Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation
Multitude SE / Key word(s): Miscellaneous (news with additional features)
15.05.2024 / 08:00 CET/CEST The issuer is solely responsible for the content of this announcement.
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
