<

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

Transparency directive : regulatory news

15/05/2024 08:00

EQS-News: Multitude SE / Key word(s): Miscellaneous
Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation (news with additional features)

15.05.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


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

 

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

 

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

 

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

 

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

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

 

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

 

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

 

b) Correction of prior period errors:

The following corrections have been made:

 

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

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

 

2. Classification of reminder fees as interest income

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

 

3. Scoring costs

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

 

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

 

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

 

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

EUR ’000   Reported 31 March 2023 Adjustment amount Adjustment number Restated 31 March 2023
Old FSLI New FSLI
ASSETS ASSETS        
Non-current assets
 
         
Deferred tax assets
 
Deferred tax assets
 
6,817 394 6 7,211
Loans to customers
 
Loans to customers 107,897 401,837 1, 5 509,734
Other non-current financial assets
 
Debt investments 32,061 (7,494) 3 24,567
Current assets          
Loans to customers Loans to customers 404,167 (404,167) 1 -
Other current financial assets Other financial assets 17,185 5,275 2, 3 22,460
Prepaid expenses and other current assets
 
Prepaid expenses and other assets 1,004 2,218 2 3,222
Total assets Total assets 838,527 (1,936) - 836,591
EQUITY EQUITY        
Retained earnings
 
Retained earnings
 
78,561 (1,936) 4, 5 76,625
Total equity Total equity 183,401 (1,936) - 181,465
LIABILITIES LIABILITIES        
Non-current liabilities          
Deposits from customers
 
Deposits from customers
 
123,639 460,767 6, 9 584,406
Lease liabilities
 
Lease liabilities
 
 2,670  1,551 7  4,221
Current liabilities          
Deposits from customers Deposits from customers 457,118 (457,118) 6 -
Lease liabilities
 
Lease liabilities
 
1,551 (1,551) 7 -
Trade payables
 
Provisions, accruals and other liabilities
 
6,610 10,395 8, 9 17,005
Accruals and other current liabilities
 
Provisions, accruals and other liabilities
 
14,044 (14,044) 8 -
Total liabilities Total liabilities 655,126 - - 655,126
Total equity and liabilities Total equity and liabilities 838,527 (1,936) - 836,591

 

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

Number Amount
 EUR ’000
Description
1 404,167 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
2 2,218 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.
3 7,494 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.
4 394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.
5 2,330 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.
6 457,118 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
7 1,551 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
8 14,044 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.
9 3,649 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

 

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

EUR ’000   Reported 30 June 2023 Adjustment amount Adjustment number Restated 30 June 2023
Old FSLI New FSLI
ASSETS ASSETS        
Non-current assets
 
         
Deferred tax assets Deferred tax assets 6,536 394 5 6,930
Loans to customers
 
Loans to customers 109,750 408,794 1, 6 518,544
Other non-current financial assets
 
Debt investments                          41,809                           (3,424) 3, 4 38,385
Investments accounted for using the equity method Investments accounted for using the equity method  1,012  16 3 1,028
Current assets          
Loans to customers Loans to customers  411,067  (411,067) 1 -
Other current financial assets Other financial assets  12,029  4,662 2, 4 16,691
Prepaid expenses and other current assets
 
Prepaid expenses and other assets  4,411  (1,254) 2 3,157
Total assets Total assets  826,512  (1,879)   824,633
EQUITY EQUITY        
Retained earnings
 
Retained earnings
 
 78,226  (1,879) 5, 6 76,347
Total equity Total equity  181,501  (1,879)   179,622
LIABILITIES LIABILITIES        
Non-current liabilities          
Deposits from customers
 
Deposits from customers
 
 149,206  423,922 7, 10 573,128
Lease liabilities
 
Lease liabilities
 
 3,649  1,916 8 5,565
Current liabilities          
Deposits from customers Deposits from customers  418,214  (418,214) 7 -
Lease liabilities
 
Lease liabilities
 
 1,916  (1,916)  8 -
Trade payables
 
Provisions, accruals and other liabilities
 
 6,703  10,250  9, 10  16,953
Accruals and other current liabilities
 
Provisions, accruals and other liabilities
 
 15,958  (15,958)  9 -
Total liabilities Total liabilities  645,011  - -  645,011
Total equity and liabilities Total equity and liabilities  826,512  (1,879) -  824,633

 

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

Number Amount
EUR ’000
Description
1 411,067 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
2 1,254 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.
3 16 Reclassification of capitalised cost incurred to purchase investment in Sortter from Debt investment in Investment accounted via equity method
4 3,408 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.
5 394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.
6 2,273 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.
7 418,214 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
8 1,916 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
9 15,958 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.
10 5,708 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

 

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

EUR ’000   Reported 30 September 2023 Adjustment amount Adjustment number Restated 30 September 2023
 Old FSLI  New FSLI
ASSETS ASSETS        
Non-current assets
 
         
Deferred tax assets
 
Deferred tax assets
 
6,348 394 6 6,742
Loans to customers
 
Loans to customers 111,193 434,831 1, 5 546,024
Other non-current financial assets
 
Debt investments 43,368 (3,046) 3 40,322
Current assets          
Loans to customers Loans to customers 437,046 (437,046) 1 -
Other current financial assets Other financial assets 11,604 1,744 2, 3 13,348
Prepaid expenses and other current assets
 
Prepaid expenses and other assets 1,477 1,302 2 2,779
Total assets Total assets 819,534 (1,821) - 817,713
EQUITY Equity        
Retained earnings
 
Retained earnings
 
82,798 (1,821) 4, 5 80,977
Total equity Total equity 184,368 (1,821) - 182,547
LIABILITIES LIABILITIES        
Non-current liabilities          
Deposits from customers
 
Deposits from customers
 
192,164 364,148 6, 9 556,312
Lease liabilities
 
Lease liabilities
 
3,353 1,942 7 5,295
Current liabilities          
Deposits from customers Deposits from customers 355,504 (355,504) 6 -
Lease liabilities
 
