Multitude SE

Interim / Quarterly Report • Aug 21, 2025

H1 2025 REPORT

CONTENTS

Interim Board of Directors' Report H1 2025
Multitude AG in Brief	4
Business Unit Overview - Consumer Banking	6
Business Unit Overview - SME Banking	7
Business Unit Overview - Wholesale Banking	8
Key figures and ratios	12
Key developments and progress in H1 2025	14

Unaudited condensed consolidated

interim financial statements H1 2025	34
Condensed consolidated statement of profit or loss	34
Condensed consolidated statement of comprehensive income	34
Condensed consolidated statement of financial position	35
Condensed consolidated statement of cash flows	36
Condensed consolidated statement of changes in equity	37
Notes to condensed consolidated interim financial statements	38

Multitude Group H1 2025 – Interim Board of Directors' Report 3

Interim Board of Directors' Report H1 2025

Multitude AG in Brief

Multitude is a listed European FinTech company offering digital lending and online banking services to consumers, small and medium-sized enterprises (SMEs), and other FinTechs overlooked by traditional banks. With around 400,000 customers, we serve individuals and businesses that may not meet the restrictive criteria of conventional banks. Many traditional financial providers, whether legacy banks or emerging neo-banks, lack the experience and technology to effectively assess these underserved segments. As a result, these individuals and businesses face significant challenges in accessing essential financial services. At Multitude, we bridge this gap by offering innovative, inclusive financial products that meet the unique needs of our customers. Through a robust combination of advanced credit risk scoring and a fully digital, customer-centric approach, Multitude is uniquely positioned to provide accessible and life-changing financial solutions.

COMPANY FACTS

We provide our services via our three business units operating in Consumer Banking through the Ferratum brand, SME Banking through CapitalBox brand and Wholesale Banking through the Multitude Bank brand.

Full European banking licence

Founded in Finland in 2005

Listed on the Frankfurt Stock Exchange

Multitude AG is listed on the Prime Standard segment of the Frankfurt Stock Exchange under the ticker symbol "MULT".

€263.7m

2024 Group Revenue

Customers

700+ Employees

Our Group employs over 700 people and provides services in 17 countries. The Group includes Multitude Bank p.l.c., a wholly owned subsidiary fully licensed and regulated by the Malta Financial Services Authority (MFSA). This license empowers us to offer a comprehensive suite of financial products and services to customers throughout the European Economic Area (EEA), enabling us to effectively serve a diverse and dynamic European customer base with local expertise and cross-border capabilities.

Business unit: Consumer Banking

The Consumer Banking business unit offers three products - Instalment Loans (including Micro Loan, Plus Loan and Prime Loan), Credit Limit, and Credit Card - designed to address diverse and immediate financial needs. These products are tailored to help individuals manage unplanned, short-term expenses arising from unexpected life events. Applying for any of the loans is simple and requires only minimal data entry from the customer. The rest is handled by the business unit's AI-powered scoring algorithms, which are developed in-house. This fully digital, automated process ensures that applications are completed and scored within minutes, with approved loan amounts typically deposited into the customer's bank account in less than 20 minutes.

At the end of H1 2025, the Consumer Banking business unit operated in 14 markets: Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, Germany, Latvia, the Netherlands, Norway, Poland, Romania, Slovenia, and Sweden.

Instalment loans

Micro Loan

Micro Loans, also known as bullet loans, provide instant, short-term financing with quick repayment. They range from EUR 25 to EUR 1,000, which customers pay back in one instalment within 7 to 60 days.

Plus Loan

A Plus Loan caters to a customer's higher need for instant finance. Loan amounts range from EUR 300 to EUR 4,000, with maturity periods of 2 to 18 months and repayment in equal instalments over the loan term.

Prime Loan

Prime Loans are longer-term instalment loans for consumers that enable higher purchases, like home renovations, cars and other more significant purchases. Loans can amount to EUR 12,000 with loan maturities ranging between 1 and 7 years.

Revolving loans

Credit Limit

Credit Limit, Consumer Banking's most popular product, is a revolving line of credit that offers ongoing financial flexibility. Eligible customers are pre-approved for up to EUR 5,000 and can withdraw money and repay without fixed amounts or timelines.

Credit Card

The Credit Card, a Mastercard® without annual or monthly fees, allows financing purchases of up to EUR 8,000. The card offers free liability coverage for purchases made with it and up to a 60-day interest-free period. Customers can also use the card as a flexible credit facility by withdrawing money from it directly into their bank account, a feature that is growing in popularity among customers.

Business unit: SME Banking

The SME Banking business unit provides essential financial solutions to SMEs through its Credit Lines and Instalment Loans under the CapitalBox brand. Its secured and unsecured products support SMEs in every growth stage, from managing working capital to funding investments and expanding their operations.

Funds can be made available to SMEs within of application approval through a streamlined, fully digitalised process. This speed and efficiency positions SME Banking as the perfect ally for meeting short-term business financing requirements. Powered by advanced technology, experience, and Multitude's internal growth platform resources, the business unit delivers a swift and dependable offering.

SME Banking operates in five markets: Finland, Sweden, Denmark, Lithuania, and the Netherlands, offering five distinct products.

Instalment Loans

One of SME Banking's key offerings is its Instalment Loan, which is offered through both unsecured (up to EUR 350,000) and secured (up to EUR 3 million) facilities. These loans come with flexible repayment periods spanning from 6 to 48 months. They are tailored to assist SMEs in funding operations such as simple inventory management, marketing efforts, hiring new personnel, investments and acquiring or leasing equipment. On average, businesses borrow around EUR 27,000 (unsecured loans) with a typical duration of 27 months.

Secured Loan

The Secured Loan is designed to support larger investments to drive growth for SMEs, addressing a gap in the industry where smaller FinTech firms might lack capacity, and traditional banks might choose not to provide secured loans. The business unit is one of the only players in the market who can offer loans up to EUR 3 million for SMEs while keeping digital and streamlined processes.

Credit Line

The Credit Line is a dynamic form of financing that grants SMEs with access to a credit limit ranging from EUR 2,000 to EUR 150,000. The credit can be given in minutes through a digital application and used by the customer when finances are needed for everyday operations. Additionally, CapitalBox collaborates with retail partners to offer financing solutions to their business customers, enabling them to make financed purchases right at the point of sale.

Invoice Purchasing

In 2024, SME Banking acquired the business of Omniveta in Denmark and launched a fully digital invoice purchasing solution for SMEs. The business now offers non-recourse financing on invoices with due periods ranging from 8 to 120 days, and discount rates starting at just 1.45%. More than EUR 30 million in invoices were financed in 2024, and the product is currently being rolled out in the Netherlands and Finland, with plans to expand to additional markets.

Purchase Finance (BNPL)

Purchase Financing or Buy Now, Pay Later (BNPL) is a product explicitly designed for SMEs. This financial solution provides businesses flexible access to up to EUR 20,000 in funding without collateral for up to 36 months. Currently available in Finland and Sweden, the product is strategically designed to help SMEs manage cash flow effectively, allowing them to invest in growth opportunities and finance purchases without relying on their daily capital or experiencing immediate financial strain.

Business unit: Wholesale Banking

Wholesale Banking is a highly adaptable business unit operating within Multitude Bank's broader infrastructure. It focuses on delivering high-impact, institutional-grade solutions through two core offerings: Secured Debt and Payment Solutions. Wholesale Banking addresses more complex financing needs where agility and bespoke structuring set it apart in a competitive market.

Target customers – Institutions seeking bespoke financial solutions

Wholesale Banking serves a diverse institutional client base, including mid-sized to larger corporations, FinTechs, and payment institutions. These clients seek specialised solutions that address complex secured financing or payment processing needs. The business unit's approach focuses on tailored, high-quality outcomes, ensuring clients can operate and grow with confidence.

Secured Debt Solutions - Tailored financing backed by expertise

Secured Debt Solutions specialise in originating and executing sophisticated, tailored transactions, focusing on niche opportunities that others may hesitate to pursue. Leveraging nearly two decades of expertise and advanced analytics, the unit ensures stringent risk management and reliable growth for institutions looking to capitalise on strategic opportunities. With an emphasis on smart risk rather than volume, this approach fosters high-value partnerships grounded in flexibility and execution. Secured Debt Solutions utilises institutional-grade funding backed by a rigorous underwriting process and advanced risk management tools, providing capital against diversified loan portfolios or other collateral. Continuous asset performance oversight ensures security and flexibility, optimising credit risk while unlocking growth potential. Secured Debt is composed of corporate loans and debt investments (investments in issued bonds).

