and implementation
utilise a “plan-for-failure” approach to ensure that should one control level fail, systems, networks,
or data are not at risk.
The IT Governance, Risk and Compliance (IT GRC) Committee receives regular internal updates
on cyber security. The Group Risk Committee receives reports on an ad-hoc basis, as required,
and submits reports on cybersecurity risk evaluation and management to the Group Board of
Directors. Reporting includes updates on key risk indicator performance in various areas of
information security.
ESG Report 2023
68
The survey measures seven essential topics of our security culture:
Information security pillars
Employees’ feelings and beliefs regarding security protocols and issues
The actions and activities of employees that impact the security of our
organisation, directly or indirectly
Employees’ understanding, knowledge, and awareness of security
issues and activities
The extent to which employees are aware of and adhere to written
security policies
Unwritten expectations about appropriate behaviours related to the use
of information technology within the organisation
How employees perceive their role as critical in sustaining or endangering
the organisation’s security
The quality of communication channels for discussing security-related
events, fostering a sense of belonging, and supporting incident reporting
1. Attitude
2. Behaviour
3. Cognition
5. Compliance
6. Norms
7. Responsibility
4. Communication
Due to continuous employee training, the results from the survey indicate that our performance
was higher than the industry average in 2023.
An appointed Security Tester and a third-party provider conducts regular penetration testing
throughout the year as part of our cybersecurity monitoring. In addition, we conduct regular
vulnerability assessments utilising industry-leading systems. These systems include investing in
a leading Dark Web monitoring solution, advanced malware detection systems (Endpoint Detection
and Response (EDR), and Extended detection and response (XDR)), Data Loss Prevention
Systems (DLPS) and Security Information and Event Management (SIEM) systems.
The Information Security function enforced the NIST400 40r4 framework for enterprise patching
throughout the Group and our bank. Patching refers to system and software updates addressing
vulnerabilities. This framework helps identify, prioritise, acquire, install, and verify installing patches,
updates, and upgrades throughout the organisation.
ESG Report 2023
69
Tax governance
We seek to demonstrate the highest ethical conduct regarding tax matters, meeting the expectations
of our stakeholders, including investors, customers, and society. Our tax team oversees the tax strategy,
reviews it annually and when material changes to the tax environment occur.
Transparency is a central value to our approach and commitment to responsibility in dealing with
tax matters in the jurisdictions in which we operate. This means:
• Meeting all statutory and regulatory tax obligations
• Acting with reasonable care in relation to all tax filings and payments
• Disclosing all relevant facts and circumstances to the tax authorities
• Resolving ongoing matters in a collaborative, courteous and timely manner
• Actively engaging with tax authorities on a real-time basis to minimise tax risk as part of our
effective tax management. Due to the complexity of the tax system within which we operate, our
long-term tax goals are consistent with our mission and relate to avoiding tax risks and making tax
payments at the currently required level.
We update the identification and analysis of risks on an ongoing basis, taking analysis of our
historical data, analysis of external data including court rulings and tax interpretations, reports and
advice received from tax experts, tax advisors, legal advisors, or auditors into account to avoid
these risks.
The assumption is that the maximum level or type of tax risk an organisation can accept to achieve
a financial or strategic goal is low. This means that we are unwilling to bear risks and choose a safe
solution that does not generate risks when in doubt.
When a tax law issue requires additional analysis by an external advisor, our personnel reports
such a need to the tax team. The tax team decides on the performance of the relevant analysis.
We consult with the tax team on legal issues that may directly or indirectly affect tax settlements.
2021 2022 2023
Total training hours 1763 5168 4512
Employees that received
training in cybercrime
prevention
91% 89% 91%
Total no. of employees
trained
939 921 795
Decline in phishing
simulation click rates*
70% from previous
year
Increase of 28% due to the new
phishing test complexity levels, from
basic to advanced, and the frequency
of which such phishing test format
changes throughout the month
2023 Data on cybercrime prevention training
ESG Report 2023
70
EU Taxonomy disclosures
The EU Taxonomy is a classification system that identifies environmentally sustainable activities
supporting investment towards a low-carbon economy and the EU Green Deal.
Regulation (EU) 2020/852 (the “Taxonomy Regulation”) differentiates between taxonomy-
eligible and taxonomy-aligned activities. A taxonomy-eligible economic activity refers to specific
economic activities described in the Delegated Acts. A taxonomy-aligned economic activity
means an economic activity that complies with the requirements laid down in Article 3 of the
Taxonomy Regulation, namely, provides a substantial contribution to one of the environmental
objectives, does no significant harm to any of the other environmental objectives and is undertaken in
compliance with minimum safeguards.
Multitude taxonomy eligibility
Article 8(1) of the Taxonomy Regulation obligates undertakings subject to Articles 19a or 29a
of Directive 2013/34/EU, inserted by Directive 2014/95/EU (Non-Financial Reporting Directive),
to publicly disclose information on how and to what extent their activities are associated with
economic activities that qualify as environmentally sustainable as defined under the Regulation.
Multitude Group falls under the Non-Financial Reporting Directive (NFRD)’s scope and is hence
covered by the EU Taxonomy.
Article 10 of the Delegated Regulation (EU) 2021/2178 (the “Disclosures Delegated Act”) provides
for phased reporting of taxonomy key performance indicators on the extent to which economic
activities are eligible or aligned.
Non-financial undertakings were required to disclose on taxonomy eligibility from January 2022
and on taxonomy alignment from January 2023. Financial undertakings are required to report on
taxonomy eligibility from January 2022 and alignment from January 2024.
In determining Multitude’s eligibility under the Taxonomy Regulation, we initially referred to the
core activities, which include Multitude Bank activities and, in 2021 and 2022, reported on taxonomy
eligibility for credit institutions.
The Disclosures Delegated Act sets out requirements for financial undertakings and non-financial
undertakings. We do not fall into the categories for financial undertakings set out in Article 1(8)
of the Disclosures Delegated Act. As a Group, despite undertaking credit institution activities
through our subsidiary, Multitude Bank, are not a credit institution according to Article 4(1), point
(1), of Regulation (EU) No 575/2013.
Given that we do not fit into the listed categories of this regulation and considering EU guidance
on taxonomy disclosure requirement interpretation, we have decided to use the non-financial
undertaking KPIs. This disclosure introduces a revised approach to our Group’s EU Taxonomy
disclosure for the financial year ending 31 December 2023.
Whilst there is provision for voluntary use of financial undertaking KPIs, we, in assessing the
potential eligibility of activities under the credit institution KPIs (Green Asset Ratio), decided not to
voluntarily publish the associated KPIs for 2023. We aim to review consideration on taxonomy disclosure
annually and the potential expansion of voluntary disclosure, subject to data availability.
ESG Report 2023
71
The KPIs reported are, hence, in accordance with the KPIs of non-financial undertakings referred
to in Article 8(2), points (a) and (b) of the Taxonomy Regulation. Financial metrics to report are
turnover, capital expenditure, and operating expenditure derived from products and services
associated with the taxonomy’s six environmental objectives.
We screened our corporate and investment lending portfolio for eligible activities under the
taxonomy, categorising them by macro sectors. Our screening did not identify business activities
within the taxonomy’s scope. Considering that the portfolio constitutes businesses outside the
NFRD scope, we consider exposure to this segment as non-eligible. This is also the case for
CapitalBox’s SME lending portfolio.
We identified real estate and marketplace for the trade of second-hand goods for assessment as
potentially eligible activities through some of the corporate loans and investments due to these
activities being included in the Delegated Regulations (EU) 2021/2139 (the “Climate Delegated
Act”) and (EU) 2023/2486 (the “Environmental Delegated Act”). However, we concluded that our
customers’ activities did fall into the outlined definitions.
For real estate, seven activities of three types (stand-alone, enabling, and transitional) are
listed in the technical screening criteria for climate change mitigation and adaptation. We aim to
continuously assess for Taxonomy eligibility as our real estate lending portfolio grows.
The Environmental Delegated Act outlines the technical screening criteria determining whether
an economic activity qualifies as contributing substantially to the transition to a circular economy.
We have excluded customers involved in retail trade since activity 5.6, ‘Marketplace for the trade
of second-hand goods for reuse’, does not include the wholesale or retail trade of second-hand
goods.
The Commission Delegated Regulation 2021/2178 (the “Disclosures Delegated Act”) specifies the
disclosure obligations under Article 8 of the Taxonomy Regulation. This report fulfils the obligation
under Article 8 of the Taxonomy Regulation and Article 10 of the Disclosures Delegated Act to
disclose the proportion of taxonomy-eligible and taxonomy-non-eligible activities for the financial
year ending 31 December 2023.
We report no taxonomy-eligible and aligned activities in 2023, however, we aim to undertake efforts
to assess our lending activities further and monitor Taxonomy Regulation towards concretising our
reporting on the environmental sustainability of our activities.
In 2023, we commenced including ESG assessment in corporate loans and investments and
aimed to consider additional indicators, including taxonomy alignment. This will support further
integration of Taxonomy Regulation considerations within our Group’s activities as we continuously
work to meet the needs of our stakeholders.
ESG Report 2023
72
Substantial contribution criteria DNSH criteria
Economic Activities
Code (s)
Absolute turnover (EUR
‘000)
Proportion of turnover
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned proportion
of turnover 2023
Taxonomy-aligned proportion
of turnover 2022
Category (enabling activity or)
Category (transitional activity)
A. TAXONOMY ELIGIBLE ACTIVITIES %
A.1. Environmentally sus-
tainable acivities (Taxono-
my-aligned)
Turnover of environmentally
sustainable activities (Taxon-
omy-aligned) (A.1)
- 0% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0.00% 0.00% N /A N /A
A.2 Taxonomy-Eligible but
not environmentally sustain-
able activities (not Taxono-
my-aligned activities)
Turnover of Taxonomy-Eligi-
ble but not environmentally
sustainable activities (not
Taxonomy-aligned activities)
(A.2)
- 0% 0.00% 0.00% N/A N/A
Total (A.1 + A.2)
- 0% 0.00% 0.00% N/A N/A
B. TAXONOMY NON-ELIGI-
BLE ACTIVITIES %
Turnover of Taxonomy
non-eligible activities (B)
230,522 100%
Total (A + B)
230,522 100%
Proportion of turnover from products or services associated with Taxonomy-aligned
economic activities – disclosure covering year 2023
ESG Report 2023
73
Substantial contribution criteria DNSH criteria
Economic Activities
Code (s)
Absolute CapEx (EUR ‘000)
Proportion of CapEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned proportion
of CapEx 2023
Taxonomy-aligned proportion
of CapEx 2022
Category (enabling activity or)
Category (transitional activity)
A. TAXONOMY ELIGIBLE ACTIVITIES %
A.1. Environmentally sus-
tainable activities (Taxono-
my-aligned)
CapEx of environmentally
sustainable activities (Tax-
onomy-aligned) (A.1)
- 0.00% N/A N/A N/A N/A N/A N/A N/A N/A N /A N /A N /A N /A N /A 0.00% 0.00% N /A N /A
A.2 Taxonomy-Eligible but
not environmentally sustain-
able activities (not Taxono-
my-aligned activities)
CapEx of Taxonomy-Eligi-
ble but not environmentally
sustainable activities (not
Taxonomy-aligned activi-
ties) (A.2)
- 0.00% 0.00% 0.00% N /A N /A
Total (A.1 + A.2) - 0.00% 0.00% 0.00% N /A N /A
B. TAXONOMY NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy non-eli-
gible activities (B)
13,169 100%
Total (A + B) 13,169 100%
Proportion of CapEx from products or services associated with Taxonomy-aligned
economic activities – disclosure covering year 2023
ESG Report 2023
74
Substantial contribution criteria DNSH criteria
Economic Activities
Code (s)
Absolute OpEx (EUR ‘000)
Proportion of OpEx
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Climate change mitigation
Climate change adaptation
Water and marine resources
Circular economy
Pollution
Biodiversity and ecosystems
Minimum safeguards
Taxonomy-aligned propor-
tion of OpEX 2023
Taxonomy-aligned propor-
tion of OpEx 2022
Category (enabling activity or)
Category (transitional activity)
A. TAXONOMY ELIGIBLE ACTIVITIES %
A.1. Environmentally sus-
tainable acivities (Taxono-
my-aligned)
OpEx of environmentally
sustainable activities (Tax-
onomy-aligned) (A.1)
- 0.00% N /A N /A N /A N /A N /A N /A N /A N /A N /A N /A N /A N /A N /A 0.00% 0.00% N /A N /A
A.2 Taxonomy-Eligible but
not environmentally sustain-
able activities (not Taxono-
my-aligned activities)
OpEx of Taxonomy-Eligible
but not environmentally
sustainable activities (not
Taxonomy-aligned activi-
ties) (A.2)
- 0.00% 0.00% 0.00% N /A N /A
Total (A.1 + A.2) - 0.00% 0.00% 0.00% N /A N /A
B. TAXONOMY NON-ELIGIBLE ACTIVITIES %
OpEx of Taxonomy non-eli-
gible activities (B)
372,247 100%
Total (A + B) 372,247 100%
Proportion of OpEx from products or services associated with Taxonomy-aligned
economic activities – disclosure covering year 2023
ESG Report 2023
75
GRI Index 2023
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
General Disclosure 2-1 Organisational detail
Annual Report, What is
Multitude?, p.14 - 17
General Disclosure 2-2
Entities included in the
organization’s
sustainability reporting
ESG Report, About the
ESG report 2023, p.24
General Disclosure 2-3
Reporting period,
frequency and contact
point
ESG Report, About the
ESG report 2023, p.24
General Disclosure 2-4
Restatements of
information
In the process of
improving alignment
with the GRI Standards,
the contents for GRI
203, 302, 305, 403
have been added to the
2023 reporting.
General Disclosure 2-5 External assurance
The ESG report was not
subject to external
assurance for the 2023
financial year. The
Group aims to align with
assurance requirements
under the Corporate
Sustainability Reporting
Directive.
Activities and workers
General Disclosure 2-6
Activities, value chain
and other business
relationships
Annual report, Multitude
growth platform, p.15 - 17
General Disclosure 2-7 Employees
ESG Report, Workforce
diversity and inclusion, p.51
ESG Report 2023
76
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
Governance
General Disclosure 2-9
Governance structure and
composition
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-10
Nomination and selection of
the highest governance
body
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-11
Chair of the highest
governance body
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-12
Role of the highest
governance body in
overseeing the management
of impacts
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-13
Delegation of responsibility
for managing impacts
ESG Report, Governance
and ethics, p.62
General Disclosure 2-14
Role of the highest
governance body in
sustainability reporting
ESG Report, Governance
and ethics, p.62
General Disclosure 2-15 Conflicts of interest
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-16
Communication of critical
concerns
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-17
Collective knowledge of the
highest governance body
Multitude SE Corporate
Governance Statement
2022
General Disclosure 2-18
Evaluation of the
performance of the highest
governance body
Remuneration Report
2023
General Disclosure 2-19 Remuneration policies
Remuneration Report
2023
General Disclosure 2-20
Process to determine
remuneration
Remuneration Report
2023
General Disclosure 2-21
Annual total compensation
ratio
Remuneration Report
2023
ESG Report 2023
77
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
Strategy, policies and practices
General Disclosure 2-22
Statement on
sustainable
development
strategy
Annual Report, Remarks from the
CEO, p.8,
ESG Report, Responsible financial
services for the overlooked customer,
p.25 - 29
General Disclosure 2-23
Policy
commitments
"ESG Report, Governance and ethics,
p.62 - 67
The Group Human Rights Statement
ESG Policy (inclusive of Environmental
Policy and Collective Barganing
statements) and Diversity and
Inclusion Statements and policies are
located at:
https://www.multitude.com/esg/
esg-policies
General Disclosure 2-24
Embedding policy
commitments
ESG report, Governance and ethics,
p.62 - 67
ESG Policy https://www.multitude.
com/esg/esg-policies
General Disclosure 2-25
Processes to
remediate negative
impacts
ESG Report, Governance and ethics,
p.62 - 67
General Disclosure 2-26
Mechanisms for
seeking advice and
raising concerns
ESG Report, Governance and ethics,
p.62 - 67
General Disclosure 2-27
Compliance with
laws and
regulations
ESG Report, Governance and ethics,
p.62 - 67
General Disclosure 2-28
Membership
associations
ESG Report, Governance and ethics,
p.62 - 67
Stakeholder engagement
General Disclosure 2-29
Approach to
stakeholder
engagement
ESG Report
- Responsible financial services for the
overlooked customers, p.25
-Our ESG approach, p.27
-Our ESG priorities, p.29
-Our approach to materiality, p.30
-Customer engagement, p.59
-Governance and ethics, p.62
General Disclosure 2-30
Collective
bargaining
agreements
ESG Policy: https://www.multitude.
com/esg/esg-policies
ESG Report 2023
78
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
Material Topics
Material Topics 3-1
Process to
determine material
topics
ESG Report, Our material topics -
Defining what matters, p.30 - 31
Material Topics 3-2
List of material
topics
ESG Report, Our material topics -
Defining what matters, p.30 - 31
GRI 203: Indirect Economic Impacts (2016)
Indirect Economic
Impacts
3-3
Management of
material topics
ESG Report, Serving our
communities, p.56
Indirect Economic
Impacts
203-1
Infrastructure
investments and
services supported
ESG Report, Creating value and
protecting the wellbeing of our
customers, p.57
Indirect Economic
Impacts
203-2
Significant indirect
economic impacts
ESG Report, Serving our
communities, p.56
GRI 205: Anti corruption (2016)
Anti-corruption 3-3
Management of
material topics
ESG Report, Governance and ethics,
p.66 - 67
Anti-corruption 205-1
Operations assessed
for risks related to
corruption
Information not
reported for
2023.
Anti-corruption 205-2
Communication and
training about anti-
corruption policies
and procedures
ESG Report, Governance and ethics,
p.66 - 67
Anti-corruption 205-3
Confirmed incidents
of corruption and
actions taken
ESG Report, Governance and ethics,
p.66 - 67
ESG Report 2023
79
GRI 302: Energy (2016)
Energy 3-3
Management of material
topics
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.32 - 40
Energy 302-1
Energy consumption
within the organization
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.32 - 40
Energy 302-2
Energy consumption
outside the organization
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.32 - 40
Energy 302-3 Energy intensity
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.32 - 40
Energy 302-4
Reduction of energy
consumption
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.32 - 40
Energy 302-5
Reductions in energy
requirements of products
and services
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.32 - 40
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
GRI 305: Emissions (2016)
Emissions 3-3
Management of material
topics
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.40
Emissions 305-1
Direct (Scope 1) GHG
emissions
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.40
Emissions 305-2
Energy indirect (Scope
2) GHG emissions
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.40
Emissions 305-3
Other indirect (Scope 3)
GHG emissions
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.40
Emissions 305-4 GHG emissions intensity
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.40
Emissions 305-5
Reduction of GHG
emissions
ESG report, Towards a net-zero
digital future: Low carbon banking
and finance for the overlooked
customer, p.40
ESG Report 2023
80
GRI 402: Labor / Management Relations (2016)
Labor /
Management
Relations
3-3
Management of material
topics
ESG Report, Our people,
p.44 -55
Labor /
Management
Relations
402-1
Minimum notice periods
regarding operational
changes
Employees are
informed regarding
operatonal changes
at earliest possible
date post decision-
making.
GRI 401: Employment (2016)
Employment 3-3
Management of material
topics
ESG Report, Our people,
p.44 - 55
Employment 401-1
New employee hires and
employee turnover
ESG Report, Our people, Our
people benefits, p.54
Employment 401-2
Benefits provided to
full-time employees that
are not provided to
temporary or part-time
employees
Certain categories
of employees
such as contract
employees are not
currently covered
under the Matching
Share Plan program
Employment 401-3 Parental leave
Multitude provides
parental leave in
accordance to local
jurisdication.
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
ESG Report 2023
81
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
GRI 403: Occupational Health and Safety (2018)
Occupational
Health and Safety
3-3
Management of material
topics
ESG Report, Our people,
Protecting our people,
p.53
Occupational
Health and Safety
403-1
Occupational health and
safety management
system
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-2
Hazard identification, risk
assessment, and incident
investigation
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-3
Occupational health
services
ESG Report, Our people,
Protecting our people,
p.53
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-4
Worker participation,
consultation, and
communication on
cooupational health and
safety
ESG Report, Our people,
Protecting our people,
p.53
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-5
Worker training on
occupational health and
safety
ESG Report, Our people,
Protecting our people,
p.53
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-6
Promotion of worker
health
ESG Report, Our people,
Protecting our people,
p.53
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-8
Workers covered by an
occupational health and
safety management
system
No management system.
Multitude global offices
implement basic occupa-
tional health and safety
measures in accordance
with country regulation.
Occupational
Health and Safety
403-9 Work-related injuries
No incidents reported for
2023.
Occupational
Health and Safety
403-10 Work-related ill health
No incidents reported for
2023.
ESG Report 2023
82
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
GRI 404: Training and Education (2016)
Training and
Education
3-3
Management of material
topics
ESG Report, Our people,
Engaging our people,
p.44 - 49
Training and
Education
404-1
Average hours of
training per year per
employee
ESG Report, Our people,
Nurturing our people,
p.45
Training and
Education
404-2
Programs for upgrading
employee skills and
transition assistance
programs
ESG Report, Our people,
Nurturing our people,
p.45 - 49
Training and
Education
404-3
Percentage of
employees receiving regular
performance and career
development reviews
ESG Report, Our people,
Nurturing our people,
p.45 - 49
GRI 405: Diversity and Equal Opportunity (2016)
Gender Diversity
and Equal
Opportunity
3-3
Management of material
topics
ESG Report, Workforce
diversity & inclusion,
p.50 - 52
Gender Diversity
and Equal
Opportunity
405-1
Diversity of governance
bodies and employees
ESG Report, Workforce
diversity & inclusion,
p.50 - 52
ESG Report 2023
83
GRI 406: Non-discrimination (2016)
Non-discrimination 3-3
Management of material
topics
ESG Report, Workforce
diversity & inclusion,
p.50 - 52
Non-discrimination 406-1
Incidents of
discrimination and
corrective actions taken
No incidents
reported for 2023.
GRI 417: Marketing and Labelling (2016)
Marketing and
Labelling
3-3
Management of material
topics
ESG Report, Creating value
and protecting the wellbeing
of our customers, p.57 - 60
Marketing and
Labelling
417-1
Requirements for
product and service
information and labelling
ESG Report, Customer
education, p.58 -59 and
Responsible Lending,
p.58 - 59
Marketing and
Labelling
417-2
Incidents of non-
compliance concerning
product and service
information and labelling
No incidents
reported for 2023.
Marketing and
Labelling
417-3
Incidents of non-
compliance concerning
marketing
communications
No incidents
reported for 2023.
Statement of use
Multitude SE has reported in accordance with the GRI Standards for the period
1 January 2023 to 31 December 2023
GRI 1 Used GRI 1: Foundation 2021
GRI 2: GENERAL
DISCLOSURES 2021
DISCLOSURE REFERENCE
OMISSION/
COMMENT
GRI 418: Customer Privacy (2016)
Customer Privacy 3-3
Management of material
topics
ESG Report, Protecting
customer data, p.60 -61
Customer Privacy 418-1
Substantiated
complaints concerning
breaches of customer
privacy and losses of
customer data
No incidents
reported for 2023.
ESG Report 2023
84
Approval of the non-financial statement
Ari Tiukkanen
Chairman of the Board
Jorma Jokela
Chief Executive Officer, Vice Chairman of the Board
Lea Liigus
Head of Legal and Compliance, Member of the Board
Michael A. Cusumano
Member of the Board
Goutam Challagalla
Member of the Board
Kristiina Leppänen
Member of the Board
ESG Report 2023
85
Legal and
regulatory
environment
General overview
From an international dimension, 2023 was characterised by an environment of heightened
geopolitical instability. The ongoing conflict in Ukraine and escalating military action in the Middle
East, among others, have contributed to economic uncertainties that directly or indirectly impacted
many businesses within the EEA. Our Group Legal and Compliance function has remained vigilant
throughout the year in monitoring international developments, the impact these have on the EU,
UN and national sanctions being just one aspect that affects the work of the different lines of
defence within our Group. Throughout the year, as part of the function’s periodic review process,
we also factored in changes to key interest rates triggered by decisions of the ECB’s Governing
Council in its efforts to reign in inflation.
Beyond geopolitical developments and their impact, the Legal and Compliance function remains
instrumental in assessing and addressing the evolving regulatory landscape in a manner that
fosters stability, identifies new opportunities and ensures the long-term sustainability of our
business. With these objectives in mind, we strengthened the resources of the Legal and
Compliance function in the course of 2023, both to support our business plans more effectively
and reduce our compliance risk.
Legal changes
As in previous years, in 2023, we closely monitored legal changes and developments impacting
our business lines and the markets in which we are active. Material tracked legal changes during
the past year included the following:
Consumer Credit Directive
The European Parliament approved the Consumer Credit Directive 2 (“CCD2”) on 12 September
2023 and published it in the EU’s Official Journal on 18 October 2023. EU Member States are,
therefore, obliged to implement the CCD2 provisions into their national legal systems by November
2025. In addition, the new regulations transposing the CCD2 provisions must enter into force
and be applied by November 2026 at the latest. Among other matters, this Directive imposes
an obligation on Member States to cap APRs, interest rates or total costs, prohibits marketing
from creating false expectations, regulates certain information requirements, including changes
to the pre-contractual information, and imposes several obligations in relation to creditworthiness
assessments.
86
Artificial Intelligence Act
In December 2023, members of the European parliament reached a political deal with the European
Council on the Artificial Intelligence (“AI”) Act. This regulation aims to ensure that fundamental
rights, democracy, the rule of law and environmental sustainability are protected from high-risk AI
while boosting innovation and making Europe a leader in the field. The rules establish obligations
for AI based on its potential risks and level of impact. Our Legal and Compliance function monitors
developments in this field very closely to identify both opportunities and obligations that must be
adhered to.
Proposal for a regulation on instant payments
A proposal for a regulation on Instant Payments (IPs) was published on the 26th October 2022.
This will oblige payment service providers (PSPs) that provide credit transfers in euro to offer the
service of sending and receiving instant payments in euro. A number of technical specifications are
laid down for this service, including the requirement to receive payment orders and be reachable
for instant payments 24 hours a day, 365 days a year, without any possibility to set up cut-off
times or limit the processing of instant payments to business days only. Multitude Bank p.l.c., one
of the subsidiaries within the Group, already offers instant payments, though these legislative
developments will be followed closely.
Distance selling in financial services
The EU has adopted a directive amending Directive 2011/83/EU regarding distance selling in
financial services, which entered into force in December 2023. The adopted directive repeals
the 2002 rules and introduces a new chapter in the Consumer Rights Directive on distance
financial services contracts. The CCD and CCD2 take priority in case of matters regulated by
both acts. However, the aforementioned directive applies to deposit-taking. EU member states
must implement the Directive by December 2025 and apply by June 2026.
87
Banking package
During Q4 of 2023, agreement was reached on the final elements for implementing Basel III in the EU
set-up. The EU has already implemented the vast majority of the Basel III global standards of 2017.
According to a number of commentators, this has contributed to increased financial stability within
the EU while providing the basis for stable funding of the economy. Some final elements remained
for the implementation of Basel III in the EU through the review of EU banking rules proposed by
the Commission back in October 2021 (the “banking package”), which consists of the following:
• a legislative act to amend the Capital Requirements Directive (Directive 2013/36/EU)
• a legislative act to amend the Capital Requirements Regulation (Regulation No (EU) 2013/575).
The new CRR rules will start applying on 1 January 2025, and the provisions included in the CRD
will need to be transposed by Member States before they start applying. Although still subject to
legal revision and the final vote, the relevant texts have been published. The published documents
enable banks to prepare for the final phase of implementing the Basel III agreement within the
EU. At the same time, the EBA will embark on a consultation process on key technical standards,
which will allow the practical implementation of the agreement by banks in the course of 2024
and beyond.