Lease liabilities
 
1,942 (1,942) 7 -
Trade payables
 
Provisions, accruals and other liabilities
 
10,615 10,953 8, 9 21,568
Accruals and other current liabilities
 
Provisions, accruals and other liabilities
 
19,597 (19,597) 8 -
Total liabilities Total liabilities 635,167 - - 635,167
Total equity and liabilities Total equity and liabilities 819,534 (1,821) - 817,713

 

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

Number Amount
EUR ’000
Description
1 437,046 Current and non-current loans to customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
2 1,302 Part of the prepaid expenses (which in economic terms should be presented as financial assets, such as receivables under the depositor compensation scheme) has been reclassified into other financial assets financial statement line item for a more accurate presentation of information.
3 3,046 Current portion of debt investments has been reclassified from other financial assets line item to debt investments line item.
4 394 An additional deferred tax asset generated as a result of compliance with IAS 8 has been recognised as result of increased ECL provision.
5 2,215 An additional ECL generated as a result of compliance with IAS 8 has been recognised due to collection costs classification as part of ECL.
6 355,504 Current and non-current deposits from customers have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
7 1,942 Current and non-current lease liability have been merged due to change of the presentation of consolidated statement of financial position based on the order of liquidity.
8 19,597 Trade payables line item has been merged with accruals and other current liabilities line item and renamed to provisions, accruals and other liabilities.
9 8,644 Interest accrual liability has been reclassified from provisions, accruals and other liabilities to deposit from customers.

 

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

 

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

EUR ’000   Reported Q1 2023 Adjustment amount Adjustment number Restated Q1 2023
Old FSLI New FSLI
Interest revenue
 
Interest income
 
 53,248
 
 988
 
 2, 6, 7, 9
 
 54,236
 
Fees
 
Fee and commission income
 
 774  (772)  6  2
Impairment loss on loans to customers
 
Impairment loss on loans to customers
 
 (19,817)  (1,062)  3, 4  (20,879)
Bank and lending costs
 
General and administrative expense  (3,044)  3,044  1 -
Selling and marketing expense
 
Selling and marketing expense
 
 (3,309)  (61) 11  (3,370)
General and administrative expense
 
General and administrative expense
 
 (6,160)  (2,881)  1, 3, 7, 8, 10, 11  (9,041)
Profit before interests and taxes (EBIT)
 
Profit before interest expense and taxes (EBIT)
 
 9,607  (744)    8,863
Finance income
 
Interest income
 
 320
 
 (320)
 
 2
 
-
Finance costs Interest expense  (7,043)  3,130  5, 8, 9  (3,913)
Finance costs
 
Fair value and foreign exchange gains and losses
 
-  (1,918)  5  (1,918)
Profit before income tax
 
Profit before income tax
 
 2,885  148    3,033
Income tax expense
 
Income tax expense
 
 (662)
 
 (90)
 
 10
 
 (752)
 
Profit for the period
 
Profit for the period
 
 2,223  58    2,281

 

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

Number Amount
  EUR ’000
Description
1 3,044 Bank and lending costs line item has been merged with general and administrative expenses.
2 320 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.
3 1,120 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.
4 58 Impairment loss adjustment due to change in ECL estimate for collection costs.
5 1,918 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.
6 772 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.
7 118 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.
8 1,225 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.
9 13 Finance cost has been renamed to interest expense and reclassified to net interest income.
10 90 Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense.
11 61 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

 

 

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

EUR ’000   Reported H1 2023 Adjustment amount Adjustment number Restated
H1 2023
 Old FSLI  New FSLI
Interest revenue
 
Interest income
 
 108,033  2,053  2, 6, 7, 9
 
 110,086
Fees
 
Fee and commission income
 
 1,495  (1,487)  6  8
Impairment loss on loans to customers
 
Impairment loss on loans to customers
 
 (40,197)  (2,012)  3, 4  (42,209)
Bank and lending costs
 
General and administrative expense  (5,960)  5,960  1 -
Selling and marketing expense
 
Selling and marketing expense
 
 (7,044)  (120) 11  (7,164)
General and administrative expense
 
General and administrative expense
 
 (11,191)  (4,267)  1, 3, 7, 8, 10, 11  (15,458)
Profit before interests and taxes (EBIT)
 
Profit before interest expense and taxes (EBIT)
 
 20,909  127 -  21,047
Finance income
 
Interest income
 
 771  (771)  2
 
 -
Finance costs Interest expense  (12,346)  3,514  5, 8, 9  (8,832)
Finance costs
 
Fair value and foreign exchange gains and losses
 
 -  (2,563)  5  (2,563)
Profit before income tax
 
Profit before income tax
 
 9,346  307 -  9,653
Income tax expense
 
Income tax expense
 
 (1,865)  (192)  10
 
 (2,057)
Profit for the period
 
Profit for the period
 
 7,481  115 -  7,596

 

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

Number Amount
  EUR ’000
Description
1 5,960 Bank and lending costs line item has been merged with general and administrative expenses.
2 771 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.
3 2,127 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.
4 115 Impairment loss adjustment due to change in ECL estimate for collection costs.
5 2,563 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.
6 1,487 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.
7 235 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.
8 981 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.
9 30 Finance cost has been renamed to interest expense and reclassified to net interest income.
10 192 Withholding tax on consumer loans has been reclassified from general and administrative expense to income tax expense.
11 120 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

 

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

EUR ’000   Reported 9M 2023 Adjustment amount Adjustment number Restated 9M 2023
 Old FSLI  New FSLI
Interest revenue
 
Interest income
 
165,222 3,236  2, 6, 7, 9 168,458
Fees
 
Fee and commission income
 
2,171 (2,124)  6 47
Impairment loss on loans to customers
 
Impairment loss on loans to customers
 
(61,452) (2,920)  3, 4 (64,372)
Bank and lending costs
 
General and administrative expense (8,913) 8,913  1 -
Selling and marketing expense
 
Selling and marketing expense
 
(10,821) (176)  11 (10,997)
General and administrative expense
 
General and administrative expense
 
(16,708) (6,232)  1, 3, 7, 8, 10 (22,940)
Profit before interests and taxes (EBIT)
 