Payment Solutions – Institutional infrastructure for modern finance

Payment Solutions offer institutional clients a seamless and secure infrastructure for transaction processing and financial operations. With a deep understanding of the evolving payment landscape, the unit provides end-to-end solutions that enable efficient transaction processing and support long-term growth and operational efficiency for financial institutions.

Our Strategy

To achieve our mission and long-term vision, Multitude's growth strategy is built on three strategic pillars: organic growth, partnerships, and mergers and acquisitions (M&A).

The organic development pillar is driven by continued investment in technology, automation, and data-driven decision-making. We focus on enhancing customer experience, broadening our product offering, and expanding into new markets. Improved scalability, cost efficiency, and innovation are central to our organic development efforts. The Wholesale Banking business unit is expected to contribute to driving organic growth.

The partnerships' pillar enables us to broaden our reach and enhance our value proposition. Through strategic collaboration with distribution networks, technology providers, and institutional partners, we access new customer channels, expand our product offering, and integrate financial services into broader ecosystems. These alliances support the development of embedded finance solutions and unlock opportunities to deliver greater value across markets.

The M&A pillar supports our ambition to accelerate growth by entering new geographies, acquiring complementary capabilities, and expanding our customer base. The Group pursues strategic acquisitions that align with its platform model and long-term financial goals.

Multitude growth platform

Our growth platform is the core driver of our ambition, supporting scalability through cloud-native infrastructure, automated processes, and real-time monitoring. Developed by our internal team and selected partners, it provides a solid foundation for growth and innovation.

We have created proprietary data and credit scoring algorithms that enable instant, digital credit decisions. Combined with extensive global regulatory experience, our technology offers a significant competitive advantage, enabling risk-assessed scoring at unmatched scale.

H1 2025 in Brief

Key Highlights

• Group revenue increased by 3.5% to EUR 133.4 million y-o-y
• Group impairment loss on loans to customers decreased by 18.6% to EUR 42.4 million y-o-y
• Group share of results of associates turned positive, contributing EUR 1.0 million to profit before income taxes in H1 2025
• Group net profit increased by 95.2% to EUR 14.2 million y-o-y
• In H1 2025, Multitude Bank increased its ownership in Lea Bank AB to 24.99% through additional stake acquisitions
• Since stepping into the role of CEO on 1 January 2025, Antti Kumpulainen has been actively driving Multitude Group's strategic priorities and operational execution

Key figures and ratios

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Net interest income	52,228	106,322	54,562	110,157
Net fee and commission income	2,519	4,452	11	21
Profit before income taxes	7,974	16,272	5,405	8,401
Profit for the period	6,923	14,156	4,673	7,251
Net cash flows (used in) / from operating activities	(35,777)	34,920	(50,237)	(103,303)
Net cash flows (used in) investing activities	(1,772)	(18,291)	(3,732)	(7,180)
Net cash flows (used in) / from financing activities	(10,407)	11,645	47,925	45,861
Net (decrease) / increase in cash and cash equivalents	(47,956)	28,274	(6,043)	(64,622)

EUR '000	30 June 2025	31 December 2024
Loans to customers	720,273	649,928
Debt investments	131,780	112,554
Deposits from customers	927,452	800,805
Cash and cash equivalents	277,855	249,458
Non-current assets	426,135	370,461
Current assets	824,745	728,270
Total assets	1,250,880	1,098,731
Non-current liabilities	406,543	344,364
Current liabilities	648,464	560,614
Total liabilities	1,055,007	904,978
Total equity	195,873	193,753

Alternative performance measures

Pursuant to Article 16 of Regulation 1095 / 2010 / EU, the European Securities and Markets Authority (ESMA) has issued specific guidelines on the presentation criteria for Alternative Performance Measures (APMs) included by European issuers in regulated information, where such measures are not defined or provided for in the rules on financial reporting.

According to the definition provided in the ESMA Guidelines, an APM is a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. APMs are typically based on financial statement line items prepared in accordance with applicable financial reporting rules. What sets them apart is that APMs are not defined in the financial reporting framework, yet their use is still widespread, with the role of conveying a view of the Group's performance that is closer to the Leadership Team's perspective than would be possible using only the defined measures.

Key figures and ratios

The Group reports the impaired loan coverage ratio, equity ratio, net debt-to-equity ratio, and net equity ratio as APMs. These metrics offer valuable insights into the Group's financial position and performance, supplementing the information provided by standard IFRS measures. The impaired loan coverage ratio reflects the Group's capacity to cover impaired loans with provisions, serving as an indicator of credit risk management effectiveness. The net equity ratio is a key measure of the Group's capital structure and financial resilience, and it is also relevant for assessing compliance with bond covenants. In addition, the net debt-to-equity ratio provides an indication of the Group's leverage and its ability to meet long-term financial obligations.

Key financial ratios	30 June 2025	31 December 2024
Impaired loan coverage ratio (%) =	15.6	17.6
Equity ratio (%) =	15.7	17.6
Net debt to equity ratio =	3.97	3.38
Net equity ratio (%) =	23.0	23.2

Calculation of key financial ratios			30 June 2025	31 December 2024
Impaired loan coverage ratio (%) =	100x	Credit loss allowance	133,202	138,600
		Gross loans to customers	853,475	788,528
Equity ratio (%) =		Total equity	195,873	193,753
	100x	Total assets	1,250,880	1,098,731
Net debt to equity ratio =		Total liabilities – cash and cash equivalents	1,055,007 – 277,855	904,978 - 249,458
		Total equity	195,873	193,753
Net equity ratio (%) =		Total equity (incl. Tier 2)	223,925	196,753
	100x	Total assets – cash and cash equivalents	1,250,880 - 277,855	1,098,731 - 249,458

In this regard, the APMs presented are complementary to the measures defined within the International Financial Reporting Standards (IFRS) Accounting Standards. The figures and inputs used in the derivation of the said APMs are based on presentation and / or disclosure requirements emanating from the IFRS Conceptual Framework and include reconciliation items from such presentation / disclosures of financial statements.

With the conclusion of the Group's profit before interest expense and taxes (EBIT) guidance framework for 2024, the Group has ceased to present EBIT as an APM.

Key developments and progress in H1 2025

Significant events during reporting period

Changes in the Group structure

As part of its ongoing restructuring initiative, the Group is working to consolidate lending-related activities under Multitude Bank p.l.c. and streamline the subsidiary structure of Multitude AG by reducing the number of non-essential entities.

The Group implemented the following changes to its entities in H1 2025:

During H1 2025, Suomen Joustava Oy, Guarantee Services OÜ, fe Business Services OÜ, Ferratum Mexico S. de R.L. de C.V. and Ferratum Latvia SIA were disposed.

In June 2025, Multitude Services GmbH, a wholly owned subsidiary of Multitude AG, was merged into its parent through an intragroup merger. As part of this merger, all assets, liabilities, rights, and obligations of the subsidiary were transferred by operation of law to the parent company.

The Group has successfully increased its stake in Lea Bank AB by 15.09%, bringing its total stake to 24.99% as of the end of H1 2025.

Annual General Meeting (AGM) 2025

On 13 May 2025, Multitude AG held its AGM in Zurich, where shareholders approved the 2024 financial statements and an ordinary dividend of EUR 0.44 per share, payable on 19 May 2025. The meeting also endorsed the 2024 ESG Report, reflecting the company's commitment to environmental, social, and governance standards. Board Members Ari Tiukkanen, Jorma Jokela, Lea Liigus, and Marion Khüny were re-elected, with Mika Ståhlberg joining as a new Member. Additionally, shareholders approved the introduction of a capital band, allowing share capital adjustments between EUR 40.2 million and EUR 46.2 million until 2030, and amended the articles of association to establish a framework for granting loans and credits to board and executive members. Furthermore, the AGM ratified the reappointment of Pricewaterhouse-Coopers AG as auditors.

Treasury update

In February 2025, Fitch Ratings affirmed Multitude AG's and its operating bank Multitude Bank p.l.c.'s Long-Term Issuer Default Ratings (IDRs) at 'B+' with Positive Outlooks. Multitude's senior unsecured notes have been affirmed at 'B+' with a Recovery Rating of 'RR4' and its subordinated hybrid perpetual capital notes at 'B-'/'RR6'.