Revised ADR Directive
A Proposal for a Directive amending Directive 2013/11/EU on alternative dispute resolution for
consumer disputes, as well as Directives (EU) 2015/2302, (EU) 2019/2161 and (EU) 2020/1828 was
published. The proposal aims to enable alternative dispute resolution, including those concerning
unfair commercial practices and terms, compulsory pre-contractual information, non-discrimination
based on nationality or place of residence, and various other matters.
Proposal for a Regulation to repeal Regulation (EU) No 524/2013
The proposal aims to discontinue the European Online Dispute Resolution (“ODR”) Platform at
the Union level, which offers a single point of entry to consumers and traders seeking to resolve
disputes arising from online transactions out-of-court in view of the very low usage of the ODR
and the non-viability to continue maintaining such platform.
88
Country-specific legal changes
Croatia
In 2023, Croatia published proposals for amendments to the Consumer Crediting Act (“the Act”)
aimed to introduce provisions regulating forbearance for customers in payment difficulties,
regulate the initiation of enforcement procedures, as well as information to be communicated
to customers in case of amendments to the consumer credit agreement. The Act will come into
force in 2024.
Finland
A new law on a positive information register was adopted in Finland in 2022, which will see
Multitude Bank p.l.c. reporting positive credit information in the said register as of February 2024.
A legislative proposal, initially published in 2022 and entered into force in 2023, aims to regulate
the marketing of credits and revise the interest rate cap, proposing both a variable and a fixed cap.
Furthermore, changes came into force in 2023 in the Act on Credit Institutions. Among other
amendments, this law also establishes record-keeping obligations relating to creditworthiness
assessment. Credit institutions should have a risk classification system to monitor and assess
default risks in consumer lending reliably. Additionally, information reporting obligations to the
Financial Supervisory Authority are established and expected to be supplemented by guidelines.
Norway
The new Financial Contracts Act, which, among other matters, implements the Payment Services
Directive and covers changes in interest rates that are in obvious disproportion to the credit, legal
consequences for inadequate credit assessments and the marketing of credit, entered into force
on 1 January 2023.
Romania
In the course of 2023, there were no material updates on the legislative proposal announced in
2022 on the protection of consumer rights, which includes obligations on establishment within the
Romanian jurisdiction and a proposal for a platform aimed at educating consumers.
Sweden
In 2023, the Swedish Government commissioned and published a report on lending in Sweden.
The report includes a legislative draft proposal that aims to reduce the current caps on lending
and apply the caps to products that the current caps do not cover. Among other things, they
propose introducing a Skri register, a database including information on payment delays, which
will enable stricter creditworthiness assessments. The proposal also aims to clarify current
provisions on moderation in marketing and proposes provisions which would require lenders to
have sound remuneration policies. It is expected that changes will come into force in 2025.
89
Company structure and business model
Multitude (“the Group”, “Multitude”, “company”, “we” have the same meaning for the purpose
of this report) 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. We provide services through three independent business units,
supported by our internal Banking-as-a-Service (BaaS) growth platform. In 2023, our business
units comprised Ferratum (consumer lending), CapitalBox (SME lending), and SweepBank
(banking app). In 2024, SweepBank will become an underlying enabler of a broadened offering
at Ferratum (from consumer lending to consumer banking) and CapitalBox (from SME lending
to SME banking) to better serve our customers. In November 2023, we announced our plan to
form a new business unit in 2024 by rebranding part of the SweepBank’s business that will offer
wholesale banking and be managed by Multitude Bank, on behalf of the Group.
Multitude as a Group, headquartered in Helsinki, Finland, was established in 2005 and currently
serves approx. 400,000 active customers. These customers have or have had an active loan
balance with at least one of the independent business units in Multitude within the past 12 months,
are active users of the SweepBank app, or a combination of these. The business units within
Multitude operate across 16 countries, mainly in Europe. Multitude Bank p.l.c., a wholly-owned
subsidiary of Multitude SE, is a credit institution licensed by the Malta Financial Services Authority
(MFSA), allowing Multitude to passport financial services and products to all European Economic
Area (EEA) member states.
Board of
Directors’
report 2023
90
Multitude Group Annual Report 2023 – Board of Directors’ Report
Board of
Directors’
report 2023
Over the past +18 years, Multitude has developed proprietary data and credit scoring algorithms
that can deliver instant credit decisions digitally, allowing to make fully risk-assessed scoring at
a pace and scale unmatched by traditional banking, neo banks, or the general lending industry.
This technology and data, paired with the regulatory experience from global operations over so
many years, brings Multitude a significant competitive advantage in large scale disruption of the
financial industry.
Each offering of the independent business units within Multitude is built based on the combination
of behavioural data and direct customer feedback, ensuring a customer experience focused offer-
ing for each segment. Each business unit can leverage centralised core operations such as finance,
customer service, IT, and legal for lean operations and strong synergies through data exchange.
Multitude SE is listed in the Prime Standard of the Frankfurt Stock Exchange under the symbol
"FRU".
91
Multitude Group Annual Report 2023 – Board of Directors’ Report
Financial key figures and ratios
EUR ’000 2023 2022* 2021*
Net interest income 208,222 198,447 185,528
Profit before income tax 18,990 13,590 4,689
Net cash flows from (used in) operating activities 157,776 (34,346) 71,723
Net cash flows used in investing activities (11,839) (10,903) (13,677)
Net cash flows from (used in) financing activities (15,396) (100,687) 7,056
Net increase (decrease) in cash and cash equivalents 130,541 (145,936) 65,102
*Restated.
EUR ’000
31 December
2023
31 December
2022*
1 January
2022*
Loans to customers 575,948 507,075 449,562
Impaired loan coverage ratio, in % 16.6 18.2 21.6
Deposits from customers 732,350 503,378 486,010
Cash and cash equivalents 283,712 153,325 301,592
Total assets 990,878 753,235 822,779
Non-current liabilities 299,798 132,462 140,934
Current liabilities 507,434 440,807 508,814
Total liabilities 807,232 573,269 649,748
Total equity 183,647 179,966 173,031
Equity ratio, in % 18.5 23.9 21.2
Net equity ratio, in % 26.0 30.0 33.4
Net debt to equity ratio 2.85 2.33 1.99
*Restated.
Calculation of key financial ratios
Profit before tax (%) = 100x
Profit before tax
Revenue
Impaired loan coverage ratio (%) = 100x
Credit loss allowance
Gross loans to customers
Equity ratio (%) = 100x
Total equity
Total assets
Net debt to equity ratio =
Total liabilities – cash and cash equivalents
Total equity
Net equity ratio (%) = 100x Total equity
Total assets – cash and cash equivalents
Share related key figures and ratios
Multitude share data
Market: Frankfurt Stock Exchange, Prime Standard
ISIN: FI4000106299
Symbol: FRU
92
Multitude Group Annual Report 2023 – Board of Directors’ Report
EUR ’000 2023 2022* 2021*
Basic earnings per share** 0.51 0.38 (0.32)
Equity per share 8.50 8.34 8.10
Dividend per share - 0.12 -
Dividend / net profit, in % - 22.0 -
Effective dividend yield, in % - 4.2 -
Price / Earnings ratio 8.7 7.6 (12.1)
Share price on 31 December 4.46 2.86 3.83
Average share price 3.61 3.20 5.18
Lowest share price 2.60 2.20 3.78
Highest share price 4.98 4.90 7.84
Weighted average number of ordinary shares in issue 21,598 21,578 21,578
Market capitalisation 96,889 61,713 82,644
Volume of the trading with the company’s share 3,332 2,242 6,387
Volume of the trading with the company’s share, in % 15.4 10.4 29.6
Number of shares outstanding on 31 December 21,618 21,578 21,578
Calculation of key share ratios
Earnings per share =
Profit attributable to shareholders of parent
company
Weighted average number of ordinary shares in
issue
Equity per share =
Equity attributable to shareholders of parent
company
Number of shares on 31 December
Dividend per share =
Dividends paid for financial period
Number of shares on 31 December
Dividend / net profit, in % = 100x
Dividends paid for financial period
Profit for financial period
Effective dividend yield, in % = 100x
Dividend per share
Share price on 31 December
Price / Earnings ratio =
Share price on 31 December
Earnings per share
Weighted average number of ordinary
shares in issue =
Number of shares at the end of each day
Number of days in financial period
Market capitalisation =
Number of shares outstanding on 31 December
x Share price on 31 December
*Restated **Note 13.
93
Multitude Group Annual Report 2023 – Board of Directors’ Report
Business unit: Ferratum
Ferratum, one of our growth platform’s independent business units, offers digital loans for
consumers’ daily needs. It has the longest history in the Group, as consumer lending was our
initial offering as a FinTech pioneer in 2005. It is a key data and experience provider to our
growth platform.
With two product categories under the brand, Instalment loans and revolving loans, Ferratum ca-
ters to individuals’ various immediate, unplanned, short-term financial needs resulting from, e.g.
unexpected life events. Customers fill in a handful of data to apply for a Ferratum loan, while the
in-house developed and automated, AI-powered scoring algorithms simultaneously handle the
rest in the background. This end-to-end digital process enables finished and scored applications
within minutes. On average, customers have the loan amount in their bank account within
15 minutes of an approved application.
At the end of 2023, Ferratum had two product categories and operated across 13 markets: Bulgaria,
Croatia, Czechia, Denmark, Estonia, Finland, Germany, Latvia, the Netherlands, Norway, Romania,
Slovenia, and Sweden.
94
Vision: To be the first choice for customers
seeking small financial support to meet
everyday needs
Customers
Ferratum’s customer base is equally split between male and female
and well spread across all age groups, with an average age above 30.
Typical customers have a salary level slightly above the country’s
average and reside in cities. These customers form a diverse group with
distinct needs. Often, they have encountered unexpected financial needs
and appreciate swift service to address these urgent requirements.
Ferratum’s customers are tech-savvy individuals who prioritise superior
service over pricing when applying for loans, valuing the convenience
of accessing financial solutions from any location. This eclectic mix of
characteristics underscores the broad appeal of Ferratum’s products,
catering to the varied preferences and situations of a diverse clientele.
Products
Instalment loans
Micro Loan
Micro Loans, so-called bullet loans, serve the need for instant, short-
term financing with quick repayment. Micro Loans range from EUR 25
to EUR 1,000, which customers pay back in one instalment within 7-60
days.
Plus Loan
A Plus Loan caters to a customer’s higher need for instant finance, with
loan amounts ranging from EUR 300 to EUR 4,000 and maturity pe-
riods between 2-18 months with equal repayments over the loan term.
Revolving loans
Credit Limit is the most popular service under Ferratum. It is a pre-ap-
proved credit line, also called a revolving credit, which enables financial
flexibility on a more continuous basis. Eligible customers are pre-ap-
proved for up to EUR 5,000 and can withdraw money and repay with-
out fixed amounts or timelines.
95
Highlights 2023
Ferratum’s annual revenue reached EUR 192.7 million, growing by EUR 7.9 million (4.3%) from EUR
184.8 million in 2022. Earnings before interest expense and tax increased by EUR 5.4 million from
EUR 53.7 in 2022 to EUR 59.1 million in 2023. Net AR increased by EUR 50.0 million in 2023 to EUR
343.3 million as at 31 December 2023 comparing to EUR 293.2 million from 31 December 2022.
High inflation across Europe has increased the demand for lending products and, at the same time,
added pressure to payment behaviour. Ferratum continued its active credit portfolio management
to maintain overall profitability at a high level.
During the year, Ferratum made several risk policy advancements. These resulted in payment
behaviour stability and a forward-looking effect on portfolio performance. Ferratum collected new
data sources across markets and further leveraged bank transactions and PSD2 data. In addition,
several new scoring models were launched to improve predictive power.
Ferratum improved underwriting and affordability assessments by developing bespoke internal
bank data categorisations to extract value from this data. In 2023, Ferratum significantly advanced
in providing ease and accessibility for customers repaying loans. For instance, implementing
direct debits and other repayment options gave customers a more convenient payment experience,
resulting in improved payment behaviour.
Multitude Bank p.l.c. became a direct participant in Sweden’s and Czechia’s clearing systems, which
allowed offering the ‘Bankgirot’ repayment option in Sweden and instant payments in Czechia.
Participation in local markets’ payment systems is a significant undertaking, including in-depth
KYC and legal and compliance reviews. As a result of our success, we benefit from lower costs,
remain independent of external parties and provide improved customer experience through more
convenient repayment options.
In 2023, Ferratum made a transition from on-premise solutions to cloud solutions. This move
empowered Infrastructure as a Service (IaaS) and enhanced security through GitHub and Azure.
Manual reviews were replaced with automatic detection of data errors. The transition impacted
cost, efficiency, scalability, global accessibility, flexibility, and security.
As a result, it provided more competitive and future-proof investments with improved reliability,
monitoring, and compliance. Furthermore, the move supported the Group’s ESG commitments
since cloud-based data centres are known to largely reduce carbon emissions when compared to
traditional on-premise data centres since they require fewer servers and consume less power.
During the year, several successful marketing campaigns took place, including a change in Google
Ads’ bidding strategy. Ferratum’s Paid Media Marketing team adopted a new approach to
Google Ads, using a value-based bidding strategy that resulted in higher sales and lower costs.
They achieved a qualitative 122% increase in Return to Ad Spend (ROAS) and a quantitative 107%
increase in new customers acquired. Additionally, Ferratum onboarded several new marketing
partners in 2023, which further fuelled customer acquisition efforts.
Advancements in processes and customer service efficiency in 2023 were notable, with many
customers preferring and opting for self-service options, rather than customer support. This
trend not only contributed to enhanced scalability in operations but, most importantly, resonated
positively with our customers, who have embraced and appreciated the self-service experience.
96
Ferratum’s NPS levels have been above the industry average for years, reaching an astonishing
66 by the end of 2023. By year-end, effortless and automated self-service channels handled
around 81% of customer enquiries. The main contributor of service automation was an AI chat-
bot, which handles 77% of customer queries without transferring them to a human assistant.
For customers, this means less effort and no waiting, and for Ferratum, it means cost efficiency
and refocuses Ferratum specialists on sales and retention-related activities.
Outlook and key growth drivers for 2024
A significant growth opportunity for Ferratum in 2024 is combining Ferratum’s customer base
with SweepBank’s technology. With this move, Ferratum will expand from the previous two
customer touchpoints, Instalment loans and revolving loans to a broader spectrum of five touchpoints
and a more diversified and comprehensive range of financial services for Ferratum’s customers by
adding an app, cards and a loyalty programme to the offering.
Ferratum’s strategic focus lies in sustaining growth within its target markets. The growth can
be achieved by enhancing digital marketing strategies, customer onboarding processes and
collection and credit risk technology. These efforts are essential to ensure a consistent and stable
credit loss performance over time. Additionally, Ferratum plans to innovate further to improve the
analysis of user data and search engine interactions.
97
Business unit: CapitalBox
Small and medium-sized enterprises (SMEs) comprise an impressive 99.8% of European businesses.
Nonetheless, they frequently need more support than traditional banks can provide due to their
legacy systems and cumbersome processes. Even if traditional banks tried serving SMEs, their
outdated methods and services no longer appeal to today’s dynamic and evolving SMEs within the
contemporary business landscape.
CapitalBox provides essential financial solutions to SMEs through its Credit Line and Instalment Loans.
Due to a streamlined, fully digitalised process, funds can be made available to SMEs within minutes
of an approved application. This efficiency positions CapitalBox as the perfect ally for businesses
needing short-term financing. Powered by advanced technology, experience, and the resources of
our growth platform, CapitalBox delivers a swift and dependable offering. As at the end of 2023,
CapitalBox had established its presence in five markets: Finland, Sweden, Denmark, Lithuania, and
the Netherlands, offering four different financial solutions to meet the different needs of SME’s:
Instalment Loans, Secured Loan, Credit Line and Purchase Financing.
98
Customers
A typical CapitalBox customer is a micro-to-small company that has been
in business for at least one year, employs three people, and generates EUR
500,000 in annual revenue. They need financing to grow and expand their
business or to get through liquidity fluctuations and seasonality, and they
value the innovative technology approach and fast financial support that
CapitalBox offers.
Products
Instalment Loans
One of the key offerings from CapitalBox is its Instalment Loan, which extends
up to EUR 350,000. These loans come with flexible repayment periods spanning
6 to 48 months. They are tailored to assist SMEs in funding operations such as
expansion, inventory management, marketing efforts, hiring new personnel, and
acquiring or leasing equipment. On average, businesses borrow around EUR
21,300 with a typical loan duration of 22 months.
Credit Line
This dynamic form of financing grants SMEs access to a credit limit ranging
from EUR 2,000 to EUR 150,000. Additionally, CapitalBox collaborates with
retail partners to offer financing solutions to business customers, enabling
them to make purchases right at the point of sale. Credit Line is available in
all markets in which CapitalBox operates.
Secured Loan
This product was launched initially in Finland and Lithuania and is planned
to roll out in other markets. The Secured Loan is designed to support larger
investments to drive growth for SMEs, addressing a gap in the industry where
smaller FinTech firms might lack capacity, and traditional banks might opt
not to provide secured loans. The loan amount for this product can go as high
as EUR 3 million.
Purchase Financing (BNPL)
CapitalBox introduced a tailored Purchase Financing or Buy Now, Pay Later
(BNPL) product explicitly designed for SMEs. This financial solution provides
businesses flexible access to up to EUR 20,000 in funding without requiring
collateral. The product, currently available in Finland, is strategically crafted
to support SMEs in managing cash flow effectively and enabling them to
invest in growth opportunities without immediate financial strain and finance
purchasing without using the daily capital.
Vision: Becoming Europe’s leading digital
SME lender
99
Highlights 2023
2023 marked a new era in CapitalBox’s story with a new CEO, Mantvydas Štareika. The appoint-
ment started a transformative chapter for CapitalBox, bringing about a myriad of advantages that
have positively impacted its direction and organisation.
In the year 2023, CapitalBox achieved a revenue of EUR 24.7 million, marking a 15.4% rise from its
2022 revenue of EUR 21.4 million. Additionally, the EBIT turned positive, reaching EUR 1.7 million,
a notable improvement from the negative EUR 1.0 million recorded in 2022. Furthermore, the loan
portfolio (Net AR) expanded from EUR 86.1 million at the conclusion of 2022 to EUR 103.7 million by
the end of 2023.
CapitalBox improved performance through an updated underwriting process, stricter credit control,
and cost control measures across all its operations. The launch of new products has contributed to
the growth of revenue and increased the total amount of the portfolio. With a growing portfolio
and stringent risk control measures in place, CapitalBox is well on its way toward strong operational
efficiency.
Additionally, CapitalBox launched Secured Loans in Lithuania and Finland to enhance and increase the
flexibility of its offering. With loans of up to EUR 3 million, CapitalBox enables SMEs to pursue significant
investments like expanding operations or adopting new technology. With sizable loan amounts and
potentially lower interest rates, SMEs can confidently execute long-term strategies. Secured lending
reduces risk for both parties, providing SMEs with the financial backing needed for capital-intensive
projects, R&D, or scaling operations.
100
Outlook and key growth drivers for 2024
A significant growth opportunity for CapitalBox in 2024 is adding SweepBank’s developed assets
to its offering, including the app, card, loyalty program, and core banking services, that are being
extended to CapitalBox customers.
Additionally, the coming two years will be shaped by scaling to new heights. CapitalBox harnesses
innovative channels for customer acquisition and retention, ensuring that each customer experiences
a seamless, stress-free journey to financial empowerment.
The three main pillars of CapitalBox’s growth strategy
Organic
Previously, CapitalBox’s offering consisted solely of lending. However, small, complex
companies need much more than this - they also need their everyday operations to be
taken care of. Therefore, CapitalBox integrates SweepBank’s mobile app solution and daily
banking into its offering for more value to its SME customers. This integration is designed
to unlock cross-selling opportunities and enhance operational scalability. In addition, it will
increase the retention and lifetime value of a significant part of customers.
Partners
Together with other FinTech companies and service providers, CapitalBox plans to offer lending
solutions embedded into different customer systems. CapitalBox’s scalable and entirely
API-based technical solution opens the doors to partners, such as accounting companies,
marketplaces, POS providers and many more.
Mergers & Acquisitions (M&A)
One advantage of M&A is the ability to scale operations by leveraging the resources and
expertise of other companies within the Group.
The evolution of CapitalBox is characterised by the development of a comprehensive multi-
service solution, wherein customers seek more than just loans; they engage with us for a holistic
financial partnership that caters to their daily operational requirements. Investing in automated
workflows and expanding omnichannel capabilities signifies CapitalBox’s transformation from being
merely a lender to becoming a lifelong partner for small businesses.
The described approach to broaden the offering, together with SweepBank and CapitalBox, is
planned to launch during 2024 and is expected to increase customer retention.
Our comprehensive small business solution offers essential financial tools, including working capital
provision and the facilitation of secure bank accounts for streamlined payment transactions.
Leveraging our established infrastructure within Multitude Group, CapitalBox seamlessly provides
SMEs the support they need to meet their daily operational requirements and sustain their
businesses effortlessly.
CapitalBox’s mission isn’t merely a goal; it’s a tangible and achievable vision. At CapitalBox,
actively shaping the future is not just observation but a deliberate action, benefiting ourselves and
our clients.
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Business unit: SweepBank
With full access to the Multitude growth platform and having onboarded its first customers in
2020, SweepBank offers customers a combination of daily banking, financing, and shopping
services in a single, user-friendly app. SweepBank’s target audience consists of tech-savvy
individuals often overlooked by traditional banking institutions, including young adults, students,
economic immigrants, and freelancers. The customer segment values fast, easy and digitalised
services, and this is what SweepBank aims to offer in a green and sustainable way.
At the end of 2023, SweepBank offered three products: Credit Card, Prime Loan and Daily Banking
across three markets: Finland, Germany and Latvia.
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Vision: Becoming the most valuable
financial platform
Customers
The primary customer segment of SweepBank, young adults in the
EU, expects nothing less than a strongly personalised experience in
everything they do, including financial services. SweepBank offers
precisely that and more. These customers are currently underserved
by traditional banks and neo-banks, as traditional financial institutions
are bureaucratic, slow, and inflexible. Neo banks need more experience
and data to serve them successfully with financing from a credit risk
perspective. The latter is a prime example of the benefits of synergies
created from allowing independent businesses to grow on the
Multitude growth platform, as SweepBank can tap into Multitude’s 18+
years of experience in intelligent data usage and AI-based credit scoring.
Products
Credit Card
The SweepBank Credit Card, a Mastercard® without annual or monthly
fees, allows financing smaller purchases of up to EUR 8,000. The card
offers free liability coverage for purchases with it and an interest-free
period of up to 60 days. Virtual card integrations with Apple Pay and
Google Pay allow easy usage online and at physical points of sale.
Customers onboard the app within minutes and are automatically
scored. Upon successful onboarding, the free card is immediately
ready to use. Customers can also use the card as a flexible credit
facility by withdrawing money from it directly into their bank account,
a feature that is growing in popularity among customers.
Prime Loan
Prime Loans, longer-term instalment loans for consumers, enable higher
purchases, like home renovations, cars and other more significant
purchases. The loans can amount to up to EUR 15,000 with loan
maturities ranging between 1-7 years. SweepBank is currently only
issuing Prime Loans in Latvia.
Daily Banking
SweepBank offers bank accounts with up to 1% interest p.a., savings
accounts with up to 1.4% interest p.a., and fixed-term deposits with up
to 4.3% interest p.a. (max. deposit EUR 100,000) for up to three years.
The bank account includes a virtual Mastercard® debit card that is
instantly ready to use online and in physical stores after successful
onboarding to the app. In addition, SweepBank has a loyalty program
that allows customers to earn up to 5% loyalty points and get discounted
offers when they purchase from selected partners. Customers can
convert loyalty points directly into cash in the SweepBank app.
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Highlights 2023
In 2023, SweepBank’s primary focus remained accelerating profitability through increased sales
and expanding its portfolio, especially in high-margin lending products. It also kept a close eye
on controlling costs and explored the potential to attract more customers by extending its app to
Ferratum and CapitalBox users. Notably, SweepBank saw substantial growth in its Latvian Prime Loan
and Finnish credit card portfolios, leading to a revenue increase from EUR 15.9 million in 2022 to an
impressive EUR 23.1 million in 2023. Net AR grew by EUR 41.9 million (28.4%) in 2023 and reached
EUR 189.2 million as at 31 December 2023 (31 December 2022: EUR 147.4 million). 2023 EBIT
improved to EUR -15.3 million from EUR - 21.1 million in 2022.
Outlook and key growth drivers for 2024
During 2024, SweepBank’s developed assets, including the app, card, loyalty program, and core
banking services, will be extended to Ferratum and CapitalBox customers. Anticipated benefits
include boosting customer retention, increasing non-interest income, enabling deposit base growth,
and gaining access to valuable behavioural data for enhanced risk management, personalisation,
and innovation efforts.
As a result of this integration, SweepBank’s brand and customer base, now integrated into the
consumer and SME banking units Ferratum and CapitalBox, will enjoy a broader spectrum of
financial services. This strategic realignment positions our business units to better serve our
customers while fostering innovation and growth within our organisation.
Wholesale banking in 2024
A new independent business unit within our Group, offering wholesale banking, managed by
Multitude Bank, on behalf of the Group will emerge in 2024. So far, these piloted and validated
activities, referred to as warehouse lending, were included in the SweepBank business unit.
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Emerging business unit in 2024:
Wholesale banking for larger companies
Multitude Bank will manage wholesale banking for the Group.
A recent report by PwC, Wholesale Banking 2025 and Beyond, shows wholesale banking as a
substantial and fast-growing opportunity in the financial field. They state that market shifts, such
as infrastructure changes required for scaled adoption and participation in market structure
changes, “...represent a generational opportunity to build new growth engines within the
wholesale banking industry.” Further, they state, “We’re confident banking leaders understand the
opportunity”.
We have piloted wholesale banking throughout 2023, and now, a new independent business
unit within our Group, offering wholesale banking managed by Multitude Bank, will emerge in
2024. The offering of this business unit is twofold: Secured Debt, earlier referred to as warehouse
lending, and a Payment Solution. After successfully piloting and optimising these products, the
teams, processes, and technology are ready for expansion.
In an era where innovation and adaptability are paramount, traditional banks encounter difficulties
keeping pace with today’s customers’ sophisticated needs. After successfully addressing these
challenges for ourselves, initially developing solutions to support our own three business units, we
are now well-positioned to extend offering our growth platform, the solution, to external customers.
Why is Multitude Bank best placed to to meet the needs of the FinTech industry?
Our world-class risk management tools and successful experience in understanding and managing
consumer and SME lending portfolios position us as experts in lending dynamics.
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Wholesale banking
Customers
Wholesale banking customers encompass diverse entities, including
traditional banks seeking specialised financial services, payment institutions
requiring tailored solutions for transaction processing, and electronic money
institutions seeking efficient mechanisms for handling digital currencies.
These customers may vary in size, scope, and specific needs. Still, all share a
common interest in accessing comprehensive financial solutions to support
their operations and serve their own clientele effectively. By catering to the
requirements of these institutions, we aim to provide innovative products
and services through wholesale banking to enhance efficiency, security,
and scalability within the financial ecosystem, thereby fostering mutually
beneficial partnerships and driving collective growth within the industry.
Products
Secured Debt
Secured Debt, utilising scalable deposit funding, our collection expertise,
and the power of data and AI, is an ideal means to finance loan portfolios
and other assets efficiently.
The product is straightforward: wholesale banking provides secured funding
against lending portfolios or other assets pledged as collateral, while loan-
to-value ratios protect against credit losses. This collateral mitigates credit
losses and is subject to in-depth monitoring throughout the funding lifecycle.
We understand the dynamics and the risks in the lending industry. Our
robust experience of nearly two decades, digital approach, efficient risk
management tools, and internal and external data utilisation allow for an
exceptionally swift underwriting process—typically concluding in just
around six weeks.
Payment Solution
Wholesale banking offers all the necessary elements for successful end-to-
end payment operations for other banks, payment institutions and electronic
money institutions. This payment solution supports core payment processes
and serves as a reliable daily business support or a fallback option for
managing payment rails, facilitating receiving and making payments, and
managing accounts efficiently.
