EQS-News: Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation
EQS-News: Multitude SE
/ Schlagwort(e): Sonstiges
Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation (News mit Zusatzmaterial)
15.05.2024 / 08:00 CET/CEST
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation
Helsinki, 15 May 2024 – Multitude SE, a listed European FinTech company, offering digital lending and online banking services to consumers, small and medium-sized businesses, and other FinTechs (ISIN: FI4000106299, WKN: A1W9NS) (“Multitude”, “Company” or “Group”) announces that in 2023 the Group changed its accounting policies, particularly regarding the presentation of the financial statements as well as corrected certain identified errors. These changes led to the presentation of the 2023 financial statements in the new format, including the restatement of the comparative statements for the year ended on 31 December 2022.
This document aims to provide an overview of these changes, their reasons, and the impact into comparative interim periods of Q1 2023, H1 2023, and 9M 2023 (see sections a) and b)).
In addition to these changes, Multitude restructured its organisational structure as of 1 January 2024. As a result, there is a restatement of comparative interim disclosures of reportable segments for the comparative periods of Q1 2023, H1 2023, 9M 2023 and full year 2023 (see section c).
a) Change in accounting policy - Adoption of new presentation:
In 2023, the Group undertook a strategic initiative to enhance the presentation of its financial statements, with the aim of providing reliable and more relevant information about the Group’s financial position and performance, aligning the presentation of primary statements with the common practice within the financial industry. As a result, the Group, starting with the financial year ended on 31 December 2023:
changed the presentation of the statement of financial position from current / non-current classification to presentation based on the order of liquidity; has restructured the statement of profit or loss to present the net interest income, net fair value and foreign exchange gains and losses and other items; made corresponding changes in the presentation of the statement of cash flows, to align it with the financial industry and to include the cash flows of operating financial assets and financial liabilities in the cash flows from operating activities in line with IAS 7.
These adjustments need to be read in conjunction with the annual consolidated financial statements for 2023.
b) Correction of prior period errors:
The following corrections have been made:
1. Inclusion of collection costs in the calculation of expected credit losses
Previously, the Group recognised collection costs as incurred and presented them in general and administrative expense. Debt collection costs are considered incremental and directly attributable to the recovery of cash flows of the granted loans in the event of a default, and as such, they should rather be incorporated into the estimate of the expected credit losses. After the correction, debt collection costs are included in the calculation of expected credit losses by incorporating them in the net expected cash flows of loans to customers to which the collection costs directly relate to.
2. Classification of reminder fees as interest income
The Group has revised its treatment of reminder fees. Historically, these fees have been classified as fee and commission income in the statement of profit or loss and accounted for under IFRS 15. Reminder fees are a standard feature of loans to customers, and they are collected from the inception of the loan contract over the lifetime of loan similarly to interest. From the financial year ended 31 December 2023 onwards, the Group accounts for these fees in line with IFRS 9 and factors the reminder fees in the calculation of interest income by applying the effective interest method.
3. Scoring costs
Scoring costs consist of credit information, credit rating and similar checks conducted when a client applies for a loan or product and reaches a certain stage in this process. Historically, scoring costs have been recognised as incurred and presented in general and administrative expense. However, whenever such scoring costs relate to a loan which is granted to the client, the costs should be treated as a directly attributable transaction cost to such loan and should be included in the loan balance at inception and in the calculation of the effective interest rate of that loan, thus decreasing the interest income. This restatement only applies to scoring costs related to loans issued.
These changes, together with any potential impact in recognised deferred taxes, have been applied consistently, by adjusting the comparative period and the opening balances for the earliest period presented for each affected financial statement line item.
The following tables show the restatement of consolidated statements of financial position for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).
Restatement of condensed interim consolidated statement of financial position for Q1 2023
EUR ’000 Reported 31 March 2023 Adjustment amount Adjustment number Restated 31 March 2023 Old FSLI New FSLI ASSETS ASSETS Non-current assetsDeferred tax assets
Deferred tax assets
6,817 394 6 7,211 Loans to customers
Loans to customers 107,897 401,837 1, 5 509,734 Other non-current financial assets
Debt investments 32,061 (7,494) 3 24,567 Current assets Loans to customers Loans to customers 404,167 (404,167) 1 - Other current financial assets Other financial assets 17,185 5,275 2, 3 22,460 Prepaid expenses and other current assets
Prepaid expenses and other assets 1,004 2,218 2 3,222 Total assets Total assets 838,527 (1,936) - 836,591 EQUITY EQUITY Retained earnings
Retained earnings
78,561 (1,936) 4, 5 76,625 Total equity Total equity 183,401 (1,936) - 181,465 LIABILITIES LIABILITIES Non-current liabilities Deposits from customers
Deposits from customers
123,639 460,767 6, 9 584,406 Lease liabilities
Lease liabilities
2,670 1,551 7 4,221 Current liabilities Deposits from customers Deposits from customers 457,118 (457,118) 6 - Lease liabilities
Lease liabilities
1,551 (1,551) 7 - Trade payables
Provisions, accruals and other liabilities
6,610 10,395 8, 9 17,005 Accruals and other current liabilities
Provisions, accruals and other liabilities
14,044 (14,044) 8 - Total liabilities Total liabilities 655,126 - - 655,126 Total equity and liabilities Total equity and liabilities 838,527 (1,936) - 836,591
Description of adjustments to condensed interim consolidated statement of financial position for Q1 2023
Number AmountEUR ’000 Description 1 404,167 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 2 2,218 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information. 3 7,494 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item. 4 394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision. 5 2,330 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL. 6 457,118 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 7 1,551 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 8 14,044 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities. 9 3,649 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.