In March 2025, Multitude Bank p.l.c. successfully launched the issue of EUR 25.0 million Floating Rate Callable Tier 2 Notes Due 2035 (ISIN: DE000A4D58U2). The Notes were issued at 99% of their aggregate principal amount and the coupon is 3-month Euribor plus margin of 11.0% per annum. The proceeds from the offering further strengthen the Bank's capital base and contribute to its Tier 2 capital in accordance with Regulation (EU) No 575/2013 (CRR).

Leadership Changes

Key developments

and progress in H1 2025

As of 1 January 2025, Mr. Antti Kumpulainen was appointed CEO of Multitude AG, expanding on his responsibilities as CEO of Multitude Bank p.l.c. He succeeded Mr. Jorma Jokela, who stepped down from the CEO role at the end of 2024. Mr. Jokela remains on the Board of Directors of both Multitude AG and Multitude Bank p.l.c., continuing to support the Group's long-term strategic agenda.

Dr. Clemens Krause, Chief Risk Officer, retired on 31 March 2025 after serving the Group since 2012. He continues to contribute as a member of the Board of Directors of Multitude Bank p.l.c. Dr. Krause was succeeded by Mr. Adam Jezierski, who was appointed Chief Credit Risk Officer and joined the Leadership Team on 3 February 2025, bringing with him deep expertise in managing risk across a range of international financial institutions.

Mr. Lasse Mäkelä stepped down from the Leadership Team, having served as Chief Strategy and Investor Relations Officer since 2022. Mr. Adam Hansson Tönning was appointed Head of Investor Relations (IR) and Treasury. Having joined Multitude in 2010, Adam has held several senior roles, including Finance Manager for West Europe & APAC and Chief Financial Planning Analyst. He played a leading role in launching the Group's first deposit business in Sweden in 2012 and the lending business in Norway in 2015. With a deep understanding of our business and culture, Mr. Hansson Tönning is well-positioned to lead the IR and Treasury teams going forward.

Mr. Goutam Challagalla stepped down from the Board of Directors of Multitude AG on 1 February 2025. He has since been appointed as a Non-Executive Director of Multitude Bank p.l.c., with regulatory approval currently pending.

Ms. Kristiina Leppänen did not stand for re-election to the Board of Directors of Multitude AG at the Annual General Meeting held on 13 May 2025, and her term subsequently ended. She has been appointed as a Non-Executive Director of Multitude Bank p.l.c.

Mr. Mika Ståhlberg was elected as a new Member of the Board of Directors during the AGM. He holds a Master of Laws degree from the University of Helsinki and is internationally recognised in all major legal directories as a leading Finnish expert in corporate and M&A law.

Financial overview

Results of operations

The Group continued to demonstrate strong financial performance in H1 2025. Notably, net fee and commission income and operating expenses displayed positive trend in comparison to H1 2024. In H1 2025, the Group reported a profit of EUR 14.2 million (H1 2024: EUR 7.3 million), reflecting an increase of EUR 6.9 million compared to H1 2024. This improvement was primarily driven by higher fee and commission income, an increased share of results from associates, and a reduction in impairment loss on loans to customers.

Interest income decreased slightly to EUR 128.0 million in H1 2025, down from EUR 128.8 million in H1 2024. Loans to customers remained the primary source of interest income, contributing 94.0% of the total in H1 2025, compared to 94.2% in H1 2024. Specifically, interest income from loans to customers amounted to EUR 120.4 million in H1 2025 (H1 2024: EUR 121.3 million). The stability in interest income reflects the Group's focus on optimising its portfolio structure and building a resilient, long-term revenue stream from diversified sources.

Fee and commission income rose to EUR 5.3 million in H1 2025. This growth was primarily driven by brokerage services provided on behalf of a partner company, which were launched in the second half of 2024 and are managed by the Consumer Banking business unit. The financial assets arising from these brokerage services are owned by the partner company, and the Group assumes no credit risk related to them. Additionally, Multitude started to render business support to third parties in form of loan servicing in Q2 2025. This further contributed to improvement in fee income. The share of fee and commission income increased relative to interest income, reaching 4.0% (H1 2024: 0.0%), following growth in non-lending services provided.

The Group's share of results of associates improved significantly, transitioning from a loss of EUR 0.2 million in H1 2024 to a profit of EUR 1.0 million in H1 2025. All associates show profits in H1 2025. The overall improvements reflect stronger performance across the associate portfolio, contributing to the Group's consolidated profitability. Moreover, Multitude received EUR 2.9 million in dividends from one of its associates in May 2025, further strengthening the Group's liquidity position and delivering a solid return on investment.

Impairment losses declined significantly by 18.6%, representing a reduction of EUR 9.7 million compared to H1 2024. This decrease reflects an overall improvement in portfolio credit quality and a more favourable risk environment.

In H1 2025, the Group's interest expense totalled EUR 21.7 million (H1 2024: EUR 18.7 million), an increase of EUR 3.0 million. This increase was driven by higher costs on both debt securities and customer deposits, which rose by EUR 0.9 million and EUR 1.7 million, respectively. The rise in interest expense reflects the expansion of the Group's funding portfolio, which has grown in line with the continuous increase in loan and investment portfolios.

The increase within operating expenses was primarily seen in general and administrative expense, which rose from EUR 16.5 million in H1 2024 to EUR 19.0 million in H1 2025. Approximately half of this increase was attributable to additional contributions to the depositor compensation scheme, reflecting the continued growth in customer deposits. In H1 2025, the average number of employees rose to 798, up from 749 in H1 2024. As a result, the Group reported an increase in personnel expenses, which amounted to EUR 19.8 million in H1 2025 (H1 2024: EUR 18.9 million). Wages and salaries represented the largest component, totalling EUR 16.2 million in H1 2025, compared to EUR 15.5 million in H1 2024. On the other hand, selling and marketing expenses decreased slightly by EUR 0.2 million to EUR 6.5 million in H1 2025 (H1 2024: EUR 6.7 million) in a year-on-year comparison with no major changes.

In H1 2025, depreciation and amortisation remained at the same level as in H1 2024, amounting to EUR 6.5 million.

The increase in the profit resulted in a positive impact on basic earnings per share which increased from EUR 0.20 per share in H1 2024 to EUR 0.56 per share in H1 2025. The Group applied 13.0% effective tax rate in H1 2025 (H1 2024: 13.7% and full year 2024: 13.0%).

Results of operating segments

The Consumer Banking business unit:

Consumer Banking continues the positive performance. In the first six months of 2025, Ferratum's financial performance has been strong, particularly in terms of profitability, loan portfolio growth and credit risk management. Revenue remained essentially on the same level. Whilst interest income decreased by 5.0% (EUR 5.3 million), from EUR 107.6 million in H1 2024 to EUR 102.3 million in H1 2025, this was offset by a significant increase in fee and commission income from partnerships which increased from EUR 21.0 thousand in H1 2024 to EUR 4.3 million in H1 2025. The amount of loans to customers increased by 9.3% from EUR 462.8 million at the end of H1 2024 to EUR 506.0 million at the end of H1 2025. Despite the organic growth of the portfolio, impairment loss on loans to customers decreased by 17.9% - from EUR 44.0 million in H1 2024 to EUR 36.1 million in H1 2025 - primarily driven by the key corporate initiative launched in 2024 to reduce credit losses.

During H1 2025, Consumer Banking delivered strong profit performance, achieving a notable increase in profit before income taxes (16.5% year-on-year). Since achieving a major milestone of the successful launch of its credit card offering in the German market in Q1, the next steps and focus is on scaling up the credit cards in Germany, and continue the expanding business unit's footprint and diversifying its consumer product portfolio. The first quarter also marked significant progress in technological innovation, with the rollout of conversational bots and an AI-based income verification solution designed to enhance both customer experience and internal decision-making processes. In line with its broader strategic vision, Ferratum continued to evolve its operating model, placing greater emphasis on automation and artificial intelligence to drive operational efficiency and long-term scalability.

The SME Banking business unit:

CapitalBox maintained a consistent upward trend in the first half of 2025, with revenue and portfolio increasing steadily, underpinned by ongoing enhancements in sales processes. Credit loss performance improved significantly, reflecting the effectiveness of strengthened risk management practices and the adoption of AI-powered decisioning tools. Operational efficiency also progressed, supported by the introduction of AI-driven invoice scraping within the invoice purchasing business. The underlying infrastructure is now in place as the product line expands into the Netherlands and Finland.

During H1 2025, SME Banking's loan portfolio grew by 13.7%, rising from EUR 130.2 million at the end of H1 2024 to EUR 148.0 million. Interest income increased by 7.8% (EUR 1.3 million), reaching EUR 17.3 million, supported by continued investment in the expanding loan book. Impairment loss improved in year-on-year comparison from EUR 8.0 million in H1 2024 to EUR 4.9 million in H1 2025.