Profit before interest expense and taxes (EBIT)
 
32,470 697   33,201
Finance income
 
Interest income
 
1,428 (1,428)  2 -
Finance costs Interest expense (18,781) 4,574  5, 8, 9 (14,207)
Finance costs
 
Fair value and foreign exchange gains and losses
 
- (3,670)  5 (3,670)
Profit before income tax
 
Profit before income tax
 
15,151 173   15,324
Income tax expense
 
Income tax expense
 
(2,796) -   (2,796)
Profit for the period
 
Profit for the period
 
12,355 173   12,528

 

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

Number Amount  EUR ’000 Description
1 8,913 Bank and lending costs line item has been merged with general and administrative expenses.
2 1,428 Finance income in relation to interest from loans to related parties and deposits with other banks has been merged with the interest income financial statement line item.
3 3,093 Invoicing and collection costs have been reclassified from general and administrative expense to impairment loss on loans to customers financial statement line item.
4 173 Impairment loss adjustment due to change in ECL estimate for collection costs.
5 3,670 A new financial statement line item titled fair value and foreign exchange losses has been separated from interest expense previously reported under finance cost line item.
6 2,124 Reminder fee has been reclassified from fee and commission income to interest income financial statement line item.
7 353 Scoring costs have been reclassified from general and administrative expense to interest income as part of effective interest income.
8 940 Depositor compensation scheme contributions have been reclassified from interest expense to general and administrative expense.
9 36 Finance cost has been renamed to interest expense and reclassified to net interest income.
10 176 Bank and lending costs related to loan handling costs have been merged with general and administrative expense.

 

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

 

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

EUR ’000   Reported Q1 2023 Adjustment amount Adjustment number Restated Q1 2023
Old FSLI New FSLI
Profit for the year Profit for the period 2,223 58 1 2,281
Adjustments for: Adjustments for:        
Impairments on loans Impairment loss on loans to customers 19,817 1,063 1, 4, 2 20,879
Depreciation and amortisation Depreciation and amortisation 3,416 265 3 3,681
Finace costs, net Net interest income 5,505 (55,828) 6 (50,323)
Fair value and foreign exchange gains and losses Fair value and foreign exchange gains and losses   1,918 5, 11 1,918
Tax on income from operations Income tax expense 662 90 4 752
Other adjustments Other adjustments 388 (265) 3 122
Working capital changes: Changes in operating assets:        
Increase (-) / Decrease (+) in current receivables Increase (-) / Decrease (+) in Other Assets (4,399) (1,633) 12, 14, 16 (6,032)
  Increase (-) / Decrease (+) in Loans to Customers - (21,151) 2, 10, 15, 17 (21,151)
  Increase (-) / Decrease (+) in Other Financial Assets - (3,460) 18 (3,460)
  Increase (-) / Decrease (+) in Derivative Financial Instruments (net) - 994 8, 12 994
Changes in operating liabilities: Changes in operating liabilities:        
Deposits from customers Increase (+) / decrease (-) in Deposits from customers - 80,847 7, 14 80,847
Increase (+) / Decrease (-) in trade payables and other liabilities Increase (+) / decrease (-) in Other liabilities (3,339) 4,767 16, 17, 18 (1,429)
Interest paid Interest paid (2,623) 697 13  (1,926)
Interest received Interest received 91  48,313 6, 13, 15  48,405
Income taxes paid Income taxes paid 159 - - 159
Movements in gross portfolio   (23,222) 23,222 10 -
Net cash from operating activities Net cash from operating activities (1,322) 79,896 - 78,575
Cash flows from investing activities Cash flows from investing activities        
Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) 1,233 (1,233) 8 -
Purchase of tangible and intangible assets Purchase of tangible assets - (242) 9 (242)
Purchase of tangible and intangible assets Purchase of intangible assets (2,642) 242 9 (2,400)
Net cash used in investing activities Net cash used in investing activities (1,409) (1,233) 26 (2,642)
Cash flows from financing activities Cash flows from financing activities        
Perpetual bonds interest Repayment of perpetual bonds interest (1,365) - - (1,365)
Repayment of finance lease liabilities Repayment of lease liabilities (562) - - (562)
Deposits from customers Increase (+) / decrease (-) in Deposits from customers 79,204 (79,204) 7 -
Net cash used in financing activities Net cash used in financing activities 77,277 (79,204) 7 (1,928)
Cash and cash equivalents at beginning of the period Cash and cash equivalents at beginning of the period 153,325 - - 153,326
Exchange gains/(losses) on cash and cash equivalents Exchange gains/(losses) on cash and cash equivalents (701) 541 11 (160)
Net increase/(decrease) in cash and cash equivalents Net increase/decrease in cash and cash equivalents 74,546 (541) 11 74,005
Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the period 227,171 - - 227,171

 

 

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

Number Amount
 EUR ’000
Description
1 58 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.
2 1,210 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.
3 265 Impairment on non-financial assets has been reclassified from other adjustments line.
4 90 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.
5 2,459 Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss.
6 53,369 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.
7 79,204 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.
8 1,233 Reclassification of changes in derivative assets and liabilities.
9 242 Separation of purchase of tangible assets from purchase of intangible assets.
10 23,222 Reclassification of movement of loans to customers with subsequent renaming of line item.
11 541 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.
12 239 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.
13 697 Adjustment of net interest income with netting of interest received and interest paid line items.
14 1,643 Reclassification of change in prepayment related to issue costs to loans to customers.
15 4,359 Separation of movement on interest accrual from loans to customers.
16 229 Netting of other liabilities with other assets to match movement on the statement of financial position.
17 1,078 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.
18 3,460 Netting of other liabilities to other financial assets to match movement on the statement of financial position.

