Source: Inderes

Multitude’s Q3 earnings were clearly above our expectations, driven mainly by lower-than-expected impairment losses. The company reiterated its 2026 net profit guidance of 30 MEUR, which we see as comfortably within reach. We also see good drivers for continued earnings growth into 2027.

Topline in line with expectations

Multitude’s Q3 total net operating income (NOI) rose to 59.7 MEUR (Q3'25: 52.3 MEUR), slightly above our 58.7 MEUR estimate. Our NOI estimate, however, excluded income from associates (0.9 MEUR), which the company reports within NOI, so on a comparable basis, the top line was in line with our expectations. Group net interest income was flat year-on-year at 47.0 MEUR, broadly in line with our 46.5 MEUR estimate.

Consumer Banking’s net interest income declined 4% year-on-year, slightly less than we expected (-6%). It grew 3% quarter-on-quarter, which supports our view that the headwinds from last year’s divestments and the Swedish interest rate caps are now behind us. SME Banking’s net interest income grew 6% year-on-year, which was in line with our expectation. Wholesale Banking grew 44%, slightly below our expectations, even though its loan and debt investment portfolio grew 9% from Q2 to 297 MEUR. This will support the unit's growth going forward.

Net fee and commission income tripled to 10.6 MEUR (Q3'25: 3.5 MEUR), which was slightly below our estimate (11.0 MEUR). Growth came mainly from brokerage fees (8.2 MEUR) driven by Sortter’s first full quarter in the Group, and loan servicing fees from the divested entities (2.7 MEUR). Earn-outs from last year’s divestments supported the result through a 1.7 MEUR revaluation gain, booked in fair value and FX items (net 1.1 MEUR including FX and derivatives)Combined, these items were in line with our expectations.

Lower impairments drove a clear earnings beat

The Group’s earnings before taxes (EBT) rose to 10.8 MEUR (Q3'25: 7.0 MEUR), above our 9.6 MEUR estimate. The beat came mainly from impairment losses, which fell to 16.2 MEUR (-15% y/y) against our 18.8 MEUR estimate. The positive asset quality trend thus continued even as the loan portfolio grew, which we find very positive. Operating expenses were 32.6 MEUR, somewhat above our 31.4 MEUR estimate. The cost/income ratio rose to 55% (Q3'25: 50%), although it’s worth noting Sortter’s different cost structure. That said, we believe there is room to improve cost efficiency going forward.

All business units improved their results year-on-year. Consumer Banking reported EBT of 9.6 MEUR (Q3'25: 6.8 MEUR), supported by Sortter and lower impairment losses. SME Banking's EBT was at -0.4 MEUR (Q3'25: -1.2 MEUR), showing that the trend in the segment is getting better. Clearly there is still some work to be done to reach profitability, which was the original goal for this year. However, we find it possible that profitability can be achieved next year. The unit’s management was also changed yesterday, with Jesse Kaislavuo, previously Head of Process Transformation and Automation, appointed to lead the unit. Wholesale Banking's EBT was 1.6 MEUR (Q3'25: 1.4 MEUR).

The tax rate and interest on perpetual bonds were roughly in line with our expectations. EPS landed at EUR 0.34 (Q3'25: EUR 0.25), above our EUR 0.29 estimate.

Guidance is well within reach

Multitude reiterated its guidance of 30 MEUR net profit for 2026, as well as its target of 20% annual net profit growth in 2027-2028. With 22.3 MEUR accumulated in the first 9 months, Q4 requires a net profit of around 7.7 MEUR, which is below our current estimate (8.7 MEUR). After a strong Q3, we view the guidance to be very realistic. Overall, we also see good drivers for continued profit growth next year (Consumer Banking NII returning to modest growth, Sortter's full-year consolidation, SME Banking's modest turnaround and Wholesale Banking's continued profitable growth).