Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation EQS-News: Multitude SE / Schlagwort(e): Sonstiges Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation (News mit Zusatzmaterial) 15.05.2024 / 08:00 CET / CEST Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
15.05.2024 - 08:01:38EQS-News: Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation (deutsch)
Multitude Group publishes restated interim results for 2023 due to prior period adjustments and changes in presentation
EQS-News: Multitude SE / Schlagwort(e): Sonstiges
Multitude Group publishes restated interim results for 2023 due to prior
period adjustments and changes in presentation (News mit Zusatzmaterial)
15.05.2024 / 08:00 CET/CEST
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
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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 Adjust- Adjust- Restated
31 March ment ment 31 March
2023 amount number 2023
Old FSLI New FSLI
ASSETS ASSETS
Non-current
assets
Deferred tax Deferred tax 6,817 394 6 7,211
assets assets
Loans to Loans to 107,897 401,837 1, 5 509,734
customers customers
Other Debt 32,061 (7,494) 3 24,567
non-current investments
financial assets
Current assets
Loans to Loans to 404,167 (404,167) 1 -
customers customers
Other current Other 17,185 5,275 2, 3 22,460
financial assets financial
assets
Prepaid expenses Prepaid 1,004 2,218 2 3,222
and other expenses and
current assets other assets
Total assets Total assets 838,527 (1,936) - 836,591
EQUITY EQUITY
Retained Retained 78,561 (1,936) 4, 5 76,625
earnings earnings
Total equity Total equity 183,401 (1,936) - 181,465
LIABILITIES LIABILITIES
Non-current
liabilities
Deposits from Deposits from 123,639 460,767 6, 9 584,406
customers customers
Lease Lease 2,670 1,551 7 4,221
liabilities liabilities
Current
liabilities
Deposits from Deposits from 457,118 (457,118) 6 -
customers customers
Lease Lease 1,551 (1,551) 7 -
liabilities liabilities
Trade payables Provisions, 6,610 10,395 8, 9 17,005
accruals and
other
liabilities
Accruals and Provisions, 14,044 (14,044) 8 -
other current accruals and
liabilities other
liabilities
Total Total 655,126 - - 655,126
liabilities liabilities
Total equity and Total equity 838,527 (1,936) - 836,591
liabilities and
liabilities
Description of adjustments to condensed interim consolidated statement of
financial position for Q1 2023
N- Amount Description
u- EUR
m- '000
b-
e-
r
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 Repor- Adjust- Adjust- Re-
ted 30 ment ment stated
June amount number 30 June
2023 2023
Old FSLI New FSLI
ASSETS ASSETS
Non-current assets
Deferred tax Deferred tax 6,536 394 5 6,930
assets assets
Loans to customers Loans to 109,750 408,794 1, 6 518,544
customers
Other non-current Debt 41,809 (3,424) 3, 4 38,385
financial assets investments
Investments Investments 1,012 16 3 1,028
accounted for accounted for
using the equity using the
method equity method
Current assets
Loans to customers Loans to 411,067 (411,067) 1 -
customers
Other current Other financial 12,029 4,662 2, 4 16,691
financial assets assets
Prepaid expenses Prepaid 4,411 (1,254) 2 3,157
and other current expenses and
assets other assets
Total assets Total assets 826,512 (1,879) 824,633
EQUITY EQUITY
Retained earnings Retained 78,226 (1,879) 5, 6 76,347
earnings
Total equity Total equity 181,501 (1,879) 179,622
LIABILITIES LIABILITIES
Non-current
liabilities
Deposits from Deposits from 149,206 423,922 7, 10 573,128
customers customers