Restatement of condensed interim consolidated statement of financial position for H1 2023
EUR ’000 Reported 30 June 2023 Adjustment amount Adjustment number Restated 30 June 2023 Old FSLI New FSLI ASSETS ASSETS Non-current assetsDeferred tax assets Deferred tax assets 6,536 394 5 6,930 Loans to customers
Loans to customers 109,750 408,794 1, 6 518,544 Other non-current financial assets
Debt investments 41,809 (3,424) 3, 4 38,385 Investments accounted for using the equity method Investments accounted for using the equity method 1,012 16 3 1,028 Current assets Loans to customers Loans to customers 411,067 (411,067) 1 - Other current financial assets Other financial assets 12,029 4,662 2, 4 16,691 Prepaid expenses and other current assets
Prepaid expenses and other assets 4,411 (1,254) 2 3,157 Total assets Total assets 826,512 (1,879) 824,633 EQUITY EQUITY Retained earnings
Retained earnings
78,226 (1,879) 5, 6 76,347 Total equity Total equity 181,501 (1,879) 179,622 LIABILITIES LIABILITIES Non-current liabilities Deposits from customers
Deposits from customers
149,206 423,922 7, 10 573,128 Lease liabilities
Lease liabilities
3,649 1,916 8 5,565 Current liabilities Deposits from customers Deposits from customers 418,214 (418,214) 7 - Lease liabilities
Lease liabilities
1,916 (1,916) 8 - Trade payables
Provisions, accruals and other liabilities
6,703 10,250 9, 10 16,953 Accruals and other current liabilities
Provisions, accruals and other liabilities
15,958 (15,958) 9 - Total liabilities Total liabilities 645,011 - - 645,011 Total equity and liabilities Total equity and liabilities 826,512 (1,879) - 824,633
Description of adjustments to condensed interim consolidated statement of financial position for H1 2023
Number AmountEUR ’000 Description 1 411,067 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 2 1,254 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information. 3 16 Reclassification of capitalised cost incurred to purchase investment in Sortter from Debt investment in Investment accounted via equity method 4 3,408 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item. 5 394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision. 6 2,273 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL. 7 418,214 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 8 1,916 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 9 15,958 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities. 10 5,708 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.
Restatement of condensed interim consolidated statement of financial position for 9M 2023
EUR ’000 Reported 30 September 2023 Adjustment amount Adjustment number Restated 30 September 2023 Old FSLI New FSLI ASSETS ASSETS Non-current assetsDeferred tax assets
Deferred tax assets
6,348 394 6 6,742 Loans to customers
Loans to customers 111,193 434,831 1, 5 546,024 Other non-current financial assets
Debt investments 43,368 (3,046) 3 40,322 Current assets Loans to customers Loans to customers 437,046 (437,046) 1 - Other current financial assets Other financial assets 11,604 1,744 2, 3 13,348 Prepaid expenses and other current assets
Prepaid expenses and other assets 1,477 1,302 2 2,779 Total assets Total assets 819,534 (1,821) - 817,713 EQUITY Equity Retained earnings
Retained earnings
82,798 (1,821) 4, 5 80,977 Total equity Total equity 184,368 (1,821) - 182,547 LIABILITIES LIABILITIES Non-current liabilities Deposits from customers
Deposits from customers
192,164 364,148 6, 9 556,312 Lease liabilities
Lease liabilities
3,353 1,942 7 5,295 Current liabilities Deposits from customers Deposits from customers 355,504 (355,504) 6 - Lease liabilities
Lease liabilities
1,942 (1,942) 7 - Trade payables
Provisions, accruals and other liabilities
10,615 10,953 8, 9 21,568 Accruals and other current liabilities
Provisions, accruals and other liabilities
19,597 (19,597) 8 - Total liabilities Total liabilities 635,167 - - 635,167 Total equity and liabilities Total equity and liabilities 819,534 (1,821) - 817,713
Description of adjustments to condensed interim consolidated statement of financial position for 9M 2023
Number AmountEUR ’000 Description 1 437,046 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 2 1,302 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information. 3 3,046 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item. 4 394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision. 5 2,215 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL. 6 355,504 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 7 1,942 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity. 8 19,597 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities. 9 8,644 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.
The following tables show the restatement of consolidated statements of profit or loss for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).
Restatement of condensed interim consolidated statement of profit or loss for Q1 2023
EUR ’000 Reported Q1 2023 Adjustment amount Adjustment number Restated Q1 2023 Old FSLI New FSLI Interest revenueInterest income
53,248
988
2, 6, 7, 9
54,236
Fees
Fee and commission income
774 (772) 6 2 Impairment loss on loans to customers
Impairment loss on loans to customers
(19,817) (1,062) 3, 4 (20,879) Bank and lending costs
General and administrative expense (3,044) 3,044 1 - Selling and marketing expense
Selling and marketing expense
(3,309) (61) 11 (3,370) General and administrative expense
General and administrative expense
(6,160) (2,881) 1, 3, 7, 8, 10, 11 (9,041) Profit before interests and taxes (EBIT)
Profit before interest expense and taxes (EBIT)
9,607 (744) 8,863 Finance income
Interest income
320
(320)
2
- Finance costs Interest expense (7,043) 3,130 5, 8, 9 (3,913) Finance costs
Fair value and foreign exchange gains and losses
- (1,918) 5 (1,918) Profit before income tax
Profit before income tax
2,885 148 3,033 Income tax expense
Income tax expense
(662)
(90)
10
(752)
Profit for the period
Profit for the period
2,223 58 2,281
Description of adjustments to condensed interim consolidated statement of profit or loss for Q1 2023
Number AmountEUR ’000 Description 1 3,044 Bank and lending costs line item has been merged with general and administrative expenses. 2 320 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item. 3 1,120 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item. 4 58 Impairment loss adjustment due to change in ECL estimate for collection costs. 5 1,918 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item. 6 772 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item. 7 118 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income. 8 1,225 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense. 9 13 Finance cost has been renamed to interest expense and reclassified to net interest income. 10 90 Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense. 11 61 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.