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Leveraging Multitude’s global portfolio for Leveraging Multitude’s global portfolio for
tailored client funding and transparent executiontailored client funding and transparent execution
For alternative lenders, FinTechs, and investment companies, our wholesale
banking’s scalability extends to funding, risk management, and underwriting
experience.
The global portfolio management knowledge and experience we as a Group
have accumulated over the years allow our future wholesale banking unit to
tailor solutions that offer our customers funding with swift execution and the
transparent, favourable terms they need while we keep the necessary collateral.
Wholesale banking’s purpose
Thanks to our deep knowledge of regulatory frameworks, we, as Multitude Group, supported by
Multitude Bank, can provide solutions in multiple jurisdictions to banks, payments institutions, and
electronic money institutions to help accelerate their business and growth.
Approximately 6,200 electronic money and payment institutions in Europe alone are alternative
payment options. This means ample opportunities for us to find the right partners to serve with
our solution. The experience from servicing internal business units has proven our platform’s
effectiveness in multiple jurisdictions where we operate.
We FinTechs have a few characteristics and built-in competitive advantages compared to
traditional banks. Our agility and technological expertise position us as superior providers of
wholesale banking services. Unlike traditional banks, we operate with leaner structures, allowing
us to adapt quickly to market changes and develop tailored solutions for diverse customer needs.
Moreover, we adapt faster to utilising and leveraging cutting-edge technologies such as artificial
intelligence, blockchain, and cloud computing to deliver innovative products and services that
streamline operations and enhance customer experience.
FinTech as an industry, and us as one of its earliest pioneers, were born into the time of customer
centricity. We built our entire business on customer focus prioritising accessibility, transparency,
and convenience in our offerings from the beginning. This customer-centric approach enables us
to address the evolving needs of wholesale banking customers more effectively, driving greater
value and differentiation in the market. Our combination of agility, technology-driven innovation,
and customer-centricity positions us as formidable players in the wholesale banking landscape,
poised to drive significant disruption and transformation in the industry.
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Highlights 2023
The portfolio of secured debt, at the end of 2023, stood at EUR 62.1 million. The year marks the
successful conclusion of a pilot phase, paving the way for wholesale banking to extend its proven
solutions beyond internal operations to cater to a broader audience and for scalable growth.
Outlook and key growth drivers 2024
We expect the portfolio of Secured Debt to grow significantly across asset classes. Wholesale
banking continues its conservative approach of prudent risk-taking and being selective of
customers by ensuring good quality collateral for each.
In navigating the dynamic landscape of financial services, wholesale banking adheres to a strategy
that places importance on the inherent value and reliability of the collateral associated with its
ventures. This approach safeguards stakeholders’ interests and fortifies the portfolio’s resilience in
market fluctuations.
In addition, the team expects several payment institutions to use the Payment Solution at the end
of 2024 actively.
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Key developments
and progress
2023
Financial overview
Statement of profit or loss:
The Group exhibited robust financial performance in 2023, demonstrating stable growth compared
to the preceding year 2022. Key financial metrics such as net interest income and profit before
income tax displayed positive trends, reflecting the Group’s resilience and effectiveness
in navigating economic conditions and capitalising on market opportunities. Interest in-
come increased by 8.5% (EUR 18.0 million) from EUR 212.5 million in 2022 to EUR 230.5
million in 2023, driven by a 5.5% growth (EUR 11.8 million) in interest income on loans to
customers and a remarkable 608.0% surge (EUR 4.0 million) in interest income on debt
investments. This new income source signifies a strategic financial move, utilising securitised
instruments to generate additional earnings and keep credit risk under control. The interest
income improvements reflect the Group’s proactive approach to optimising portfolio structure
and enhancing overall financial performance.
Due to growth in the loan portfolio, the impairment loss on loans to customers increased by 5.4%
(EUR 4.6 million, from EUR 84.6 million in 2022 to EUR 89.3 million). Interest expenses grew by
58.5% (EUR 8.2 million) from EUR 14.0 million EUR in 2022 to EUR 22.2 million in 2023, primarily
driven by a 108.3% rise in interest expense on customer deposits (EUR 4.7 million) and a 34.9%
increase in interest expense on debt securities (EUR 3.3 million), influenced by overall interest rate
hikes.
In a year-over-year comparison, general and administrative expense, and personnel expense, are
stable at EUR 32.0 million and EUR 34.0 million, respectively.
The increase in selling and marketing expenses by 14.6% (EUR 1.8 million) (from EUR 12.4 million
in 2022 to EUR 14.2 million in 2023) during 2023 was imperative to bolster business visibility and
promote brand awareness through offline (increase by 100.4%, EUR 1.0 million) and online (increase
by 10.2%, EUR 0.8 million) media channels. This increase is seen as a strategic investment aimed
to capture a broader market share and enhance customer acquisition, aligning with the Group’s
growth objectives. The increased expenditure underscores a commitment to robust marketing
initiatives, positioning Multitude for sustained income growth and market competitiveness.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Decrease in depreciation and amortisation by 14.3% (EUR 2.5 million) from EUR 17.5 million in 2022
to EUR 15.0 million in 2023 was mainly attributed to a decrease in the amortisation of intangible
assets (15.8%, EUR 2.4 million). Depreciation of right-of-use assets and properties, plants and
equipment are at a similar level in 2023 as in 2022.
The noteworthy expansion of debt investments and successful control of credit risk in 2023
contributed substantially to a significant increase in profit before income taxes by 39.7% (EUR
5.4 million) from EUR 13.6 million in 2022 to EUR 19.0 million in 2023. The revenue streams and
economies of scale achieved through active growth strategies positively impacted Multitude’s
profitability, reflecting the effectiveness of its business development efforts. The consequence of
the increase in profit before tax was an increase in amount of income tax expenses of 40.4% (EUR
0.7 million) from EUR 1.8 million in 2022 to EUR 2.6 million in 2023 but stable effective tax rate of
13.4% (2022: 13.4%).
Statement of financial position:
Assets:
Total assets increased by 31.5% (EUR 237.6 million) from EUR 753.2 million in 2022 to EUR 990.9
million in 2023. This increase was driven by a significant increase of 13.6% in loans to customers
(EUR 68.9 million from EUR 507.1 million as at December 2022 to EUR 575.9 million as at December
2023).
In 2023, the Group substantially augmented its debt investments compared to the previous year,
2022 (increase EUR 41.0 million, 194.3%, from EUR 21.1 million in 2022 to EUR 62.1 million in 2023).
This strategic move demonstrates a heightened appetite for floating rate investment, aiming
to optimise the investment portfolio’s risk-return profile. The Group has made EUR 1.0 million
investment in associates in 2023 that underscores the Group’s commitment to diversifying its
asset allocation and making a strategic acquisition that can generate additional shareholder value.
Due to the aim to expand its investment activity the Group has attracted additional cash and cash
equivalents in 2023 that show 85.0% rise from EUR 153.3 million as at December 2022 to EUR 283.7
million as at December 2023. The source of new liquidity is newly attracted deposits to customers.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Liabilities:
Total liabilities increased by 40.8% (EUR 234.0 million) from EUR 573.3 million as at December
2022 to EUR 807.2 million as at December 2023, primarily due to a substantial increase in deposits
from customers (45.5%, EUR 229.0 million from EUR 503.4 million as at December 2022 to EUR
732.4 million as at December 2023). The structure of deposits from customers has changed in
comparison to the previous year. While the amount of term deposits increased by EUR 295.5
million, the amount of call deposits decreased by EUR 66.6 million.
Equity:
Total equity increased by 2.0% (EUR 3.7 million) from EUR 180.0 million as at December 2022 to
EUR 183.7 million as at December 2023. Profit for the year 2023 equals EUR 16.4 million which is a
39.6% increase as compared to EUR 11.8 million in 2022.
Key performance changes in period:
The impaired loan coverage ratio decreased by -1.6% from 18.2% in 2022 to 16.6% in 2023, due
to the higher growth in gross loans to customers (11.4%) compared to growth in loss allowances
(1.7%). Profit before interest and taxes increased from EUR 31.5 million in 2022 to EUR 45.6 million
in 2023 (an increase of 44.8%). Profit before tax margin increased to 8.4% in 2023 from 6.4% in
2022 and profit after tax margin grew to 7.3% in 2023 from 5.5% in 2022.
The net equity ratio decreased 4.0% from 30.0% in 2022 to 26.0% in 2023. Net debt to equity ratio
increased from 2.33 in 2022 to 2.85 in 2023. Basic earnings per increased EUR 0.13 per share from
EUR 0.38 per share in 2022 to EUR 0.51 per share in 2023 due to increased profit margins. The
equity per share increased from 8.34 in 2022 to 8.50 in 2023, reflecting an overall improvement in
shareholder value. The dividend per share equals to EUR 0.12 in 2022 with dividend/net profit for
year at 22.0%. The price/earnings ratio increased from 7.6 in 2022 to 8.7 in 2023.
Change in accounting policy and correction of errors:
During the financial period, the Group has made changes in its accounting policies regarding the
presentation of financial statements. This involved reclassifying certain line items in the financial
statements, correcting errors in accounting treatments and transitioning to a liquidity-based
approach for the statement of financial position. As part of this endeavour, we included collec-
tion costs in the determination of expected credit losses, providing a more accurate portrayal of
credit risks. Additionally, the treatment of reminder fees shifted from IFRS 15 to IFRS 9. We also
revised practices regarding scoring costs, capitalising them as incremental costs directly linked
to loan issuance, impacting the effective interest rate calculation and interest income.
These revisions have resulted in changes to the overall presentation of the Group’s financial
results and positions, reflecting the best practices in the lending industry for both the current
and comparative periods (Note 26). The consolidated financial position includes a comparative
date of 1 January 2022, with other statements and disclosures for 2022 labelled as “restated”.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Alternative performance measures
Pursuant to Article 16 of Regulation 1095/2010/EU, the European Securities and Markets Authority
(ESMA) has issued specific guidelines on the presentation criteria for Alternative Performance
Measures (APMs) included by European issuers in regulated information, where such measures are
not defined or provided for in the rules on financial reporting.
According to the definition provided in the ESMA Guidelines, an Alternative Performance Measure
is a financial measure of historical or future financial performance, financial position, or cash flows,
other than a financial measure defined or specified in the applicable financial reporting framework.
APMs are typically based on financial statement line items prepared in accordance with applicable
financial reporting rules. What sets them apart is that APMs are not defined in the financial reporting
framework, yet their use is still widespread, with the role of conveying a view of the Group’s
performance that is closer to the Leadership Team’s perspective than would be possible using only
the defined measures.
To facilitate the understanding of the consolidated statement of profit or loss after a change in
presentation of consolidated financial statements, Multitude introduced profit before interest expense
and taxes (EBIT) as Alternative Performance Measure (APM) in 2023 as compared to prior years
where it was directly reported in the consolidated statement of profit or loss. The reason for the
application of APM is matching the profit guidance given by the Board to the public on the develop-
ment of Group’s profitability in the future. Our Leadership Team and Board use the presented APM
for operational planning, control and various strategic decision-making initiatives.
It is calculated by adding back income tax, interest expense, and fair value and foreign exchange
gains and losses to profit for the period in the consolidated statement of profit or loss:
EBIT = Profit for the period + Income tax + Interest expense + Fair value and foreign exchange
gains and losses
EBIT for the consolidated Group in 2023, 2022 and 2021:
EUR '000 2023 Restated
2022
Restated
2021
Profit for the period 16,438 11,773 2,306
Interest expense 22,237 14,026 19,691
Income tax expense 2,552 1,817 2,384
Fair value and foreign exchange gains and losses 4,328 3,848 2,727
Profit before interest expense and taxes (EBIT) 45,555 31,465 27,109
It should be noted in this regard that the APM presented is complementary to the measures
defined within the IFRS Accounting Framework. The figures and inputs used in the derivation of the
said APM’s are based on presentation and /or disclosures requirements emanating from the IFRS
reporting framework and might include certain reconciliation statements from such presentation/
disclosures of financial statements.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Treasury update
During 2023, we focused strongly on maneuvering carefully through the ongoing economic
challenges, mainly caused by the ongoing war in Ukraine, higher inflation figures across our core
markets, and increased interest rates. In this volatile and uncertain market environment, we continued
to manage Group cash position actively and to protect the business from volatile movements in
foreign exchange markets. Our cash position increased by 85.1% to EUR 283.7 million (EUR 153.3
million in 2022) at the end of 2023.
On 23 February 2023, Fitch Ratings affirmed Multitude SE’s Long-Term Issuer Default Rating (IDR)
at “B+” with Stable Outlook. Further, Fitch Ratings affirmed the senior unsecured notes at “B+”/
RR4 and the subordinated hybrid perpetual capital notes at “B-”/RR6.
On 24 August 2023, Fitch Ratings also published its first-time rating of Multitude Bank p.l.c. The
bank obtained a Long-Term Default Rating (IDR) of “B+” and a Short-Term Issuer Default Rating
(IDR) of “B”. The outlook is stable.
In light of increasing interest rates and a strong deposit base, Multitude did not raise any new
capital markets funding in 2023. On the other hand, the Group bought back EUR 5.0 million worth
of perpetual bonds at nominal value, taking advantage of favourable market conditions.
The 2023 Annual General Meeting (AGM) decided to distribute a per-share dividend of EUR
0.12 for the financial year 2022 to a total of EUR 2,589,331. It paid the dividend on 9 May
2023. Furthermore, the AGM authorised the Board of Directors to repurchase a maximum of
2,172,396 shares of Multitude SE, which represents approximately 10% of all our outstanding
shares. The Board of Directors was also authorised to issue a maximum of 3,258,594
shares. The Board of Directors may issue new shares or transfer existing shares held by the
Group. The authorisation also includes the right to issue special rights, in the meaning of
Chapter 10 Section 1 of the Finnish Limited Liability Companies Act, which entitles the shareholders
to receive new shares or the treasury shares held by the Group against a consideration.
Subscribed shares arising from these special rights are included in the maximum number of
shares authorised for issue. These authorisations are in force until the next AGM, but not later
than 30 June 2024.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Personnel
The average number of employees in 2023 is equal to 694 (2022 - 683). Personnel expense
amounted to EUR 34.1 million (2022 - EUR 34.0 million).
There were no changes in the Leadership Team in 2023.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Risk factors and risk management
Multitude takes moderate and calculated risks in conducting its business. The prudent management
of risks minimises the probability of unexpected losses and threats to our reputation. Therefore,
we can enhance profitability and shareholder value.
The Leadership Team and business unit CEOs monitor operations regularly and are responsible for
adequate risk management and ensuring that the Group has access to the appropriate software,
including instructions on controlling and monitoring risks. Each Leadership Team member
bears responsibility for identifying and controlling the risks related to their functions in line with
instructions from the Board. The Board is ultimately charged with overal responsibility to oversee
the operations and risk management of the Group via its Risk Committee.
We proactively follow all legal regulations, monitor changes that might occur in the countries we
operate in and adjusts operations accordingly.
The Group’s risk exposures can be divided into three main categories: credit risks (receivables
from customers), market risks (including foreign exchange risks, interest rate risks and other price
risks) and operational risks (such as IT risks, legal and regulatory risks and other operational risks).
Exposure to credit risks arises principally from the Group’s lending activities. The credit risk is managed
by proprietary risk management tools, which assist Group companies in evaluating the custom-
er’s payment behaviour. These tools, which are continuously updated and refined, ensure that
only customers with a satisfactory credit profile are accepted. Experienced risk teams form Risk
Management function and manage the Group’s scoring system and credit policies. The Risk
Management function is also responsible for the measurement of the payment behaviour of the
credit portfolio on a daily, weekly, and monthly basis.
Multitude uses foreign currency forward contracts to hedge foreign transaction risk exposures.
Market risks arise from open positions in the interest rate and products in foreign currency. They
are managed by the Group’s Treasury function, in close cooperation with FP&A, which is also
responsible for the Group’s cash flow planning and ensure the necessary liquidity level for all
Group companies.
Operational, IT, legal and regulatory risks are highly relevant to us. The Group’s Legal function
manages regulatory and legal risks in close cooperation with the authorities in the respective
countries and relevant stakeholders. Potential or foreseeable changes in applicable laws are
analysed on an ongoing basis and any necessary modifications to the company’s operations are
implemented proactively.
The Group is also exposed to credit risk arising from its exposure to debt investments. The debt
investments reflect the Group’s acquisition of secured bonds. Such bonds are mainly secured by
a number of loan portfolios which are pledged in favour of Multitude Bank, and are subject to a
number of covenants including predetermined ratios of ageing portfolios and advance rates. Such
covenants are monitored regularly by our Leadership Team and the Risk Committee.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Changes in the Group structure
The Group continues to streamline its legal and operative structure. These were the changes to the
Group’s companies in 2023:
• On 3 April 2023, Multitude sold its total shareholdings, representing 100% of the Group’s
ownership interests, in Ferratum Australia Pty Ltd.
• Mr Credit Pty Ltd was voluntarily liquidated on 24 April 2023.
• Ferratum Czech s.r.o. was voluntarily liquidated on 6 June 2023.
• Ferratum Capital Germany GmbH merged with Pactum Collections GmbH on June 22, 2023,
based on the merger agreement.
• Capital Box GmbH was merged with Pactum Collections GmbH in accordance with the merger
agreement between the two companies on 24 August 2023.
• On 28 November 2023, Multitude sold its total shareholdings, representing 100% of the Group’s
ownership interests, in Bidellus Bangladesh Ltd.
• On 22 December 2023, Multitude sold its total shareholdings, representing 100% of the Group’s
ownership interests, in Inari Serviços Financeiros Ltda.
• On 22 December 2023, Multitude sold its total shareholdings, representing 100% of the Group’s
ownership interests, in Ferratum Brazil Servicos De Correspondente Bancario Ltda.
Subsequent events
Relocation of headquarters
We as Multitude SE, announced on 5 January 2024 that we are contemplating a relocation from
Finland to Switzerland while maintaining our legal personality and without dissolution. On 17
January 2024, Multitude SE announced that as a first phase of the plan to relocate to Switzerland,
the Board of Directors of Multitude SE proposed a transfer of the registered office of Multitude SE
from Finland to Malta.
The completion of this relocation is subject to the approval of the Annual General Meeting of
Multitude SE. The transfer of the registered office from Finland to Malta would be followed by
a conversion of Multitude SE into a public limited liability company governed by the laws of
Malta and then an application to have the parent company registered in Switzerland pursuant to
applicable Maltese and Swiss laws by the end of the year 2024.
On 21 March 2024 Multitude shareholders held an Extraordinary General Meeting and approved
the proposal for the transfer of the registered office of Multitude SE from Finland to Malta in accordance
with the Council Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European
Company (SE).
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Multitude Group Annual Report 2023 – Board of Directors’ Report
In anticipation and in pursuance of the transfer of the registered office, the Extraordinary General
Meeting resolved to amend the parent company’s current Articles of Association to introduce
a nominal value for our shares by adding a new Article 10 in the Articles of Association which
reads as follows: The nominal value of the shares is EUR 1.85. Extraordinary General Meeting
resolved to increase the parent company’s share capital by EUR 55,766 from EUR 40,133,560 to
EUR 40,189,326. The increase will be carried out by transferring the necessary amount from the
invested unrestricted equity reserve to the share capital.
Extraordinary General Meeting resolved to appoint Ganado Services Limited (Registration
Number: C10785) having its registered office at 171, Old Bakery Street, Valletta VLT1455, Malta as
the company secretary of the parent company, with effect from the date of registration of the
parent company with the Malta Business Registry.
Upon our registration with the Malta Business Registry, PricewaterhouseCoopers (Registration Number:
AB/26/84/38), with their registered office situated at 78, Mill Street, Qormi, Malta will be appointed
as the auditors of ours as the parent company until the close of the Annual General Meeting to be
held in year 2024, and that our Group’s Audit Committee be authorised to fix their remuneration
and sign any engagement letter as may be required for the purposes of finalising the engagement
thereof.
Ratings update
On 15 February 2024, Fitch Ratings revised Multitude SE’s and Multitude Bank p.l.c.’s outlooks
to positive from stable, while affirming their Long-Term Issuer Default Ratings (IDRs) at ‘B+’.
Multitude’s senior unsecured notes were affirmed at ‘B+’ with a Recovery Rating of ‘RR4’ and its
subordinated hybrid perpetual capital notes (perpetual bonds) at ‘B-’ with ‘RR6’.
Acquisition of Omniveta
CapitalBox acquires the business of Capenhagen-based Omniveta Finance in an asset-
transaction at the beginning of March 2024. Omniveta specialises in invoice purchasing, which
provides CapitalBox with a complementing finance solution. This acquisition will add invoice
purchasing to CapitalBox offering for SMEs in Denmark and an opportunity to extend such offering
to the other markets that CapitalBox is active in.
New business unit
In November 2023, Multitude announced the plan to optimise the structure of its reportable
segments and create a new business unit by rebranding part of the SweepBank business.
The new business unit will be called Wholesale banking and, as it is managed by Multitude
Bank p.l.c. on behalf of us as the Group, it will be led by the CEO of Multitude Bank, Antti
Kumpulainen. It will be operational starting 1 January 2024 and offer Secured Debt products
reported currently under SweepBank unit as debt investments financial statement line item in
the consolidated statements for 2023.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Shares of the company
Largest shareholdings as at 31 December 2023
The table below describes the shareholder structure and summarises shareholders with the largest
holdings, excluding nominee-registered shares, in Multitude SE as at 31 December 2023. The
table shows shareholdings representing at least five percent (5%) ownership in the Group. These
holdings are updated based on the latest notifications of change in major holdings. We received
three notifications of changes in the number of shares held by shareholders with at least five
percent (5%) ownership in Multitude SE during year 2023.
Board of Directors’ shareholdings as at 31 December 2023
All information of shareholders holding based on the latest shareholder notifications received.
* Jorma Jokela holds directly 179,087 shares (0.82%), through Jokela Capital OÜ 5,773,139 shares (26.58%) and through
JT Capital Limited 6,058,735 shares (27.89%). The shares held by Jokela Capital OÜ and JT Capital Limited are nominee
registered.
**Total free float excludes shares held by Jorma Jokela and treasury shares held by Multitude SE.
***Excluding Jorma Jokela.
**** Treasury shares held by Multitude SE (no voting right and no dividend paid on treasury shares).
*Include shareholdings held directly and indirectly by BOD.
**Number in parentheses shows share of voting rights.
Name Position
Holdings and voting
rights*
% of holdings and
voting rights**
Jorma Jokela Member 12,010,961 55.29% (55.56%)
Liigus, Lea Member 127,396 0.59%
Tiukkanen, Ari Chairman 18,338 0.08%
Cusumano, Michael Member - -
Challagalla, Goutam Member - -
Leppänen, Kristiina Member 1,300
0.01%
Total 12,157,995 55.97% (56.24%)
Largest shareholders Shares % of shares % of voting rights
Jorma Jokela* 12,010,961 55.29% 55.56%
Total free float:** 9,607,163 44.22% 44.44%
- Lemanik Holding S.A. 1,129,000 5.20% 5.22%
- Board and Leadership Team*** 440,052 2.03% 2.04%
- Other shareholders 8,038,111 37.00% 37.18%
Multitude SE**** 105,836 0.49% -
Total 21,723,960 100% 100%
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Multitude Group Annual Report 2023 – Board of Directors’ Report
*Includes shareholdings held directly and indirectly by the Leadership Team.
**Number in parentheses shows share of voting rights.
Leadership Team shareholdings as at 31 December 2023
Name Position
Holdings and
voting rights*
% of holdings and
voting rights**
Jorma Jokela Chief Executive Officer 12,010,961 55.29% (55.56%)
Liigus, Lea Chief Legal and Compliance Officer 127,396 0.59%
Krause, Clemens Chief Risk Officer 96,566 0.44%
Mäkelä, Lasse Chief Strategy and IR Officer 56,085 0.26%
Egger, Bernd Chief Financial Officer 40,169 0.18%
Kumpulainen, Antti CEO of Multitude Bank 24,278 0.11%
Kajakas, Kristjan Tribe CEO - Ferratum 25,218 0.12%
Chatterjee, Julie Tribe CEO - SweepBank 17,063 0.08%
Hansson-Tönning, Adam Chief Financial Planning Analyst 13,956 0.06%
Kabele, Kornel Chief Technology Officer 10,381 0.05%
Vella, Shaun Chief HR Officer 6,749 0.03%
Štareika, Mantvydas Tribe CEO - CapitalBox 2,553 0.01%
Total 12,431,375 57.23% (57.50%)
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Distribution of holdings by number of shares held as at 31 December 2023
Distribution of holdings by group as at 31 December 2023
Lower
Limit
Number of
shareholders
% of
shareholders
Total number
of shares with
voting righs
% of share
capital with
voting rights
1-100 37 19.072 1,541 0.007
101-500 66 34.021 16,225 0.075
501-1 000 26 13.402 19,721 0.091
1 001-5 000 39 20.103 76,420 0.352
5 001-10 000 7 3.608 53,483 0.246
10 001-50 000 12 6.186 226,930 1.045
50 001-100 000 2 1.031 184,099 0.847
100 001-500 000 3 1.546 513,077 2.362
500 001 and over 2 1.031 20,632,464 94.976
Total 194 100.000 21,723,960 100.000
Nominee registered 5 - 20,863,864 96.041
Treasury shares held by Multitude SE - - 105,836 -
Sector
Total number
of shares
(book-entries)
% of share
capital and
voting rights
Total number of
shares (nomi-
nee-registered)
% of share
capital and
voting rights
Total number
of shares and
voting rights
% of share
capital and
voting rights
Financial and insurance
corporations
105,836 0.487 6,501,043 29.926 6,606,879 30.413
Households 744,621 3.428 - - 744,621 3.428
Shares registered in the
member states of the
Euro area
9,639 0.044 14,362,821 66.115 14,372,460 66.159
Total 860,096 3.959 20,863,864 96.041 21,723,960 100.000
Table includes shares reported by Euroclear Finland Ltd.
Table includes shares reported by Euroclear Finland Ltd.
121
Multitude Group Annual Report 2023 – Board of Directors’ Report
Annual General Meeting 2024
Multitude’s Annual General Meeting will be held on 25 April 2024 at 10:00 EEST at the offices of
Castren & Snellman Attorneys Ltd, Eteläesplanadi 14, Helsinki, Finland. The meeting will be held
as a physical meeting, and no remote participation or video link to the meeting venue will be
provided. Shareholders may also use their voting rights by voting in advance.
Instructions for shareholders as well as proposals made for the AGM are provided in the AGM
notice published on the Group’s website.
Date Publication
14.03.2024 Multitude SE: 2023 preliminary results
28.03.2024 Multitude Bank p.l.c.: full year 2023 results
28.03.2024 Multitude SE: full year 2023 results
16.05.2024 Multitude SE: Q1 2024 results
22.08.2024 Multitude Bank p.l.c.: H1 2024 results
22.08.2024 Multitude SE: H1 2024 results
14.11.2024 Multitude SE: 9M 2024 results
Financial calendar
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Board of Directors’ proposals for profit distribution
The operations of the Group’s parent company, Multitude SE, for the year ended 31 December
2023 amounted into a profit of EUR 6.3 million (2022 - EUR 9.3 million, loss), which resulted into
a distributable equity amounting to EUR 54.6 million as at 31 December 2023 (2022 - EUR 50.8
million). Accordingly, the Board of Directors proposed to the Annual General Meeting to distribute
dividend of EUR 0.19 per share in relation to the 2023 results and that 2023 profit to be carried
forward.
Corporate governance statement
Multitude’s Corporate Governance Statement has been prepared in accordance with the reporting
requirements set out by the Corporate Governance Code 2020 issued by the Finnish Securities
Market Association. The Corporate Governance Statement is published separately from the Board
of Directors’ report, and it is available on Multitude’s website at: https://www.multitude.com/
investors/corporate-governance/corporate-governance-statement.