Lease liabilities Lease 3,649 1,916 8 5,565
liabilities
Current
liabilities
Deposits from Deposits from 418,214 (418,214) 7 -
customers customers
Lease liabilities Lease 1,916 (1,916) 8 -
liabilities
Trade payables Provisions, 6,703 10,250 9, 10 16,953
accruals and
other
liabilities
Accruals and other Provisions, 15,958 (15,958) 9 -
current accruals and
liabilities other
liabilities
Total liabilities Total 645,011 - - 645,011
liabilities
Total equity and Total equity 826,512 (1,879) - 824,633
liabilities and liabilities
Description of adjustments to condensed interim consolidated statement of
financial position for H1 2023
Nu- Amount Description
mb- EUR
er '000
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 Adjust- Adjust- Restated
30 ment ment 30
September amount number September
2023 2023
Old FSLI New FSLI
ASSETS ASSETS
Non-current
assets
Deferred tax Deferred tax 6,348 394 6 6,742
assets assets
Loans to Loans to 111,193 434,831 1, 5 546,024
customers customers
Other Debt 43,368 (3,046) 3 40,322
non-current investments
financial
assets
Current assets
Loans to Loans to 437,046 (437,046) 1 -
customers customers
Other current Other 11,604 1,744 2, 3 13,348
financial financial
assets assets
Prepaid Prepaid 1,477 1,302 2 2,779
expenses and expenses and
other current other assets
assets
Total assets Total assets 819,534 (1,821) - 817,713
EQUITY Equity
Retained Retained 82,798 (1,821) 4, 5 80,977
earnings earnings
Total equity Total equity 184,368 (1,821) - 182,547
LIABILITIES LIABILITIES
Non-current
liabilities
Deposits from Deposits 192,164 364,148 6, 9 556,312
customers from
customers
Lease Lease 3,353 1,942 7 5,295
liabilities liabilities
Current
liabilities
Deposits from Deposits 355,504 (355,504) 6 -
customers from
customers
Lease Lease 1,942 (1,942) 7 -
liabilities liabilities
Trade payables Provisions, 10,615 10,953 8, 9 21,568
accruals and
other
liabilities
Accruals and Provisions, 19,597 (19,597) 8 -
other current accruals and
liabilities other
liabilities
Total Total 635,167 - - 635,167
liabilities liabilities
Total equity Total equity 819,534 (1,821) - 817,713
and liabilities and
liabilities
Description of adjustments to condensed interim consolidated statement of
financial position for 9M 2023
N- Amount Description
u- EUR
m- '000
b-
e-
r
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 Adjust- Adjust- Restated
Q1 2023 ment ment Q1 2023
amount number
Old FSLI New FSLI
Interest revenue Interest income 53,248 988 2, 6, 54,236
7, 9
Fees Fee and 774 (772) 6 2
commission
income
Impairment loss Impairment loss (19,817) (1,062) 3, 4 (20,879)
on loans to on loans to
customers customers
Bank and lending General and (3,044) 3,044 1 -
costs administrative
expense
Selling and Selling and (3,309) (61) 11 (3,370)
marketing marketing
expense expense
General and General and (6,160) (2,881) 1, 3, (9,041)
administrative administrative 7, 8,
expense expense 10, 11
Profit before Profit before 9,607 (744) 8,863
interests and interest
taxes (EBIT) expense and
taxes (EBIT)
Finance income Interest income 320 (320) 2 -
Finance costs Interest (7,043) 3,130 5, 8, 9 (3,913)
expense
Finance costs Fair value and - (1,918) 5 (1,918)
foreign
exchange gains
and losses
Profit before Profit before 2,885 148 3,033
income tax income tax
Income tax Income tax (662) (90) 10 (752)
expense expense
Profit for the Profit for the 2,223 58 2,281
period period
Description of adjustments to condensed interim consolidated statement of
profit or loss for Q1 2023
Nu- Amoun- Description
mb- t EUR