 

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

EUR ’000   Reported H1 2023 Adjustment amount Adjustment number Restated H1 2023
Old FSLI New FSLI
Profit for the year Profit for the period 7,481 115 1 7,596
Adjustments for: Adjustments for:        
Impairments on loans Impairment loss on loans to customers 40,197 2,013 1, 2 42,210
Depreciation and amortisation Depreciation and amortisation 7,171 419 3 7,590
Finace costs, net Net interest income 10,613 (111,867) 5, 6 (101,254)
Fair value and foreign exchange gains and losses Fair value and foreign exchange gains and losses   2,563 5, 11 2,563
Tax on income from operations Income tax expense 1,865 192 4 2,057
Other adjustments Other adjustments 704 (419) 3 286
Working capital changes: Changes in operating assets:        
Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers 9,291 (60,582) 10, 12, 14, 16, 17 (51,291)
  Increase (-) / Decrease (+) in Other Financial Assets   (17,279) 2, 4, 15, 17, 19 (17,277)
  Increase (-) / Decrease (+) in Derivative Financial Instruments (net)   230 18 230
  Increase (-) / Decrease (+) in Other Assets   (198)  8, 12 (198)
Changes in operating liabilities: Changes in operating liabilities:        
Deposits from customers Increase (+) / decrease (-) in Deposits from customers - 69,750 7, 14 69,750
Increase (+) / Decrease (-) in trade payables and other liabilities Increase (+) / decrease (-) in Other liabilities (2,288) 3,665 16, 18 1,377
Interest paid Interest paid (4,004) (671) 13 (4,675)
Interest received Interest received 457 99,209 6, 13, 15 99,666
Income taxes paid Income taxes paid (486) - - (486)
Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers (65,323) 65,323 10 -
Net cash from operating activities Net cash from operating activities 5,678 52,463 - 58,143
Cash flows from investing activities Cash flows from investing activities        
Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) (21) 21 8 -
Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net) (12,800) 12,800 19 -
Purchase of tangible and intangible assets Purchase of tangible assets - 146 9 146
Purchase of tangible and intangible assets Purchase of intangible assets (4,863) (146) 9 (5,009)
Net cash used in investing activities Net cash used in investing activities (18,700) 12,821  45 (5,879)
Cash flows from financing activities Cash flows from financing activities        
Perpetual bonds interest Repayment of perpetual bonds interest (2,845)     (2,845)
Repayment of finance lease liabilities Repayment of lease liabilities (1,104) - - (1,104)
Deposits from customers Increase (+) / decrease (-) in Deposits from customers 66,002 (66,002) 7 -
Net cash used in financing activities Net cash used in financing activities 57,589 (66,002)  7 (8,413)
Cash and cash equivalents at beginning of the period Cash and cash equivalents at beginning of the period 153,325 - - 153,326
Exchange gains/(losses) on cash and cash equivalents Exchange gains/(losses) on cash and cash equivalents (1,186) 718 11 (469)
Net increase/(decrease) in cash and cash equivalents Net increase/decrease in cash and cash equivalents 44,568 (718) 11 43,850
Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the period 196,707 - - 196,707

 

 

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

Number Amount
EUR ’000
Description
1 115 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.
2 2,128 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.
3 419 Impairment on non-financial assets has been reclassified from other adjustments line.
4 192 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.
5 3,281 Finance cost, net has been split between net interest income and foreign exchange gain or loss in the statement of profit or loss.
6 108,586 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.
7 66,002 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.
8 21 Reclassification of changes in derivative assets and liabilities.
9 146 Separation of purchase of tangible assets from purchase of intangible assets.
10 65,323 Reclassification of movement of loans to customers with subsequent renaming of line item.
11 718 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.
12 177 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.
13 671 Adjustment of net interest income with netting of interest received and interest paid line items.
14 3,748 Reclassification of change in prepayment related to issue costs to loans to customers.
15 10,048 Separation of movement on interest accrual from loans to customers.
16 3,895 Netting of other liabilities with other assets to match movement on the statement of financial position.
17 12,207 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.
18 230 Netting of other liabilities to other financial assets to match movement on the statement of financial position.
19 12,800 Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.

 

 

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

EUR ’000   Reported 9M 2023 Adjustment Amount Adjustment number Restated 9M 2023
Old FSLI New FSLI
Profit for the year Profit for the period  12,356  172 1  12,528
Adjustments for: Adjustments for:        
Impairments on loans Impairment loss on loans to customers  61,452  2,920 1, 2  64,372
Depreciation and amortisation Depreciation and amortisation  11,582  (85) 3  11,497
Finance costs, net Net interest income  16,435  (170,686) 5, 6  (154,251)
Fair value and foreign exchange gains and losses Fair value and foreign exchange gains and losses -  3,670 5, 11  3,670
Tax on income from operations Income tax expense  2,492  304 4  2,796
Other adjustments Other adjustments  347  85 3  432
Working capital changes: Changes in operating assets:        
Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers  20,805  (121,739) 10, 12, 14, 16, 17  (100,934)
  Increase (-) / Decrease (+) in Other Financial Assets -  (19,214) 2, 4, 15, 17, 19  (19,215)
  Increase (-) / Decrease (+) in Derivative Financial Instruments (net) -  819 18  819
  Increase (-) / Decrease (+) in Other Assets -  3,524  8, 12  3,524
Changes in operating liabilities: Changes in operating liabilities:        
Deposits from customers Increase (+) / decrease (-) in Deposits from customers -  52,935 7, 14  52,935
Increase (+) / Decrease (-) in trade payables and other liabilities Increase (+) / decrease (-) in Other liabilities  (3,034)  9,025 16, 18  5,991
Interest paid Interest paid  (7,545)  (83) 13  (7,628)
Interest received Interest received  819  158,340 6, 13, 15  159,159
Income taxes paid Income taxes paid  (547)      (547)
Movements in gross portfolio Increase (-) / Decrease (+) in Loans to Customers  (115,421)  115,421 10  -
Net cash from operating activities Net cash from operating activities  (259)  35,408    35,149
Cash flows from investing activities Cash flows from investing activities        
Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net)  4,774  (4,774) 8 -
Proceeds from sale of investments and other assets Increase (-) / Decrease (+) in Derivative Financial Instruments (net)  (14,600)  14,600 19 -
Purchase of tangible and intangible assets Purchase of tangible assets -  (126) 9  (126)
Purchase of tangible and intangible assets Purchase of intangible assets  (8,036)  126 9  (7,910)
Net cash used in investing activities Net cash used in investing activities  (18,879)  9,826 45  (9,052)
Cash flows from financing activities Cash flows from financing activities        
Perpetual bonds interest Repayment of perpetual bonds interest  (4,426) - -  (4,426)
Repayment of finance lease liabilities Repayment of lease liabilities  (1,802) - -  (1,802)
Deposits from customers Increase (+) / decrease (-) in Deposits from customers  46,316  (46,316) 7 -
Net cash used in financing activities Net cash used in financing activities  34,232  (46,316) 7  (12,084)
Cash and cash equivalents at beginning of the period Cash and cash equivalents at beginning of the period  153,326 - -  153,326
Exchange gains/(losses) on cash and cash equivalents Exchange gains/(losses) on cash and cash equivalents  (1,380)  1,082 11  (298)
Net increase/(decrease) in cash and cash equivalents Net increase/decrease in cash and cash equivalents  15,094  (1,082) 11  14,012
Cash and cash equivalents at the end of the period Cash and cash equivalents at the end of the period  167,040 - -  167,040