Company management and auditor
Ari Tiukkanen served as Chairman of the Board since the 2023 Annual General Meeting. Other
members of the Board were Jorma Jokela, Lea Liigus, Michael A. Cusumano, Goutam Challagalla,
and Kristiina Leppänen. Frederik Strange, Juhani Vanhala and Jussi Mekkonen stepped down from
the Board after the 2023 Annual General Meeting. The Chief Executive Officer is Jorma Jokela. The
2023 Annual General Meeting re-appointed PricewaterhouseCoopers Oy as the Group’s auditor,
with APA Jukka Paunonen as the auditor with principal responsibility.
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Multitude Group Annual Report 2023 – Board of Directors’ Report
Consolidated
financial
statements 2023
(audited)
Consolidated statement of profit or loss
EUR ’000 | Notes | 2023 | Restated |
| 2022* | |||
Interest income | 7 | ||
Interest expense | 7 | ( | ( |
Net interest income | |||
Fee and commission income | 8 | ||
Fair value and foreign exchange losses | 9 | ( | ( |
Other income | 10 | ||
Profit for the period from investment in associates | |||
Net operating income | |||
| Operating expenses: | |||
Impairment loss on loans to customers | 4.2, 11 | ( | ( |
Personnel expense | 11 | ( | ( |
General and administrative expense | 11 | ( | ( |
Depreciation and amortisation | 11 , 17-19 | ( | ( |
Selling and marketing expense | 11 | ( | ( |
Other expense | 10 | ( | ( |
Profit before income taxes | |||
Income tax expense | 12 | ( | ( |
Profit for the period | |||
| Earnings per share: | |||
Basic earnings per share, EUR | 13 | ||
Diluted earnings per share, EUR | 13 |
*See Note 26 for the details of restatements due to change in accounting policies and correction of errors.
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Consolidated statement of comprehensive income
EUR ’000 | 2023 | Restated 2022* |
Profit for the period | ||
| Other comprehensive expense: | ||
| Items that may be reclassified to profit or loss | ||
Currency translation difference | ( | ( |
Total other comprehensive loss | ( | ( |
Total comprehensive income for the period |
*See Note 26 for the details of restatements due to change in accounting policies and correction of errors.
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Consolidated statement of financial position
| 31 December | Restated 31 | Restated 1 | ||
EUR ’000 | Notes | 2023 | December | January |
| 2022* | 2022* | |||
| ASSETS | ||||
Cash and cash equivalents | 4.3 | |||
Derivative financial assets | 15 | |||
Loans to customers | 15, 26 | |||
Debt investments | 15 | |||
Other financial assets | 15 | |||
Current tax assets | 12 | |||
Prepaid expenses and other assets | 16 | |||
Intangible assets | 17 | |||
Right-of-use assets | 18 | |||
Property, plant and equipment | 19 | |||
Investments accounted for using the equity method | 14 | |||
Deferred tax assets | 12 | |||
Total assets | ||||
| EQUITY AND LIABILITIES | ||||
| Liabilities: | ||||
Derivative financial liabilities | 20 | |||
Deposits from customers | 20 | |||
Current tax liabilities | 12 | |||
Provisions, accruals and other liabilities | 20 | |||
Debt securities | 14, 20 | |||
Lease liabilities | 18, 20 | |||
Deferred tax liabilities | 12 | |||
Total liabilities | ||||
| Equity: | ||||
Share capital | 21 | |||
Treasury shares | 21 | ( | ( | ( |
Retained earnings | ||||
Unrestricted equity reserve | ||||
Perpetual bonds | 4.5 | |||
Translation differences | 4.3 | ( | ( | ( |
Other reserves | 21 | |||
Total equity | ||||
Total equity and liabilities | ||||
| *See Note 26 for the details of restatements due to change in accounting policies and correction of errors. |
126
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Consolidated statement of cash flows
EUR ’000 | Notes | 2023 | Restated |
| 2022* | |||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
Profit for the period | |||
| Adjustments for: | |||
Impairment loss on loans to customers | 4.2, 11 | ||
Depreciation and amortisation | 11 , 17-19 | ||
Net interest income | 7 | ( | ( |
Fair value and foreign exchange gains and losses | 9 | ||
Income tax expense | 12 | ||
Other adjustments | |||
| Changes in operating assets: | |||
Increase (-) in gross loans to customers | 4.2 | ( | ( |
Increase (-) in debt investments | ( | ( | |
Increase (-) / decrease (+) in derivative financial instruments (net) | ( | ||
Increase (-) / decrease (+) in other assets | ( | ||
| Changes in operating liabilities: | |||
Increase (+) in deposits from customers | 4.2 | ||
Decrease (-) in other liabilities | ( | ( | |
Interest paid | ( | ( | |
Interest received | |||
Income taxes paid | ( | ( | |
Net cash flows from (used in) operating activities | ( | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of tangible assets | ( | ( | |
Purchase of intangible assets | ( | ( | |
Purchase of investments accounted for using the equity method | ( | ||
Net cash flows used in investing activities | ( | ( | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayment of perpetual bonds interest | ( | ( | |
Dividends paid | 22 | ( | |
Proceeds from debt securities | |||
Repayment of debt securities | ( | ||
Repayment of lease liabilities | 18 | ( | ( |
Repayment of perpetual bonds | ( | ||
Net cash flows used in financing activities | ( | ( | |
Cash and cash equivalents, as at 1 January | 15 | ||
Exchange losses on cash and cash equivalents | ( | ( | |
Net increase (decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents, as at 31 December | 15 | ||
| *See Note 26 for the details of restatements due to change in accounting policies and correction of errors. |
127
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Consolidated statement of changes in equity
EUR ’000 | Share | Treasury | Retained | Perpetual | Unrestricted | Translation | Other | Total |
| capital | shares | earnings | bonds | equity | differences | reserves | equity | |
| reserve | ||||||||
| As at 1 January 2022 | ( | ( | ||||||
Restatement and adjustments to opening | ( | ( | ||||||
| balance | ||||||||
| Restated as at 1 January 2022* | ( | ( | ||||||
| Comprehensive income | ||||||||
| Profit for the period | ||||||||
| Currency translation | ( | ( | ( | |||||
| difference | ||||||||
| Total comprehensive income | ( | |||||||
| Transactions with owners: | ||||||||
| Perpetual bonds interests | ( | ( | ||||||
| payments | ||||||||
| Share-based payments | ||||||||
| (Note 23) | ||||||||
| Other changes | ( | ( | ( | |||||
Total transactions with owners | ( | ( | ( | |||||
| As at 31 December 2022 | ( | ( | ||||||
| As at 1 January 2023 | ( | ( | ||||||
| Comprehensive income | ||||||||
| Profit for the period | ||||||||
| Currency translation | ( | ( | ||||||
| difference | ||||||||
| Total comprehensive income | ( | |||||||
| Transactions with owners: | ||||||||
| Repayment of perpetual | ( | ( | ||||||
| bonds | ||||||||
| Perpetual bonds interests | ( | ( | ||||||
| payments | ||||||||
| Share-based payments | ||||||||
| (Note 23) | ||||||||
| Dividend distribution | ( | ( | ||||||
| Release of reserves (Note | ( | |||||||
| 21) | ||||||||
Total transactions with owners | ( | ( | ( | ( | ||||
| As at 31 December 2023 | ( | ( | ||||||
| *See Note 26 for the details of restatements due to change in accounting policies and correction of errors. |
128
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129
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130
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Annual General Meeting
The Annual General Meeting (“AGM”) was held on 27 April 2023 in Helsinki, Finland
matters have been resolved during the AGM: The AGM adopted the Annual Accounts, including
the Consolidated Annual Accounts for the financial year 2022 and discharged the members of the
Board of Directors and the CEO from liability for the financial year 2022. In accordance with the
The AGM confirmed the number of members of the Board of Directors as six and decided to re-
elect Goutam Challagalla, Michael A. Cusumano, Jorma Jokela, Kristiina Leppänen and Lea Liigus
to the Board of Directors and elected Ari Tiukkanen as new member, each one for a term ending
at the end of the next Annual General Meeting. The Board of Directors will elect the Chairman and
the Vice Chairman of the Board of Directors from amongst its members.
The AGM has also resolved to appoint Audit firm PricewaterhouseCoopers Oy, which had stated
that APA Jukka Paunonen will act as the responsible auditor, as the auditor of the Group for a term
ending at the end of the next Annual General Meeting.
Please visit the Group’s website for further information on the Annual General Meeting.
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2. Basis of preparation and accounting policies
2.2 Statement of compliance
The consolidated financial statements of the Group have been prepared in accordance with IFRS
accounting stgandards as issued by the International Accounting Standards Board (IASB) and
adopted by the European Union.
2.3 Presentation of financial statements
The Group presents its statement of financial position in order of liquidity based on Multitude’s
intention and perceived ability to recover/settle the majority of assets/liabilities of the correspond-
ing financial statement line item. An analysis regarding recovery or settlement within 12 months
after the reporting date (current) and more than 12 months after the reporting date (non–current)
is presented in Note 14.
2.4 New standards and amendments
This chapter provides a summary of (a) new standards and amendments that are effective for
the first time for periods commencing on or after 1 January 2023 (i.e. year ending 31 December
2023), (b) IFRS Interpretations Committee agenda decisions issued in the last 12 months, and (c)
forthcoming requirements, being standards and amendments that will become effective on or
after 1 January 2024.
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
(a) New standards and amendments – applicable 1 January 2023
The following standards and interpretations apply for the first time to financial reporting periods
commencing on or after 1 January 2023:
| Title | Key requirements if relevant | ||||||||||||
| IFRS 17 Insurance | Not relevant. Multitude does not issue insurance contracts. The new standard had | ||||||||||||
Contracts and Amendments to IFRS 17 Insurance | no impact on the Group’s consolidated financial statements. | ||||||||||||
| contracts: Initial | |||||||||||||
| Application of IFRS | |||||||||||||
| 17 and IFRS 9 – | |||||||||||||
| Comparative | |||||||||||||
| Information | Relevant. The amendments to IAS 12 Income Taxes require companies to recognise | ||||||||||||
| deferred tax on transactions that, on initial recognition, give rise to equal amounts | |||||||||||||
| of taxable and deductible temporary differences, and will require the recognition of | |||||||||||||
| additional deferred tax assets and liabilities. The amendment should be applied to | |||||||||||||
| Amendments to | transactions that occur on or after the beginning of the earliest comparative period | ||||||||||||
| IAS 12 Income | presented. In addition, entities should recognise deferred tax assets (to the extent | ||||||||||||
| Taxes: Deferred | that it is probable that they can be utilised) and deferred tax liabilities at the | ||||||||||||
| Tax related to | beginning | of | the | earliest | comparative | period | for | all | deductible | and | taxable | ||
| Assets and | temporary differences associated with: | ||||||||||||
| Liabilities arising | • right-of-use assets and lease liabilities, and | ||||||||||||
| from a Single | • decommissioning, restoration and similar liabilities, and the corresponding | amounts recognised as part of the cost of the related assets. | |||||||||||
| Transaction | IAS 12 did not previously address how to account for the tax effects of on-balance | ||||||||||||
sheet | leases | and | similar | transactions | and | various | approaches | were | considered | ||||
| acceptable. The new amendments had insignificant impact on financial statements | |||||||||||||
but | required | additional | disclosure | of | netted | deferred | tax | asset | from | carrying | |||
| amount of leases and right-of-use asset (Note 12). | |||||||||||||
| Relevant. The IASB amended IAS 1 Presentation of Financial Statements to require | |||||||||||||
| Amendments to | entities to disclose their material rather than their significant accounting policies. | ||||||||||||
| IAS 1 Presentation | The amendments define what is ‘material accounting policy information’ (being | ||||||||||||
| of Financial | information that, when considered together with other information included in an | ||||||||||||
| Statements, IFRS | entity’s financial statements, can reasonably be expected to influence decisions | ||||||||||||
| Practice Statement | that the primary users of general purpose financial statements make on the basis of | ||||||||||||
| 2 and IAS 8 | those financial statements) and explain how to identify when accounting policy | ||||||||||||
| Accounting | information | immaterial | is | material. | They | further | clarify | that | accounting | policy | |||
| Policies, Changes | information does not need to be disclosed. If it is disclosed, it should not obscure | ||||||||||||
| in Accounting | material accounting information. This amendment had an impact on the composition | ||||||||||||
| Policies and Errors: | results and positions. | of accounting policies of the Group but did not lead to restatements of financial | |||||||||||
| Disclosure of | The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates | ||||||||||||
| Accounting | and | Errors | clarifies | how | companies | should | distinguish | changes | in | accounting | |||
| policies and | policies from changes in accounting estimates. The distinction is important the | ||||||||||||
| Definition of | Group because changes in accounting estimates are applied prospectively to future | ||||||||||||
| Accounting | transactions and other future events, whereas changes in accounting policies are | ||||||||||||
| Estimates | generally applied retrospectively to past transactions and other past events as well | ||||||||||||
| as the current period. | |||||||||||||
| Amendment to IAS | Not relevant. The Group's consolidated financial statements remain unaffected by | ||||||||||||
| 12 - OECD Pillar | the amendments, given that the Group falls outside the scope of the Pillar Two | ||||||||||||
| Two Rules | model rules, owing to its annual revenue being less than EUR 750 million. | ||||||||||||
The amendments described in the table above did not have any material impact on the Group's
accounting records.
133
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
(b) IFRS Interpretations Committee agenda decisions issued in the last 12 months, the following
agenda decisions were issued but not relevant for the preparation of annual reports in 2023. The
date issued refers to the date of approval by the IASB as per the IASB’s website.
| Date issued | Topic |
27 April 2023 | Definition of a Lease—Substitution Rights (IFRS 16) |
26 October 2023 | Premiums Receivable from an Intermediary (IFRS 17 and IFRS 9) |
26 October 2023 | Homes and Home Loans Provided to Employees (IAS 19) |
26 October 2023 | Guarantee over a Derivative Contract (IFRS 9) |
(c) Forthcoming requirements
As at 31 December 2023, the following standards and interpretations had been issued but were
not mandatory for annual reporting periods ending on 31 December 2023.
| Title | Key requirements if relevant | Effective Date |
| Classification of | ||
| Liabilities as Current | ||
| or Non-current– | Not relevant. The Group does not apply classification of | |
| Amendments to IAS 1 | current and non-current items in the consolidated statement | 1 January 2024 |
| Non-Current | of financial position. | |
Liabilities with Covenants – | ||
| Amendments to IAS 1 | ||
| Supplier finance | Not relevant. The Group does not enter into supplier finance | 1 January 2024 |
| arrangements | arrangements, therefore the amendments are not expected to | (not yet endorsed |
– Amendments to IAS 7 and IFRS 7 | have a material impact on the Group’s financial statements. | in the EU) |
| Not relevant. Multitude does not have transactions that are not | Annual periods | |
| Amendments to | exchangeable into another currency at a measurement date | beginning on or |
| IAS 21 – Lack of | for a specified purpose, therefore there is no impact expected | after 1 January 2025 |
| Exchangeability | from this amendment. | (not yet endorsed |
| in the EU) | ||
| Amendments to | Not relevant. The Group does not enter into sale and | |
| IFRS 16 Leases: | leaseback transactions. Therefore, these amendments are not | |
| Lease Liability in a | expected to have a material impact on the Group’s financial | 1 January 2024 |
Sale and Leaseback | statements. |
The Group does not expect any new accounting standards or interpretations to have material impact.
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138
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139
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140
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141
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142
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143
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Capitalised development costs: | 2 – 5 years |
Computer software: | 2 – 10 years |
Trademarks: | 3 – 5 years |
Licences: | 2 – 10 years |
Office buildings: | 3 – 6 years |
Office equipment: | 3 – 4 years |
145
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Office renovations: | 3 – 8 years |
Furnitures, fittings, and equipment: | 3 – 8 years |
146
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147
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148
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149
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150
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3. Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires the use of management judgement in electing
and applying accounting policies, as well as making estimates and assumptions about the future.
These judgements, estimates and assumptions may significantly affect the amounts recognised in
the financial statements.
The estimates and assumptions used in determining the carrying amounts of assets and liabili-
ties are based on historical experience, expected outcomes and various other factors that were
available when these consolidated financial statements were prepared, and they are believed to
be reasonable under the circumstances. The estimates and assumptions are reviewed continually
and revised if circumstances change or due to new information or more experience. As estimates
and assumptions inherently contain varying uncertainty, actual outcomes may differ resulting in
adjustments to the carrying amounts of assets and liabilities in the subsequent periods.
The accounting matters presented in this Note are determined to involve difficult, subjective or
complex judgements or are considered as key sources of estimation uncertainty that are applied
by the Group in 2023.
3.1 Impact of climate risk on accounting judgements and estimates
The Leadership Team has considered the impact of climate-related risks on Multitude’s financial
position and performance. While the effects of climate change are a source of uncertainty, the
Leadership Team did not consider there to be a material impact on the critical judgements and
estimates from the physical, transition and other climate-related risks in the short to medium term.
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litigation, arbitration, and regulatory investigations and proceedings, in Finland and other jurisdic-
tions, arising in the ordinary course of the Group’s business.
Provisions are recorded for specific cases when the Group can reliably measure the outflow of
economic benefits and deems such outflows probable. Contingent liability is disclosed in instances
where the probability of outflow is considered not probable or it is probable but a reliable estimate
cannot be determined.
Given the subjectivity and uncertainty of determining the probability and amount of losses, the
Group takes into account a number of factors including legal advice, the stage of the matter and
historical evidence from similar incidents. Significant judgement is required to conclude on these
estimates. For further details on provisions and other contingencies see Notes 20 and 24.
3.5. Determination of the lease term for lease contracts with renewal and
termination options
The Group determines the lease term as the non-cancellable term of the lease, together with any
periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.
This applies also for open-ended lease contracts.
The Group has several lease contracts that include extension and termination options. The Group
applies judgement in evaluating whether it is reasonably certain whether or not to exercise the
option to renew or terminate the lease. That is, it considers all relevant factors that create an eco-
nomic incentive for it to exercise either the renewal or termination. After the commencement date,
the Group reassesses the lease term if there is a significant event or change in circumstances that
is within its control that affects its ability to exercise or not to exercise the option to renew or to
terminate (e.g., construction of significant leasehold improvements or significant customisation of
the leased asset).
3.6. Estimating the incremental borrowing rate
The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the interest rate that the
Group company - lessee would have to pay to borrow over a similar term, and with a similar secu-
rity, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar
economic environment. The IBR therefore reflects what the Group ‘would have to pay’, which re-
quires estimation when no observable rates are available (such as for subsidiaries that do not enter
into financing transactions) or when they need to be adjusted to reflect the terms and conditions
of the lease (for example, when leases are not in the subsidiary’s functional currency). The Group
company - lessee estimates the IBR using observable inputs (such as market interest rates) when
available and is required to make certain entity-specific adjustments (such as the subsidiary’s
stand-alone credit rating, or to reflect the terms and conditions of the lease).
3.7. Fair value of rewards shares
The Group applies a valuation methodology based on the Monte Carlo model and the assumption
that logarithmic returns are normally distributed, considering the dividend-adjusted share price at
valuation dates, expected rate of return, and risk-free volatility. Since the performance share plan is
essentially a derivative, the Group applies a risk-neutral valuation concept that uses a risk-free rate
as the expected return. Using this methodology, the Group calculated the performance share val-
uation by modelling potential outcomes of the Group’s share price at the end of the performance
period and discounted the average calculated payoffs from each outcome to get the present value
of the average payoffs after the performance period.
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155
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156
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157
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
158
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
159
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
160
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
161
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
162
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Change in credit quality since initial recognition
Stage 1
(Initial recognition)
12-month
expected credit losses
Stage 2 Stage 3
(Significant increase in credit
risk since initial recognition)
Lifetime expected credit losses
(Credit-impaired
financial assets)
Lifetime expected credit losses
163
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164
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
165
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166
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167
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
168
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170
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| In % | 2024 | 2025 | 2026 | ||||||
Base | Down | Up | Base | Down | Up | Base | Down | Up | |
Bulgaria | 5.04 | 4.90 | 5.22 | 4.80 | 4.36 | 5.26 | 4.80 | 4.41 | 5.26 |
Czechia | 4.01 | 3.84 | 4.20 | 3.83 | 3.17 | 4.50 | 3.67 | 3.20 | 4.44 |
Denmark | 3.04 | 2.97 | 3.24 | 2.86 | 2.52 | 3.51 | 2.75 | 2.49 | 3.56 |
Netherlands | 3.80 | 3.62 | 3.99 | 4.34 | 3.67 | 5.04 | 4.46 | 3.98 | 5.28 |
Poland | 4.97 | 4.87 | 5.08 | 4.61 | 4.20 | 5.09 | 4.83 | 4.47 | 5.42 |
Romania | 2.64 | 2.52 | 2.85 | 2.60 | 2.19 | 3.20 | 2.49 | 2.17 | 3.13 |
| Billion units | 2024 | 2025 | 2026 | |||||||
Cur. | Base | Down | Up | Base | Down | Up | Base | Down | Up | |
Croatia | EUR | 38.15 | 38.31 | 38.02 | 38.29 | 38.56 | 38.52 | 38.63 | 38.72 | 38.90 |
Finland | EUR | 127. 23 | 127.37 | 127.0 8 | 128.93 | 129.27 | 128.94 | 130.25 | 130.62 | 130.02 |
Lithuania | EUR | 32.56 | 32.70 | 32.33 | 33.81 | 33.94 | 33.84 | 34.75 | 34.82 | 34.89 |
Netherlands | EUR | 416.53 | 417.37 | 415.07 | 419.27 | 421.57 | 416.91 | 420.92 | 421.92 | 418.87 |
Norway | NOK | 1,737.40 | 1,738.12 | 1,736.35 | 1,803.29 | 1,804.92 | 1,806.00 | 1,854.65 | 1,860.58 | 1,854.82 |
Sweden | SEK | 2,853.78 | 2,858.50 | 2,849.92 | 2,889.93 | 2,902.96 | 2,877.08 | 2,929.02 | 2,946.06 | 2,903.16 |
| Billion units | ||||||||||
2024 | 2025 | 2026 | ||||||||
Cur. | Base | Down | Up | Base | Down | Up | Base | Down | Up | |
Denmark | DKK | 1,051.37 | 1,053.61 | 1,046.06 | 1,080.36 | 1,086.27 | 1,063.66 | 1,106.50 | 1,111.76 | 1,084.18 |
Sweden | SEK | 2,557.16 | 2,562.64 | 2,549.58 | 2,608.32 | 2,622.65 | 2,582.60 | 2,663.55 | 2,678.36 | 2,627.62 |
| Billion units | 2024 | 2025 | 2026 | |||||||
Cur. | Base | Down | Up | Base | Down | Up | Base | Down | Up | |
Bulgaria | BGN | 112.22 | 112.58 | 111.58 | 114.90 | 116.06 | 113.33 | 116.90 | 117.94 | 115.29 |
Croatia | EUR | 59.60 | 60.08 | 59.37 | 60.35 | 61.62 | 59.66 | 61.54 | 62.58 | 60.75 |
Estonia | EUR | 25.48 | 25.55 | 25.31 | 27.24 | 27.46 | 26.96 | 28.73 | 28.90 | 28.53 |
Germany | EUR | 3,256.62 | 3,280.03 | 3,232.21 | 3,305.18 | 3,375.19 | 3,228.35 | 3,371.93 | 3,417.40 | 3,292.72 |
Latvia | EUR | 29.62 | 29.72 | 29.39 | 30.39 | 30.67 | 30.08 | 31.16 | 31.39 | 30.95 |
Netherlands | EUR | 812.28 | 818.30 | 806.05 | 832.64 | 848.47 | 815.00 | 846.44 | 857.30 | 827.58 |
Romania | RON | 1,252.81 | 1,257.15 | 1,244.29 | 1,289.75 | 1,303.58 | 1,265.96 | 1,323.44 | 1,334.28 | 1,297.77 |
Slovenia | EUR | 49.86 | 50.10 | 49.39 | 51.01 | 51.69 | 50.21 | 52.08 | 52.56 | 51.55 |
| (Decrease) / increase in | (Decrease) / increase in | |
| ECL 2023 | ECL 2022 | |
100% Baseline, EUR ’000 | (262) | (244) |
100% Downside, EUR ’000 | 7,618 | 6,937 |
100% Upside, EUR ’000 | (6,832) | (6,204) |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
AAA | 6,734 | 6,988 |
AA | - | - |
AA- | 593 | 2,364 |
A+ | 358 | 31,911 |
A | 175,759 | 41,776 |
A- | 40,045 | 24,309 |
BBB+ | 25,125 | 5,919 |
BBB | 50 | 680 |
BBB- | 6,610 | 3,161 |
BB+ | 59 | 300 |
BB | 210 | - |
BB- | - | - |
B | - | 29 |
B- | - | - |
No rating available | 28,169 | 35,887 |
Total | 283,712 | 153,325 |
2023 | 2022 | |
| EUR ’000 | ||
Balances with Central Banks: | 210,030 | 66,808 |
Balance with the Central Bank of Czechia | 293 | 474 |
Balance with the Central Bank of Malta | 171,320 | 37,045 |
Balance with the Central Bank of Lithuania | 31,683 | 22,301 |
Balance with the Central Bank of Sweden | 6,734 | 6,988 |
Balances with other banks | 73,682 | 86,517 |
283,712 | 153,325 | |
| Total |
EUR ’000 | 2023 | 2022 |
| Balances with other banks (repayable on call and at short | 36,074 | 27, 356 |
| notice) held by Multitude Bank |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | |||
2023, | EUR ’00 | 12-month | |
| ECL | |||
| Balances with Central Banks | |||
| A+ to A- | 210,030 | ||
| Gross carrying amount | 210,030 | ||
| Loss allowance | - | ||
Carrying amount – | net of loss allowance | 210,030 |
| Stage 1 | |||
2022, | EUR ’000 | 12-month | |
| ECL | |||
| Balances with Central Banks | |||
| A+ to A- | 66,808 | ||
| 66,808 | |||
| Gross carrying amount | - | ||
| Loss allowance | |||
Carrying amount – | net of loss allowance | 66,808 |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | ||
2023, | EUR ’000 | 12-month |
| ECL | ||
| Balances with other banks | ||
| A+ to A- | 1,558 | |
BBB+ to BBB- | 11,344 | |
BB+ to BB- | 59 | |
Unrated | 60,721 | |
| Gross carrying amount | 73,682 | |
| Loss allowance | - | |
| 73,682 | ||
| Carrying amount – net of loss allowance |
| Stage 1 | ||
2022, | EUR ’000 | 12-month |
| ECL | ||
| Balances with other banks | ||
| A+ to A- | 3,795 | |
BBB+ to BBB- | 4,478 | |