The Wholesale Banking business unit:

The Wholesale Banking business unit continued to expand across both the Secured Debt and Payment Solutions segments, making solid progress through focused execution and strategic enhancements. The implementation of AI-driven productivity levers is already delivering tangible results, with automated data enrichment in client onboarding and AI-supported credit decisioning models significantly improving origination quality and accelerating speed-to-market.

Sales presence across the Nordics has been expanded through the operational ramp-up of local offices, enabling faster and more targeted client coverage. This strengthens Wholesale Banking's position in key regional markets and supports its long-term growth strategy.

The investment portfolio remains well protected, with credit facilities consistently backed by collateral. In parallel, fee income from the payments business has begun to gain traction, performing in line with budget expectations. As of H1 2025, fee and commission income reached EUR 1.1 million, reflecting growing utilisation of embedded financial services by the customer base.

For H1 2025, Wholesale Banking's financial results have shown further growth of portfolio. The combined portfolio of loans to customers and debt investments expanded by 90.4% year-on-year, growing from EUR 104.0 million at the end of H1 2024 to EUR 198.0 million at the end of H1 2025. As a result, interest income showed 64.7% growth (EUR 3.4 million) from EUR 5.1 million in H1 2024 to EUR 8.5 million in H1 2025. The business unit assumed a more cautious attitude towards credit risk and increased its provisions for performing customers, which led to impairment loss of EUR 1.4 million in H1 2025.

Net assets and financial position

Net assets

Total assets increased by 13.8% (EUR 152.2 million), rising from EUR 1,098.7 million at the end of 2024 to EUR 1,250.9 million at the end of H1 2025. This was mainly driven by the organic growth of loans to customers and debt investments where the Wholesale Banking business unit contributed the most. Loans to customers increased by EUR 70.4 million to EUR 720.3 million (31 December 2024: EUR 649.9 million). Debt investments rose to EUR 131.8 million by the end of H1 2025, compared to EUR 112.6 million at the end of 2024, contributing EUR 19.2 million to the increase in total assets.

Cash and cash equivalents increased by EUR 28.4 million, rising from EUR 249.5 million at the end of 2024 to EUR 277.9 million as of the end of H1 2025. This growth was primarily driven by strong cash inflows from operating activities, which generated EUR 34.9 million over the past six months, alongside proceeds of EUR 24.0 million from the issuance of Tier 2 Notes by Multitude Bank p.l.c. The additional liquidity will support planned investments in the Wholesale Banking unit, in line with our strategic growth objectives.

Other financial assets increased to EUR 50.6 million in 2025, representing a growth of EUR 23.5 million compared to EUR 27.1 million in 2024. This increase was primarily driven by two factors: the sale of originated loans to a strategic partner and the recognition of contingent consideration related to the disposal of Group companies. The receivable from the sold loan portfolio rose by EUR 10.5 million. Additionally, the contingent consideration of EUR 9.8 million was recognised during the second quarter of 2025.

The Consumer Banking business unit acquired additional equity stakes in Lea Bank AB. As a result of acquisition of 15.09% stake of Lea Bank AB in H1 2025, the stake of the Group increased to 24.99% at the end of the period. The carrying amount of the investment in associates, after attribution of profits and receipt of dividends, stands at EUR 20.7 million — an increase of EUR 11.5 million from EUR 9.2 million in December 2024.

Current tax assets decreased due to a tax refund on intra-group dividends, falling by EUR 1.3 million from EUR 1.4 million at 31 December 2024 to EUR 0.1 million as at the end of H1 2025.

The impaired loan coverage ratio decreased by 2.0 percentage points, from 17.6% at the end of 2024 to 15.6% at the end of H1 2025. This decrease reflects an overall improvement in portfolio credit quality during the period, as provision growth lagged behind the write-offs of unrecovered loans.

Liabilities

Total liabilities grew by 16.6% (EUR 150.0 million), from EUR 905.0 million at the end of 2024 to EUR 1,055.0 million at the end of H1 2025. This increase was driven by a 15.8% rise in customer deposits (EUR 126.6 million), reaching EUR 927.5 million, and a 33.9% increase in issued debt securities (EUR 26.0 million), reaching EUR 102.9 million. The increase in debt securities reflects the issuance of new Tier 2 Notes by Multitude Bank p.l.c. in March 2025.

Equity

Total equity rose by 1.1% (EUR 2.1 million), increasing from EUR 193.8 million at the end of 2024 to EUR 195.9 million at the end of H1 2025. The net equity ratio saw a slight decline, falling from 23.2% at the end of 2024 to 23.0% at the end of H1 2025, while the net debt-to-equity ratio increased from 3.38 to 3.97. The issuance of a Tier 2 instrument by Multitude Bank p.l.c. contributed a notable improvement in the net equity ratio. However, this positive impact was offset by the distribution of dividends to the owners of the parent company and the increase in the Group's asset base over the period.

In February 2025, Multitude launched its second All-Employees Shareholder Programme, following the success of the first, where all eligible employees are entitled to receive 50 free Multitude shares this year. The aggregate maximum number of shares granted to employees is 26,900. A total of 491 participants took the opportunity to join the All-Employees Shareholder Programme, and the company distributed 24,550 shares.

Liquidity

Cash and cash equivalents increased by EUR 28.4 million, rising from EUR 249.5 million at the end of 2024 to EUR 277.9 million as of 30 June 2025. This growth was primarily driven by strong cash inflows from operating activities, supported by additional inflows from financing activities. A significant portion of the cash balance is held in short-term deposits with other banks, generating additional interest income. This enhanced liquidity position is expected to support planned investments in the Wholesale Banking unit, in line with the Group's strategic growth objectives.

Net cash flow from operating activities amounted to EUR 34.9 million, mainly driven by interest income received and the strong uptake of customer deposit offerings. These inflows were partially offset by reinvestments into both the loan and investment portfolios, which continued to expand compared to the prior year.

Net cash outflow from investing activities totalled EUR 18.3 million, primarily due to additional expenditure on internally generated software and an additional investment of EUR 14.0 million for a 15.09% equity stake in Lea Bank AB.

Events occurring after the reporting period

As part of the Group's initiative to simplify its structure and streamline operations, Saldodipje SL and Ferratum Bulgaria EOOD, both wholly owned subsidiaries, were disposed of in July 2025.

Economic Environment and Outlook

Economic Environment

Broad Macroeconomic overview

Europe's economy maintained a modest growth trajectory in the first half of 2025. Real GDP growth for the year is projected at about 1.1% in the EU (0.9% in the euro area), roughly on par with 2024's pace. Actual activity in early 2025 reflected this subdued growth: the EU expanded by 0.3% in Q1 2025, supported by resilient consumption, but high financing costs kept investment weak. There are signs that momentum eased further in Q2 amid external headwinds, the eurozone's quarterly growth is estimated to have slowed to near 0.1% as global trade tensions hit exports. Notably, new U.S. tariffs announced in early 2025 prompted U.S. importers to front-load purchases from Europe in Q1, giving a temporary boost to export growth, but this unwound by Q2 once the tariffs took effect. Overall, geopolitical and trade uncertainty has weighed on confidence, prompting downgrades to Europe's 2025 outlook compared to prior forecasts.

Inflation in Europe eased markedly during H1 2025, alleviating the cost-of-living crisis that defined the prior two years. Eurozone headline inflation fell to 2.0% by June 2025, essentially back to the European Central Bank (ECB)'s target, down from about 2.5% a year earlier. Disinflation has been faster than anticipated, after averaging 2.4% in 2024, euro-area inflation was expected to hit ~2.0% by mid-2025 and indeed did so. Easing energy prices (oil around USD 60/barrel, gas also down) and a strong euro helped curb imported inflation. Core inflation remained stickier (e.g. services inflation stayed above 3.0%), but overall price pressures moderated, boosting real incomes. The labor market remained robust: unemployment hovered near record lows (around 6.0% in the euro area), with Europe adding millions of jobs over the past year. Tight labor markets and earlier nominal wage growth helped household incomes recover some purchasing power lost to high inflation. Indeed, by late 2024 and into early 2025, nominal wages were rising faster than prices, enabling consumer spending to pick up. Private consumption exceeded expectations at the turn of the year, expanding about 1.3% in Q4 2024 as 1.7 million new jobs and rising wages bolstered disposable incomes. This strength carried into Q1 2025, supporting the economy despite higher interest rates.