 

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

Number Amount
EUR ’000
Description
1  172 Change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers.
2  3,092 Invoicing and collection cost has been reclassified from general and administrative expense to impairment loss on loans to customers and hence deducted from movement in loans to customers.
3  85 Impairment on non-financial assets has been reclassified from other adjustments line.
4  304 An adjustment has been made regarding the change in accounting treatment of collection costs that led to increase in ECL provision for the loans to customers, resulting in corresponding deferred tax implications on the change in the amount of deferred tax asset.
5  4,752 Finance cost, net has been split between net interest income and fair values and foreign exchange gain or loss in the statement of profit or loss.
6  165,934 Finance cost, net has been split between net interest income and Fair value and foreign exchange gains and losses.
7  46,316 Reclassification of movement in deposits from customers to operating cash flow with subsequent renaming of line item.
8  4,774 Reclassification of changes in derivative assets and liabilities.
9  126 Separation of purchase of tangible assets from purchase of intangible assets.
10  115,421 Reclassification of movement of loans to customers with subsequent renaming of line item.
11  1,082 Reclassification of part of exchange gains/(losses) on cash and cash equivalents to fair value and foreign exchange gains and losses.
12  1,250 Reclassification of part of accrued gain or loss from derivatives from other assets to movement in derivatives.
13  83 Adjustment of net interest income with netting of interest received and interest paid line items.
14  6,619 Reclassification of change in prepayment related to issue costs to loans to customers.
15  7,677 Separation of movement on interest accrual from loans to customers.
16  9,844 Netting of other liabilities with other assets to match movement on the statement of financial position.
17  8,895 Reclassification of movements in other liabilities related to unallocated payments to loans to customers to match movement on the statement of financial position.
18  819 Netting of other liabilities to other financial assets to match movement on the statement of financial position.
19  14,600 Reclassification of debt investment purchase from purchase of non-current financial investments to other financial assets.

 

c) Changes in organisational structure

 

 

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

 

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

 

 

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

 

Restatement of operating and reportable segments for Q1 2023

Old FSLI New FSLI Reported Ferratum Q1 2023 Restatement amount Restatement number Restated Consumer banking Q1 2023 Reported Capital Box Q1 2023 Restatement amount Restatement number Restated SME banking Q1 2023 Reported Sweep Bank Q1 2023 Restatement amount Restatement number Restated Wholesale banking Q1 2023
Interest revenue Interest income  43,377  4,537  9, 16, 19, 25, 30  47,913  5,475  45  17, 20  5,521  4,397  (3,595)  18, 21, 30  801
Servicing fee revenue Fee and commission income  754  (752)  9, 31  2  - - -  -  20  (20)  31  -
Impairment loss on loans to customers Impairment loss on loans to customers  (15,467)  (4,593)  3, 13, 32  (20,060)  (786)  (30)  4, 14  (816)  (3,564)  3,562  15, 32, 33  (3)
Bank and lending costs General and administrative expense  (2,548)  2,548  6  -  (281)  281  7  -  (215)  215  8  -
Personnel expense Personnel expense  (5,172)  (1,233)  34  (6,405)  (1,442)  (223)  35  (1,665)  (1,788)  1,456  34, 35  (332)
Selling and marketing expense Selling and marketing expense  (2,536)  (198)  22, 36  (2,734)  (606)  (4)  23, 37  (610)  (167)  141  24, 36, 37  (26)
General and administrative expense General and administrative expense  (3,924)  (3,429)  5, 6, 10, 13, 16, 22, 38  (7,353)  (851)  (425)  7, 11, 14, 17, 23, 39  (1,275)  (1,385)  973  8, 12, 15, 18, 24, 38, 39  (412)
Depreciation and amortisation Depreciation and amortisation  (1,949)  (1,469)  40  (3,418)  (198)  (42)  41  (240)  (1,534)  1,511  40, 41  (23)
Other income, net Other income  (2)  31  26, 42  29  -  (6)  27, 43  (6)  -  (4)  42, 43  (5)
Other income, net Other expense -  (19)  26  (19) -  (2)  27  (2) - - - -
Profit (loss) before interests and taxes (‘EBIT’) Profit before interest expense and taxes (EBIT)  12,533  (4,577) -  7,955  1,311  (406)    907  (4,236)  4,238 - -
Allocated finance costs, net Interest expense  (3,096)  169  10, 19, 29, 45  (2,927)  (953)  101  11, 20, 29, 45  (853)  (1,252)  1,119  12, 21, 44, 45  (133)
Unallocated foreign exchange losses, net Fair value and foreign exchange gains and losses  -  (1,579)  1, 25, 29  (1,579)  -  (339)  2, 29  (339)  - - -  -
Profit before income taxes Profit before income tax  9,437  (5,987) -  3,450  358  (644) -  (285)  (5,488)  5,357 -  (133)

 