BB+ to BB- | 241 | |
Unrated | 78,003 | |
| Gross carrying amount | 86,517 | |
| Loss allowance | - | |
| 86,517 | ||
| Carrying amount – net of loss allowance |
176
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Days past due* | |||||||
Risk grade | Category | Basis for ECL | Lower | Upper | UTP | 2023 | 2022 |
| range | range | ||||||
Regular | Performing | Stage 1 (12-month | 0 to 30 | - | 532,234 | 464,238 | |
| ECL) | |||||||
Watch | Underperforming | Stage 2 (lifetime | 31 - 45 | 31 - 60 | - | 26,955 | 20,755 |
| ECL) | |||||||
Substandard | Underperforming | Stage 2 (lifetime | 46 - 60 | 61 - 90 | - | 17,309 | 14,862 |
| ECL) | |||||||
Doubtful | Non-performing | Stage 3 (lifetime | 61 - 180 | 91 - 180 | Yes | 21,661 | 24,868 |
| ECL) | |||||||
Loss | Non-performing | Stage 3 (lifetime | More than 180 days | - | 92,458 | 95,072 | |
| ECL) | |||||||
Total | 690,617 | 619,794 | |||||
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | Stage 2 | Stage 3 | ||
| EUR ’000 | 12-month | Lifetime | Lifetime | Total |
| ECL | ECL | ECL | ||
| GROSS LOANS TO CUSTOMERS | ||||
As at 1 January 2022 | 394,447 | 29,623 | 149,637 | 573,708 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (47,743) | 14,126 | 33,618 | - |
| Transfers out of Stage 2 | 3,029 | (11,640) | 8,610 | - |
| Total changes from transfers in between Stages | (44,714) | 2,486 | 42,228 | - |
| Other changes in gross loans to customers | ||||
| New loans originated during the year | 736,697 | 36,481 | 68,225 | 841,404 |
| Loans derecognised during the year | (613,537) | (32,294) | (123,464) | (769,295) |
| Write-offs | - | - | (15,006) | (15,006) |
| Changes in forex and other movements | (8,655) | (680) | (1,681) | (11,016) |
| Net changes in gross loans to customers | 69,791 | 5,993 | (29,698) | 46,087 |
| Gross loans to customers as at 31 December 2022 | 464,238 | 35,617 | 119,939 | 619,794 |
| LOSS ALLOWANCES | ||||
| Loss allowances, as at 1 January 2022 | 22,744 | 8,806 | 92,595 | 124,145 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (3,349) | 824 | 2,525 | - |
| Increase (decrease) due to transfers out of Stage 1 | - | 3,387 | 14,069 | 17,455 |
| Transfers out of Stage 2 | 795 | (3,433) | 2,638 | - |
| Increase (decrease) due to transfers out of Stage 2 | (540) | - | 2,607 | 2,067 |
| Increase (decrease) due to changes in DPD buckets | 777 | 65 | 7,641 | 8,484 |
| Total changes from transfers in between Stages | (2,317) | 843 | 29,480 | 28,006 |
| Other changes in loss allowances: | ||||
| New financial assets originated during the year | 46,663 | 11,806 | 34,539 | 93,009 |
| Financial assets derecognised during the year | (39,136) | (9,976) | (67,668) | (116,781) |
| Write-offs | - | - | (15,006) | (15,006) |
| Remeasurements from changes in model | (153) | (286) | 678 | 239 |
| Unwind of discount | - | - | 480 | 480 |
| Changes in forex and other movements | (465) | (169) | (740) | (1,373) |
| Net changes in loss allowances | 4,592 | 2,218 | (18,236) | (11,426) |
| Loss allowances as at 31 December 2022 | 27,337 | 11,024 | 74,359 | 112,719 |
Impaired loan coverage ratio ("ICLR") | 5.89% | 30.95% | 62.00% | 18.19% |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | Stage 2 | Stage 3 | ||
| EUR ’000 | 12-month | Lifetime | Lifetime | Total |
| ECL | ECL | ECL | ||
| GROSS LOANS TO CUSTOMERS | ||||
As at 1 January 2022 | 237,686 | 24,835 | 117,995 | 380,516 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (26,403) | 9,719 | 16,684 | - |
| Transfers out of Stage 2 | 2,752 | (8,573) | 5,821 | - |
| Total changes from transfers in between Stages | (23,651) | 1,146 | 22,505 | - |
| Other changes in gross loans to customers | ||||
| New loans originated during the year | 548,736 | 30,916 | 56,323 | 635,975 |
| Loans derecognised during the year | (486,757) | (29,719) | (94,893) | (611,370) |
| Write-offs | - | - | (15,197) | (15,197) |
| Changes in forex and other movements | (6,158) | (576) | (1,034) | (7,768) |
| Net changes in gross loans to customers | 32,170 | 1,767 | (32,297) | 1,640 |
| Gross loans to customers as at 31 December 2022 | 269,856 | 26,602 | 85,698 | 382,156 |
| LOSS ALLOWANCES | ||||
| Loss allowances, as at 1 January 2022 | 17,737 | 7,570 | 73,134 | 98,440 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (2,388) | 656 | 1,733 | - |
| Increase (decrease) due to transfers out of Stage 1 | - | 2,286 | 6,650 | 8,936 |
| Transfers out of Stage 2 | 736 | (2,673) | 1,938 | - |
| Increase (decrease) due to transfers out of Stage 2 | (496) | - | 1,750 | 1,254 |
| Increase (decrease) due to changes in DPD buckets | 460 | 9 | 6,121 | 6,590 |
| Total changes from transfers in between Stages | (1,689) | 277 | 18,193 | 16,780 |
| Other changes in loss allowances: | ||||
| New financial assets originated during the year | 36,199 | 10,109 | 28,999 | 75,307 |
| Financial assets derecognised during the year | (31,447) | (9,111) | (49,855) | (90,414) |
| Write-offs | - | - | (15,197) | (15,197) |
| Remeasurements from changes in model | (459) | (290) | 485 | (264) |
| Unwind of discount | - | - | 649 | 649 |
| Changes in forex and other movements | (372) | (137) | (349) | (858) |
| Net changes in loss allowances | 2,232 | 847 | ( 17,077) | (13,997) |
| Loss allowances as at 31 December 2022 | 19,969 | 8,417 | 56,057 | 84,442 |
Impaired loan coverage ratio ("ICLR") | 7.40% | 31.64% | 65.41% | 22.10% |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | Stage 2 | Stage 3 | ||
| EUR ’000 | 12-month | Lifetime | Lifetime | Total |
| ECL | ECL | ECL | ||
| GROSS LOANS TO CUSTOMERS | ||||
As at 1 January 2023 | 111,412 | 5,838 | 19,912 | 137,162 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (13,615) | 4,455 | 9,160 | - |
| Transfers out of Stage 2 | 500 | (3,442) | 2,941 | - |
| Total changes from transfers in between Stages | (13,114) | 1,013 | 12,101 | - |
| Other changes in gross loans to customers | ||||
| New loans originated during the year | 70,570 | 2,632 | 5,284 | 78,486 |
| Loans derecognised during the year | (55,210) | (2,662) | (7,321) | (65,193) |
| Write-offs | - | - | (664) | (664) |
| Changes in forex and other movements | 12 | 1 | 11 | 24 |
| Net changes in gross loans to customers | 2,258 | 983 | 9,411 | 12,652 |
| Gross loans to customers as at 31 December 2023 | 113,670 | 6,821 | 29,323 | 149,814 |
| LOSS ALLOWANCES | ||||
| Loss allowances, as at 1 January 2023 | 4,062 | 1,336 | 9,598 | 14,997 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (702) | 191 | 511 | - |
| Increase (decrease) due to transfers out of Stage 1 | - | 1,342 | 4,503 | 5,844 |
| Transfers out of Stage 2 | 118 | (925) | 807 | - |
| Increase (decrease) due to transfers out of Stage 2 | (63) | - | 935 | 872 |
| Increase (decrease) due to changes in DPD buckets | 240 | 6 | 3,218 | 3,465 |
| Total changes from transfers in between Stages | (407) | 614 | 9,974 | 10,181 |
| Other changes in loss allowances: | - | |||
| New financial assets originated during the year | 2,504 | 835 | 2,714 | 6,053 |
| Financial assets derecognised during the year | (2,471) | (667) | (3,229) | (6,367) |
| Write-offs | - | - | (664) | (664) |
| Remeasurements from changes in model | 1,452 | 43 | 243 | 1,739 |
| Unwind of discount | - | - | (243) | (243) |
| Changes in forex and other movements | 1 | - | 7 | 7 |
| Net changes in loss allowances | 1,079 | 825 | 8,801 | 10,705 |
| Loss allowances as at 31 December 2023 | 5,141 | 2,161 | 18,400 | 25,702 |
Impaired loan coverage ratio ("ICLR") | 4.52% | 31.69% | 62.75% | 17.16% |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | Stage 2 | Stage 3 | ||
| EUR ’000 | 12-month | Lifetime | Lifetime | Total |
| ECL | ECL | ECL | ||
| GROSS LOANS TO CUSTOMERS | ||||
As at 1 January 2022 | 80,666 | 2,114 | 12,490 | 95,270 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (12,143) | 2,829 | 9,314 | - |
| Transfers out of Stage 2 | 248 | (1,770) | 1,521 | - |
| Total changes from transfers in between Stages | (11,895) | 1,059 | 10,836 | - |
| Other changes in gross loans to customers | ||||
| New loans originated during the year | 84,274 | 3,087 | 6,804 | 94,165 |
| Loans derecognised during the year | (40,964) | (383) | (9,589) | (50,936) |
| Write-offs | - | - | (379) | (379) |
| Changes in forex and other movements | (670) | (38) | (250) | (957) |
| Net changes in gross loans to customers | 30,746 | 3,725 | 7,422 | 41,893 |
| Gross loans to customers as at 31 December 2022 | 111,412 | 5,838 | 19,912 | 137,162 |
| LOSS ALLOWANCES | ||||
| Loss allowances, as at 1 January 2022 | 3,103 | 436 | 6,334 | 9,872 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (562) | 108 | 454 | - |
| Increase (decrease) due to transfers out of Stage 1 | - | 585 | 3,817 | 4,402 |
| Transfers out of Stage 2 | 51 | (364) | 313 | - |
| Increase (decrease) due to transfers out of Stage 2 | (36) | - | 497 | 460 |
| Increase (decrease) due to changes in DPD buckets | 176 | 6 | 859 | 1,040 |
| Total changes from transfers in between Stages | (371) | 335 | 5,939 | 5,903 |
| Other changes in loss allowances: | ||||
| New financial assets originated during the year | 2,957 | 812 | 3,057 | 6,826 |
| Financial assets derecognised during the year | (1,574) | (242) | (5,097) | (6,913) |
| Write-offs | - | - | (379) | (379) |
| Remeasurements from changes in model | (25) | 4 | 51 | 29 |
| Unwind of discount | - | - | (185) | (185) |
| Changes in forex and other movements | (27) | (8) | (120) | (156) |
| Net changes in loss allowances | 959 | 900 | 3,265 | 5,125 |
| Loss allowances as at 31 December 2022 | 4,062 | 1,336 | 9,598 | 14,997 |
Impaired loan coverage ratio ("ICLR") | 3.65% | 22.89% | 48.20% | 10.93% |
184
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | Stage 2 | Stage 3 | ||
| EUR ’000 | 12-month | Lifetime | Lifetime | Total |
| ECL | ECL | ECL | ||
| GROSS LOANS TO CUSTOMERS | ||||
As at 1 January 2023 | 82,970 | 3,177 | 14,329 | 100,476 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (8,893) | 2,662 | 6,232 | - |
| Transfers out of Stage 2 | 242 | (1,986) | 1,744 | - |
| Total changes from transfers in between Stages | (8,651) | 675 | 7,976 | - |
| Other changes in gross loans to customers | ||||
| New loans originated during the year | 113,079 | 2,661 | 4,114 | 119,854 |
| Loans derecognised during the year | (89,140) | (2,377) | (8,266) | (99,784) |
| Write-offs | - | - | (1,854) | (1,854) |
| Changes in forex and other movements | 45 | 1 | - | 46 |
| Net changes in gross loans to customers | 15,333 | 961 | 1,969 | 18,263 |
| Gross loans to customers as at 31 December 2023 | 98,303 | 4,137 | 16,298 | 118,739 |
| LOSS ALLOWANCES | ||||
| Loss allowances, as at 1 January 2023 | 3,305 | 1,271 | 8,704 | 13,280 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (532) | 154 | 379 | - |
| Increase (decrease) due to transfers out of Stage 1 | - | 589 | 2,803 | 3,392 |
| Transfers out of Stage 2 | 96 | (768) | 671 | - |
| Increase (decrease) due to transfers out of Stage 2 | (74) | - | 278 | 204 |
| Increase (decrease) due to changes in DPD buckets | 131 | 2 | 864 | 997 |
| Total changes from transfers in between Stages | (379) | (23) | 4,995 | 4,593 |
| Other changes in loss allowances: | - | - | - | - |
| New financial assets originated during the year | 4,930 | 724 | 1,978 | 7,632 |
| Financial assets derecognised during the year | (4,681) | (444) | (4,282) | (9,407) |
| Write-offs | - | - | (1,854) | (1,854) |
| Remeasurements from changes in model | (154) | (2) | 232 | 77 |
| Unwind of discount | - | - | (174) | (174) |
| Changes in forex and other movements | 2 | - | - | 1 |
| Net changes in loss allowances | (282) | 255 | 895 | 868 |
| Loss allowances as at 31 December 2023 | 3,023 | 1,526 | 9,599 | 14,148 |
Impaired loan coverage ratio ("ICLR") | 3.08% | 36.88% | 58.90% | 11.92% |
185
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | Stage 2 | Stage 3 | ||
| EUR ’000 | 12-month | Lifetime | Lifetime | Total |
| ECL | ECL | ECL | ||
| GROSS LOANS TO CUSTOMERS | ||||
As at 1 January 2022 | 68,269 | 2,675 | 19,152 | 90,096 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (9,197) | 1,578 | 7,619 | - |
| Transfers out of Stage 2 | 28 | (1,297) | 1,268 | - |
| Total changes from transfers in between Stages | (9,168) | 281 | 8,888 | - |
| Other changes in gross loans to customers | - | - | - | |
| New loans originated during the year | 104,717 | 2,568 | 5,211 | 112,496 |
| Loans derecognised during the year | (79,021) | (2,281) | (19,094) | (100,396) |
| Write-offs | - | - | 571 | 571 |
| Changes in forex and other movements | (1,827) | (66) | (398) | (2,291) |
| Net changes in gross loans to customers | 14,701 | 502 | (4,823) | 10,380 |
| Gross loans to customers as at 31 December 2022 | 82,970 | 3,177 | 14,329 | 100,476 |
| LOSS ALLOWANCES | ||||
| Loss allowances, as at 1 January 2022 | 1,905 | 800 | 13,128 | 15,833 |
| Transfers in between stages: | ||||
| Transfers out of Stage 1 | (399) | 60 | 339 | - |
| Increase (decrease) due to transfers out of Stage 1 | - | 516 | 3,601 | 4,117 |
| Transfers out of Stage 2 | 8 | (395) | 387 | - |
| Increase (decrease) due to transfers out of Stage 2 | (7) | - | 360 | 353 |
| Increase (decrease) due to changes in DPD buckets | 115 | - | 862 | 977 |
| Total changes from transfers in between Stages | (283) | 181 | 5,549 | 5,447 |
| Other changes in loss allowances: | ||||
| New financial assets originated during the year | 7,507 | 885 | 2,484 | 10,876 |
| Financial assets derecognised during the year | (6,088) | (572) | (12,917) | (19,577) |
| Write-offs | - | - | 571 | 571 |
| Remeasurements from changes in model | 331 | - | 142 | 473 |
| Unwind of discount | - | - | 16 | 16 |
| Changes in forex and other movements | (66) | (23) | (270) | (359) |
| Net changes in loss allowances | 1,401 | 471 | (4,424) | (2,553) |
| Loss allowances as at 31 December 2022 | 3,305 | 1,271 | 8,704 | 13,280 |
Impaired loan coverage ratio ("ICLR") | 3.98% | 40.01% | 60.74% | 13.22% |
186
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
187
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
31 December 2023 | 31 December 2022 | |||
| Basis for ECL | ||||
| Gross carrying | Gross carrying | |||
| ECL | ECL | |||
| amount | amount | |||
Stage 1 | 101,015 | 6,319 | 87,396 | 5,543 |
Stage 2 | 10,625 | 3,344 | 7,090 | 2,169 |
Stage 3 | 6,231 | 2,828 | 6,959 | 2,997 |
Total | 117,870 | 12,492 | 101,444 | 10,709 |
EUR ’000 | 2023 amount | 2023 % | 2022 amount | 2022 % |
Finland | 22,814 | 19.4% | 19,529 | 19.3% |
Northern Europe | 69,178 | 58.7% | 53,437 | 52.7% |
Western Europe | 3,722 | 3.2% | 3,800 | 3.7% |
Eastern Europe | 22,156 | 18.8% | 24,679 | 24.3% |
Total | 117,870 | 100.0% | 101,444 | 100.0% |
188
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
31 December 2023 | 31 December 2022 | |||
| Basis for ECL | Gross carrying | Gross carrying | ||
| ECL | ECL | |||
| amount | amount | |||
Stage 1 | 27 | 3 | 2 | 1 |
Stage 2 | 1,837 | 558 | 4 | 2 |
Stage 3 | 586 | 269 | 47 | 35 |
Total | 2,450 | 830 | 53 | 38 |
EUR ’000 | Not Modified ECL | Modified ECL | Change |
Stage 1 | 128 | 3 | (125) |
Stage 2 | 133 | 558 | 425 |
Stage 3 | 140 | 269 | 129 |
Grand Total | 401 | 830 | 429 |
189
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | |||
2023, | EUR ’000 | 12-month | |
| ECL | |||
| Loans to related parties | - | ||
A+ to A- BBB+ to BBB- | - | ||
BB+ to BB- | - | ||
Unrated | 10,096 | ||
| Gross carrying amount | 10,096 | ||
| Loss allowance | (48) | ||
Carrying amount – | net of loss allowance | 10,048 |
| Stage 1 | |||
2022, | EUR ’000 | 12-month | |
| ECL | |||
| Loans to related parties | - | ||
A+ to A- BBB+ to BBB- | - | ||
BB+ to BB- | - | ||
Unrated | 8,379 | ||
| Gross carrying amount | 8,379 | ||
| Loss allowance | (241) | ||
Carrying amount – | net of loss allowance | 8,138 |
190
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Stage 1 | |||
2023, | EUR ’000 | 12-month | |
| ECL | |||
| Debt investments | |||
| A+ to A- | - | ||
BBB+ to BBB- | - | ||
BB+ to BB- | - | ||
Unrated | 62,147 | ||
| Gross carrying amount | 62,147 | ||
| Loss allowance | (33) | ||
Carrying amount – | net of loss allowance | 62,114 |
| Stage 1 | |||
2022, | EUR ’000 | 12-month | |
| ECL | |||
| Debt investments | - | ||
A+ to A- BBB+ to BBB- | - | ||
BB+ to BB- | - | ||
Unrated | 21,107 | ||
| Gross carrying amount | 21,107 | ||
| Loss allowance | - | ||
Carrying amount – | net of loss allowance | 21,107 |
191
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192
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated |
| 2022 | ||
| Credit risk exposures relating to on-balance sheet assets: | ||
Loans to customers (gross) | 690,617 | 619,794 |
Cash and cash equivalents | 283,712 | 153,325 |
| Other financial assets at amortised cost: | ||
Debt investments | 62,114 | 21,107 |
Loans to related parties | 10,048 | 8,138 |
Receivables from banks | 4,362 | 4,362 |
Receivables from sold portfolios | 1,476 | 2,263 |
Other receivables | 3,549 | 4,649 |
| Credit risk exposures relating to off-balance sheet instruments: | ||
Commitments | 8,000 | 7,000 |
Total credit risk exposure | 1,063,879 | 820,640 |
193
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Cash | Loans to | Debt | Other | Total | |||
| EUR ’000 | and cash | customers | investments | financial | financial | 2023 | |
| Country | equivalents | assets | assets | ||||
| of | Finland | 17,184 | 109,779 | 15,057 | 13,879 | 155,900 | 16.56% |
| domicile | Sweden, | ||||||
| Northern | Denmark, Norway, | 3,248 | 231,863 | - | 173 | 235,284 | 25.00% |
| Europe | UK | ||||||
| Germany, The | |||||||
| Western | Netherlands, | 11,329 | 46,992 | 10,225 | 185 | 68,732 | 7.30% |
| Europe | Spain, | ||||||
| Luxembourg | |||||||
| Latvia, Estonia, | |||||||
| Czechia, Croatia, | |||||||
| Eastern | Romania, Bulgaria, | 4,015 | 180,776 | 21,410 | 373 | 206,574 | 21.95% |
| Europe | Lithuania, | ||||||
| Slovakia, Slovenia, | |||||||
| Southern | Poland | ||||||
Malta, Cyprus | 246,177 | - | 15,421 | 4,103 | 265,702 | 28.23% | |
| Europe | Canada, Mexico, | ||||||
| India, Philippines, | |||||||
| Other | Bangladesh, New | 1,758 | 6,537 | - | 722 | 9,018 | 0.96% |
| Zealand, Brazil, | |||||||
| Australia | |||||||
Total | 283,712 | 575,948 | 62,114 | 19,436 | 941,210 | 100.00% |
194
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Cash | Loans to | Debt | Other | Total | ||||
| EUR ’000 | and cash | customers | investments | financial | financial | 2022 | ||
| equivalents | assets | assets | ||||||
| Country | Finland | 29,973 | 106,273 | - | 12,792 | 149,038 | 21.26% | |
| of domicile | ||||||||
| Northern | Sweden, | |||||||
| Europe | Denmark, | 4,656 | 186,080 | - | 454 | 191,190 | 27. 28% | |
| Norway, UK | ||||||||
| Germany, The | ||||||||
| Western | Netherlands, | 11,760 | 54,009 | - | 139 | 65,908 | 9.40% | |
| Europe | Spain, | |||||||
| Luxembourg | ||||||||
| Latvia, Estonia, | ||||||||
| Czechia, Croatia, | ||||||||
| Eastern | Romania, | |||||||
| Europe | Bulgaria, | 7,895 | 138,896 | 10,879 | 973 | 158,642 | 22.63% | |
| Lithuania, | ||||||||
| Slovakia, | ||||||||
| Southern | Slovenia, Poland | |||||||
Malta, Cyprus | 97,18 | 8 | 229 | 10,229 | 4,618 | 112,264 | 16.02% | |
| Europe | Canada, Mexico, | |||||||
| India, Philippines, | ||||||||
| Other | Bangladesh, New | 1,853 | 21,588 | - | 437 | 23,878 | 3.41% | |
| Zealand, Brazil, | ||||||||
| Australia | ||||||||
Total | 153,325 | 507,075 | 21,107 | 19,413 | 700,920 | 100.00% | ||
195
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ‘000 | EUR | PLN | SEK | CZK | BGN | NOK | DKK | RON |
| Financial assets at amortised cost: | ||||||||
Loans to customers | 1,360 | 191 | 146,026 | 11,232 | 6,017 | 7, 276 | 77,837 | 7,278 |
Cash and cash equivalents | 1,670 | 725 | 18,390 | 2,115 | 210 | 1,502 | 4,144 | 5,570 |
Total | 3,030 | 915 | 164,417 | 13,347 | 6,227 | 8,778 | 81,982 | 12,848 |
Intercompany loans | - | - | 20,275 | - | 2,403 | - | - | - |
Notional of derivative financial instrument | - | 622 | 150,732 | 16,179 | - | 8,763 | - | 4,058 |
Residual exposure | 3,030 | 293 | 33,960 | (2,832) | 8,630 | 15 | 81,982 | 8,790 |
| Currency up by 10% | 303 | 29 | 3,396 | (283) | 863 | 1 | 8,198 | 879 |
| Currency down by 10% | (303) | (29) | (3,396) | 283 | (863) | (1) | (8,198) | (879) |
EUR ‘000 | EUR | PLN | SEK | CZK | BGN | NOK | DKK | HRK | RON |
| Financial assets at amortised cost: | |||||||||
Loans to customers | 971 | 1,082 | 100,661 | 10,644 | 6,063 | 5,870 | 58,982 | 4,869 | 6,214 |
Cash and cash equivalents | 2,273 | 468 | 16,598 | 5,012 | 624 | 2,176 | 4,222 | 65 | 1,872 |
Total | 3,243 | 1,550 | 117, 259 | 15,656 | 6,687 | 8,046 | 63,204 | 4,934 | 8,086 |
Intercompany loans | - | 19,350 | 20,198 | 2,480 | 3,079 | - | - | - | 29 |
Notional of derivative financial instrument | - | 1,816 | 127,417 | 15,276 | - | 8,427 | - | - | 4,049 |
Residual exposure | 3,243 | 19,084 | 10,040 | 2,860 | 9,765 | (381) | 63,204 | 4,934 | 4,066 |
| Currency up by 10% | 324 | 1,908 | 1,004 | 286 | 977 | (38) | 6,320 | 493 | 407 |
| Currency down by 10% | (324) | (1,908) | (1,004) | (286) | (977) | 38 | (6,320) | (493) | (407) |
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Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
CZK | CAD | BRL | MXN | SEK | AUD | |||||||
EUR ‘000 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Translation | - | 152 | 51 | 51 | - | (429) | 329 | 20 | (3,456) | (990) | - | (558) |
| reserve in equity | ||||||||||||
PLN | INR | RON | Other | Total | ||||||
EUR ‘000 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
| Translation | - | (1,122) | (20) | (5) | (280) | (279) | (6) | 110 | (3,383) | (3,049) |
| reserve in equity | ||||||||||
197
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
198
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| E | ||||
199
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated |
| 2022 | ||
(+) 100 bp | 4,864 | 2,593 |
(-) 100 bp | (4,864) | (2,593) |
200
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
201
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| On | Within three | Between | Between | Between | Over | Total | |
| EUR ‘000 | demand | months | three months | 1-2 years | 2-5 | 5 years | carrying |
| and one year | years | amount | |||||
| 31 December 2023 | |||||||
| Cash and cash | 283,712 | - | - | - | - | - | 283,712 |
| equivalents | |||||||
| Derivative financial | - | 299 | - | - | - | - | 299 |
| assets | |||||||
Loans to customers | 2,346 | 124,584 | 271,268 | 122,979 | 44,868 | 9,903 | 575,948 |
Debt investments | - | 1,100 | - | - | 61,014 | - | 62,114 |
Other financial assets | - | 1,476 | 3,549 | 10,048 | 4,362 | - | 19,435 |
Total | 286,058 | 127,459 | 274,817 | 133,027 | 110,244 | 9,903 | 941,507 |
| 31 December 2022 | |||||||
| Cash and cash | 153,325 | - | - | - | - | - | 153,325 |
| equivalents | |||||||
| Derivative financial | - | 3,180 | - | - | - | - | 3,180 |
| assets | |||||||
Loans to customers | 2,346 | 111,543 | 239,724 | 96,408 | 40,505 | 16,549 | 507,075 |
Debt investments | - | 307 | - | - | 20,800 | - | 21,107 |
Other financial assets | - | 2,263 | 4,649 | - | 12,501 | - | 19,413 |
Total | 155,671 | 117,293 | 244,373 | 96,408 | 73,806 | 16,549 | 704,101 |
202
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| On | Within | Between | Between | Between | Over | Carrying | ||
| EUR ‘000 | de- | three | three | 1-2 years | 2-5 years | 5 years | Total | amount |
| mand | months | months | ||||||
| and one | ||||||||
| year | ||||||||
| 31 December 2023 | ||||||||
| Derivative financial | - | 5,323 | - | - | - | - | 5,323 | 5,323 |
| liabilities | ||||||||
| Deposits from customers | ||||||||
Principal | 34,382 | 114,385 | 333,139 | 112,173 | 138,211 | - | 732,290 | 732,350 |
Interests | - | 72 | 882 | 1,300 | - | - | 2,254 | - |
| Debt securities: | ||||||||
Principal | - | - | - | 46,000 | - | 3,052 | 49,052 | 47,805 |
Interests | - | 1,328 | 4,436 | 4,421 | 909 | 1,515 | 12,609 | - |
Lease liabilities | - | 694 | 1,542 | 1,293 | 2,046 | - | 5,575 | 4,963 |
Commitments given | - | 8,000 | - | - | - | - | 8,000 | - |
Total | 34,382 | 129,802 | 339,999 | 165,187 | 141,166 | 4,567 | 815,103 | 790,441 |
| 31 December 2022 | ||||||||
| Derivative financial | - | 446 | - | - | - | - | 446 | 446 |
| liabilities | ||||||||
| Deposits from customers | ||||||||
Principal | 101,015 | 60,415 | 260,337 | 82,090 | - | - | 503,857 | 503,378 |
Interests | - | 33 | 891 | 824 | - | - | 1,748 | - |
| Debt securities: | ||||||||
Principal | - | - | - | - | 46,000 | 3,052 | 49,052 | 47,416 |
Interests | - | 1,100 | 4,136 | 5,765 | 5,028 | 1,515 | 17, 544 | - |
Lease liabilities | - | 544 | 1,147 | 1,683 | 1,347 | - | 4,721 | 4,566 |
Commitments given | - | 7,000 | - | - | - | - | 7,000 | - |
Total | 101,015 | 69,538 | 266,511 | 90,362 | 52,375 | 4,567 | 584,368 | 555,360 |
203
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
Cash and cash equivalents | 283,712 | 153,325 |
Gross debt, due within 1 year | (484,523) | (422, 392) |
Gross debt, due after 1 year | (295,632) | (128,401) |
Perpetual bonds with no maturity date | (45,000) | (50,000) |
Net debt | (541,443) | (447,468) |
Cash and cash equivalents | 283,712 | 153,325 |
Gross debt - fixed interest rates | (715,319) | (499,964) |
Gross debt - floating interest rates | (98,688) | (94,517) |
Gross debt - non-interest bearing | (11,148) | (6,313) |
Net debt | (541,443) | (447,469) |
204
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ‘000 | Cash | Gross debt, | Gross debt, | Perpetual | Net debt |
| and cash | due within 1 | due after 1 | bonds | ||
| equivalents | year | year | |||
| AS AT 1 JANUARY 2022 | 301,592 | (486,342) | (141,772) | (50,000) | (376,522) |
Proceeds from debt securities | - | 87,072 | - | - | 87,072 |
Repayment of debt securities | - | (182,150) | - | - | (182,150) |
Net decrease in deposits from customers | - | 159,028 | 13,371 | - | 172,399 |
| Net decrease in cash and cash | (144,338) | - | - | - | (144,338) |
| equivalents | |||||
Foreign exchange adjustments | (3,929) | - | - | - | (3,929) |
| AT 31 DECEMBER 2022 | 153,325 | (422 , 392) | (128,401) | (50,000) | (447,468) |
Repayment of perpetual bonds | - | - | - | 5,000 | 5,000 |
Net increase in deposits from customers | - | (62,131) | (167, 231) | - | (229,362) |
| Net increase in cash and cash | 130,541 | - | - | - | 130,541 |
| equivalents | |||||
Foreign exchange adjustments | (154) | - | - | - | (154) |
| AT 31 DECEMBER 2023 | 283,712 | (484, 523) | (295,632) | (45,000) | (541,443) |
205
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Subsidiary | Country | 2023 | 2022 |
Bhawana Capital Private Limited | India | 99.27% | 99.27% |
Bidellus Bangladesh Ltd | Bangladesh | - | 100% |
CapitalBox AB | Sweden | 100% | 100% |
CapitalBox GmbH | Germany | - | 100% |
Ferratum (Malta) Holding Limited | Malta | 100% | 100% |
Ferratum Australia Pty Ltd | Australia | - | 100% |
Multitude Bank p.l.c. | Malta | 100% | 100% |
| Ferratum Brazil Servicos De Correspondente | Brazil | - | 100% |
| Bancario Ltda | |||
Ferratum Bulgaria EOOD | Bulgaria | 100% | 100% |
Vector Procurement Solutions Inc. | Canada | 100% | 100% |
Ferratum Capital Germany GmbH | Germany | - | 100% |
Ferratum Capital Oy | Finland | 100% | 100% |
Ferratum Czech s.r.o. | Czechia | - | 100% |
Ferratum Latvia SIA | Latvia | 100% | 100% |
Ferratum Mexico S. de R.L. de C.V. | Mexico | 100% | 100% |
Ferratum Portfolio S.à r.l. | Luxembourg | 100% | 100% |
Ferratum Romania I.F.N.S.A. | Romania | 100% | 100% |
fe Business Services OÜ | Estonia | 100% | 100% |
Guarantee Services OÜ | Estonia | 100% | 100% |
Multitude IT Labs s.r.o. | Slovakia | 100% | 100% |
Inari Serviços Financeiros Ltda | Brazil | - | 100% |
Mr Credit Pty Ltd | Australia | - | 100% |
Multitude Global Services Corp | Philippines | 99.94% | 99.94% |
Multitude International Services Oy | Finland | 100% | 100% |
Multitude Services Sweden AB | Sweden | 100% | 100% |
Numeratum d.o.o. | Croatia | 100% | 100% |
Pactum Collections GmbH | Germany | 100% | 100% |
Pactum Poland Sp. z.o.o. | Poland | - | 100% |
Saldodipje SL | Spain | 100% | 100% |
Saldo Gestion SL | Spain | 100% | 100% |
Suomen Joustava Oy | Finland | 100% | 100% |
Multitude Services Lithuania UAB | Lithuania | 100% | 100% |
206
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
207
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 |
Carrying amount of investment in associates | 1,022 |
| Aggregate amounts of the Group’s share of: | |
Profit from continuing operations | 6 |
Other comprehensive income | - |
Total comprehensive income | 6 |
6. Segment information
Multitude has three independent business units, Ferratum, CapitalBox and SweepBank, which are
considered operating and reportable segments within the definition described in IFRS 8. Multi-
tude Bank is a regulatory service provider for each business unit within the Group. Multitude has
reviewed the role of CODM in 2023. The CODM is defined as Group CEO, who is supported by
business unit CEOs. The measurement principles and allocation between business units follow the
information provided to CODM as required by IFRS 8.