Monetary policy took a decisively supportive turn in H1 2025. With inflation back under control, the ECB shifted from tightening to easing. Between June 2024 and June 2025, the ECB cut rates in eight consecutive meetings, lowering the deposit facility rate from ~4% to 2.0% by June 2025. In its 5 June 2025 decision, the ECB delivered a 25 basis points rate cut (deposit rate to 2.0%) and signaled a possible pause thereafter. ECB President Christine Lagarde noted that with inflation "just below 2%," policy was "in a good position," hinting that the bank might hold rates steady for a period to observe economic developments. This marked the end of the most aggressive tightening cycle in over a decade and the beginning of modest relief in borrowing costs. Fiscal policy in major economies also lent support, for instance, Germany enacted a once-in-a-generation fiscal expansion (particularly on defense and green investment) which helped improve its outlook after two years of mild recession. Indeed, Germany's economy, which had contracted in 2023–2024, saw confidence bolstered by fiscal stimulus, even as it remained one of the weaker performers in early 2025. Across Europe, government spending on priorities like energy subsidies and defense persisted into 2025, though at lower levels than the pandemic era, providing some fiscal impulse to growth.

In summary, H1 2025's macro backdrop in Europe was one of cautious resilience. Growth was positive but restrained by past shocks and uncertainty. Consumer fundamentals improved, employment was high and inflation no longer outpaced wages, lifting consumer confidence. However, businesses faced a more challenging climate, with investment sluggish amid rising interest costs and unpredictable trade policy. The ECB's pivot to rate cuts and the fading of the energy price shock put Europe on a path of gradual recovery. These macro trends form the context for Multitude's operating environment, influencing everything from loan demand to credit risks across its Consumer, SME, and Wholesale Banking segments.

Sector-specific environment – Consumer, SME, and Wholesale

Within this broader economy, the specific sectors of consumer banking, SME banking, and institutional finance (wholesale banking) experienced distinct trends:

1. Consumer banking environment:

European consumers in 2024 faced a dual reality of rising costs of living for much of the year and then a gradual relief as inflation slowed. High interest rates early on meant consumer credit (such as personal loans and credit cards) was relatively more expensive, potentially dampening loan demand and spending. Nevertheless, demand for quick, digital lending solutions remained robust, especially among "overlooked" customer segments that often do not have easy access to traditional bank credit. Many traditional banks continued to apply strict lending criteria and slow processes, leaving a gap that fintech lenders like Multitude (operating under the Ferratum brand in consumer finance) could fill.

The trend towards digital banking and online credit services accelerated – consumers increasingly preferred convenient mobile apps and online platforms to meet their financial needs. Multitude benefited from this trend, leveraging its fully digital loan processes and AI-driven scoring to deliver instant credit in 14 markets by the end of 2024. Regulatory developments also shaped the consumer finance landscape: the EU's updated Consumer Credit Directive and various national measures (e.g., interest rate caps or stricter affordability checks in some countries) imposed greater responsibility on lenders to ensure fair lending.

2. SME banking environment:

Small and medium-sized enterprises (SMEs) across Europe in 2024 encountered both challenges and opportunities. On one hand, SMEs were hit by higher input costs (energy, materials) and rising wages due to the inflation surge, as well as higher financing costs from elevated interest rates. Traditional banks, facing higher funding costs and risk-weight constraints, were somewhat conservative in expanding SME credit, especially to businesses with shorter track records or lesser collateral. This created a continued funding gap in the market. On the other hand, many European economies showed resilience – consumer demand held up in key sectors, and governments in countries like Germany, Finland, and others provided support programs or loan guarantee schemes for SMEs. As the macro situation improved in late 2024, SMEs generally saw more stable economic conditions with better sales outlooks, though the early-year stress had to be managed. Fintech SME lenders and digital banks thus found fertile ground to grow, by offering faster credit decisions and products tailored to SME needs.

Multitude's SME Banking unit (CapitalBox) benefited from this environment by providing financing in five markets (Finland, Sweden, Denmark, Lithuania, the Netherlands) through a fully digital platform. The sector also witnessed innovation: products like revenue-based financing, invoice purchasing, and SME buy-now-pay-later solutions gained traction as businesses looked for flexible funding. Indeed, Multitude introduced a new Invoice Purchasing solution after acquiring a Danish fintech, allowing SMEs to convert invoices to cash quickly. The competitive landscape featured both incumbent banks (focusing on their largest SME clients) and agile fintechs (serving underserved smaller businesses). Regulatory scrutiny on SME lending remained focused on credit risk management and Know Your Customer (KYC) / Anti-Money Laundering (AML) compliance, but regulators also encouraged credit flow to SMEs as part of economic recovery. In summary, the SME finance environment in 2024 was characterised by high financing costs and selective bank lending, which opened opportunities for alternative lenders. As conditions improved later in the year (with interest rate relief and stable demand), SMEs were positioned to borrow for growth, especially from providers like Multitude that offer quick and tailored credit.

3. Institutional finance and wholesale banking environment:

The institutional finance sector (serving larger corporates, fintech partners, and non-bank financial institutions) saw a niche expansion in 2024. Large traditional banks were focused on core client segments and risk management, sometimes leaving mid-sized corporates or non-traditional credit needs underserved. For example, specialised financing needs – such as secured debt deals for fintech loan portfolios or bespoke payment solutions – often fall outside the standard offerings of mainstream banks. This gap allowed new wholesale banking entrants (including Multitude's Wholesale Banking business unit under the Multitude Bank brand) to gain a foothold. The macro backdrop of stabilising interest rates made structured credit investments more attractive; institutional investors were seeking yield and were more open to collaborations with fintech-driven banks for innovative loan structures. Multitude's Wholesale Banking unit capitalised on this by structuring secured lending agreements and investing in bond-like instruments backed by loan receivables. In 2024, the unit forged partnerships indicative of a broader trend: sustainable finance and ESG-linked opportunities became more prominent in wholesale banking.

European policy initiatives (such as the Competitiveness Compass and the push for decarbonisation) signalled that directing capital towards green and innovative sectors will be a continued focus – something Multitude's institutional business is well-positioned to support through its agile approach. Meanwhile, the payments landscape for institutions continued to evolve with demand for real-time, API-driven payment infrastructure, leading Multitude to invest in its Payment Solutions offering. From a regulatory perspective, wholesale and institutional banking activities remained subject to prudential oversight (capital requirements for large exposures, etc.), and Multitude, as a smaller bank, had to ensure compliance while offering competitive flexibility.

In conclusion, the sector-specific environment in 2024 was generally favourable for Multitude's business model: traditional banks' cautious stance and structural market changes created space for fintech-oriented players in consumer, SME, and institutional segments. Multitude navigated these conditions by leveraging its digital platform, focusing on underserved niches, and remaining responsive to macroeconomic changes (such as adjusting credit underwriting in response to economic indicators). This alignment with the external environment underpinned the Group's course of business in 2025.

Outlook

Multitude Group expects continued profitable growth in 2025, with a net profit guidance of EUR 24.0–26.0 million range, up from EUR 20.2 million in 2024. The Group has also reaffirmed its target of EUR 30.0 million net profit by 2026, supported by strong results in Q1 2025 and consistent operational execution. The Group's strategic emphasis on automation, scalable growth, and disciplined risk management underpins its confidence in delivering these figures. Multitude publishes its targets of financial results measured by net profit (profit after tax) for consolidated Group (capital market guidance) and by EBT (profit before tax) for each business unit. In prior years, Multitude used to give guidance on financial results based on EBIT measure. For the financial year 2025 Multitude has slightly increased its net profit guidance from previously EUR 23.0 million to a range of EUR 24.0 to 26.0 million.

The 2025 outlook is supported by several structural assumptions:

• All business initiatives should be net profit accretive within 24 months
• Organisation structured for scalability and cost efficiency
• Continuous enhancements in underwriting and risk management
• Targeted investment in AI, automation, and customer experience

All targets are based on the assumption of a stable operating environment and exclude the impact of extraordinary, non-recurring, or materially disruptive events.

Leadership Team's focus remains on executing efficiently across core products, while selectively exploring inorganic opportunities.