Description of adjustments to operating and reportable segments for Q1 2023

Number Amount
EUR ’000
Description
1  1,171 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.
2  251 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.
3  35 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.
4  23 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
5  90 Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.
6  2,548 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.
7  281 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.
8  215 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.
9  772 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
10  715 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
11  220 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
12  289 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
13  874 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.
14  44 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
15  201 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.
16  96 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
17  12 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
18  10 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.
19  187 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.
20  58 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.
21  76 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.
22  47 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
23  11 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
24  3 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
25  13 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.
26  19 Gross up of other income and expense previously reported at net value in Ferratum business unit.
27  2 Gross up of other income and expense previously reported at net value in CapitalBox business unit.
28  395 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.
29  88 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.
30  3,661 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
31  20 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
32  3,754 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
33  9 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
34  1,233 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
35  223 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.
36  151 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
37  7 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
38  1,272 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
39  9 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
40  1,469 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
41  42 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
42  12 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
43  8 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
44  755 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
45  150 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.

 

Restatement of operating and reportable segments for H1 2023

Old FSLI New FSLI Reported Ferratum H1 2023 Restatement amount Restatement number Restated Consumer banking H1 2023 Reported Capital Box H1 2023 Restatement amount Restatement number Restated SME banking H1 2023 Reported Sweep Bank H1 2023 Restatement amount Restatement number Restated Wholesale banking H1 2023
Interest revenue Interest income  87,710  9,387  9, 16, 19, 25, 30  97,097  11,000  165  17, 20, 47  11,166  9,322  (7,500)  18, 21, 30, 47  1,823
Servicing fee revenue Fee and commission income  1,449  (1,442)  9, 31  8  - - - -  45  (45)  31  -
Impairment loss on loans to customers Impairment loss on loans to customers  (29,076)  (10,667)  3, 13, 32  (39,742)  (2,413)  (50)  4, 14  (2,462)  (8,709)  8,704  15, 32, 33  (5)
Bank and lending costs General and administrative expense  (4,916)  4,916  6  -  (549)  549  7  -  (495)  495  8  -
Personnel expense Personnel expense  (10,385)  (2,319)  34  (12,704)  (2,803)  (601)  35  (3,404)  (3,604)  2,920  34, 35  (683)
Selling and marketing expense Selling and marketing expense  (5,311)  (396)  22, 36  (5,707)  (1,402)  (14)  23, 37  (1,416)  (331)  290  24, 36, 37  (41)
General and administrative expense General and administrative expense  (7,280)  (5,137)  5, 6, 10, 13, 16, 22, 38  (12,417)  (1,458)  (852)  7, 11, 14, 17, 23, 39  (2,310)  (2,454)  1,723  8, 12, 15, 18, 24, 38, 39  (731)
Depreciation and amortisation Depreciation and amortisation  (4,432)  (2,588)  40  (7,020)  (438)  (82)  41  (520)  (2,719)  2,670  40, 41  (50)
Other income, net Other income  164  8  26, 42  172  (5)  17  27, 43  12  (4)  15  42, 43  11
Other income, net Other expense -  -  26  - -  (40)  27  (40) - - - -
Not allocated Profit (loss) for the period from investment in associates  - - -  -  - - -  -  -  12  46  12
Profit (loss) before interests and taxes (‘EBIT’) Profit before interest expense and taxes (EBIT)  27,923  (8,238) -  19,686  1,932  (908) -  1,027  (8,949)  9,285 -  335
Allocated finance costs, net Interest expense  (5,500)  (1,115)  10, 19, 29, 45  (6,615)  (1,638)  (223)  11, 20, 29, 45  (1,862)  (2,198)  1,842  12, 21, 44, 45  (355)
Unallocated foreign exchange losses, net Fair value and foreign exchange gains and losses  -  (2,104)  1, 25, 29  (2,104)  -  (459)  2, 29  (459)  - - -  -
Profit before income taxes Profit before income tax  22,423  (11,457) -  10,967  294  (1,590) -  (1,293)  (11,147)  11,127 -  (20)

 

Description of adjustments to operating and reportable segments for H1 2023

Number Amount, EUR ’000 Description
1  1,838 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.
2  401 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.
3  69 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.
4  46 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
5  192 Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.
6  4,916 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.
7  549 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.
8  495 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.
9  1,487 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
10  638 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
11  128 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
12  215 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
13  1,539 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.
14  128 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
15  461 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.
16  191 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
17  24 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
18  20 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.
19  454 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.
20  135 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.
21  182 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.
22  90 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
23  24 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
24  6 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
25  30 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.
26  -   Gross up of other income and expense previously reported at net value in Ferratum business unit.
27  40 Gross up of other income and expense previously reported at net value in CapitalBox business unit.
28  236 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.
29  58 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.
30  7,607 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
31  45 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
32  9,197 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
33  32 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
34  2,319 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
35  601 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.
36  306 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
37  10 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
38  1,595 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
39  351 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
40  2,588 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
41  82 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
42  8 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
43  23 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
44  1,535 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
45  274 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
46  12 Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy.
47  54 Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.

 