The CODM monitors the operating results of its business units separately for the purpose of mak-
ing decisions about resource allocation and performance assessment. Business unit performance
is evaluated based on the earnings before interest expense and tax and is reconciled consistently
to profit before income tax in the consolidated financial statements.
SweepBank
SweepBank simplifies and personalises shopping and financing for young, tech-savvy adults and
other underserved segments into one user-friendly app. SweepBank offered three products: Prime
Loan, Credit Card and Bank Account, and operated actively across three markets, Finland, Germa-
ny and Latvia. SweepBank’s offering is serviced solely through Multitude Bank p.l.c.
208
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
The SweepBank Credit Card, a Mastercard® without annual or monthly fees, allows financing small-
er purchases of up to EUR 8,000. The card offers free liability coverage for purchases with it and
up to 60 days interest-free period. Customers can also use the card as a flexible credit facility by
withdrawing money from it directly into their bank account, a feature that is growing in popularity
among customers.
Prime Loans, longer-term instalment loans for consumers, enable higher purchases, like home
renovations, cars and other more significant purchases. The loans can amount to up to EUR 15,000
with loan maturities ranging between 1-7 years. SweepBank offers current accounts with up to
1% interest p.a. and fixed-term deposit accounts with up to 4% interest p.a. (max. deposit EUR
100,000) for up to three years. SweepBank also includes the Secured Debt product that is report-
ed as debt investments in the consolidated statements.
Ferratum
Ferratum offers digital loans for the daily needs of individuals, such as unplanned, short-term
financing needs resulting from unexpected life events. By the end of 2023, Ferratum offered two
distinct product categories: Instalment loans (including Plus Loans and Micro Loans) and revolving
loans (Credit Limit). The business unit’s operations spanned across 13 markets: Bulgaria, Croatia,
Czechia, Denmark, Estonia, Finland, Germany, Latvia, the Netherlands, Norway, Romania, Slovenia
and Sweden. Ferratum’s services are provided via Multitude Bank p.l.c. and other Group compa-
nies, with 75% of revenue attributed to Multitude Bank p.l.c.
Ferratum’s standout offering, the Credit Limit, is a pre-approved credit line that’s often referred to
as revolving credit. This unique service delivers enhanced financial flexibility on an ongoing basis.
Eligible customers are granted pre-approval for amounts up to EUR 5,000. They have the freedom
to withdraw funds and repay them without being tied to fixed sums or strict timelines.
For those seeking immediate financial solutions, the Plus Loan is offered. Designed to address
higher financial needs, this service provides loan amounts ranging from EUR 300 to EUR 4,000.
Customers can choose repayment periods spanning 2 to 18 months, with repayments spread even-
ly over the loan duration.
For quick and short-term financing, Micro Loans, also known as bullet loans, meets the need for
instant financial relief. These loans range from EUR 25 to EUR 1,000 with customers settling the
entire loan amount in a single instalment within 7 to 60 days.
CapitalBox
CapitalBox provides financing solutions to small and medium-sized businesses (SMEs). By the
end of 2023, CapitalBox had established four distinct products: Secured Loans, Instalment Loans,
Credit Lines, Purchase Financing (BNPL). CapitalBox operated in five markets: Finland, Sweden,
Denmark, Lithuania, and the Netherlands.
One of the key offerings from CapitalBox is its unsecured Instalment Loans, which extend up
to EUR 350,000. These loans come with flexible repayment periods spanning 6 to 48 months.
They are specifically tailored to assist SMEs in funding various aspects of their operations such
as expansion, inventory management, marketing efforts, hiring new personnel, and acquiring or
leasing equipment. On average, businesses borrow around EUR 21,300 with a typical loan duration
of 22 months.
209
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Ferratum | Sweep- | Capital- | Total |
| Bank* | Box | |||
Revenue | 192,731 | 23,137 | 24,686 | 240,554 |
Credit losses | (62,760) | (16,197) | (6,635) | (85,591) |
EBIT (reported to CODM) | 59,079 | (15,258) | 1,735 | 45,556 |
Net AR | 343,256 | 189,217 | 103,697 | 636,170 |
EUR ’000 | Ferratum | Sweep- | Capital- | Restated |
| Bank* | Box | Total | ||
Revenue | 184,776 | 15,961 | 21,395 | 222,132 |
Credit losses | (59,075) | (11,722) | (7,838) | (78,635) |
EBIT (reported to CODM) | 53,694 | (21,144) | (994) | 31,555 |
Net AR | 293,216 | 147,354 | 86,118 | 526,688 |
210
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR '000 | 2023 | Restated 2022 |
Revenue | 240,554 | 222,132 |
| Other reconciliation items: | ||
Broker fee capitalisation in EIR reported as selling and marketing expense in CODM report | (12,239) | (9,850) |
Scoring costs capitalisation in EIR reported as general and administrative expense in CODM report | (470) | (320) |
Intragroup eliminations and adjustments not included in CODM report* | 2,551 | 480 |
| Item from consolidated statement of profit or loss: | ||
Fee and commission income | 63 | 32 |
Interest income | 230,459 | 212,474 |
The CODM uses EBIT (Earnings before interest expense and taxes) for their management plans and
decision-making processes. The EBIT structure is intricately defined to encompass the main oper-
ating activity before finance costs, including interest expenses and fair value and foreign exchange
gains and losses. The CODM employs revenue, credit losses, EBIT, and Net AR as key metrics to
evaluate the performance of each business unit. Each metric is reconciled with one of the financial
statement line items from the consolidated statements as numbers presented to CODM do not
follow presentation requirements of IFRS. 2022 EBIT for business units does not reconcile with the
amounts presented in the 2022 consolidated financial statements due to restatements triggered
by the change in accounting policies that led to reclassification of certain financial statement line
items and the amendment of errors in accounting treatment of reminder fees, collection costs and
scoring costs (Note 26).
CODM reviews total revenue that consists of interest income and fee and commission income
and does not include all components of EIR to resemble cash income from clients not affected
by accounting policies. Reconciliation between revenue and interest income is presented below
for explanation of the relationship between CODM report line items and consolidated financial
statements line items.
CODM reviews credit losses that do not include invoicing and collection costs reported under
general and administrative expense. Reconciliation between credit losses and impairment loss on
loans to customers is presented below for explanation of the relationship between CODM report
line items and consolidated financial statements line items.
CODM reviews net accounts receivable (Net AR) which essentially includes loans to customers
that are adjusted for issue costs. Reconciliation between net AR and loans to customers is present-
ed below for explanation of the relationship between CODM report line items and consolidated
financial statements line items.
Reconciliation between EBIT and profit before income tax, is presented in the table below for both
the financial years 2023 and 2022.
211
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR '000 | 2023 | Restated 2022 |
EBIT (reported to CODM) | 45,556 | 31,555 |
| Other reconciliation items: | ||
Additional ECL for invoicing and collection costs | - | (251) |
Intragroup eliminations and adjustments not included in CODM report* | (2) | 161 |
EBIT (as measured in IFRS) | 45,554 | 31,465 |
| Items from consolidated statement of profit or loss: | ||
Interest expense | (22,237) | (14,026) |
Fair value and foreign exchange gains and losses | (4, 328) | (3,848) |
Profit before income taxes | 18,990 | 13,590 |
EUR '000 | 2023 | Restated 2022 |
Net AR | 636,170 | 526,688 |
| Other reconciliation items: | ||
Broker fee capitalisation to loans to customers as part of directly attributable acquisition costs in EIR reported as prepaid selling and marketing expense in CODM report | 11,416 | 9,845 |
| Debt investments and loan to Sortter Oy | (70,262) | (29,247) |
Intragroup eliminations and adjustments not included in CODM report* | (1,376) | (211) |
Loans to customers | 575,948 | 507,075 |
EUR '000 | 2023 | Restated 2022 |
Credit losses | (85,591) | (78,635) |
| Other reconciliation items: | ||
Invoicing and collection costs reported as general and administrative expense in CODM report | (3,835) | (5,985) |
Intragroup eliminations and adjustments not included in CODM report* | 173 | (26) |
Impairment loss on loans to customers | (89,253) | (84,646) |
212
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated | |
| 2022 | |||
Country of domicile | Finland | 25,250 | 25,856 |
Northern Europe | Sweden, Denmark, Norway | 74,140 | 67,559 |
Western Europe | Germany, Netherlands, Spain | 43,923 | 37,195 |
Eastern Europe* | Bulgaria, Croatia, Czechia, Estonia, Latvia, | 85,370 | 75,574 |
| Lithuania, Poland, Romania | |||
Other | Australia, Brazil, Mexico, New Zealand | 1,776 | 6,290 |
Total interest income | 230,459 | 212,474 |
EUR ’000 | 2023 | Restated |
| 2022 | ||
Interest income on loans to customers | 223,550 | 211,817 |
Interest income on debt investments | 4,630 | 654 |
Interest income on bank deposits | 2,279 | 3 |
Total interest income | 230,459 | 212,474 |
EUR ’000 | 2023 | Restated |
| 2022 | ||
Interest expense on debt securities | (12,719) | (9,430) |
Interest expense on deposits from customers | (9,093) | (4, 367) |
Interest expenses on lease liabilities | (425) | (230) |
Total interest expense | (22,237) | (14,027) |
213
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated |
| 2022 | ||
Fee income on loans to customers that is not part of EIR | 42 | 20 |
Other fee and commission income | 21 | 12 |
Total fee and commission income | 63 | 32 |
9. Fair value and foreign exchange gains and losses
EUR ’000 | 2023 | Restated |
| 2022 | ||
Realised foreign exchange loss | (3,007) | (1,739) |
Unrealised foreign exchange gain (loss) | 715 | (1,604) |
Realised gain on derivative financial assets and liabilities | 2,402 | 490 |
Unrealised loss on derivative financial assets and liabilities | (4,438) | (995) |
Total fair value and foreign exchange gains and losses | (4,328) | (3,848) |
EUR ’000 | 2023 | Restated |
| 2022 | ||
| OTHER INCOME: | ||
Gain from disposal of property, plant and equipment | - | 14 |
Gain from disposal of right-of-use assets* | 30 | 52 |
Other income | - | 3 |
Total other income | 30 | 70 |
| OTHER EXPENSES: | ||
Loss on disposal of property, plant and equipment** | (98) | - |
Loss on disposal of intangible assets | - | (33) |
Loss from disposal of subsidiaries*** | (404) | (636) |
Total other expenses | (502) | (669) |
214
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Notes | 2023 | Restated |
| 2022 | |||
Impairment loss on loans to customers* | (89,253) | (84,646) | |
| General and administrative expense: | |||
Professional fees | (11,455) | (12,281) | |
Interbank transaction fees | (699) | (550) | |
Loan handling costs | (3,065) | (3,103) | |
Repairs and maintenance costs | (4, 852) | (5,880) | |
Scoring costs | (3,569) | (3,557) | |
Administrative expense | (1,752) | (1,451) | |
Membership and subscription fees | (576) | (990) | |
Other bank and lending costs* | (2,276) | (745) | |
Other operating expense | (3,734) | (3,386) | |
Total general and administrative expense | (31,976) | (31,943) | |
| Personnel expenses: | |||
Wages and salaries | (27,890) | (27, 526) | |
Social security costs | (2,964) | (3,554) | |
Post-employment benefit expense | (1,577) | (1,599) | |
Share-based payment expense | (511) | (483) | |
Other personnel expense | (1,134) | (794) | |
Total personnel expenses | (34,076) | (33,956) | |
| Depreciation and amortisation: | |||
Amortisation expense | 17 | (12,561) | (14,926) |
Depreciation expense | 19 | (2,455) | (2,596) |
Total depreciation and amortisation | (15,016) | (17,522) | |
| Selling and marketing expenses: | |||
Offline medias | (2,024) | (1,010) | |
SEM and other online paid medias | (8,551) | (7,761) | |
SEO and social media | (599) | (835) | |
CRM | (211) | (361) | |
Offline affiliates | (86) | (53) | |
PR/Sponsoring | (1,503) | (1,103) | |
Sales and commissions and other loan handling fees | (507) | (750) | |
Agency fees and other marketing expense | (699) | (503) | |
Total selling and marketing expense | (14,180) | (12,375) | |
Total operating expenses | (184,501) | (180,441) |
215
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
| PWC: | ||
Audit fees | (634) | (698) |
| Non-audit fees: | ||
Audit-related services | (64) | - |
Tax advice | (27) | (16) |
Other non-audit services | (95) | (91) |
| OTHER AUDIT COMPANIES: | ||
Audit fees | (53) | (146) |
Total audit fees | (687) | (844) |
Total non-audit fees | (186) | (107) |
Total fees from audit companies | (873) | (951) |
LOSS ALLOWANCES | Stage 1 | Stage 2 | Stage 3 | Total |
Loss allowances as at 1 January 2023 | 27, 337 | 11,023 | 74,359 | 112,719 |
| Transfers in between stages: | ||||
Transfers out of Stage 1 | (3,275) | 1,292 | 1,983 | - |
Increase due to transfers out of Stage 1 | - | 5,089 | 13,675 | 18,764 |
Transfers out of Stage 2 | 854 | (3,838) | 2,984 | - |
Increase (decrease) due to transfers out of Stage 2 | (552) | - | 2,956 | 2,404 |
Increase due to changes in DPD buckets | 448 | 36 | 9,492 | 9,976 |
Total net changes from transfers in between Stages | (2,525) | 2,579 | 31,090 | 31,144 |
| Other changes in loss allowances: | ||||
Net remeasurement of ECLs | (12,156) | (3,927) | (19,888) | (35,971) |
New financial assets originated during the year | 44,413 | 13,296 | 31,479 | 89,188 |
Remeasurements from changes in model | 908 | 22 | 4,094 | 5,024 |
Unwind of discount | - | - | 46 | 46 |
Changes in forex and other movements | (29) | (20) | (129) | (178) |
| Net changes in loss allowances recognised | 30,611 | 11,950 | 46,692 | 89,253 |
| through profit or loss statement | ||||
Financial assets derecognised during the year | (26,666) | (8,611) | (43,629) | (78,906) |
Write-offs | - | - | (8,397) | (8,397) |
Net changes in loss allowances | 3,945 | 3,339 | (5,334) | 1,950 |
Loss allowances as at 31 December 2023 | 31,282 | 14,362 | 69,025 | 114,669 |
Reconciliation of impairment loss on loans to customers to
changes in loss allowances
The following table shows the breakdown of movement in loss allowances with reconciliation to
profit or loss for 2023.
216
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
The following table shows the breakdown of movement in loss allowances with reconciliation to
profit or loss for 2022.
LOSS ALLOWANCES | Stage 1 | Stage 2 | Stage 3 | Total |
Loss allowances as at 1 January 2022 | 22,744 | 8,806 | 92,595 | 124,145 |
| Transfers in between stages: | ||||
Transfers out of Stage 1 | (3,349) | 824 | 2,525 | - |
Increase due to transfers out of Stage 1 | - | 3,387 | 14,069 | 17,455 |
Transfers out of Stage 2 | 795 | (3,433) | 2,638 | - |
Increase (decrease) due to transfers out of Stage 2 | (540) | - | 2,607 | 2,067 |
Increase due to changes in DPD buckets | 777 | 65 | 7,641 | 8,484 |
Total net changes from transfers in between Stages | (2,317) | 843 | 29,480 | 28,006 |
| Other changes in loss allowances: | ||||
Net remeasurement of ECLs | (11,969) | (3,051) | (20,695) | (35,715) |
New financial assets originated during the year | 46,663 | 11,806 | 34,539 | 93,009 |
Remeasurements from changes in model | (153) | (286) | 678 | 239 |
Unwind of discount | - | - | 480 | 480 |
Changes in forex and other movements | (465) | (169) | (740) | (1,373) |
| Net changes in loss allowances recognised | 31,759 | 9,143 | 43,742 | 84,646 |
| through profit or loss statement | ||||
Financial assets derecognised during the year | (27,168) | (6,925) | (46,973) | (81,066) |
Write-offs | - | - | (15,006) | (15,006) |
Net changes in loss allowances | 4,591 | 2,218 | (18,237) | (11,426) |
| Loss allowances as at 31 December 2022 27,335 11,024 74,358 112,719 |
217
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated |
| 2022 | ||
| CURRENT TAX: | ||
Current tax on profits for the year | (1,350) | (877) |
Adjustments for current tax of prior periods | 82 | (45) |
Other direct taxes * | - | (302) |
Total current tax | (1,268) | (1,223) |
| DEFERRED TAX: | ||
Origination and reversal of temporary differences | (1,283) | (594) |
Total deferred tax | (1,283) | (594) |
Total income tax expense | (2,551) | (1,817) |
EUR ’000 | 2023 | Restated |
| 2022 | ||
Profit before tax | 18,990 | 13,590 |
Tax calculated at Finnish tax rate of 20% (20% in 2022) | (3,878) | (2,772) |
| Tax effects of: | ||
Difference between Finnish tax rate and rates in other countries | 1,895 | 2,293 |
Income not subject to tax | 6 | 317 |
Expenses not deductible for tax purposes | (628) | (25) |
Utilisation of previously unrecognised tax losses | 593 | 213 |
Tax losses for which no deferred income tax asset was recognised | (3) | (727) |
Write down of previously recognised tax losses | (618) | (770) |
Adjustments for current tax of prior periods | 82 | (45) |
Other direct taxes | - | (302) |
Total income tax expense | (2,551) | (1,817) |
EUR ’000 | 2023 | 2022 |
| CURRENT TAX: | ||
Current tax benefit from perpetual bond interest | 1,117 | 917 |
218
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
| Losses on carried forward balance as at 31 December for which | 28,507 | 32,891 |
deferred tax assets have been recognised for of which Expires in one year time | - | - |
Expires in 2 year's time | - | - |
Expires between 2 and 5 years | 1,489 | 2,478 |
Expires between 5 and 10 years | 21,819 | 23,634 |
Expires after 10 years* | 5,198 | 6,779 |
*Includes EUR 1.1 million of losses in Germany and EUR 4.0 million of losses in Canada without expiration date.
As at 31 December 2023, the Group has EUR 28.5 million (2022 - EUR 32.9 million) losses carried
forward, with an average maturity between 5 and 10 years.