Restatement of condensed interim consolidated statement of profit or loss for H1 2023
EUR ’000 Reported H1 2023 Adjustment amount Adjustment number RestatedH1 2023 Old FSLI New FSLI Interest revenue
Interest income
108,033 2,053 2, 6, 7, 9
110,086 Fees
Fee and commission income
1,495 (1,487) 6 8 Impairment loss on loans to customers
Impairment loss on loans to customers
(40,197) (2,012) 3, 4 (42,209) Bank and lending costs
General and administrative expense (5,960) 5,960 1 - Selling and marketing expense
Selling and marketing expense
(7,044) (120) 11 (7,164) General and administrative expense
General and administrative expense
(11,191) (4,267) 1, 3, 7, 8, 10, 11 (15,458) Profit before interests and taxes (EBIT)
Profit before interest expense and taxes (EBIT)
20,909 127 - 21,047 Finance income
Interest income
771 (771) 2
- Finance costs Interest expense (12,346) 3,514 5, 8, 9 (8,832) Finance costs
Fair value and foreign exchange gains and losses
- (2,563) 5 (2,563) Profit before income tax
Profit before income tax
9,346 307 - 9,653 Income tax expense
Income tax expense
(1,865) (192) 10
(2,057) Profit for the period
Profit for the period
7,481 115 - 7,596
Description of adjustments to condensed interim consolidated statement of profit or loss for H1 2023
Number AmountEUR ’000 Description 1 5,960 Bank and lending costs line item has been merged with general and administrative expenses. 2 771 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item. 3 2,127 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item. 4 115 Impairment loss adjustment due to change in ECL estimate for collection costs. 5 2,563 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item. 6 1,487 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item. 7 235 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income. 8 981 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense. 9 30 Finance cost has been renamed to interest expense and reclassified to net interest income. 10 192 Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense. 11 120 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.
Restatement of condensed interim consolidated statement of profit or loss for 9M 2023
EUR ’000 Reported 9M 2023 Adjustment amount Adjustment number Restated 9M 2023 Old FSLI New FSLI Interest revenueInterest income
165,222 3,236 2, 6, 7, 9 168,458 Fees
Fee and commission income
2,171 (2,124) 6 47 Impairment loss on loans to customers
Impairment loss on loans to customers
(61,452) (2,920) 3, 4 (64,372) Bank and lending costs
General and administrative expense (8,913) 8,913 1 - Selling and marketing expense
Selling and marketing expense
(10,821) (176) 11 (10,997) General and administrative expense
General and administrative expense
(16,708) (6,232) 1, 3, 7, 8, 10 (22,940) Profit before interests and taxes (EBIT)
Profit before interest expense and taxes (EBIT)
32,470 697 33,201 Finance income
Interest income
1,428 (1,428) 2 - Finance costs Interest expense (18,781) 4,574 5, 8, 9 (14,207) Finance costs
Fair value and foreign exchange gains and losses
- (3,670) 5 (3,670) Profit before income tax
Profit before income tax
15,151 173 15,324 Income tax expense
Income tax expense
(2,796) - (2,796) Profit for the period
Profit for the period
12,355 173 12,528
Description of adjustments to condensed interim consolidated statement of profit or loss for 9M 2023
Number Amount EUR ’000 Description 1 8,913 Bank and lending costs line item has been merged with general and administrative expenses. 2 1,428 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item. 3 3,093 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item. 4 173 Impairment loss adjustment due to change in ECL estimate for collection costs. 5 3,670 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item. 6 2,124 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item. 7 353 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income. 8 940 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense. 9 36 Finance cost has been renamed to interest expense and reclassified to net interest income. 10 176 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.
The following tables show the restatement of consolidated statements of cash flows for interim periods of Q1 2023, H1 2023 and 9M 2023 due to the change in accounting policy (a) and correction of prior period errors (b).