EUR '000	2024 Actual	2025 Target
Group Net Profit	20,234	24,000–26,000
Consumer Banking EBT	32,848	Growth by at least 5%
SME Banking EBT	(10,684)	Positive EBT on a quarterly level during H2 2025
Wholesale Banking EBT	1,080	4,000 - 5,000

Group Net Profit

In 2024, the Group delivered a net profit of EUR 20.2 million, establishing a solid foundation for further growth. For 2025, the Group aims to enhance profitability with a target range of EUR 24.0–26.0 million, reflecting a planned increase of 19% to 29%. This ambition underscores a strong commitment to sustained value creation and improved earnings performance at the consolidated level.

Consumer Banking

Ferratum continues to strengthen growth by leveraging user data and targeted digital marketing, while focusing on higher-margin markets and expanding its product offering. The business remains committed to improving operational efficiency through its scalable model, supporting both performance and momentum.

Consumer Banking emerged as a key profit driver in 2024 with a robust EBT of EUR 32.8 million. Building on this success, the business line is targeting a growth rate of at least 5% in 2025, signalling confidence in customer demand, operational scalability, and margin resilience in core retail lending and financial services.

SME Banking

Looking ahead, CapitalBox continues to maintain its focus on three core strategic growth drivers: organic development, strategic partnerships, and selective M&A opportunities. These pillars remain central to scaling the business sustainably and expanding its market presence across Europe. On the product side, the business unit will continue to prioritise the expansion of secured lending solutions. This includes further scaling of invoice purchasing services, now supported by AI-enabled invoice processing and the continued rollout of real estate secured loans across all active markets. These products are designed to meet the evolving needs of SMEs by offering more flexible, asset-backed financing options that support liquidity and growth.

The outlook for SME Banking is cautiously optimistic: the 2025 target focuses on achieving positive EBT on a quarterly basis during the second half of the year.

Wholesale Banking

Wholesale Banking remains focused on executing its 2025 strategic priorities. The unit is progressing well in closing its robust pipeline of secured debt transactions, reinforcing its position in institutional lending. To drive scalability and efficiency, the business unit continues to enhance its underwriting processes through automation, data-driven AI, and advanced risk analytics. In parallel, the payments business is gaining momentum, with new institutional clients successfully onboarded, further expanding the unit's reach and solidifying its role as a key infrastructure provider for payment and transaction services.

For 2025, the business unit aims to significantly increase its contribution, with a target of EUR 4.0–5.0 million in EBT. This implies a nearly four-to-fivefold increase, pointing to a strategic focus on strengthening institutional lending.

Risks and opportunities

Risks report

The Group's activities expose the Group to various financial risks, including credit risk, market risk and liquidity risk. The Group aims to achieve an appropriate balance between risk and return and minimise potential adverse effects on the Group's financial performance.

Multitude takes moderate and calculated risks in conducting its business. The prudent management of risks minimises the probability of unexpected losses and threats to our reputation. Therefore, it can enhance profitability and shareholder value.

The Leadership Team and business unit CEOs monitor operations regularly, are responsible for adequate risk management and ensuring that the Group can control and monitor its risks. Each Leadership Team member bears responsibility for identifying and controlling the risks related to their functions in line with instructions from the Board. The Board is ultimately responsible for, among other things, overseeing the Group's risk management through its Risk Committee. We frequently seek legal and regulatory advice and monitor changes internally that might occur in the countries we operate in, and adjust operations where necessary.

The Group's governance structure comprises three Board Committees, namely the Audit Committee, the Risk Committee, and the People and Culture Committee.

1. Credit risk

Credit risk is the most critical risk for the Group's business, and accordingly, the Group carefully manages its exposure to this risk. Credit exposure arises principally through the Group's lending activities in various European countries, together with the placement of liquidity with banks.

Credit risk management

During 2024, heightened economic uncertainty persisted due to geopolitical developments stemming from the military conflict between Russia and Ukraine since February 2022 and the conflict between Israel and Palestine since September 2023. These events initially contributed to global inflationary pressures, particularly in energy markets. However, throughout 2024, disinflationary trends emerged as energy prices stabilised and global supply chains adjusted. In response, Central Banks, including the European Central Bank, shifted their monetary policy stance by gradually lowering interest rates to stimulate economic activity after a prolonged period of tightening. Concurrently, several governments maintained or adapted fiscal measures to support households and businesses, focusing on mitigating energy price volatility and fostering economic recovery.

To address the changes in factors stated above, the Group engages in a process of macroeconomic forecasting and modelling to assess how the Group's different geographical portfolios are affected by current and future economic developments. The model considers the equivalent of a 'Macro Exposure Score' to each country by factoring in several parameters, including actual payment behaviour trends, inflation, other macro indicators and government aid. Based on the assessments of the outcomes of the modelling process, the Group may execute strategic decisions to tighten lending in certain markets where the model indicates unfavourable expectations. This process further assists the Group to monitor its customer payment behaviour in different territories and enables agile action where circumstances necessitated the tightening or loosening of underwriting scorecards accordingly.

Loans to customers

The Group's lending activities mainly comprise the granting of unsecured short-term micro-credit facilities, medium-term and long-term credit products with instalment repayment features, and revolving credit facilities to individual customers and SMEs in specific European jurisdictions. All loans to customers are granted on the basis of the outcome of the scoring model, depending on the loan type, and the rules embedded within the credit policy.

The creditworthiness of potential customers is assessed by reference to the calculation of a credit score for each loan application received and based on the customer's specific affordability. The relevant credit score is computed through the application scorecard for first time customers and through the behaviour scorecard for repeat customers. Based on the credit score registered, customers are grouped into risk classes. The respective risk class determines the maximum credit amount allowable for each customer. The scoring model and linked score-cards are monitored by the Risk Management function of the Group.

The scorecards are reviewed on an ongoing basis by the Leadership Team and updated according to market trends, political circumstances in the particular jurisdiction, legislative and economic changes.

Expected credit loss (ECL) allowances are calculated in respect of the Group's short-term micro-credit facilities, other medium-term and long-term credit products with instalment repayment features and revolving credit facilities at a collective portfolio level. According to loan type, the portfolios consist of a large pool of homogeneous loans which by nature cannot be considered individually significant.

The Group grants secured corporate loans in SME Banking and Wholesale Banking.

The Group has a formal rigorous debt collection process that provides for the way the Group deals with past due loans to customers. The procedures highlight the prescribed actions, channels and mechanisms utilised to follow up on outstanding exposures indicating the precise point in time at which the respective actions are taken and allocating roles and responsibilities in this respect. These procedures also focus on the extent to which collection activities are carried out by the Group and the stage or phase at which external collection companies are utilised.

Debt investments

The debt investments represent the acquisition by the Group of secured bonds issued by corporate entities. These investments are evaluated and assessed at inception in order to determine the credit quality of the investment and potential credit risks that may arise. Moreover, on an ongoing basis, the Group actively monitors respective credit risk related clauses that have been agreed to in order to ensure that these are still being adhered to. These investments are principally secured by a number of loan portfolios or real estate which are pledged in favour of the Group and are subject to a number of covenants including inter alia predetermined ratios of ageing portfolios and advance rates. Such covenants are monitored on a regular basis by Risk Management function.

Cash and cash equivalents

The majority of the Group's cash is held with Central Banks. Other than cash held with Central Banks, the Group's excess liquidity is deposited with a large number of credit and financial institutions.

Credit risk measurement

Loans to customers

The Group's credit grading and monitoring systems are in place to react to any early identification and management of deterioration in loan quality. Internal credit risk gradings are based on actual payment behaviour of the borrower. The Group monitors the payment behaviour of its customers and other key risk indicators at portfolio level and at cohort level. The latter is regarded as an important metric as it tracks the behaviour of recently originated loans.

Debt investments

The Group's Risk Management function evaluates and assesses these investments at inception in order to determine the credit quality of the investment and the potential credit risks that may arise. Moreover, on an ongoing basis, the Group actively monitors the applicable covenants to ensure that these are still being adhered to.

Cash and cash equivalents

Cash and cash equivalents include balances with Central Bank of Malta, Central Bank of Sweden, Central Bank of Czechia and Central Bank of Lithuania and balances with other banks. The Group uses external risk grades to reflect its assessment of the probability of default (PD) of individual counterparties. These published grades are continuously monitored and updated. The PDs associated with each grade are determined based on realised default rates over the prior 12 months, as published by rating agencies. In determining the probability of default of individual counterparties, the Group distinguishes between exposures considered 'investment-grade' defined by recognised external rating agencies as a rating between AAA-BBB- (Standard & Poor's, Fitch) and Aaa-Baa3 (Moody's), and 'non-investment grade' exposures.