EUR ’000 | 2023 | 2022 |
| Total amount of loss carry forward on which DTA was not recognised in | 7,315 | 10,160 |
| Finland with latest expiration in 2032 |
EUR ’000 | As at | Recognised | Translation | As at |
| 1 January | in profit or loss | differences | 31 December | |
| 2023 | 2023 | |||
| DEFERRED TAX ASSETS: | ||||
Tax losses carried forward | 7,574 | (1,117) | 15 | 6,472 |
Lease liability | 611 | 56 | - | 667 |
Netting of lease liability | (611) | (37) | - | (647) |
Total deferred tax assets | 7,574 | (1,098) | 15 | 6,492 |
| DEFERRED TAX LIABILITIES: | ||||
Right of use asset | 617 | 31 | - | 648 |
Netting of right of use asset | (611) | (37) | - | (648) |
Withholding tax on dividends from Group companies | 960 | 191 | - | 1,151 |
Total deferred tax liabilities | 966 | 185 | - | 1,151 |
Total movement in period | - | (1,283) | (15) | - |
EUR ’000 | As at restated | Recognised | Translation | As at restated |
| 1 January | in profit or loss | differences | 31 December | |
| 2022 | 2022 | |||
| DEFERRED TAX ASSETS: | ||||
Tax losses carried forward | 7,346 | 169 | 59 | 7, 574 |
Lease liability | 861 | (250) | - | 611 |
Netting of lease liability | (861) | 250 | - | (611) |
Total deferred tax assets | 7,346 | 169 | 59 | 7, 574 |
| DEFERRED TAX LIABILITIES: | ||||
Right of use asset | 823 | (206) | - | 617 |
Netting of right of use asset | (823) | 212 | - | (611) |
Withholding tax on dividends from Group companies | 203 | 757 | - | 960 |
Total deferred tax liabilities | 203 | 763 | - | 966 |
Total movement in period | - | 594 | (59) | - |
219
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| 2023 | Restated | |
| 2022 | ||
Profit for the period (EUR ’000) | 16,438 | 11,773 |
| Perpetual bonds interests recognised directly in retained earnings, net of tax | (5,386) | (3,670) |
| (EUR ’000) | ||
Profit for the period, after perpetual bond interest (EUR ’000) | 11,052 | 8,103 |
Weighted average number of ordinary shares in issue | 21,598 | 21,578 |
| Basic earnings per share attributable to the ordinary equity holders, EUR | 0.51 | 0.38 |
| 2023 | Restated | |
| 2022 | ||
Profit for the period (EUR ’000) | 16,438 | 11,773 |
| Perpetual bonds interests recognised directly in retained earnings, net of tax | (5,386) | (3,670) |
| (EUR ’000) | ||
Profit for the period, after perpetual bond interest (EUR ’000) | 11,052 | 8,103 |
| Weighted average number of ordinary shares and potential ordinary | 21,751 | 21,684 |
| shares* | ||
| Diluted earnings per share attributable to the ordinary equity holders, EUR | 0.51 | 0.37 |
| 2023 | Restated | |
| 2022 | ||
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share | 21,598 | 21,578 |
| Adjustments for calculation of diluted earnings per share: | ||
| - Matching share plan | 153 | 106 |
- Performance share plan | - | - |
| Weighted average number of ordinary shares and potential ordinary shares | 21,751 | 21,684 |
| used as the denominator in calculating diluted earnings per share |
220
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Within one year | After one year | Total as at |
| 31 December 2023 | |||
| ASSETS: | |||
Cash and cash equivalents | 283,712 | - | 283,712 |
Derivative financial assets | 299 | - | 299 |
Loans to customers | 400,356 | 175,592 | 575,948 |
Debt investments | 1,067 | 61,047 | 62,114 |
Current tax assets | 1,832 | - | 1,832 |
Other financial assets | 12,483 | 6,952 | 19,435 |
Prepaid expenses and other assets | 2,840 | 1 | 2,841 |
Intangible assets | - | 29,468 | 29,468 |
Right-of-use assets | - | 4,819 | 4,819 |
Property, plant and equipment | - | 2,896 | 2,896 |
Investments accounted for using the equity method | - | 1,022 | 1,022 |
Deferred tax assets | - | 6,492 | 6,492 |
Total | 702,589 | 288,289 | 990,878 |
| LIABILITIES: | |||
Derivative financial liabilities | 5,323 | - | 5,323 |
Deposits from customers | 484,230 | 248,120 | 732,350 |
Provisions, accruals and other liabilities | 13,372 | - | 13,372 |
Current tax liabilities | 2,268 | - | 2,268 |
Debt securities | 293 | 47,512 | 47,805 |
Lease liabilities | 1,948 | 3,015 | 4,963 |
Deferred tax liabilities | - | 1,151 | 1,151 |
Total | 507,434 | 299,798 | 807,232 |
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Within one year | After one year | Total as at restated |
| 31 December 2022 | |||
| ASSETS: | |||
Cash and cash equivalents | 153,325 | - | 153,325 |
Derivative financial assets | 3,180 | - | 3,180 |
Loans to customers | 405,736 | 101,339 | 507,075 |
Debt investments | 307 | 20,800 | 21,107 |
Current tax assets | 2,230 | - | 2,230 |
Other financial assets | 11,330 | 8,083 | 19,413 |
Prepaid expenses and other assets | 237 | - | 237 |
Intangible assets | - | 31,400 | 31,400 |
Right-of-use assets | - | 4,613 | 4,613 |
Property, plant and equipment | - | 3,081 | 3,081 |
Deferred tax assets | - | 7, 574 | 7,574 |
Total | 576,345 | 176,890 | 753,235 |
| LIABILITIES: | |||
Derivative financial liabilities | 446 | - | 446 |
Deposits from customers | 421,768 | 81,610 | 503,378 |
Provisions, accruals and other liabilities | 15,576 | - | 15,576 |
Current tax liabilities | 921 | - | 921 |
Debt securities | 624 | 46,791 | 47,416 |
Lease liabilities | 1,472 | 3,095 | 4,566 |
Deferred tax liabilities | - | 966 | 966 |
Total | 440,807 | 132,462 | 573,269 |
222
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Within one year | After one year | Total as at restated |
| 1 January 2022 | |||
| ASSETS: | |||
Cash and cash equivalents | 301,592 | - | 301,592 |
Derivative financial assets | 324 | - | 324 |
Loans to customers | 361,710 | 87,852 | 449,562 |
Debt investments | - | - | - |
Current tax assets | 2,200 | - | 2,200 |
Other financial assets | 13,344 | 6,215 | 19,559 |
Prepaid expenses and other assets | 1,324 | - | 1,324 |
Intangible assets | - | 35,850 | 35,850 |
Right-of-use assets | - | 1,618 | 1,618 |
Property, plant and equipment | - | 3,404 | 3,404 |
Deferred tax assets | - | 7,346 | 7,346 |
Total | 680,494 | 142,285 | 822,779 |
| LIABILITIES: | |||
Derivative financial liabilities | 1,232 | - | 1,232 |
Deposits from customers | 403,217 | 82,793 | 486,010 |
Provisions, accruals and other liabilities | 15,340 | - | 15,340 |
Current tax liabilities | 3,455 | - | 3,455 |
Debt securities | 84,158 | 57,656 | 141,814 |
Lease liabilities | 1,412 | 282 | 1,694 |
Deferred tax liabilities | - | 203 | 203 |
Total | 508,814 | 140,934 | 649,748 |
223
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| Intangible | Right-of-use | Property, | |||
| EUR ’000 | assets | assets | plant and | Total | % |
| equipment | |||||
Slovakia | 25,122 | 2,369 | 169 | 27,660 | 74.39% |
Finland | 1,508 | 568 | 2,091 | 4,168 | 11.21% |
Malta | 1,285 | 644 | 256 | 2,185 | 5.88% |
Germany | 900 | 647 | 76 | 1,623 | 4.37% |
Other | 654 | 590 | 303 | 1,547 | 4.16% |
Total | 29,468 | 4,819 | 2,896 | 37,183 | 100.00% |
| Intangible | Right-of-use | Property, | |||
| EUR ’000 | assets | assets | plant and | Total | % |
| equipment | |||||
Slovakia | 26,820 | 1,535 | 168 | 28,524 | 72.96% |
Finland | 2,073 | 100 | 2,124 | 4,297 | 10.99% |
Malta | 1,235 | 1,205 | 509 | 2,950 | 7.55% |
Germany | 1,040 | 775 | 108 | 1,923 | 4.92% |
Other | 232 | 997 | 172 | 1,401 | 3.58% |
Total | 31,400 | 4,613 | 3,081 | 39,094 | 100.00% |
224
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
2023 | Restated 2022 | Restated 2021 | |||||
| Fair value | |||||||
| EUR ’000 | measure- | Carrying | Fair | Carrying | Fair value | Carrying | Fair value |
| ment | amount | value | amount | amount | |||
| FINANCIAL ASSETS AT FVPL | |||||||
Derivative financial assets | Level 2 | 299 | 299 | 3,180 | 3,180 | 324 | 324 |
| FINANCIAL ASSETS AT AMORTISED COST | |||||||
Loans to customers | Level 3 | 575,948 | 575,948 | 507,075 | 507,075 | 449,562 | 449,562 |
Cash and cash equivalents | 283,712 | - | 153,325 | - | 301,592 | - | |
Debt investments | Level 3 | 62,114 | 62,114 | 21,107 | 21,107 | - | - |
| Other financial assets: | |||||||
- Loans to related parties | Level 3 | 10,048 | 10,048 | 8,138 | 8,138 | 6,215 | 6,215 |
- Receivables from banks | Level 3 | 4,362 | 4,362 | 4,362 | 4,362 | 5,108 | 5,108 |
| - Receivables from sold | Level 3 | 1,476 | 1,476 | 2,263 | 2,263 | 4,657 | 4,657 |
| portfolios | |||||||
Other receivables | Level 3 | 3,549 | 3,549 | 4,649 | 4,649 | 3,579 | 3,579 |
Total | 941,508 | 657,796 | 704,101 | 550,776 | 771,037 | 469,445 | |
225
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated | Restated |
| 2022 | 2021 | ||
Prepaid expenses | 2,725 | (3) | 1,077 |
VAT receivables | 115 | 239 | 207 |
Other assets | 1 | 1 | 40 |
Total | 2,841 | 237 | 1,324 |
EUR ‘000 | Internally | Computer | Other in- | Total |
| generated | Software | tangible | ||
| software | assets | |||
| ACQUISITION AND DEVELOPMENT COSTS | ||||
As at 1 January 2023 | 54,635 | 23,643 | 2,965 | 81,244 |
| For the year ended 31 December 2023: | ||||
Additions | 9,776 | 851 | - | 10,627 |
Disposals | - | (13) | (6) | (19) |
Translation differences | - | - | 4 | 4 |
Acquisition costs, as at 31 December 2023 | 64,411 | 24,481 | 2,963 | 91,855 |
| ACCUMULATED AMORTISATION | ||||
As at 1 January 2023 | (32,387) | (14,800) | (2,657) | (49,845) |
| For the year ended 31 December 2023: | ||||
Cumulative amortisation on disposals | - | 13 | 6 | 19 |
Amortisation (Note 11) | (9,982) | (2,517) | (63) | (12,561) |
Cumulative amortisation, as at 31 December 2023 | (42,369) | (17, 304) | (2,714) | (62,387) |
Net carrying amount, as at 1 January 2023 | 22,248 | 8,844 | 308 | 31,400 |
Net carrying amount, as at 31 December 2023 | 22,041 | 7,178 | 249 | 29,468 |
| ACQUISITION AND DEVELOPMENT COSTS | ||||
As at 1 January 2022 | 44,127 | 30,075 | 2,965 | 77,167 |
| For the year ended 31 December 2022: | ||||
Additions | 10,508 | - | 61 | 10,569 |
Disposals | - | (6,432) | - | (6,432) |
Translation differences | - | - | (61) | (61) |
Acquisition costs, as at 31 December 2022 | 54,635 | 23,643 | 2,965 | 81,244 |
| ACCUMULATED AMORTISATION AND IMPAIRMENT | ||||
As at 1 January 2022 | (22,754) | (15,955) | (2,608) | (41, 317) |
| For the year ended 31 December 2022: | ||||
Cumulative amortisation on disposals | - | 6,399 | - | 6,399 |
Amortisation (Note 11) | (9,633) | (5,244) | (49) | (14,926) |
Cumulative amortisation, as at 31 December 2022 | (32,387) | (14,800) | (2,657) | (49,844) |
Net carrying amount, as at 1 January 2022 | 21,373 | 14,120 | 357 | 35,850 |
Net carrying amount, as at 31 December 2022 | 22,248 | 8,844 | 308 | 31,400 |
226
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Office | Office | Total |
| buildings | equipment | ||
| ACQUISITION COSTS | |||
As at 1 January 2023 | 10,125 | 1,614 | 11,738 |
| For the year ended 31 December 2023: | |||
Additions | 591 | 1,600 | 2,190 |
Disposals | - | - | - |
Acquisition costs, as at 31 December 2023 | 10,716 | 3,213 | 13,929 |
| ACCUMULATED DEPRECIATION | |||
As at 1 January 2023 | (6,351) | (775) | (7,125) |
| For the year ended 31 December 2023: | |||
Revaluation (Note 10) | 30 | - | 30 |
Depreciation (Note 11) | (1,517) | (498) | (2,015) |
Cumulative depreciation, as at 31 December 2023 | (7, 838) | (1,272) | (9,110) |
Net carrying amount, as at 1 January 2023 | 3,774 | 839 | 4,613 |
Net carrying amount, as at 31 December 2023 | 2,878 | 1,941 | 4,819 |
| ACQUISITION COSTS | |||
As at 1 January 2022 | 6,681 | 757 | 7,438 |
| For the year ended 31 December 2022: | |||
Additions | 3,899 | 857 | 4,756 |
Disposals | (455) | - | (455) |
Acquisition costs, as at 31 December 2022 | 10,125 | 1,614 | 11,738 |
| ACCUMULATED DEPRECIATION | |||
Cumulative depreciation, as at 1 January 2022 | (5,224) | (596) | (5,819) |
| For the year ended 31 December 2022: | |||
Disposals | 455 | - | 455 |
Revaluation (Note 10) | 52 | - | 52 |
Depreciation (Note 11) | (1,634) | (179) | (1,813) |
Cumulative depreciation, as at 31 December 2022 | (6,351) | (775) | (7,125) |
Net carrying amount, as at 1 January 2022 | 1,457 | 161 | 1,618 |
Net carrying amount, as at 31 December 2022 | 3,774 | 839 | 4,613 |
227
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Amounts presented in the consolidated statement of cash flows for the year
ended 31 December:
EUR '000 | 2023 | Restated |
| 2022 | ||
Total cash outflow for leases | (2,219) | (1,939) |
EUR '000 | Notes | 2023 | Restated |
| 2022 | |||
Expenses relating to short-term leases | 10 | (2) | - |
Expenses relating to low value leases | 10 | (5) | (7) |
Depreciation on ROU assets | 10 | (1,453) | (1,813) |
Interest expense on lease liabilities | 12 | (388) | (230) |
228
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | Office building | Furnitures, | Total |
| fittings, and | |||
| equipment | |||
| ACQUISITION COSTS | |||
As at 1 January 2023 | 2,707 | 3,533 | 6,240 |
| For the year ended 31 December 2023: | |||
Additions | 18 | 338 | 356 |
Disposals* | - | (81) | (81) |
Translation differences | - | - | - |
Acquisition costs, as at 31 December 2023 | 2,725 | 3,790 | 6,515 |
| ACCUMULATED DEPRECIATION | |||
As at 1 January 2023 | (761) | (2,399) | (3,160) |
| For the year ended 31 December 2023 | |||
Depreciation (Note 11) | (160) | (281) | (441) |
Impairment (Note 10) | - | (17) | (17) |
Cumulative depreciation, as at 31 December 2023 | (921) | (2,697) | (3,618) |
Net carrying amount, as at 1 January 2023 | 1,947 | 1,134 | 3,081 |
Net carrying amount, as at 31 December 2023 | 1,804 | 1,094 | 2,898 |
| ACQUISITION COSTS | |||
As at 1 January 2022 | 2,523 | 4,556 | 7,079 |
| For the year ended 31 December 2022: | |||
Additions | 184 | 275 | 460 |
Disposals | - | (1,298) | (1,298) |
Translation differences | - | - | - |
Acquisition costs, as at 31 December 2022 | 2,707 | 3,533 | 6,240 |
| ACCUMULATED DEPRECIATION | |||
As at 1 January 2022 | (618) | (3,057) | (3,675) |
| For the year ended 31 December 2022 | |||
Depreciation (Note 11) | (143) | (640) | (783) |
Disposals | - | 1,298 | 1,298 |
Cumulative depreciation, as at 31 December 2022 | (761) | (2,399) | (3,160) |
Net carrying amount, as at 1 January 2022 | 1,906 | 1,498 | 3,404 |
Net carrying amount, as at 31 December 2022 | 1,947 | 1,134 | 3,081 |
229
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
2023 | Restated 2022 | Restated 2021 | |||||
| Fair value | Carrying | Fair | Carrying | Carrying | |||
| EUR ’000 | Fair value | Fair value | |||||
| hierarchy | amount | value | amount | amount | |||
| FINANCIAL LIABILITIES AT FVPL | |||||||
Derivative financial liabilities | Level 2 | 5,323 | 5,323 | 446 | 446 | 1,232 | 1,232 |
| FINANCIAL LIABILITIES AT AMORTISED | |||||||
| COST | |||||||
Deposits from customers | Level 3 | 732,350 | 732,350 | 503,378 | 503,378 | 486,010 | 486,010 |
Debt securities | Level 1 | 47, 805 | 46,676 | 47,416 | 48,439 | 141,814 | 142,987 |
Provisions, accruals and other liabilities: | Level 3 | ||||||
- Other financial liabilities | 9,331 | 9,331 | 12,172 | 12,172 | 12,789 | 12,789 | |
Lease liabilities | 4,963 | - | 4,566 | - | 1,694 | - | |
Total | 799,772 | 793,680 | 567,978 | 564,435 | 643,539 | 643,018 | |
230
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | Restated | Restated |
| 2022 | 2021 | ||
Accrued personnel expenses | 3,445 | 2,948 | 2,551 |
Provisions | 596 | 457 | - |
Other financial liabilities | 9,331 | 12,172 | 12,789 |
Total | 13,372 | 15,576 | 15,340 |
EUR ’000 | 2023 | Restated | Restated |
| 2022 | 2021 | ||
Term deposits | 697,968 | 402,363 | 394,468 |
Call accounts | 34,382 | 101,015 | 91,542 |
Total | 732,350 | 503,378 | 486,010 |
231
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
2023, | N '000 | 2022, | N '000 | 2023, | EUR | 2022, | EUR | |
| '000 | '000 | |||||||
AUTHORISED SHARE CAPITAL | 21,724 | 21,724 | 40,134 | 40,134 |
2023, | N '000 | 2022, | N '000 | |
| ORDINARY SHARES ISSUED AND OUTSTANDING | ||||
At 1 January | 21,578 | 21,578 | ||
Share-based payment during the period | 40 | - | ||
At 31 December | 21,618 | 21,578 |
2023, | N '000 | 2022, | N '000 | 2023, | EUR | 2022, | EUR | |
| '000 | '000 | |||||||
| TREASURY SHARES | ||||||||
At 1 January | 146 | 146 | 142 | 142 | ||||
Share-based payment during the period | (40) | - | (39) | - | ||||
At 31 December | 106 | 146 | 103 | 142 |
232
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
Reserve for General Banking Risks | - | 1,519 |
Reserve for Excessive Non-Performing Loans | 31 | 1,073 |
Total other reserves | 31 | 2,592 |
233
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Grant date | 2023 | |||||||||
| Perfor- | Dividend | Outstand- | Forfeited | Outstand- | Out- | |||||
| mance | Reward | adj. share | Realised | Risk-free | Total FV | ing at the | during | ing at the | standing | Expense |
| period | shares | price | volatility | volatility | in EUR | beginning | the | end of the | total FV | in EUR |
| of period | period | period | in EUR | |||||||
1 Jun 21 - 31 Dec 24 | 1,159,175 | 4.11 | 62.1% | (0.4%) | 743,285 | 1,114,985 | 22,207 | 1,092,778 | 700,710 | 225,310 |
Grant date | 2022 | |||||||||
Perfor - | Dividend | Real - | Risk- | Outstand - | Modified | Outstand- | Out- | |||
| mance | Reward | adj. share | ised | free | Total FV | ing at the | shares | ing at the | standing | Expense |
| period | shares | price | volatility | volatility | in EUR | beginning | during the | end of the | t otal FV | in EUR |
| of period | period | period | in EUR | |||||||
1 Jun 21 - 31 Dec 24 | 1,159,175 | 4.11 | 62.1% | (0.4%) | 743,285 | 1,064,925 | 50,060 | 1,114,985 | 714,950 | 264,329 |
234
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
Grant date | 2022 | |||||||
| Invest- | Share | Outstanding | For- | Vested | Outstanding | Total FV | Expense | |
| Holding period | ment | price | at the begin- | feited | shares | at the end of | in EUR | in EUR |
| shares | in EUR | ning of period | shares | the period | ||||
| 31 Mar 21 - 13 Apr 23 | 39,746 | 6.05 | 38,165 | 2,408 | - | 35,819 | 220,688 | 105,959 |
| 30 Sep 21 - 30 Sep 23 | 27,784 | 4.94 | 27, 585 | 4,370 | - | 22,609 | 116,423 | 57,809 |
| 16 Mar 22 - 13 Apr 24 | 31,602 | 3.50 | - | 1,147 | - | 30,317 | 104,039 | 39,186 |
| 19 Sep 22 - 18 Oct 24 | 58,598 | 2.70 | - | 1,543 | - | 57,055 | 152,718 | 15,856 |
Total | 157,592 | 65,750 | 9,468 | - | 145,800 | 593,868 | 218,809 | |
Grant date | 2023 | ||||||||
| Invest- | Share | Outstanding | For- | Vested | Outstanding | Total FV | Expense | ||
| Holding period | ment | price | at the begin- | feited | shares | at the end of | in EUR | in EUR | |
| shares | in EUR | ning of period | shares | the period | |||||
| 31 Mar 21 - 13 Apr 23 | 39,746 | 6.05 | 35,819 | 951 | 34,868 | - | 226,567 | 35,453 | |
| 30 Sep 21 - 30 Sep 23 | 27,784 | 4.94 | 22,609 | 995 | 21,614 | - | 114,822 | 39,963 | |
| 16 Mar 22 - 13 Apr 24 | 31,602 | 3.50 | 30,317 | 536 | - | 29,781 | 112,476 | 57,48 | 4 |
| 19 Sep 22 - 18 Oct 24 | 58,598 | 2.70 | 57,055 | 798 | - | 56,257 | 168,336 | 84,978 | |
| 06 Apr 23 - 13 Apr 25 | 35,951 | 3.69 | - | 463 | - | 35,488 | 132,740 | 48,369 | |
| 28 Sep 23 - 31 Oct 25 | 49,723 | 3.10 | - | - | - | 49,723 | 154,928 | 19,064 | |
Total | 243,404 | 145,800 | 3,743 | 56,482 | 171,249 | 909,868 | 285,311 | ||
235
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
236
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
| Sortter Oy: | ||
Lead sales fees received from Sortter Oy for introducing customers | 47 | - |
Broker fees paid to Sortter Oy for introducing customers | (35) | - |
Interest income received from Sortter Oy | 535 | - |
| Other related parties*: | ||
| Professional fees paid to other related parties for key management | (1,137) | (780) |
| personnel services | ||
Rental payments done to other related parties for office lease | (125) | (107) |
Total | (715) | (887) |
EUR ’000 | 2023 | 2022 |
| Sortter Oy: | ||
Loans to related parties | 8,148 | 8,139 |
| Leadership Team members: | ||
Loans to related parties | 1,900 | - |
Total | 10,048 | 8,139 |
237
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 | 2023 | 2022 |
| COMPENSATION FOR MEMBERS OF THE BOARD OF DIRECTORS AND CEO: | ||
| Jorma Jokela, CEO | ||
Salaries and other short-term employee benefits* | 246 | 240 |
Share-based payments | 14 | 16 |
Dividend payments | 1,441 | - |
| Ari Tiukkanen, Chairman | ||
Salaries and other short-term employee benefits** | 212 | - |
Share-based payments | 2 | - |
Post-employment benefits | 104 | - |
Dividend payments | 2 | - |
| Frederik Strange, Ex Chairman | ||
Salaries and other short-term employee benefits | 16 | 48 |
Dividend payments | 1 | - |
| Michael Cusumano, Member | ||
Salaries and other short-term employee benefits | 48 | 48 |
| Goutam Challagalla, Member | ||
Salaries and other short-term employee benefits | 48 | 48 |
| Kristiina Leppänen, Member | ||
Salaries and other short-term employee benefits | 49 | 28 |
| Juhani Vanhala, Ex Member | ||
Salaries and other short-term employee benefits | 16 | 48 |
Dividend payments | 10 | - |
| Jussi Mekkonen, Member | ||
Salaries and other short-term employee benefits | 16 | 29 |
| Lea Liigus, Member | ||
Salaries and other short-term employee benefits | 60 | 60 |
Share-based payments | 6 | 6 |
Dividend payments | 15 | - |
Total | 2,306 | 571 |
| COMPENSATION OF LEADERSHIP TEAM MEMBERS AND CEO: | ||
Salaries and other short-term employee benefits | 3,024 | 3,068 |
Share-based payments | 241 | 229 |
Post-employment benefits | 229 | 230 |
Dividend payments | 1,488 | - |
Total | 4,982 | 3,527 |
238
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
239
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
240
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| EUR ’000 | 1 January | Policy | Policy | Policy | Policy | Correction | Total | 1 January | |
Old FSLI | New FSLI | 2022 | change 1 | change 2 | change 3 | change 4 | of error | change | 2022 |
| (Reported) | (Restated) | ||||||||
| Loans to | Loans to | 451,698 | - | - | - | - | (2,136) | (2,136) | 449,562 |
| customers | customers | ||||||||
| Other non- | Other | ||||||||
| current | financial | 6,215 | 13,344 | - | - | - | - | 13,344 | 19,559 |
| financial assets | assets | ||||||||
| Other current | Other | ||||||||
| financial assets | financial | 13,344 | (13,344) | - | - | - | - | (13,344) | - |
| assets | |||||||||
| Prepaid | Prepaid | ||||||||
| expenses and | expenses | 1,324 | - | - | - | - | - | - | 1,324 |
| other current | and other | ||||||||
| assets | assets | ||||||||
| Deferred tax | Deferred tax | 6,981 | - | - | - | - | 365 | 365 | 7, 346 |
| assets | assets | ||||||||
Total assets | Total assets | 824,550 | - | - | - | - | (1,771) | (1,771) | 822,779 |
| Deposits from | Deposits | ||||||||
| customers | from | 484,764 | - | 1,246 | - | - | - | 1,246 | 486,010 |
| customers | |||||||||
| Provisions, | |||||||||
| Trade payables | accruals and | 1,426 | - | (1,246) | 15,160 | - | - | 13,914 | 15,340 |
| other | |||||||||
| liabilities | |||||||||
| Accruals and | Provisions, | ||||||||
| other current | accruals and | 15,160 | - | - | (15,160) | - | - | - | |
| liabilities | other | (15,160) | |||||||
| liabilities | |||||||||
| Long-term | Debt | 57,656 | - | - | - | 84,158 | - | 84,158 | 141,814 |
| borrowings | securities | ||||||||
| Sort-term | Debt | 84,158 | - | - | - | (84,158) | - | (84,158) | - |
| borrowings | securities | ||||||||
| Total liabilities | Total | 649,748 | - | - | - | - | - | - | 649,748 |
| liabilities | |||||||||
| Retained | Retained | 70,466 | - | - | - | - | (1,771) | (1,771) | 68,695 |
| earnings | earnings | ||||||||
Total equity | Total equity | 174,802 | - | - | - | - | (1,771) | (1,771) | 173,031 |
241
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
242
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| 31 | Policy | Policy | Policy | Policy | Correc- | 31 | |||
| EUR ’000 | December | change | change | change | change | tion of | Total | December | |
Old FSLI | New FSLI | 2022 | 1 | 2 | 3 | 4 | error | change | 2022 |
| (Reported) | (Restated) | ||||||||
| Loans to | Loans to | 509,463 | - | - | - | - | (2,389) | (2,389) | 507,075 |
| customers | customers | ||||||||
Other non-current | |||||||||
| financial | Debt | ||||||||
asset, other current | investments | - | - | 21,107 | - | - | - | 21,107 | 21,107 |
| financial | |||||||||
| assets | |||||||||
Other non-current | |||||||||
| financial | Other | ||||||||
| asset, other | financial | 39,209 | 1,311 | (21,107) | - | - | - | (19,796) | 19,413 |
| current | assets | ||||||||
| financial | |||||||||
| assets | |||||||||
| Prepaid | Prepaid | ||||||||
| expenses | expenses | ||||||||
| and other | and other | 1,548 | (1,311) | - | - | - | - | (1,311) | 237 |
| current | assets | ||||||||
| assets | |||||||||
| Deferred tax | Deferred tax | 7,179 | - | - | - | - | 395 | 395 | 7, 574 |
| assets | assets | ||||||||
Total assets | Total assets | 755,229 | - | - | - | - | (1,994) | (1,994) | 753,235 |
| Deposits | Deposits | ||||||||
| from | from | 501,734 | - | 1,644 | - | - | - | 1,644 | 503,378 |
| customers | customers | ||||||||
| Provisions, | |||||||||
| Trade | accruals and | 6,314 | - | - | (6,314) | - | - | (6,314) | - |
| payables | other | ||||||||
| liabilities | |||||||||
| Accruals and | Provisions, | ||||||||
| other current | accruals and | 11,530 | - | - | (11,530) | - | - | (11,530) | - |
| liabilities | other | ||||||||
| liabilities | |||||||||
| Trade | |||||||||
| payables, | Provisions, | ||||||||
| Accruals and | accruals and | ||||||||
| other current | other | - | - | (1,644) | 17,844 | (625) | - | 15,576 | 15,576 |
liabilities and Long-term | liabilities | ||||||||
| borrowings | |||||||||
| Long-term | Debt | 46,791 | - | - | - | 625 | - | 625 | 47,416 |
| borrowings | securities | ||||||||
| Total | Total | 573,269 | - | - | - | - | - | - | 573,269 |
| liabilities | liabilities | ||||||||
| Retained | Retained | 77,679 | - | - | - | - | (1,994) | (1,994) | 75,685 |
| earnings | earnings | ||||||||
Total equity | Total equity | 181,960 | - | - | - | - | (1,994) | (1,994) | 179,966 |
243
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
244
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| EUR ’000 | 2022 | Policy | Policy | Correc- | Correc- | Correc- | Correc- | Total | 2022 | |
| Old FSLI | New FSLI | (Report- | change | change | tion of | tion of | tion of | tion of | change | (Restated) |
| ed) | 1 | 2 | error 1 | error 2 | error 3 | error 4 | ||||
| Interest | Interest | 209,030 | 460 | 9 | 3,295 | - | (320) | - | 3,444 | 212,474 |
| revenue | income | |||||||||
| Finance | Interest | 460 | (460) | - | - | - | - | - | (460) | - |
| income | income | |||||||||
Other income | Other income | 37 | 33 | - | - | - | - | - | 33 | 70 |
| Service fee | Fee and | |||||||||
| revenue | commission | 3,336 | - | (9) | (3,295) | - | - | - | (3,304) | 32 |
| income | ||||||||||
| Finance costs | Interest | (18,230) | 3,848 | 356 | - | - | - | - | 4,204 | (14,026) |
| expense | ||||||||||
| Fair value | ||||||||||
| and foreign | ||||||||||
| Finance costs | exchange | - | (3,848) | - | - | - | - | - | (3,848) | (3,848) |
| gains and | ||||||||||
| losses | ||||||||||
| Impairment | Impairment | |||||||||
| loss on loans | loss on loans | (78,660) | - | - | - | (5,734) | - | (252) | (5,986) | (84,646) |
| to customers | to customers | |||||||||
| Personnel | Personnel | (33,956) | - | - | - | - | - | - | - | (33,956) |
| expense | expense | |||||||||
| Selling and | Selling and | |||||||||
| marketing | marketing | (12,205) | - | (170) | - | - | - | - | (170) | (12,375) |
| expense | expense | |||||||||
| General and | General and | |||||||||
| administrative | dministrative | (24,408) | - | (13,589) | - | 5,734 | 320 | - | (7,535) | (31,943) |
| expense | expense | |||||||||
| Bank and | General and | |||||||||
| lending costs | dministrative | (13,405) | - | 13,405 | - | - | - | - | 13,405 | - |
| expense | ||||||||||
| Depreciation | Depreciation | |||||||||
| and | and | (17,522) | - | - | - | - | - | - | - | (17,522) |
| amortisation | amortisation | |||||||||
| Other | Other | (636) | (33) | - | - | - | - | - | (33) | (669) |
| expense | expense | |||||||||
| Profit before | Profit before | 13,841 | - | - | - | - | - | - | - | 13,590 |
| income taxes | income taxes | |||||||||
| Income tax | Income tax | (1,846) | - | - | - | - | - | 30 | 30 | (1,817) |
| expense | expense | |||||||||
| Profit for the | Profit for the | 11,995 | - | - | - | - | - | (222) | (222) | 11,773 |
| year | year | |||||||||
| Earnings per | Earnings per | |||||||||