Restatement of condensed interim consolidated statement of cash flows for Q1 2023
EUR ’000 Reported Q1 2023 Adjustment amount Adjustment number Restated Q1 2023 Old FSLI New FSLI Profit for the year Profit for the period 2,223 58 1 2,281 Adjustments for: Adjustments for: Impairments on loans Impairment loss on loans to customers 19,817 1,063 1, 4, 2 20,879 Depreciation and amortisation Depreciation and amortisation 3,416 265 3 3,681 Finace costs, net Net interest income 5,505 (55,828) 6 (50,323) Fair value and foreign exchange gains and losses Fair value and foreign exchange gains and losses 1,918 5, 11 1,918 Tax on income from operations Income tax expense 662 90 4 752 Other adjustments Other adjustments 388 (265) 3 122 Working capital changes: Changes in operating assets: Increase (-) / Decrease (+) in current receivables Increase (-) / Decrease (+) in Other Assets (4,399) (1,633) 12, 14, 16 (6,032) Increase (-) / Decrease (+) in Loans to Customers - (21,151) 2, 10, 15, 17 (21,151) Increase (-) / Decrease (+) in Other Financial Assets - (3,460) 18 (3,460) Increase (-) / Decrease (+) in Derivative Financial Instruments (net) - 994 8, 12 994 Changes in operating liabilities: Changes in operating liabilities: Deposits from customers Increase (+) / decrease (-) in Deposits from customers - 80,847 7, 14 80,847 Increase (+) / Decrease (-) in trade payables and other liabilities Increase (+) / decrease (-) in Other liabilities (3,339) 4,767 16, 17, 18 (1,429) Interest paid Interest paid (2,623) 697 13 (1,926) Interest received Interest received 91 48,313 6, 13, 15 48,405 Income taxes paid Income taxes paid 159 - - 159 Movements in gross portfolio (23,222) 23,222 10 - Net cash from operating activities Net cash from operating activities (1,322) 79,896 - 78,575 Cash flows from investing activities Cash flows from investing activities Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) 1,233 (1,233) 8 - Purchase of tangible and intangible assets Purchase of tangible assets - (242) 9 (242) Purchase of tangible and intangible assets Purchase of intangible assets (2,642) 242 9 (2,400) Net cash used in investing activities Net cash used in investing activities (1,409) (1,233) 26 (2,642) Cash flows from financing activities Cash flows from financing activities Perpetual bonds interest Repayment of perpetual bonds interest (1,365) - - (1,365) Repayment of finance lease liabilities Repayment of lease liabilities (562) - - (562) Deposits from customers Increase (+) / decrease (-) in Deposits from customers 79,204 (79,204) 7 - Net cash used in financing activities Net cash used in financing activities 77,277 (79,204) 7 (1,928) Cash and cash equivalents at beginning of the period Cash and cash equivalents at beginning of the period 153,325 - - 153,326 Exchange gains/(losses) on cash and cash equivalents Exchange gains/(losses) on cash and cash equivalents (701) 541 11 (160) Net increase/(decrease) in cash and cash equivalents Net increase/decrease in cash and cash equivalents 74,546 (541) 11 74,005 Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the period 227,171 - - 227,171
Description of adjustments to condensed interim consolidated statement of cash flows for Q1 2023
Number AmountEUR ’000 Description 1 58 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers. 2 1,210 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers. 3 265 Impairment on non-financial assets has been reclassified from other adjustments line. 4 90 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset. 5 2,459 Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss. 6 53,369 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses. 7 79,204 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item. 8 1,233 Reclassification of changes in derivative assets and liabilities. 9 242 Separation of purchase of tangible assets from purchase of intangible assets. 10 23,222 Reclassification of movement of loans to customers with subsequent renaming of line item. 11 541 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses. 12 239 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives. 13 697 Adjustment of net interest income with netting of interest received and interest paid line items. 14 1,643 Reclassification of change in prepayment related to issue costs to loans to customers. 15 4,359 Separation of movement on interest accrual from loans to customers. 16 229 Netting of other liabilities with other assets to match movement on the statement of financial position. 17 1,078 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position. 18 3,460 Netting of other liabilities to other financial assets to match movement on the statement of financial position.
Restatement of condensed interim consolidated statement of cash flows for H1 2023
EUR ’000 Reported H1 2023 Adjustment amount Adjustment number Restated H1 2023 Old FSLI New FSLI Profit for the year Profit for the period 7,481 115 1 7,596 Adjustments for: Adjustments for: Impairments on loans Impairment loss on loans to customers 40,197 2,013 1, 2 42,210 Depreciation and amortisation Depreciation and amortisation 7,171 419 3 7,590 Finace costs, net Net interest income 10,613 (111,867) 5, 6 (101,254) Fair value and foreign exchange gains and losses Fair value and foreign exchange gains and losses 2,563 5, 11 2,563 Tax on income from operations Income tax expense 1,865 192 4 2,057 Other adjustments Other adjustments 704 (419) 3 286 Working capital changes: Changes in operating assets: Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers 9,291 (60,582) 10, 12, 14, 16, 17 (51,291) Increase (-) / Decrease (+) in Other Financial Assets (17,279) 2, 4, 15, 17, 19 (17,277) Increase (-) / Decrease (+) in Derivative Financial Instruments (net) 230 18 230 Increase (-) / Decrease (+) in Other Assets (198) 8, 12 (198) Changes in operating liabilities: Changes in operating liabilities: Deposits from customers Increase (+) / decrease (-) in Deposits from customers - 69,750 7, 14 69,750 Increase (+) / Decrease (-) in trade payables and other liabilities Increase (+) / decrease (-) in Other liabilities (2,288) 3,665 16, 18 1,377 Interest paid Interest paid (4,004) (671) 13 (4,675) Interest received Interest received 457 99,209 6, 13, 15 99,666 Income taxes paid Income taxes paid (486) - - (486) Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers (65,323) 65,323 10 - Net cash from operating activities Net cash from operating activities 5,678 52,463 - 58,143 Cash flows from investing activities Cash flows from investing activities Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) (21) 21 8 - Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) (12,800) 12,800 19 - Purchase of tangible and intangible assets Purchase of tangible assets - 146 9 146 Purchase of tangible and intangible assets Purchase of intangible assets (4,863) (146) 9 (5,009) Net cash used in investing activities Net cash used in investing activities (18,700) 12,821 45 (5,879) Cash flows from financing activities Cash flows from financing activities Perpetual bonds interest Repayment of perpetual bonds interest (2,845) (2,845) Repayment of finance lease liabilities Repayment of lease liabilities (1,104) - - (1,104) Deposits from customers Increase (+) / decrease (-) in Deposits from customers 66,002 (66,002) 7 - Net cash used in financing activities Net cash used in financing activities 57,589 (66,002) 7 (8,413) Cash and cash equivalents at beginning of the period Cash and cash equivalents at beginning of the period 153,325 - - 153,326 Exchange gains/(losses) on cash and cash equivalents Exchange gains/(losses) on cash and cash equivalents (1,186) 718 11 (469) Net increase/(decrease) in cash and cash equivalents Net increase/decrease in cash and cash equivalents 44,568 (718) 11 43,850 Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the period 196,707 - - 196,707
Description of adjustments to condensed interim consolidated statement of cash flows for H1 2023
Number AmountEUR ’000 Description 1 115 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers. 2 2,128 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers. 3 419 Impairment on non-financial assets has been reclassified from other adjustments line. 4 192 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset. 5 3,281 Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss. 6 108,586 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses. 7 66,002 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item. 8 21 Reclassification of changes in derivative assets and liabilities. 9 146 Separation of purchase of tangible assets from purchase of intangible assets. 10 65,323 Reclassification of movement of loans to customers with subsequent renaming of line item. 11 718 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses. 12 177 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives. 13 671 Adjustment of net interest income with netting of interest received and interest paid line items. 14 3,748 Reclassification of change in prepayment related to issue costs to loans to customers. 15 10,048 Separation of movement on interest accrual from loans to customers. 16 3,895 Netting of other liabilities with other assets to match movement on the statement of financial position. 17 12,207 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position. 18 230 Netting of other liabilities to other financial assets to match movement on the statement of financial position. 19 12,800 Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.