Restatement of operating and reportable segments for 9M 2023

Old FSLI New FSLI Reported Ferratum 9M 2023 Restatement amount Restatement number Restated Consumer banking 9M 2023 Reported Capital Box 9M 2023 Restatement amount Restatement number Restated SME banking 9M 2023 Reported Sweep Bank 9M 2023 Restatement amount Restatement number Restated Wholesale banking 9M 2023
Interest revenue Interest income  133,881  14,304  9, 16, 19, 25, 30  148,185  16,771  290  17, 20, 47  17,061  14,569  (11,358)  18, 21, 30, 47  3,211
Servicing fee revenue Fee and commission income  2,105  (2,057)  9, 31  47  - - -  -  67  (67)  31  -
Impairment loss on loans to customers Impairment loss on loans to customers  (44,076)  (15,832)  3, 13, 32  (59,908)  (4,408)  (51)  4, 14  (4,459)  (12,968)  12,962  15, 32, 33  (5)
Bank and lending costs General and administrative expense  (7,323)  7,323  6  -  (793)  793  7  -  (797)  797  8  -
Personnel expense Personnel expense  (15,560)  (3,360)  34  (18,920)  (4,242)  (890)  35  (5,132)  (5,395)  4,250  34, 35  (1,145)
Selling and marketing expense Selling and marketing expense  (8,213)  (517)  22, 36  (8,730)  (2,205)  (17)  23, 37  (2,221)  (404)  357  24, 36, 37  (46)
General and administrative expense General and administrative expense  (10,837)  (7,583)  5, 6, 10, 13, 16, 22, 38  (18,419)  (2,196)  (1,227)  7, 11, 14, 17, 23, 39  (3,422)  (3,675)  2,579  8, 12, 15, 18, 24, 38, 39  (1,098)
Depreciation and amortisation Depreciation and amortisation  (6,901)  (3,680)  40  (10,581)  (690)  (107)  41  (797)  (3,906)  3,787  40, 41  (119)
Other income, net Other income  (335)  337  26, 42  2 -  -  27, 43  -  -  -  42, 43  -
Other income, net Other expense -  (335)  26  (335) -  (2)  27  (2) - - -  -
Not allocated Profit (loss) for the period from investment in associates  - - -  -  - - -  -  -  34  46  34
Profit (loss) before interests and taxes (‘EBIT’) Profit before interest expense and taxes (EBIT)  42,741  (11,400) -  31,342  2,237  (1,211) -  1,027  (12,509)  13,341 -  832
Allocated finance costs, net Interest expense  (8,650)  (2,009) -  (10,659)  (2,440)  (460) -  (2,900)  (3,271)  2,624 -  (648)
Unallocated foreign exchange losses, net Fair value and foreign exchange gains and losses  -  (3,058) -  (3,058)  -  (612) -  (612)  - - -  -
Profit before income taxes Profit before income tax  34,091  (16,467) -  17,625  (203)  (2,283) -  (2,486)  (15,780)  15,965 -  184

 

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

Number Amount, EUR ’000 Description
1  2,483 Allocation of foreign currency exchange losses to business unit Ferratum previously reported under “Central” segment.
2  508 Allocation of foreign currency exchange losses to business unit Capital Box previously reported under “Central” segment.
3  103 Change in impairment of loans to customers due to inclusion of collection costs into ECL in Ferratum business unit as a result of IAS 8 amendment of prior period error.
4  69 Change in impairment of loans to customers due to inclusion of collection costs into ECL in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
5  -   Reclassification of withholding tax paid on interest from loans to customers in Romania from general and administrative expense to income tax expense as a result of IAS 8 change in presentation.
6  7,323 Reclassification of bank and lending costs to general and administrative in Ferratum as a result of IAS 8 change in presentation.
7  793 Reclassification of bank and lending costs to general and administrative in CapitalBox as a result of IAS 8 change in presentation.
8  797 Reclassification of bank and lending costs to general and administrative in SweepBank business unit as a result of IAS 8 change in presentation.
9  2,124 Reclassification of reminder fee from fee income to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
10  610 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
11  124 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
12  207 Reclassification of depositor compensation scheme fees from interest expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
13  2,218 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in Ferratum business unit as a result of IAS 8 amendment of prior period error.
14  222 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
15  653 Reclassification of invoicing and collection costs from general and administrative expense to impairment loss on loans to customers in SweepBank business unit as a result of IAS 8 amendment of prior period error.
16  286 Reclassification of scoring costs from general and administrative expense to interest income in Ferratum business unit as a result of IAS 8 amendment of prior period error.
17  36 Reclassification of scoring costs from general and administrative expense to interest income in CapitalBox business unit as a result of IAS 8 amendment of prior period error.
18  31 Reclassification of scoring costs from general and administrative expense to interest income in SweepBank business unit as a result of IAS 8 amendment of prior period error.
19  860 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in Ferratum business unit as a result of IAS 8 change in presentation.
20  243 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in CapitalBox business unit as a result of IAS 8 change in presentation.
21  325 Reclassification of interest from loans to related parties and deposits with other banks from finance income to interest income line item in SweepBank business unit as a result of IAS 8 change in presentation.
22  134 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in Ferratum business unit as a result of IAS 8 change in presentation.
23  36 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in CapitalBox business unit as a result of IAS 8 change in presentation.
24  7 Reclassification of bank and sms cost related to loan handling cost from selling and marketing expense to general and administrative expense in SweepBank business unit as a result of IAS 8 change in presentation.
25  37 Netting of directly attributable issue cost from finance expense to interest income in Ferratum business unit.
26  335 Gross up of other income and expense previously reported at net value in Ferratum business unit.
27  2 Gross up of other income and expense previously reported at net value in CapitalBox business unit.
28  538 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in Ferratum business unit.
29  104 Reclassification of foreign currency exchange losses that were reported under net finance cost to separate line item in CapitalBox business unit.
30  11,569 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
31  67 Allocation of SweepBank revenue from Prime Loans to Consumer banking business unit as result of reorganisation of reportable segments.
32  13,717 Allocation of impairment losses on loans to customers of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
33  102 Allocation of impairment losses on loans to customers of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
34  3,360 Allocation of personnel expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
35  890 Allocation of personnel expense of SweepBank business unit to CapitalBox business unit as result of reorganisation of reportable segments.
36  383 Allocation of selling and marketing expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
37  19 Allocation of selling and marketing expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
38  2,288 Allocation of general and administrative expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
39  604 Allocation of general and administrative expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
40  3,680 Allocation of depreciation and amortisation of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
41  107 Allocation of depreciation and amortisation of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
42  2 Allocation of other income of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
43  2 Allocation of other income of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
44  2,297 Allocation of interest expense of SweepBank business unit to Consumer banking business unit as result of reorganisation of reportable segments.
45  445 Allocation of interest expense of SweepBank business unit to SME banking business unit as result of reorganisation of reportable segments.
46  34 Inclusion of results from participation in associates in Wholesale banking previously not allocated to reportable segments. This includes investment in Sortter Oy.
47  83 Allocation of SweepBank interest revenue from Sale Finance business to SME banking business unit.