| share: | share: | |||||||||
| Weighted | Weighted | |||||||||
| average | average | |||||||||
| number of | number of | 21,578 | - | - | - | - | - | - | - | 21,578 |
| ordinary | ordinary | |||||||||
| shares in | shares in | |||||||||
| issue | issue | |||||||||
| Total earnings | Basic | |||||||||
| per share, | earnings per | 0.38 | - | - | - | - | - | - | - | 0.38 |
| EUR | share, EUR | |||||||||
245
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
246
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| EUR ’000 | 2022 | Policy | Policy | Policy | Policy | Correc- | Correc- | Total | 2022 | |
| Old FSLI | New FSLI | (Report- | change | change | change | change | tion of | tion of | change | (Restated) |
| ed) | 1 | 2 | 3 | 4 | error 1 | error 2 | ||||
| CASH FLOWS | CASH FLOWS | |||||||||
| FROM | FROM | |||||||||
| PERATING | PERATING | |||||||||
| ACTIVITIES | ACTIVITIES | |||||||||
| Profit for the | Profit for the | 11,995 | - | - | - | - | - | (222) | (222) | 11,772 |
| year | period | |||||||||
| Adjustments | Adjustments | |||||||||
| for: | for: | |||||||||
| Depreciation | Depreciation | |||||||||
| and | and | 18,144 | (622) | - | - | - | - | - | (622) | 17,522 |
| amortisation | amortisation | |||||||||
| Net interest | ||||||||||
| income and | ||||||||||
| Finance costs, | Fair values | 15,286 | - | - | (15,286) | - | - | - | (15,286) | - |
| net | and foreign | |||||||||
| exchange | ||||||||||
| gain or loss | ||||||||||
| Tax on income | Income tax | |||||||||
from operations | expense | 1,846 | - | - | - | - | - | (29) | (29) | 1,817 |
| Other | Other | (172) | 622 | - | - | - | - | - | 622 | 450 |
| adjustments | adjustments | |||||||||
| Impairments | Impairment | |||||||||
| on loans | loss on loans | 78,660 | - | - | - | - | 5,734 | 251 | 5,986 | 84,646 |
| to customers | ||||||||||
| Finance costs, | Net interest | |||||||||
| net, Interest | income | - | - | - | (198,224) | - | - | - | (198,224) | (198,224) |
| received | Fair value and | |||||||||
| Finance costs, | foreign | |||||||||
| net, Interest | exchange | - | - | - | 3,848 | - | - | - | 3,848 | 3,848 |
| received | gains and | |||||||||
| losses | ||||||||||
| Working | Changes in | |||||||||
| capital | operating | |||||||||
| changes: | assets: | |||||||||
| Increase (-) / | Increase (-) / | |||||||||
| decrease (+) | decrease (+) | 1,078 | - | - | - | - | - | - | - | 1,078 |
| in current | in other | |||||||||
| receivables | assets | |||||||||
| Increase (+) / | Increase (+) / | |||||||||
| decrease (-) in | decrease (-) | |||||||||
| trade | in other | (453) | - | - | - | - | - | - | - | (453) |
payables and other liabilities | liabilities | |||||||||
| Movements in | Increase (-) / | |||||||||
| gross | decrease (+) | - | - | - | - | (138,346) | (5,734) | - | (144,080) | (144,080) |
| portfolio | in loans to | |||||||||
| customers | ||||||||||
247
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| EUR ’000 | 2022 | Policy | Policy | Policy | Policy | Correc- | Correc- | Total | 2022 | |
| Old FSLI | New FSLI | (Reported) | change 1 | change | change | change | tion of | tion of | change | (Restated) |
| 2 | 3 | 4 | error 1 | error 2 | ||||||
| Purchase of | Increase (-) / | |||||||||
| non-current | decrease (+) | - | (20,800) | - | - | - | - | - | (20,800) | (20,800) |
| financial | in debt | |||||||||
| assets | investments | |||||||||
| Increase (-) / | ||||||||||
| Purchase of | decrease (+) | |||||||||
| investments | in derivative | - | - | (3,625) | - | - | - | - | (3,625) | (3,625) |
| and other | financial | |||||||||
| assets | instruments | |||||||||
| (net) | ||||||||||
| Increase (+) / | ||||||||||
| Deposits from | decrease (-) in | - | - | - | - | 17,828 | - | - | 17,828 | 17,828 |
| customers | deposits from | |||||||||
| customers | ||||||||||
Interest paid | Interest paid | (11,251) | - | - | - | - | - | - | - | (11,251) |
| Interest | Interest | 699 | - | - | 208,064 | - | - | - | 208,064 | 208,763 |
| received | received | |||||||||
| Income taxes | Income taxes | (3,637) | - | - | - | - | - | - | - | (3,637) |
| paid | paid | |||||||||
| Movements in | Increase (-) / | |||||||||
| gross | decrease (+) | (138,346) | - | - | - | - | - | 138,346 | - | |
| portfolio | in loans to | 138,346 | ||||||||
| customers | ||||||||||
| Net cash flows | Net cash | |||||||||
| used in | flows used in | (26,151) | (20,800) | (3,625) | (1,598) | 17, 828 | - | - | (8,195) | (34,346) |
| operating | operating | |||||||||
| activities | activities | |||||||||
| CASH FLOWS | CASH FLOWS | |||||||||
| FROM | FROM | |||||||||
| INVESTING | INVESTING | |||||||||
| ACTIVITIES | ACTIVITIES | |||||||||
| Purchase of | Purchase of | |||||||||
| tangible and | tangible | (10,903) | - | 10,432 | - | - | - | - | 10,432 | (471) |
intangible assets | assets | |||||||||
| Purchase of | Purchase of | |||||||||
| tangible and | intangible | - | - | (10,432) | - | - | - | - | (10,432) | (10,433) |
intangible assets | assets | |||||||||
| Increase (-) / | ||||||||||
| Purchase of | decrease (+) | |||||||||
| investments | in derivative | (3,625) | - | 3,625 | - | - | - | - | 3,625 | - |
| and other | financial | |||||||||
| assets | instruments | |||||||||
| (net) | ||||||||||
| Purchase of | Increase (-) / | |||||||||
| non-current | decrease (+) | (20,800) | 20,800 | - | - | - | - | - | 20,800 | - |
| financial | in debt | |||||||||
| assets | investments | |||||||||
| Net cash flows | Net cash | |||||||||
| used in | flows used in | (35,328) | 20,800 | 3,625 | - | - | - | - | 24,425 | (10,903) |
| investing | investing | |||||||||
| activities | activities | |||||||||
248
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
| EUR ’000 | 2022 | Policy | Policy | Policy | Policy | Correc- | Correc- | Total | 2022 | |
| Old FSLI | New FSLI | (Report- | change | change | change | change 4 | tion of | tion of | change | (Restated) |
| ed) | 1 | 2 | 3 | error 1 | error 2 | |||||
| CASH FLOWS | CASH FLOWS | |||||||||
| FROM | FROM | |||||||||
| FINANCING | FINANCING | |||||||||
| ACTIVITIES | ACTIVITIES | |||||||||
| Repayment of | Repayment of | |||||||||
| short-term | debt securities | (182,150) | - | - | - | - | - | - | - | (182,150) |
| borrowings | ||||||||||
| Perpetual | Payment of | |||||||||
| bonds | perpetual | (3,670) | - | - | - | - | - | - | - | (3,670) |
interests and issuance costs | bonds interest | |||||||||
| Repayment of | Repayment of | |||||||||
| finance lease | lease liabilities | (1,939) | - | - | - | - | - | - | - | (1,939) |
| liabilities | ||||||||||
| Proceeds from | Proceeds from | |||||||||
| long-term | debt securities | 47,672 | - | - | - | 39,400 | - | - | 39,400 | 87,072 |
| borrowings | ||||||||||
| Proceeds from | Proceeds from | |||||||||
| short-term | debt securities | 39,400 | - | - | - | (39,400) | - | - | (39,400) | - |
| borrowings | Increase (+) / | |||||||||
| Deposits from | decrease (-) in | 17, 828 | - | - | - | (17,828) | - | - | (17,828) | - |
| customers | deposits from | |||||||||
| customers | ||||||||||
| Net cash flows | Net cash flows | |||||||||
| from (used in) | from (used in) | (82,859) | - | - | - | (17,828) | - | - | (17,828) | (100,687) |
| financing | financing | |||||||||
| activities | activities | |||||||||
| Cash and cash | Cash and cash | |||||||||
| equivalents, as | equivalents, as | 301,592 | - | - | - | - | - | - | - | 301,592 |
| at 1 January | at 1 January | |||||||||
| Exchange | Exchange | |||||||||
| gains (losses) | gains (losses) | |||||||||
| on cash and | on cash and | (3,930) | - | - | 1,599 | - | - | - | 1,599 | (2,331) |
| cash | cash | |||||||||
| equivalents | equivalents | |||||||||
| Net increase in | Net increase in | |||||||||
| cash and cash | cash and cash | (144,338) | - | - | (1,599) | - | - | - | (1,599) | (145,937) |
| equivalents | equivalents | |||||||||
| Cash and cash | Cash and cash | |||||||||
| equivalents, as | equivalents, as | 153,325 | - | - | - | - | - | - | - | 153,325 |
| at 31 | at 31 | |||||||||
| December | December | |||||||||
249
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
27. Subsequent events
Relocation of parent company
Multitude SE, announced on 5 January 2024 that it contemplates a relocation from Finland to
Switzerland while maintaining its legal personality and without dissolution. On 17 January 2024,
Multitude SE announced that as a first phase of the plan to relocate to Switzerland, the Board of
Directors of Multitude SE proposed a transfer of the registered office of Multitude SE from Finland
to Malta.
The completion of this relocation is subject to the approval of the Annual General Meeting of Mul-
titude SE. The transfer of the registered office from Finland to Malta would be followed by a con-
version of Multitude SE into a public limited liability company governed by the laws of Malta and
then an application to have the parent company registered in Switzerland pursuant to applicable
Maltese and Swiss laws by the end of the year 2024. On 21 March Multitude shareholders held an
Extraordinary General Meeting and approved proposal for the transfer of the registered office of
Multitude SE from Finland to Malta in accordance with the Council Regulation (EC) No 2157/2001
of 8 October 2001 on the Statute for a European Company (SE).
In anticipation and in pursuance of the transfer of the registered office, the Extraordinary Gener-
al Meeting resolved to amend the parent company’s current Articles of Association to introduce
a nominal value for Multitude’s shares by adding a new Article 10 in the Articles of Association
which reads as follows: The nominal value of the shares is EUR 1.85. Extraordinary General Meeting
resolved to increase the parent company’s share capital by EUR 55,766 from EUR 40,133,560 to
EUR 40,189,326. The increase will be carried out by transferring the necessary amount from the
invested unrestricted equity reserve to the share capital.
Extraordinary General Meeting resolved to appoint Ganado Services Limited (Registration Num-
ber: C10785) having its registered office at 171, Old Bakery Street, Valletta VLT1455, Malta as the
company secretary of the parent company, with effect from the date of registration of the parent
company with the Malta Business Registry.
Upon the registration of the parent company with the Malta Business Registry, PricewaterhouseC-
oopers (Registration Number: AB/26/84/38), with their registered office situated at 78, Mill Street,
Qormi, Malta will be appointed as the auditors of parent company until the close of the Annual
General Meeting to be held in year 2024, and that the Group’s Audit Committee be authorised
to fix their remuneration and sign any engagement letter as may be required for the purposes of
finalising the engagement thereof.
250
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
251
Multitude Group Annual Report 2023 – Consolidated Financial Statements (Audited)
EUR ’000 Notes 2023 2022
Revenue 4 15,369 11,880
Personnel expenses:
Wages and salaries (3,101) (3,159)
Pension expenses (456) (474)
Other social expenses (70) (70)
Total personnel expenses (3,627) (3,703)
Depreciation and amortisation 5 (794) (3,876)
Other operating expenses 6, 7 (16,373) (17,155)
Operating loss (5,424) (12,854)
Financial income:
Intra-group dividend income 8,013 20,767
Interest and financial income from third parties 4,888 415
Interest and financial income from Group companies 2,024 3,065
Total financial income 14,925 24,248
Financial expenses:
Interest and financial expenses to third parties (12,555) (6,044)
Interest and financial expenses to Group companies (1,103) (8,718)
Impairment of investments in subsidiaries (5,461) (13,518)
Total financial expenses (19,119) (28,280)
Net financial expenses (4,194) (4,032)
Loss before Group contribution and taxes (9,618) (16,886)
Group contribution 15,974 7,583
Income tax (24) (1)
Profit (loss) for the year 6,332 (9,304)
Multitude SE separate financial statements 2023
Statement of profit or loss
Multitude SE
separate financial
statements 2023
252
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
Statement of financial position
EUR ’000 Notes
31 December
2023
31 December
2022
ASSETS
Non-current assets:
Intangible assets 8 2,173 2,862
Tangible assets 9 1,426 1,328
Investments 10 185,378 181,336
Non-current receivables from Group companies 11 18,000 1 691
Non-current receivables from third parties 11 - 703
Total non-current assets 206,977 187,919
Current assets:
Current receivables from Group companies 12 22,755 6,267
Current receivables from third parties 4,262 8,455
Cash and cash equivalents 333 8,148
Total current assets 27, 350 22,870
Total assets 234,327 210,789
EQUITY AND LIABILITIES
Equity:
Share capital 13 40,134 40,134
Treasury shares (103) (142)
Other reserves 14,708 14,708
Retained earnings 33,541 45,436
Profit (loss) for the period 6,332 (9,304)
Total equity 94,611 90,831
Liabilities:
Non-current liabilities
Non-current liabilities, interest-bearing to third parties 14 91,000 96,000
Non-current liabilities, interest-bearing to Group companies 14 41,583 18,446
Total non-current liabilities 132,583 114,446
Current liabilities
Current liabilities, interest-free to third parties 15 4,147 3,627
Current liabilities, interest-free to Group companies 15 2,986 1,884
Total current liabilities 7,132 5,511
Total liabilities 139,715 119,957
Total equity and liabilities 234,327 210,789
253
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
Statement of cash flows
EUR ’000 2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) for the year 6,332 (9,304)
Adjustments for:
Depreciation and amortisation 794 3,877
Financial income and expenses 4,194 (4,910)
Group contributions (15,975) (7,583)
Other adjustments 39 -
Operating loss before working capital changes (4,616) (17,920)
Working capital changes:
Decrease in trade and other receivables 305 1,861
Increase in trade payables 1,303 1,202
Cash used in operations (3,008) (14,857)
Interest paid (15,357) (14,886)
Dividends received 4,358 20,767
Interest received 2,703 3,480
Other financing items (372) (1,246)
Net cash used in operating activities (11,677) (6,742)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible and intangible assets (205) (114)
Proceeds from sale of tangible and intangible assets 3 -
Acquisition of subsidiaries (2,442) (20,450)
Acquisition of associates (1,016) -
Loans granted (-) / Repayment of loans (+) (15,607) 49,147
Net cash (used in) from investing activities (19,267) 28,583
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings (+) / Repayment (-) 18,138 (71,972)
Dividends paid (2,591) -
Group contribution received 7,583 15,750
Net cash from (used in) financing activities 23,130 (56,221)
Net decrease in cash and cash equivalents (7,815) (34,380)
Cash and cash equivalents at the beginning of the period 8,148 42,528
Net decrease in cash and cash equivalents (7,815) (34,380)
Cash and cash equivalents at the end of the period 333 8,148
254
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
Notes to the separate financial statements
1. Basis of preparation of the separate financial statements
Parent company information
Multitude SE, registered in Helsinki, is the parent company of Multitude Group. Copies of the con-
solidated financial statements can be obtained from Multitude SE, located in Ratamestarinkatu 11
A, 00520 Helsinki.
Share capital
The share capital of the company is EUR 40,134 thousand and the number of shares is 21,723,960.
The shares have no nominal value. All the shares are attached with equal voting rights and equal
right when distributing dividend.
Accounting principles and methods
Multitude SE financial statements have been prepared in accordance with the Finnish Accounting
Standards, FAS.
Valuation methods
Tangible assets have been valued at acquisition cost.
Receivables, financial assets and liabilities
Receivables are stated at face value, but no more than probable value. Securities and other finan-
cial assets included in financial assets are carried at cost or, if lower, at their probable value at the
balance sheet date. Liabilities are stated at nominal value or, if the debt is linked to an index or
other benchmark, at a higher nominal amount than the changed benchmark.
Allocation principles and methods
The acquisition cost of tangible assets is depreciated according to the amortisation plan. The
difference between the acquisition cost and residual value of the asset is booked as depreciation
over the economic period of the asset.
Depreciation periods
• Renovation in own premises - 10 years
• Intangible assets - 3 to 10 years
• Tangible assets - 4 years
Receivables and liabilities denominated in foreign currency
Foreign currency transactions are recorded at the exchange rate on the transaction date. Other
assets and liabilities denominated in foreign currencies outstanding at the end of the financial year
have been translated into EUR at the exchange prevailing in the balance sheet date and exchange
differences have been recognised through profit or loss.
Comparative information
The parent company’s financial year is the calendar year. The comparative figures used are the
previous year’s financial statements.
255
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
2. Average personnel 2023 2022
During financial year 46 45
3. Management compensation, EUR ’000 2023 2022
Board of Directors and CEO 699 490
4. Revenue, EUR ’000 2023 2022
Canada 12,418 -
EU 2,924 5,315
Finland 27 2,155
Australia - 4,410
Total revenue 15,369 11,880
5. Depreciation and amortisation, EUR ’000 2023 2022
Intangible assets
Other capitalised expenditure (772) (3,838)
Tangible assets
Machinery and equipment (22) (38)
Total depreciation and amortisation (794) (3,876)
6. Other operating expenses, EUR ’000 2023 2022
Other expenses with Group companies (8,641) (9,867)
Professional fees (4, 278) (3,685)
Other operating expenses (1,620) (2,080)
Marketing cost (357) (524)
Administrative expenses (637) (309)
Audit fees (672) (400)
Non-audit fees (169) (289)
Total other operating expenses (16,373) (17,155)
256
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
7. Audit fees and other services from audit companies, EUR ’000 2023 2022
PWC
Audit fees 672 400
Non-audit fees:
Other services 169 62
Total audit fees 672 400
Total non-audit fees 169 62
8. Intangible assets, EUR ’000 Capitalised expenditures
Acquisition cost as at 1 January 2023 18,724
Additions for the year ended 31 December 2023 83
Acquisition cost as at 31 December 2023 18,807
Accumulated amortisation as at 1 January 2023 (15,862)
Amortisation for the year ended 31 December 2023 (772)
Accumulated amortisation as at 31 December 2023 (16,634)
Net book value as at 1 January 2023 2,862
Net book value as at 31 December 2023 2,173
8. Intangible assets, EUR ’000 Capitalised expenditures
Acquisition cost as at 1 January 2022 19,340
Additions for the year ended 31 December 2022 114
Disposals for the year ended 31 December 2022 (731)
Acquisition cost as at 31 December 2022 18,724
Accumulated amortisation as at 1 January 2022 (12,755)
Amortisation for the year ended 31 December 2022 (3,838)
Depreciation on disposals for the year ended 31 December 2022 731
Accumulated amortisation as at 31 December 2022 (15,862)
Net book value as at 1 January 2022 6,585
Net book value as at 31 December 2022 2,862
257
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
9. Tangible assets, EUR ’000
Real
estate
shares
Machinery
and equip-
ment
Other
tangible
assets
Total
Acquisition cost as at 1 January 2023 1,308 606 1 1,915
Additions for the year ended 31 December 2023 - 122 - 122
Disposals for the year ended 31 December 2023 - (3) - (3)
Acquisition cost as at 31 December 2023 1,308 725 1 2,035
Accumulated depreciation as at 1 January 2023 - (587) - (587)
Depreciation for the year ended 31 December 2023 - (22) - (22)
Accumulated depreciation as at 31 December 2023 - (609) - (609)
Net book value as at 1 January 2023 1,308 20 1 1,328
Net book value as at 31 December 2023 1,308 118 1 1,426
9. Tangible assets, EUR ’000
Real
estate
shares
Machinery
and equip-
ment
Other
tangible
assets
Total
Acquisition cost as at 1 January 2022 1,308 606 1 1,915
Additions for the year ended 31 December 2022 - - - -
Acquisition cost as at 31 December 2022 1,308 606 1 1,915
Accumulated depreciation as at 1 January 2022 - (548) - (548)
Depreciation for the year ended 31 December 2022 - (39) - (39)
Accumulated depreciation as at 31 December 2022 - (587) - (587)
Net book value as at 1 January 2022 1,308 59 1 1,367
Net book value as at 31 December 2022 1,308 20 1 1,328
10. Investments, EUR ’000
Investments in
subsidiaries
Investments in
associates
Total investments
Acquisition cost as at 1 January 2023 181,336 - 181,336
Additions for the year ended 31 December 2023 3,655 1,016 4,671
Impairment of investment for the year ended 31
December 2023
(629) - (629)
Book value as at 1 January 2023 181,336 - 181,336
Book value as at 31 December 2023 184,362 1,016 185,378
258
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
11. Non-current receivables, EUR ’000
31 December
2023
31 December
2022
Receivables from Group companies 18,000 1,691
Non-current receivables from third parties - 703
Total non-current receivables 18,000 2,393
12. Current receivables, EUR ’000
31 December
2023
31 December
2022
Receivables from Group companies 22,755 6,266
Other receivables 1,728 7,456
Accrued revenue 2,534 3,941
Total current receivables 27,017 17,663
10. Investments, EUR ’000
Investments in
subsidiaries
Acquisition cost as at 1 January 2022 165,462
Additions for the year ended 31 December 2022 20,450
Impairment of investment for the year ended 31 December 2022 (4,576)
Book value as at 31 December 2022 181,336
Book value as at 1 January 2022 165,462
13. Changes in equity 2023, EUR ’000
Share
capital
Treasury
shares
SVOP
reserve
Retained
earnings
Equity
total
Total equity as at 1 January 2023 40,134 (142) 14,708 36,132 90,831
Other changes - 39 - - 39
Dividend distribution - - - (2,591) (2,591)
Profit for the year - - - 6,332 6,332
Total equity as at 31 December 2023 40,134 (103) 14,708 39,873 94,611
13. Changes in equity 2022, EUR
’000
Share
capital
Treasury
shares
SVOP
reserve
Retained
earnings
Equity
total
Total equity as at 1 January 2022 40,134 (142) 14,708 45,436 100,136
Loss for the year - - - (9,304) (9,304)
Total equity as at 31 December 2022 40,134 (142) 14,708 36,132 90,831
259
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
14. Non-current liabilities, EUR ’000 31 December 2023 31 December 2022
Non-current liabilities to third parties* 91,000 96,000
Non-current liabilities to Group companies 41,583 18,446
Total non-current liabilities 132,583 114,446
* On 5 July 2021, Multitude SE issued EUR 50 million worth of unsecured and subordinated per-
petual capital notes ("capital notes") at 99.50% of the nominal amount. The capital notes (ISIN:
NO0011037327) were drawn against a total authorised framework of EUR 100 million with a float-
ing coupon rate of 8.90% plus 3-month Euribor. Capital notes do not meet the definition of equity
under Finnish companies Act 12 par. 1§ and as such, accounted and presented as liabilities in the
separate financial statements of Multitude SE. Capital notes are treated as equity according to
the IFRS requirements in the Group consolidated financial statements (Note 2.5.21 and Note 21 of
consolidated financial statements).
15. Current liabilities, EUR ’000 31 December 2023 31 December 2022
Trade payables 309 496
Other liabilities 109 489
Accrued expenses 3,728 2,643
Liabilities to Group companies 2,986 1,884
Total current liabilities 7,132 5,511
16. Accruals, EUR ’000 31 December 2023 31 December 2022
Accruals of personnel expenses 1,541 898
Other accrued expenses 2,188 1,745
Total accruals 3,728 2,643
17. Rental liabilities, EUR ’000 31 December 2023 31 December 2022
Rental liabilities 2 2
18. Commitments given
There are no commitments issued by Multitude SE to third parties or Group companies in 2023.
19. Related party transactions
The Group has issued loan in the total amount of EUR 1.9 million to the Leadership Team members
with the purpose of purchasing Multitude's shares. All shares purchased with this loan are pledged
to the Group and used as collateral. There is no ECL provision created for this loan as at 31 Decem-
ber 2023. The loan shall accrue fixed interest of 5.5% per annum and be paid annually. The principal
on the loan shall be repaid on 31 December 2028.
260
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
Approval of the consolidated financial statements and the
Board of Directors' report
Helsinki, 27 March 2024
Ari Tiukkanen Chairman of the Board
Lea Liigus Member of the Board
Jorma Jokela CEO Member of the Board
Michael Cusumano Member of the Board
Kristiina Leppänen Member of the Board
Goutam Challagalla Member of the Board
The Auditor’s Note
A report on the audit performed has been issued today
Helsinki, 28 March 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jukka Paunonen
Authorised Public Accountant
261
Multitude SE Annual Report 2023 – Separate Financial Statements (Audited)
To the Management of Multitude SE
We have been engaged by the Management of Multitude SE (business identity code 1950969-1 (hereinafter also
“the Company”) to perform a reasonable assurance engagement on the Company’s consolidated IFRS financial
statements for the financial year 1 January - 31 December 2023 in European Single Electronic Format (“ESEF
financial statements”).
Management’s Responsibility for the ESEF Financial Statements
The Management of Multitude SE is responsible for preparing the ESEF financial statements so that they comply
with the requirements as specified in the Commission Delegated Regulation (EU) 2019/815 of 17 December
2018 (“ESEF requirements”). This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation of ESEF financial statements that are free from material noncompliance with
the ESEF requirements, whether due to fraud or error.
Our Independence and Quality Management
We have complied with the independence and other ethical requirements of the International Code of Ethics for
Professional Accountants (including International Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivi-
ty, professional competence and due care, confidentiality and professional behaviour.
Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement
and operate a system of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express an opinion on the ESEF financial statements based on the procedures we have
performed and the evidence we have obtained.
We conducted our reasonable assurance engagement in accordance with the International Standard on Assur-
ance Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical
Financial Information. That standard requires that we plan and perform this engagement to obtain reasonable
assurance about whether the ESEF financial statements are free from material noncompliance with the ESEF
requirements.
A reasonable assurance engagement in accordance with ISAE 3000 (Revised) involves performing procedures to
obtain evidence about the ESEF financial statements compliance with the ESEF requirements. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material noncompliance
of the ESEF financial statements with the ESEF requirements, whether due to fraud or error. In making those
risk assessments, we considered internal control relevant to the Company’s preparation of the ESEF financial
statements.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independent Auditor’s Reasonable Assurance Report on
Multitude SE’s ESEF Financial Statements
PricewaterhouseCoopers Oy, Authorised Public Accountants, P.O. Box 1015 (Itämerentori 2), FI-00101 HELSINKI
Phone +358 20 787 7000, www.pwc.fi
Reg. Domicile Helsinki, Business ID 0486406-8
Opinion
In our opinion, Multitude SE’s ESEF financial statements for the financial year ended 31 December 2023 comply,
in all material respects, with the minimum requirements as set out in the ESEF requirements.
Our reasonable assurance report has been prepared in accordance with the terms of our engagement. We do not
accept, or assume responsibility to anyone else, except for Multitude SE for our work, for this report, or for the
opinion that we have formed.
Helsinki 28 March 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
Jukka Paunonen
Authorised Public Accountant (KHT)