Restatement of condensed interim consolidated statement of cash flows for 9M 2023
EUR ’000 Reported 9M 2023 Adjustment Amount Adjustment number Restated 9M 2023 Old FSLI New FSLI Profit for the year Profit for the period 12,356 172 1 12,528 Adjustments for: Adjustments for: Impairments on loans Impairment loss on loans to customers 61,452 2,920 1, 2 64,372 Depreciation and amortisation Depreciation and amortisation 11,582 (85) 3 11,497 Finance costs, net Net interest income 16,435 (170,686) 5, 6 (154,251) Fair value and foreign exchange gains and losses Fair value and foreign exchange gains and losses - 3,670 5, 11 3,670 Tax on income from operations Income tax expense 2,492 304 4 2,796 Other adjustments Other adjustments 347 85 3 432 Working capital changes: Changes in operating assets: Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers 20,805 (121,739) 10, 12, 14, 16, 17 (100,934) Increase (-) / Decrease (+) in Other Financial Assets - (19,214) 2, 4, 15, 17, 19 (19,215) Increase (-) / Decrease (+) in Derivative Financial Instruments (net) - 819 18 819 Increase (-) / Decrease (+) in Other Assets - 3,524 8, 12 3,524 Changes in operating liabilities: Changes in operating liabilities: Deposits from customers Increase (+) / decrease (-) in Deposits from customers - 52,935 7, 14 52,935 Increase (+) / Decrease (-) in trade payables and other liabilities Increase (+) / decrease (-) in Other liabilities (3,034) 9,025 16, 18 5,991 Interest paid Interest paid (7,545) (83) 13 (7,628) Interest received Interest received 819 158,340 6, 13, 15 159,159 Income taxes paid Income taxes paid (547) (547) Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers (115,421) 115,421 10 - Net cash from operating activities Net cash from operating activities (259) 35,408 35,149 Cash flows from investing activities Cash flows from investing activities Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) 4,774 (4,774) 8 - Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) (14,600) 14,600 19 - Purchase of tangible and intangible assets Purchase of tangible assets - (126) 9 (126) Purchase of tangible and intangible assets Purchase of intangible assets (8,036) 126 9 (7,910) Net cash used in investing activities Net cash used in investing activities (18,879) 9,826 45 (9,052) Cash flows from financing activities Cash flows from financing activities Perpetual bonds interest Repayment of perpetual bonds interest (4,426) - - (4,426) Repayment of finance lease liabilities Repayment of lease liabilities (1,802) - - (1,802) Deposits from customers Increase (+) / decrease (-) in Deposits from customers 46,316 (46,316) 7 - Net cash used in financing activities Net cash used in financing activities 34,232 (46,316) 7 (12,084) Cash and cash equivalents at beginning of the period Cash and cash equivalents at beginning of the period 153,326 - - 153,326 Exchange gains/(losses) on cash and cash equivalents Exchange gains/(losses) on cash and cash equivalents (1,380) 1,082 11 (298) Net increase/(decrease) in cash and cash equivalents Net increase/decrease in cash and cash equivalents 15,094 (1,082) 11 14,012 Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the period 167,040 - - 167,040
Description of adjustments to condensed interim consolidated statement of cash flows for 9M 2023
Number AmountEUR ’000 Description 1 172 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers. 2 3,092 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers. 3 85 Impairment on non-financial assets has been reclassified from other adjustments line. 4 304 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset. 5 4,752 Finance cost, net has been split between net interest income and fair values and foreign exchange gain or loss in the statement of profit or loss. 6 165,934 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses. 7 46,316 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item. 8 4,774 Reclassification of changes in derivative assets and liabilities. 9 126 Separation of purchase of tangible assets from purchase of intangible assets. 10 115,421 Reclassification of movement of loans to customers with subsequent renaming of line item. 11 1,082 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses. 12 1,250 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives. 13 83 Adjustment of net interest income with netting of interest received and interest paid line items. 14 6,619 Reclassification of change in prepayment related to issue costs to loans to customers. 15 7,677 Separation of movement on interest accrual from loans to customers. 16 9,844 Netting of other liabilities with other assets to match movement on the statement of financial position. 17 8,895 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position. 18 819 Netting of other liabilities to other financial assets to match movement on the statement of financial position. 19 14,600 Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.
c) Changes in organisational structure
In November 2023, Multitude announced plans to improve its organisational structure and introduce a new business unit, Wholesale banking. This was done by reorganising part of the SweepBank business. Operational since January 1, 2024, the new business unit is active under the Multitude Bank brand and offers two products: Secured Debt and a Payment Solution.