2. Market risks

Market risks arise from open positions in the interest rate and products in foreign currency. They are managed by the Group's Treasury function, in close cooperation with Financial Planning & Analysis (FP&A) team, which is also responsible for the Group's cash flow planning and ensuring the necessary liquidity level for all Group companies.

Foreign currency risk

As part of this policy, Group companies enter into foreign currency forward contracts to hedge material balances (including intercompany) that are not denominated in Euros. In accordance with the policy, the aim is to hedge close to 100% of the net exposures.

As of 30 June 2025 and 31 December 2024, the Group's primary foreign exchange transaction exposure arises from monetary assets and liabilities denominated in Danish Krone (DKK), Swedish Krona (SEK), Bulgarian Lev (BGN), Romanian New Leu (RON), Polish Zloty (PLN), Norwegian Krone (NOK), Czech Koruna (CZK), and accordingly, the Group hedges the foreign currency exchange risks arising from the net monetary assets denominated in these currencies.

Interest rate risk

The Group is exposed to interest rate risk, which could impact its net interest income and the value of assets and liabilities through its business activities. The main items exposing the Group to the interest rate risk are loans to customers, debt investments, deposits from customers as well as issued debt securities. Currently, the Group is exposed to cash flow interest rate risk through its floating interest rate financial assets and liabilities, as well as pricing risk arising from the differences in refinancing periods between its fixed rate financial assets and liabilities. The interest rate risk is regularly measured and the Group aims to apply natural hedging to minimise the exposure to interest fluctuations.

The Group analyses its interest rate exposures on a periodic basis. Various scenarios are simulated considering refinancing, renewal of existing positions and alternative financing. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift for the assets and liabilities held by Multitude AG, Multitude Capital Oy and Multitude Bank p.l.c. that constitute the majority of interest-bearing items with floating interest rates. The same interest rate shift is used for each simulation for all currencies. The scenarios are run for items that are subject to daily reference rates.

The Group keeps monitoring the materiality of interest rate risk derived from items recognised in the statement of financial position on a regular basis and aims to incorporate all significant changes of the business model into the assessment. The Group's floating and fixed rate interest-rate position as per the end of the period is presented in the following table:

EUR '000	Floating rate	Fixed rate	Non-interest bearing	Total
Loans to customers	247,003	473,270	-	720,273
Debt investments	131,780	-	-	131,780
Deposits from customers	(11,415)	(904,674)	(11,363)	(927,452)
Debt securities	(100,046)	(2,833)	-	(102,879)

Floating rate refers to instruments which are tied to maximum 12-month Euribor. Non-interest bearing refers to zero-coupon products.

Moreover, a sensitivity analysis in respect of interest rate changes is applied in relation to all net floating rate instruments to which the Group is exposed to. These instruments represent the net position of floating rate assets - mainly surplus liquidity placed with banks, loans to customers, and debt investments - and floating rate liabilities, primarily consisting of bond funding.

3. Liquidity risks

Liquidity risk is defined as the risk that the Group does not have sufficient liquid financial resources to meet obligations associated with financial liabilities settled by delivering cash or another financial asset. Liquidity risk arises because of the possibility that the Group might be unable to meet its payment obligations when they fall due as a result of mismatches in the timing of the cash flows under both normal and stressful circumstances. Transactional liquidity risk is defined as the risk of executing a financial transaction below fair market value or not being able to execute the transaction within a specific period. The objective of liquidity risk management is to maintain sufficient liquidity and to ensure that it is readily available without endangering its value to avoid uncertainty related to financial distress at all times.

To mitigate potential risks, the Group diversified funding sources beyond its core deposit base. Additionally, the Group has adopted a policy that prioritises liquidity in asset management, monitoring future cash flows at the market level across each operating entity. This oversight is consolidated centrally by the Group Treasury function. The Group Treasury function diligently tracks rolling forecasts of liquidity requirements, ensuring adequate cash reserves to meet operational needs. The goal is to maintain a comfortable margin for debt facilities and other non-current liabilities, preventing any breaches in debt agreements. The forecasting process takes into account the Group's debt financing plans, compliance with debt covenants, adherence to internal balance sheet ratio targets, consideration of legal and regulatory requirements, and management of currency restrictions. Collaborating closely with Multitude Bank p.l.c.'s Treasury, the Group Treasury function works jointly to guarantee that the Group remains sufficiently liquid. This collaborative effort ensures a cohesive approach to liquidity management across the organisation.

On the level of Multitude Bank p.l.c., liquidity risk is managed by the Bank's Treasury function and its Asset and Liability Committee (ALCO) through monitoring of day-to-day funding and liquidity ratios with benchmarking against internal and regulatory requirements. The Bank uses Liquidity Coverage Ratio, minimum requirement for own funds and eligible liabilities, and Net Stable Funding Ratio to measure liquidity risk. The Bank continuously monitors its asset base growth, its deposit portfolio as well as its liquidity position in order to ensure that all ratios are constantly kept above the minimum regulatory ratio.

Most of the Group's financial liabilities consist of customer deposits and issued bonds with defined contractual maturity. The overarching goal of liquidity risk management is to sustain an adequate level of liquid assets, considering anticipated cash outflows related to customer obligations and other liabilities.

During 2025, no capital market debt instrument or other significant financial obligations will fall due for repayment. Multitude expects relevant bond covenant metrics to remain well above required level. This is particularly relevant for net equity ratio as defined in the bond terms and conditions. The successful placement of a EUR 25.0 million Tier 2 Notes on the level of Multitude Bank p.l.c. is supporting this.

4. Operational risks

Legal, regulatory and data protection risks

Operating across more than 17 countries, the Group is exposed to a range of legal and regulatory risks stemming from diverse legal systems, evolving legislation, and jurisdiction specific compliance requirements. To mitigate these risks, the Group's Legal function manages regulatory, legal and litigation risks in close cooperation with the authorities in the respective countries and relevant stakeholders. This is further supported by a network of local external legal advisors, who provide jurisdiction specific expertise and help ensure compliance with local laws and regulations. Potential or foreseeable changes in applicable laws are analysed on an ongoing basis and any necessary modifications to the Group's operations are implemented proactively. Legal proceedings and potential claims are monitored and managed to reduce litigation exposure. Data protection risks are managed through robust cybersecurity frameworks, regular system audits, and continuous monitoring to prevent unauthorised access, data breaches, and service disruptions. The Group ensures compliance with European Union's General Data Protection Regulation 2016/679 (GDPR) and other applicable regulations under the oversight of the Legal function, with privacy-by-design principles embedded into all processes.

IT security risks

The Group's IT function established the framework for safeguarding all information systems, networks, and data assets against unauthorised access, misuse, and cyber threats. It defined clear roles and responsibilities for system users, administrators, and security personnel, ensuring accountability at all levels. The company policy mandates the use of strong authentication, encryption, access controls, and regular software updates across all systems. It includes procedures for regular penetration testing, phishing simulations, incident detection, response, and recovery, supported by regular security awareness training for all employees.

As a provider of online lending we have high dependence on IT infrastructure, therefore, we adopted a Business Continuity Plan on the level of Multitude Bank to ensure the highest possible reliability in delivering products and services which is essential to maintaining the trust of customers and the market, as well as meeting contractual obligations. Interruptions to core processes and the unavailability of critical resources pose a significant risk to us and could have wider implications for the financial system. The plan is designed to ensure operational continuity in the event of an emergency and to reduce the risk of service disruptions.

Outsourcing and third-party risks

Multitude relies on third-party providers for certain critical functions such as IT infrastructure, data processing, and debt collection services. This creates exposure to risks related to service interruptions, regulatory non-compliance, data breaches, and substandard performance. To manage these risks, the Group's Procurement function conducts rigorous due diligence before onboarding vendors, establishes detailed contractual obligations including service-level agreements and collects data about third-party performance.

To manage these risks, the Group's Procurement function, in cooperation with IT competence centre of the Group, conducts rigorous due diligence before onboarding vendors, establishes detailed contractual obligations including service-level agreements and collects data about third-party performance.

5. Specific risks in Business units

Consumer Banking and SME Banking

Exposure to credit risks arises principally from the Group's lending activities. The credit risk is managed by experienced risk teams from the Risk Management function, which manage the Group's scoring system and credit policies. The Risk Management function is also responsible for measuring the payment behaviour of the credit portfolio on a daily, weekly, and monthly basis. This is done through proprietary risk management tools, which assist Group companies in evaluating the customer's payment behaviour. These tools, which are continuously updated and refined, ensure that only customers with a satisfactory credit profile are accepted.