er '000
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 Adjust- Adjust- Restated
H1 2023 ment ment H1 2023
amount number
Old FSLI New FSLI
Interest revenue Interest income 108,033 2,053 2, 6, 110,086
7, 9
Fees Fee and 1,495 (1,487) 6 8
commission
income
Impairment loss Impairment loss (40,197) (2,012) 3, 4 (42,209)
on loans to on loans to
customers customers
Bank and lending General and (5,960) 5,960 1 -
costs administrative
expense
Selling and Selling and (7,044) (120) 11 (7,164)
marketing marketing
expense expense
General and General and (11,191) (4,267) 1, 3, (15,458)
administrative administrative 7, 8,
expense expense 10, 11
Profit before Profit before 20,909 127 - 21,047
interests and interest
taxes (EBIT) expense and
taxes (EBIT)
Finance income Interest income 771 (771) 2 -
Finance costs Interest (12,346) 3,514 5, 8, 9 (8,832)
expense
Finance costs Fair value and - (2,563) 5 (2,563)
foreign
exchange gains
and losses
Profit before Profit before 9,346 307 - 9,653
income tax income tax
Income tax Income tax (1,865) (192) 10 (2,057)
expense expense
Profit for the Profit for the 7,481 115 - 7,596
period period
Description of adjustments to condensed interim consolidated statement of
profit or loss for H1 2023
Nu- Amoun- Description
mb- t EUR
er '000
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 Adjust- Adjust- Restated
9M 2023 ment ment 9M 2023
amount number
Old FSLI New FSLI
Interest revenue Interest income 165,222 3,236 2, 6, 168,458
7, 9
Fees Fee and 2,171 (2,124) 6 47
commission
income
Impairment loss Impairment loss (61,452) (2,920) 3, 4 (64,372)
on loans to on loans to
customers customers
Bank and lending General and (8,913) 8,913 1 -
costs administrative
expense
Selling and Selling and (10,821) (176) 11 (10,997)
marketing marketing
expense expense
General and General and (16,708) (6,232) 1, 3, (22,940)
administrative administrative 7, 8,
expense expense 10
Profit before Profit before 32,470 697 33,201
interests and interest
taxes (EBIT) expense and
taxes (EBIT)
Finance income Interest income 1,428 (1,428) 2 -
Finance costs Interest (18,781) 4,574 5, 8, 9 (14,207)
expense
Finance costs Fair value and - (3,670) 5 (3,670)
foreign
exchange gains
and losses
Profit before Profit before 15,151 173 15,324
income tax income tax
Income tax Income tax (2,796) - (2,796)
expense expense
Profit for the Profit for the 12,355 173 12,528
period period
Description of adjustments to condensed interim consolidated statement of
profit or loss for 9M 2023
Nu- Amoun- Description
mb- t EUR
er '000
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 Adjust- Ad- Restated
Q1 2023 ment just- Q1 2023
amount ment
num-
ber
Old FSLI New FSLI
Profit for the Profit for the 2,223 58 1 2,281
year period
Adjustments for: Adjustments
for:
Impairments on Impairment loss 19,817 1,063 1, 4, 20,879
loans on loans to 2
customers
Depreciation and Depreciation 3,416 265 3 3,681
amortisation and
amortisation
Finace costs, net Net interest 5,505 (55,828) 6 (50,323)
income
Fair value and Fair value and 1,918 5, 11 1,918
foreign exchange foreign
gains and losses exchange gains
and losses
Tax on income from Income tax 662 90 4 752
operations expense
Other adjustments Other 388 (265) 3 122
adjustments
Working capital Changes in
changes: operating
assets:
Increase (-) / Increase (-) / (4,399) (1,633) 12, (6,032)
Decrease (+) in Decrease (+) in 14,
current Other Assets 16
receivables
Increase (-) / - (21,151) 2, (21,151)
Decrease (+) in 10,
Loans to 15,
Customers 17
Increase (-) / - (3,460) 18 (3,460)