Simultaneously, in its financial reports, the Group renamed the Ferratum business unit to the Consumer banking business unit while keeping the brand Ferratum. CapitalBox’s business unit was renamed SME banking, keeping CapitalBox as the brand name. The reorganisation led to the reallocation of revenues, direct expenses and receivables of Prime Loans to Ferratum, Sales Finance to CapitalBox and the redistribution of overhead costs among the three business units. These changes have been incorporated into the segment reporting, and the financial results of business units for the comparative periods have been restated to ensure comparability.
The following tables show the restatement of profit or loss disclosure of operating and reportable segments for interim periods of Q1 2023, H1 2023, 9M 2023 and full year 2023 due to the change in accounting policy, amendment of prior period error and change in organisational structure.
Restatement of operating and reportable segments for Q1 2023
Old FSLI New FSLI Reported Ferratum Q1 2023 Restatement amount Restatement number Restated Consumer banking Q1 2023 Reported Capital Box Q1 2023 Restatement amount Restatement number Restated SME banking Q1 2023 Reported Sweep Bank Q1 2023 Restatement amount Restatement number Restated Wholesale banking Q1 2023 Interest revenue Interest income 43,377 4,537 9, 16, 19, 25, 30 47,913 5,475 45 17, 20 5,521 4,397 (3,595) 18, 21, 30 801 Servicing fee revenue Fee and commission income 754 (752) 9, 31 2 - - - - 20 (20) 31 - Impairment loss on loans to customers Impairment loss on loans to customers (15,467) (4,593) 3, 13, 32 (20,060) (786) (30) 4, 14 (816) (3,564) 3,562 15, 32, 33 (3) Bank and lending costs General and administrative expense (2,548) 2,548 6 - (281) 281 7 - (215) 215 8 - Personnel expense Personnel expense (5,172) (1,233) 34 (6,405) (1,442) (223) 35 (1,665) (1,788) 1,456 34, 35 (332) Selling and marketing expense Selling and marketing expense (2,536) (198) 22, 36 (2,734) (606) (4) 23, 37 (610) (167) 141 24, 36, 37 (26) General and administrative expense General and administrative expense (3,924) (3,429) 5, 6, 10, 13, 16, 22, 38 (7,353) (851) (425) 7, 11, 14, 17, 23, 39 (1,275) (1,385) 973 8, 12, 15, 18, 24, 38, 39 (412) Depreciation and amortisation Depreciation and amortisation (1,949) (1,469) 40 (3,418) (198) (42) 41 (240) (1,534) 1,511 40, 41 (23) Other income, net Other income (2) 31 26, 42 29 - (6) 27, 43 (6) - (4) 42, 43 (5) Other income, net Other expense - (19) 26 (19) - (2) 27 (2) - - - - Profit (loss) before interests and taxes (‘EBIT’) Profit before interest expense and taxes (EBIT) 12,533 (4,577) - 7,955 1,311 (406) 907 (4,236) 4,238 - - Allocated finance costs, net Interest expense (3,096) 169 10, 19, 29, 45 (2,927) (953) 101 11, 20, 29, 45 (853) (1,252) 1,119 12, 21, 44, 45 (133) Unallocated foreign exchange losses, net Fair value and foreign exchange gains and losses - (1,579) 1, 25, 29 (1,579) - (339) 2, 29 (339) - - - - Profit before income taxes Profit before income tax 9,437 (5,987) - 3,450 358 (644) - (285) (5,488) 5,357 - (133)
Description of adjustments to operating and reportable segments for Q1 2023
Number AmountEUR ’000 Description 1 1,171 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment. 2 251 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment. 3 35 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error. 4 23 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 5 90 Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation. 6 2,548 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation. 7 281 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation. 8 215 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation. 9 772 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error. 10 715 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation. 11 220 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation. 12 289 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation. 13 874 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error. 14 44 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 15 201 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error. 16 96 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error. 17 12 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 18 10 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error. 19 187 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation. 20 58 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation. 21 76 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation. 22 47 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation. 23 11 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation. 24 3 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation. 25 13 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit. 26 19 Gross up of other income and expense previously reported at net value in Ferratum business unit. 27 2 Gross up of other income and expense previously reported at net value in CapitalBox business unit. 28 395 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit. 29 88 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit. 30 3,661 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments. 31 20 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments. 32 3,754 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 33 9 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 34 1,233 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 35 223 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments. 36 151 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 37 7 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 38 1,272 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 39 9 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 40 1,469 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 41 42 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 42 12 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 43 8 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 44 755 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 45 150 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
Restatement of operating and reportable segments for H1 2023
Old FSLI New FSLI Reported Ferratum H1 2023 Restatement amount Restatement number Restated Consumer banking H1 2023 Reported Capital Box H1 2023 Restatement amount Restatement number Restated SME banking H1 2023 Reported Sweep Bank H1 2023 Restatement amount Restatement number Restated Wholesale banking H1 2023 Interest revenue Interest income 87,710 9,387 9, 16, 19, 25, 30 97,097 11,000 165 17, 20, 47 11,166 9,322 (7,500) 18, 21, 30, 47 1,823 Servicing fee revenue Fee and commission income 1,449 (1,442) 9, 31 8 - - - - 45 (45) 31 - Impairment loss on loans to customers Impairment loss on loans to customers (29,076) (10,667) 3, 13, 32 (39,742) (2,413) (50) 4, 14 (2,462) (8,709) 8,704 15, 32, 33 (5) Bank and lending costs General and administrative expense (4,916) 4,916 6 - (549) 549 7 - (495) 495 8 - Personnel expense Personnel expense (10,385) (2,319) 34 (12,704) (2,803) (601) 35 (3,404) (3,604) 2,920 34, 35 (683) Selling and marketing expense Selling and marketing expense (5,311) (396) 22, 36 (5,707) (1,402) (14) 23, 37 (1,416) (331) 290 24, 36, 37 (41) General and administrative expense General and administrative expense (7,280) (5,137) 5, 6, 10, 13, 16, 22, 38 (12,417) (1,458) (852) 7, 11, 14, 17, 23, 39 (2,310) (2,454) 1,723 8, 12, 15, 18, 24, 38, 39 (731) Depreciation and amortisation Depreciation and amortisation (4,432) (2,588) 40 (7,020) (438) (82) 41 (520) (2,719) 2,670 40, 41 (50) Other income, net Other income 164 8 26, 42 172 (5) 17 27, 43 12 (4) 15 42, 43 11 Other income, net Other expense - - 26 - - (40) 27 (40) - - - - Not allocated Profit (loss) for the period from investment in associates - - - - - - - - - 12 46 12 Profit (loss) before interests and taxes (‘EBIT’) Profit before interest expense and taxes (EBIT) 27,923 (8,238) - 19,686 1,932 (908) - 1,027 (8,949) 9,285 - 335 Allocated finance costs, net Interest expense (5,500) (1,115) 10, 19, 29, 45 (6,615) (1,638) (223) 11, 20, 29, 45 (1,862) (2,198) 1,842 12, 21, 44, 45 (355) Unallocated foreign exchange losses, net Fair value and foreign exchange gains and losses - (2,104) 1, 25, 29 (2,104) - (459) 2, 29 (459) - - - - Profit before income taxes Profit before income tax 22,423 (11,457) - 10,967 294 (1,590) - (1,293) (11,147) 11,127 - (20)
Description of adjustments to operating and reportable segments for H1 2023