 

 

Restatement of operating and reportable segments for 2023

Old FSLI New FSLI Reported Ferratum 2023 Restatement amount Restatement number Restated Consumer banking 2023 Reported Capital Box 2023 Restatement amount Restatement number Restated SME banking 2023 Reported Sweep Bank 2023 Restatement amount Restatement number Restated Wholesale banking 2023
Revenue Interest income  192,731  8,959  1  201,690  24,686  (988)  2  23,698  23,137  (18,066)  3  5,071
Not reported Fee and commission income -  63  4  63 - - - - - - - -
Credit losses Impairment loss on loans to customers  (62,760)  (19,889)  5  (82,649)  (6,635)  (120)  6  (6,755)  (16,197)  16,348  7  151
Not reported Personnel expense -  (25,425)  8  (25,425) -  (7,022)  9  (7,022) -  (1,629)  10  (1,629)
Not reported Selling and marketing expense -  (10,819)  11  (10,819) -  (3,324)  12  (3,324) -  (37)  13  (37)
Not reported General and administrative expense -  (25,559)  14  (25,559) -  (4,830)  15  (4,830) -  (1,587)  16  (1,587)
Not reported Depreciation and amortisation -  (13,781)  17  (13,781) -  (1,069)  18  (1,069) -  (167)  19  (167)
Not reported Other income -  8  20  8 -  14  21  14 -  8  22  8
Not reported Other expense -  (495)  23  (495) -  (7)  24  (7) - - - -
Not reported Profit (loss) for the period from investment in associates - - -  - - - -  - -  6  25  6
EBIT (reported to CODM) Profit before interest expense and taxes (EBIT)  59,079  (16,046) -  43,033  1,735  (1,029) -  706  (15,258)  17,074 -  1,816
Not reported Interest expense -  (16,582)  26  (16,582) -  (4,402)  27  (4,402) -  (1,254)  28  (1,254)
Not reported Fair value and foreign exchange gains and losses -  (3,557)  29  (3,557) -  (771)  30  (771) - - -  -
Not reported Profit before income tax  59,079  (36,185) -  22,894  1,735  (6,202) -  (4,467)  (15,258)  15,820 -  562

 

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

Number Amount
 EUR ’000
Description
1 8,959 Direct allocation of interest income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
2 988 Direct allocation of interest income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
3 18,066 Direct allocation of interest income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
4 63 Direct allocation of fee income to Consumer banking business adjusted for organisation change unit previously not reported in annual statement 2023.
5 19,889 Direct allocation of impairment losses on loans to customers to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
6 120 Direct allocation of impairment losses on loans to customers to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
7 16,348 Direct allocation of impairment losses on loans to customers to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
8 25,425 Direct allocation of personnel expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
9 7,022 Direct allocation of personnel expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
10 1,629 Direct allocation of personnel expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
11 10,819 Direct allocation of selling and marketing expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
12 3,324 Direct allocation of selling and marketing expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
13 37 Direct allocation of selling and marketing expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
14 25,559 Direct allocation of general and administrative expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
15 4,830 Direct allocation of general and administrative expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
16 1,587 Direct allocation of general and administrative expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
17 13,781 Direct allocation of depreciation and amortization to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
18 1,069 Direct allocation of depreciation and amortization to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
19 167 Direct allocation of depreciation and amortization to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
20 8 Direct allocation of other income to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
21 14 Direct allocation of other income to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
22 8 Direct allocation of other income to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
23 495 Direct allocation of other expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
24 7 Direct allocation of other expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
25 6 Direct allocation of financial results from participation in associates to Wholesale banking business unit previously not reported in annual statement 2023.
26 16,582 Direct allocation of interest expense to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
27 4,402 Direct allocation of interest expense to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.
28 1,254 Direct allocation of interest expense to Wholesale banking business unit adjusted for organisation change previously not reported in annual statement 2023.
29 3,557 Direct allocation of foreign currency exchange losses to Consumer banking business unit adjusted for organisation change previously not reported in annual statement 2023.
30 771 Direct allocation of foreign currency exchange losses to SME banking business unit adjusted for organisation change previously not reported in annual statement 2023.

 

 

Contact:

Lasse Mäkelä 
Chief Strategy and IR Officer
Phone: +41 79 371 34 17
E-Mail: lasse.makela@multitude.com

 

About Multitude SE:

 

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

 


Additional features:

File: Restatement 2024 stock exchange release


15.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com


Language: English
Company: Multitude SE
Ratamestarinkatu 11 A
00520 Helsinki
Finland
E-mail: ir@multitude.com
Internet: https://www.multitude.com/
ISIN: FI4000106299
WKN: A1W9NS
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Stockholm
EQS News ID: 1903213

 
End of News EQS News Service

1903213  15.05.2024 CET/CEST

fncls.ssp?fn=show_t_gif&application_id=1903213&application_name=news&site_id=symex~~~af100301-a623-4c64-8f3d-90fc88eca9e6


Other stories

20/05/2024 05:05
20/05/2024 03:31
19/05/2024 12:43
19/05/2024 23:46
19/05/2024 16:08
19/05/2024 21:21
20/05/2024 03:56
19/05/2024 23:13
20/05/2024 02:26
19/05/2024 20:30
20/05/2024 00:50
19/05/2024 21:07
20/05/2024 05:00
20/05/2024 00:03
19/05/2024 20:46
20/05/2024 01:01
19/05/2024 21:46
19/05/2024 16:15
19/05/2024 19:43
19/05/2024 14:00
19/05/2024 13:21
19/05/2024 00:30
19/05/2024 22:54
19/05/2024 18:33
19/05/2024 19:47
19/05/2024 22:08
19/05/2024 23:17
20/05/2024 03:31
19/05/2024 21:48
19/05/2024 20:23
19/05/2024 17:43
18/05/2024 22:28
19/05/2024 16:57
18/05/2024 19:33
20/05/2024 01:01
19/05/2024 22:10
18/05/2024 22:00
19/05/2024 11:40