Decrease (+) in
Other Financial
Assets
Increase (-) / - 994 8, 12 994
Decrease (+) in
Derivative
Financial
Instruments
(net)
Changes in Changes in
operating operating
liabilities: liabilities:
Deposits from Increase (+) / - 80,847 7, 14 80,847
customers decrease (-) in
Deposits from
customers
Increase (+) / Increase (+) / (3,339) 4,767 16, (1,429)
Decrease (-) in decrease (-) in 17,
trade payables and Other 18
other liabilities liabilities
Interest paid Interest paid (2,623) 697 13 (1,926)
Interest received Interest 91 48,313 6, 48,405
received 13,
15
Income taxes paid Income taxes 159 - - 159
paid
Movements in gross (23,222) 23,222 10 -
portfolio
Net cash from Net cash from (1,322) 79,896 - 78,575
operating operating
activities activities
Cash flows from Cash flows from
investing investing
activities activities
Proceeds from sale Increase (-) / 1,233 (1,233) 8 -
of investments and Decrease (+) in
other assets Derivative
Financial
Instruments
(net)
Purchase of Purchase of - (242) 9 (242)
tangible and tangible assets
intangible assets
Purchase of Purchase of (2,642) 242 9 (2,400)
tangible and intangible
intangible assets assets
Net cash used in Net cash used (1,409) (1,233) 26 (2,642)
investing in investing
activities activities
Cash flows from Cash flows from
financing financing
activities activities
Perpetual bonds Repayment of (1,365) - - (1,365)
interest perpetual bonds
interest
Repayment of Repayment of (562) - - (562)
finance lease lease
liabilities liabilities
Deposits from Increase (+) / 79,204 (79,204) 7 -
customers decrease (-) in
Deposits from
customers
Net cash used in Net cash used 77,277 (79,204) 7 (1,928)
financing in financing
activities activities
Cash and cash Cash and cash 153,325 - - 153,326
equivalents at equivalents at
beginning of the beginning of
period the period
Exchange Exchange (701) 541 11 (160)
gains/(losses) on gains/(losses)
cash and cash on cash and
equivalents cash
equivalents
Net Net 74,546 (541) 11 74,005
increase/(decrease- increase/decrea-
) in cash and cash se in cash and
equivalents cash
equivalents
Cash and cash Cash and cash 227,171 - - 227,171
equivalents at the equivalents at
end of the period the end of the
period
Description of adjustments to condensed interim consolidated statement of
cash flows for Q1 2023
Nu- Amount Description
mb- EUR
er '000
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 Adjust- Ad- Restated
H1 2023 ment just- H1 2023
amount ment
num-
ber
Old FSLI New FSLI
Profit for the Profit for the 7,481 115 1 7,596
year period
Adjustments Adjustments for:
for:
Impairments on Impairment loss 40,197 2,013 1, 2 42,210
loans on loans to
customers
Depreciation Depreciation and 7,171 419 3 7,590
and amortisation
amortisation
Finace costs, Net interest 10,613 (111,867) 5, 6 (101,254)
net income
Fair value and Fair value and 2,563 5, 11 2,563
foreign foreign exchange
exchange gains gains and losses
and losses
Tax on income Income tax 1,865 192 4 2,057
from expense
operations
Other Other adjustments 704 (419) 3 286
adjustments
Working Changes in
capital operating assets:
changes:
Movements in Increase (-) / 9,291 (60,582) 10, (51,291)
gross Decrease (+) in 12,
portfolio Loans to 14,
Customers 16,
17
Increase (-) / (17,279) 2, 4, (17,277)
Decrease (+) in 15,
Other Financial 17,
Assets 19
Increase (-) / 230 18 230
Decrease (+) in
Derivative
Financial
Instruments (net)
Increase (-) / (198) 8, 12 (198)
Decrease (+) in
Other Assets
Changes in Changes in
operating operating
liabilities: liabilities:
Deposits from Increase (+) / - 69,750 7, 14 69,750
customers decrease (-) in
Deposits from
customers
Increase (+) / Increase (+) / (2,288) 3,665 16, 1,377
Decrease (-) decrease (-) in 18
in trade Other liabilities
payables and
other
liabilities
Interest paid Interest paid (4,004) (671) 13 (4,675)
Interest Interest received 457 99,209 6, 99,666
received 13,
15
Income taxes Income taxes paid (486) - - (486)
paid
Movements in Increase (-) / (65,323) 65,323 10 -
gross Decrease (+) in
portfolio Loans to
Customers
Net cash from Net cash from 5,678 52,463 - 58,143
operating operating
activities activities
Cash flows Cash flows from
from investing investing
activities activities
Proceeds from Increase (-) / (21) 21 8 -
sale of Decrease (+) in
investments Derivative
and other Financial
assets Instruments (net)
Proceeds from Increase (-) / (12,800) 12,800 19 -
sale of Decrease (+) in
investments Derivative
and other Financial
assets Instruments (net)
Purchase of Purchase of - 146 9 146
tangible and tangible assets
intangible
assets
Purchase of Purchase of (4,863) (146) 9 (5,009)
tangible and intangible assets
intangible
assets
Net cash used Net cash used in (18,700) 12,821 45 (5,879)
in investing investing
activities activities
Cash flows Cash flows from
from financing financing
activities activities
Perpetual Repayment of (2,845) (2,845)
bonds interest perpetual bonds
interest
Repayment of Repayment of (1,104) - - (1,104)
finance lease lease liabilities
liabilities
Deposits from Increase (+) / 66,002 (66,002) 7 -
customers decrease (-) in
Deposits from
customers
Net cash used Net cash used in 57,589 (66,002) 7 (8,413)
in financing financing
activities activities
Cash and cash Cash and cash 153,325 - - 153,326
equivalents at equivalents at
beginning of beginning of the
the period period
Exchange Exchange (1,186) 718 11 (469)
gains/(losses) gains/(losses) on
on cash and cash and cash
cash equivalents
equivalents
Net Net 44,568 (718) 11 43,850
increase/(decr- increase/decrease
ease) in cash in cash and cash
and cash equivalents
equivalents
Cash and cash Cash and cash 196,707 - - 196,707
equivalents at equivalents at
the end of the the end of the
period period
Description of adjustments to condensed interim consolidated statement of
cash flows for H1 2023
Nu- Amount Description
mb- EUR
er '000
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 Adjust- Ad- Restated
9M 2023 ment just- 9M 2023
Amount ment
num-
ber
Old FSLI New FSLI
Profit for the Profit for 12,356 172 1 12,528
year the period
Adjustments for: Adjustments
for:
Impairments on Impairment 61,452 2,920 1, 2 64,372
loans loss on loans
to customers
Depreciation and Depreciation 11,582 (85) 3 11,497
amortisation and
amortisation
Finance costs, Net interest 16,435 (170,686) 5, 6 (154,251)
net income
Fair value and Fair value - 3,670 5, 11 3,670
foreign exchange and foreign
gains and losses exchange
gains and
losses
Tax on income Income tax 2,492 304 4 2,796
from operations expense
Other adjustments Other 347 85 3 432
adjustments
Working capital Changes in
changes: operating
assets:
Movements in Increase (-) 20,805 (121,739) 10, (100,934)
gross portfolio / Decrease 12,
(+) in Loans 14,
to Customers 16,
17
Increase (-) - (19,214) 2, 4, (19,215)
/ Decrease 15,
(+) in Other 17,
Financial 19
Assets
Increase (-) - 819 18 819
/ Decrease
(+) in
Derivative
Financial
Instruments
(net)
Increase (-) - 3,524 8, 12 3,524
/ Decrease
(+) in Other
Assets
Changes in Changes in
operating operating
liabilities: liabilities:
Deposits from Increase (+) - 52,935 7, 14 52,935
customers / decrease
(-) in
Deposits from
customers
Increase (+) / Increase (+) (3,034) 9,025 16, 5,991
Decrease (-) in / decrease 18
trade payables (-) in Other
and other liabilities
liabilities
Interest paid Interest paid (7,545) (83) 13 (7,628)
Interest received Interest 819 158,340 6, 159,159
received 13,
15
Income taxes paid Income taxes (547) (547)
paid
Movements in Increase (-) (115,421) 115,421 10 -
gross portfolio / Decrease
(+) in Loans
to Customers
Net cash from Net cash from (259) 35,408 35,149
operating operating
activities activities
Cash flows from Cash flows
investing from
activities investing
activities
Proceeds from Increase (-) 4,774 (4,774) 8 -
sale of / Decrease
investments and (+) in
other assets Derivative
Financial
Instruments
(net)
Proceeds from Increase (-) (14,600) 14,600 19 -
sale of / Decrease
investments and (+) in
other assets Derivative
Financial
Instruments
(net)
Purchase of Purchase of - (126) 9 (126)
tangible and tangible
intangible assets assets
Purchase of Purchase of (8,036) 126 9 (7,910)
tangible and intangible
intangible assets assets
Net cash used in Net cash used (18,879) 9,826 45 (9,052)
investing in investing
activities activities
Cash flows from Cash flows
financing from
activities financing
activities
Perpetual bonds Repayment of (4,426) - - (4,426)
interest perpetual
bonds
interest
Repayment of Repayment of (1,802) - - (1,802)
finance lease lease
liabilities liabilities
Deposits from Increase (+) 46,316 (46,316) 7 -
customers / decrease
(-) in
Deposits from
customers
Net cash used in Net cash used 34,232 (46,316) 7 (12,084)
financing in financing
activities activities
Cash and cash Cash and cash 153,326 - - 153,326
equivalents at equivalents
beginning of the at beginning
period of the period
Exchange Exchange (1,380) 1,082 11 (298)
gains/(losses) on gains/(losses-
cash and cash ) on cash and
equivalents cash
equivalents
Net Net 15,094 (1,082) 11 14,012
increase/(decreas- increase/de-
e) in cash and crease in
cash equivalents cash and cash
equivalents
Cash and cash Cash and cash 167,040 - - 167,040
equivalents at equivalents
the end of the at the end of
period the period
Description of adjustments to condensed interim consolidated statement of
cash flows for 9M 2023
Nu- Amount Description
mb- EUR
er '000
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 New R- Re- Re- Restated Re- R- Re- Re- Re- Re- Re- Re-
FSLI FSL- e- stat- sta- Consumer po- e- sta- st- po- st- sta- state-
I p- emen- te- banking rt- s- te- at- rt- at- te- d
o- t men- Q1 2023 ed t- men- ed ed em- men- Whole-
r- amou- t Ca- a- t SM- Sw- en- t sale
t- nt num- pi- t- num- E ee- t num- ban-
e- ber ta- e- ber ba- p am- ber king
d l m- nk- Ba- ou- Q1
F- Bo- e- in- nk nt 2023
e- x n- g Q1
r- Q1 t Q1 20-
r- 20- a- 20- 23
a- 23 m- 23
t- o-
u- u-
m n-
Q- t
1
2-
0-
2-
3
Inte- In- 4- 4,53- 9, 47,913 5,- 4- 17, 5,- 4,- (3- 18, 801
rest te- 3- 7 16, 47- 5 20 52- 39- ,5- 21,
reve- res- ,- 19, 5 1 7 95- 30
nue t 3- 25, )
in- 7- 30
co- 7
me
Ser- Fee 7- (752- 9, 2 - - - - 20 (2- 31 -
vi- and 5- ) 31 0)
cing com- 4
fee mis-
reve- si-
nue on
in-
co-
me
Im- Im- (- (4,5- 3, (20,060) (7- (- 4, (8- (3- 3,- 15, (3)
pair- pai- 1- 93) 13, 86- 3- 14 16- ,5- 56- 32,
ment rme- 5- 32 ) 0- ) 64- 2 33
loss nt ,- ) )
on los- 4-
lo- s 6-
ans on 7-
to lo- )
cu- ans
sto- to
mers cu-
sto-
mer-
s
Bank Ge- (- 2,54- 6 - (2- 2- 7 - (2- 21- 8 -
and ne- 2- 8 81- 8- 15- 5
len- ral ,- ) 1 )
ding and 5-
cost- ad- 4-
s mi- 8-
nis- )
tra-
ti-