Number Amount, EUR ’000 Description 1 1,838 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment. 2 401 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment. 3 69 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error. 4 46 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 5 192 Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation. 6 4,916 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation. 7 549 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation. 8 495 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation. 9 1,487 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error. 10 638 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation. 11 128 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation. 12 215 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation. 13 1,539 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error. 14 128 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 15 461 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error. 16 191 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error. 17 24 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 18 20 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error. 19 454 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation. 20 135 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation. 21 182 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation. 22 90 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation. 23 24 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation. 24 6 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation. 25 30 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit. 26 - Gross up of other income and expense previously reported at net value in Ferratum business unit. 27 40 Gross up of other income and expense previously reported at net value in CapitalBox business unit. 28 236 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit. 29 58 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit. 30 7,607 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments. 31 45 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments. 32 9,197 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 33 32 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 34 2,319 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 35 601 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments. 36 306 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 37 10 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 38 1,595 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 39 351 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 40 2,588 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 41 82 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 42 8 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 43 23 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 44 1,535 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 45 274 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 46 12 Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy. 47 54 Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.
Restatement of operating and reportable segments for 9M 2023
Old FSLI New FSLI Reported Ferratum 9M 2023 Restatement amount Restatement number Restated Consumer banking 9M 2023 Reported Capital Box 9M 2023 Restatement amount Restatement number Restated SME banking 9M 2023 Reported Sweep Bank 9M 2023 Restatement amount Restatement number Restated Wholesale banking 9M 2023 Interest revenue Interest income 133,881 14,304 9, 16, 19, 25, 30 148,185 16,771 290 17, 20, 47 17,061 14,569 (11,358) 18, 21, 30, 47 3,211 Servicing fee revenue Fee and commission income 2,105 (2,057) 9, 31 47 - - - - 67 (67) 31 - Impairment loss on loans to customers Impairment loss on loans to customers (44,076) (15,832) 3, 13, 32 (59,908) (4,408) (51) 4, 14 (4,459) (12,968) 12,962 15, 32, 33 (5) Bank and lending costs General and administrative expense (7,323) 7,323 6 - (793) 793 7 - (797) 797 8 - Personnel expense Personnel expense (15,560) (3,360) 34 (18,920) (4,242) (890) 35 (5,132) (5,395) 4,250 34, 35 (1,145) Selling and marketing expense Selling and marketing expense (8,213) (517) 22, 36 (8,730) (2,205) (17) 23, 37 (2,221) (404) 357 24, 36, 37 (46) General and administrative expense General and administrative expense (10,837) (7,583) 5, 6, 10, 13, 16, 22, 38 (18,419) (2,196) (1,227) 7, 11, 14, 17, 23, 39 (3,422) (3,675) 2,579 8, 12, 15, 18, 24, 38, 39 (1,098) Depreciation and amortisation Depreciation and amortisation (6,901) (3,680) 40 (10,581) (690) (107) 41 (797) (3,906) 3,787 40, 41 (119) Other income, net Other income (335) 337 26, 42 2 - - 27, 43 - - - 42, 43 - Other income, net Other expense - (335) 26 (335) - (2) 27 (2) - - - - Not allocated Profit (loss) for the period from investment in associates - - - - - - - - - 34 46 34 Profit (loss) before interests and taxes (‘EBIT’) Profit before interest expense and taxes (EBIT) 42,741 (11,400) - 31,342 2,237 (1,211) - 1,027 (12,509) 13,341 - 832 Allocated finance costs, net Interest expense (8,650) (2,009) - (10,659) (2,440) (460) - (2,900) (3,271) 2,624 - (648) Unallocated foreign exchange losses, net Fair value and foreign exchange gains and losses - (3,058) - (3,058) - (612) - (612) - - - - Profit before income taxes Profit before income tax 34,091 (16,467) - 17,625 (203) (2,283) - (2,486) (15,780) 15,965 - 184
Description of adjustments to operating and reportable segments for 9M 2023
Number Amount, EUR ’000 Description 1 2,483 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment. 2 508 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment. 3 103 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error. 4 69 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 5 - Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation. 6 7,323 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation. 7 793 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation. 8 797 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation. 9 2,124 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error. 10 610 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation. 11 124 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation. 12 207 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation. 13 2,218 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error. 14 222 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 15 653 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error. 16 286 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error. 17 36 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error. 18 31 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error. 19 860 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation. 20 243 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation. 21 325 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation. 22 134 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation. 23 36 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation. 24 7 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation. 25 37 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit. 26 335 Gross up of other income and expense previously reported at net value in Ferratum business unit. 27 2 Gross up of other income and expense previously reported at net value in CapitalBox business unit. 28 538 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit. 29 104 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit. 30 11,569 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments. 31 67 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments. 32 13,717 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 33 102 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 34 3,360 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 35 890 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments. 36 383 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 37 19 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 38 2,288 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 39 604 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 40 3,680 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 41 107 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 42 2 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 43 2 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 44 2,297 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments. 45 445 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments. 46 34 Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy. 47 83 Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.
Restatement of operating and reportable segments for 2023
Old FSLI New FSLI Reported Ferratum 2023 Restatement amount Restatement number Restated Consumer banking 2023 Reported Capital Box 2023 Restatement amount Restatement number Restated SME banking 2023 Reported Sweep Bank 2023 Restatement amount Restatement number Restated Wholesale banking 2023 Revenue Interest income 192,731 8,959 1 201,690 24,686 (988) 2 23,698 23,137 (18,066) 3 5,071 Not reported Fee and commission income - 63 4 63 - - - - - - - - Credit losses Impairment loss on loans to customers (62,760) (19,889) 5 (82,649) (6,635) (120) 6 (6,755) (16,197) 16,348 7 151 Not reported Personnel expense - (25,425) 8 (25,425) - (7,022) 9 (7,022) - (1,629) 10 (1,629) Not reported Selling and marketing expense - (10,819) 11 (10,819) - (3,324) 12 (3,324) - (37) 13 (37) Not reported General and administrative expense - (25,559) 14 (25,559) - (4,830) 15 (4,830) - (1,587) 16 (1,587) Not reported Depreciation and amortisation - (13,781) 17 (13,781) - (1,069) 18 (1,069) - (167) 19 (167) Not reported Other income - 8 20 8 - 14 21 14 - 8 22 8 Not reported Other expense - (495) 23 (495) - (7) 24 (7) - - - - Not reported Profit (loss) for the period from investment in associates - - - - - - - - - 6 25 6 EBIT (reported to CODM) Profit before interest expense and taxes (EBIT) 59,079 (16,046) - 43,033 1,735 (1,029) - 706 (15,258) 17,074 - 1,816 Not reported Interest expense - (16,582) 26 (16,582) - (4,402) 27 (4,402) - (1,254) 28 (1,254) Not reported Fair value and foreign exchange gains and losses - (3,557) 29 (3,557) - (771) 30 (771) - - - - Not reported Profit before income tax 59,079 (36,185) - 22,894 1,735 (6,202) - (4,467) (15,258) 15,820 - 562
Description of adjustments to operating and reportable segments for full year 2023
Number AmountEUR ’000 Description 1 8,959 Direct allocation of interest income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 2 988 Direct allocation of interest income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 3 18,066 Direct allocation of interest income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 4 63 Direct allocation of fee income to Consumer banking business adjusted for organisation change unit previously not reported in annual statement 2023. 5 19,889 Direct allocation of impairment losses on loans to customers to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 6 120 Direct allocation of impairment losses on loans to customers to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 7 16,348 Direct allocation of impairment losses on loans to customers to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 8 25,425 Direct allocation of personnel expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 9 7,022 Direct allocation of personnel expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 10 1,629 Direct allocation of personnel expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 11 10,819 Direct allocation of selling and marketing expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 12 3,324 Direct allocation of selling and marketing expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 13 37 Direct allocation of selling and marketing expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 14 25,559 Direct allocation of general and administrative expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 15 4,830 Direct allocation of general and administrative expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 16 1,587 Direct allocation of general and administrative expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 17 13,781 Direct allocation of depreciation and amortization to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 18 1,069 Direct allocation of depreciation and amortization to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 19 167 Direct allocation of depreciation and amortization to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 20 8 Direct allocation of other income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 21 14 Direct allocation of other income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 22 8 Direct allocation of other income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 23 495 Direct allocation of other expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 24 7 Direct allocation of other expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 25 6 Direct allocation of financial results from participation in associates to Wholesale banking business unit previously not reported in annual statement 2023. 26 16,582 Direct allocation of interest expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 27 4,402 Direct allocation of interest expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023. 28 1,254 Direct allocation of interest expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023. 29 3,557 Direct allocation of foreign currency exchange losses to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023. 30 771 Direct allocation of foreign currency exchange losses to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
Contact:
Lasse Mäkelä
Chief Strategy and IR Officer
Phone: +41 79 371 34 17
E-Mail: lasse.makela@multitude.com
About Multitude SE:
Multitude is a listed European FinTech company, offering digital lending and online banking services to consumers, small and medium-sized businesses, and other FinTechs overlooked by traditional banks. The services are provided through three independent business units, which are served by our internal Banking-as-a-Service Growth Platform. Multitude’s business units are consumer banking (Ferratum), SME banking (CapitalBox) and wholesale banking (Multitude Bank). Multitude Group employs over 700 people in 25 countries and offers services in 16 countries, achieving a combined turnover of 230 million euros in 2023. Multitude was founded in Finland in 2005 and is listed on the Prime Standard segment of the Frankfurt Stock Exchange under the symbol 'FRU'.
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