Wholesale Banking

The Group is also exposed to credit risk arising from its exposure to debt investments. The debt investments mainly reflect the Group's acquisition of secured bonds. Such bonds are mainly secured either by loan portfolios or real estate, which are pledged in favour of Multitude Bank p.l.c., and are subject to a number of covenants including predetermined ratios of ageing portfolios and advance rates and Loan to Values. Such covenants are monitored regularly by our Leadership Team and the relevant Committees.

6. ESG risks

Multitude has also integrated ESG risks and impacts into its general risk management framework assessing their impacts over short, medium, and long-term horizons. ESG risks are defined as: 1) Environmental – risks stemming from environmental matters, including physical and transition climate risk; 2) Social – risks arising from the Group's relationships with employees, customers, and society such human rights, selling practices and lending practices; and 3) Governance – risks arising from matters relating to regulations, reputational impact, and business model and strategy resilience. We continuously enhance the integration of the ESG risks into the existing processes to achieve a holistic approach and alignment with Multitude's overall risk management strategy.

The following outlines the specific ways in which we manage ESG risks, including climate risks:

Risk Appetite Statement – In Risk Appetite Statements, the Bank's Board and management formally establish a 'tone at the top' to be followed by the three lines of defence. Multitude expresses a low appetite for ESG risks, Human Rights risks and Climate Transition risks.

Underwriting Process – Since 2023, the Bank has integrated an ESG risk assessment into the analysis of Wholesale Banking clients as part of the Secured Debt and loan origination process. The assessment covers environmental and social matters, including human rights topics. The assessment methodology is continuously enhanced to account for evolving best practices as well as for stakeholder and regulatory expectations.

The assessment follows a five-pillar approach covering country, sector, incidents, policy and counterparty assessment. Each pillar is evaluated across environmental and human rights dimensions, utilising external data and methodologies for country and sector assessments. The counterparty assessment is based on a questionnaire and the client's policies on the management of ESG issues.

Business Continuity Planning – The Bank integrates ESG matters into its operational risk management through its Business Continuity Plan, which evaluates a scenario of natural disasters causing operational disruptions and outlines a response should the scenario occur.

Expected Credit Losses – Since 2024, climate risk factors have been incorporated in the estimation of expected credit losses for consumer and SME lending activities. The model uses climate scenarios provided by Oxford Economics. As of December 2024, three scenarios were used in the ECL calculations: Net Zero, Low Demand and Climate Distress.

Net Zero: Aligned with NGFS narratives, this scenario achieves net zero CO2 emissions by 2050 through early policy action, technological advances, and global coordination. Global warming is limited to around 1.6ºC before falling to 1.5ºC by 2100. The economic impact is modest, with higher investment helping to offset carbon taxes.

Low Demand: In this scenario, governments impose strict climate policies in response to rising physical risks. However, the failure to advance supply-side transformation forces the world to reduce energy demand to meet climate goals. Increased government action helps reduce energy demand and enhance energy efficiency.

Climate Distress: This scenario features governments' failure to meet their policy pledges, leading to intensified greenhouse gas concentrations. Global temperatures rise by 2.1ºC by 2050, resulting in severe physical damages that accelerate over time.

Vendor Onboarding Process – The Group conducts an ESG assessment of any vendor arrangement with a forecasted total annual spend greater than EUR 50,000. Additionally, the Bank initiates the ESG assessment regardless of the transaction value if a vendor is designated as outsourcing or critical Information and Communication Technology (ICT) provider as per MFSA's BR 14 or Digital Operational Resilience Act (DORA) definitions, respectively. This comprehensive evaluation includes screening for human rights and environmental incidents throughout the vendors' value chains. Furthermore, it involves a thorough evaluation of the counterparties' policies on the management of ESG issues, including human rights.

New Product Approval – Since 2022, ESG has become an integral part of the Bank's New Product Approval Policy (NPAP). Incorporating ESG considerations into the NPAP process ensures compliance with an appropriate risk approach and effective management of potential ESG issues by identifying them at the early stages of new product development or market entry.

The inclusion of Climate & Environmental risks within our risk management framework is an ongoing effort. Multitude is committed to continuously enhancing its processes to better address these risks, ensuring that our approach remains robust and aligned with evolving best practices and regulatory expectations.

For further information according to ESG we refer to our ESG report available under: https://www.multitude.com/investors/results-reports-and-publications/esg-reports

Overall statement

The risk profile of Multitude Group has remained stable throughout the 2024 financial year. All known impacts of geopolitical and macroeconomic developments have been actively monitored and managed. No material changes in the Group's overall risk exposure have been identified. The Group's total risk across financial, operational, and ESG categories remains adequately covered by available capital and liquidity buffers. Risk management and internal controls have been continuously strengthened during the year. As of the date of this report, no risks have been identified that would threaten the Group's continued existence or materially impact its financial position or performance.

Opportunities report

Multitude Group pursues a forward-looking, yet risk-conscious growth strategy focused on technological innovation, financial inclusion, and sustainability. The following are key opportunity areas for the year 2025 identified by management. All statements are made under cautious assumptions and do not represent guaranteed outcomes.

Opportunities are identified through the Group's strategic planning, risk management, and business unit forecasting processes. Where applicable, opportunities are assessed using internally developed models, including scenario planning, customer acquisition cost forecasts, product margin uplift estimates, and ESG scoring tools. Quantitative estimates are used to support strategic decisions, particularly when capital allocation or technology investments are involved.

While no binding financial forecasts are made in this report, the Group aims to provide directional impacts and indicative sizing where internal control processes rely on such quantifications.

Strategic opportunities

Business model scalability

The Group operates a modular FinTech platform model comprising Consumer Banking, SME Banking, and Wholesale Banking. This structure enables focused growth initiatives and capital allocation across profitable verticals.

Wholesale Banking development

Launched in 2024, the Wholesale Banking unit addresses institutional clients such as e-money institutions and smaller banks underserved by traditional established banks and financial institutions. Demand for tailored lending solutions and payment infrastructure indicates further potential for customer onboarding and cross-selling.

If this opportunity materialises fully, it will expand the Group's revenue diversification and reduce reliance on retail products. The risk-adjusted scenario analysis shows a break-even point for the new business line by mid-2025. This represents a change from 2024, when the business line was in its early setup phase and revenue contribution was minimal.

Geographic expansion

The Group successfully re-entered the Polish market in 2024 and acquired a strategic stake in Lea Bank, a fully digital lender in Scandinavia. These steps increase customer access, improve brand visibility, and provide long-term synergies in Consumer Banking.

Technological and digital opportunities

AI and data-driven innovation

Investments in cloud-based infrastructure, microservices, and a dedicated AI team have enabled real-time risk scoring, personalised customer journeys, and increased efficiency in marketing and operations.

Cybersecurity as a differentiator

A culture of cybersecurity literacy provides both resilience and a competitive edge in regulated markets. The requirements of DORA are considered in the area of cybersecurity management.

ESG and sustainability opportunities

Green financing initiatives

The Group supports ESG-aligned lending, such as the EUR 14.0 million investment in sustainable agriculture loans in partnership with HeavyFinance made in December 2024 and backed by the European Investment Fund. These activities strengthen the Group's impact credentials while opening up new credit portfolios.

Sustainable SME transition

The EU's Green Deal poses both risk and opportunity. Multitude aims to provide bespoke financing solutions for SMEs transitioning to energy-efficient operations, a growing segment under-served by traditional lenders.

Changes in opportunity landscape since 2024

Compared to the prior year, several opportunities have evolved significantly:

• The Wholesale Banking initiative moved from planning to operational phase, with early revenue generation.
• Geographic expansion saw tangible execution via market re-entry (Poland) and a strategic acquisition (Lea Bank).
• The ESG lending portfolio increased, notably with the EUR 14.0 million sustainable agriculture deal, indicating increased alignment with impact-focused institutional partners.
• In technology, the internal AI team delivered its first platform-level solutions, moving beyond proof of concept into implementation.

These changes reflect a transition from exploratory positioning to more execution-focused growth avenues.

Summary of risks and opportunities

Multitude AG enters 2025 with a stable risk profile, supported by strong governance and a multidimensional risk management system. At the same time, it remains agile in capitalising on opportunities related to fintech innovation, embedded finance, ESG-driven credit, and partnerships. All opportunity statements are made under prudent assumptions and do not constitute financial forecasts.

About this report

This Interim Board of Directors' report has been prepared in accordance with the applicable provisions of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG), in particular § 115 WpHG, which governs the preparation and disclosure of interim financial reports by issuers whose securities are admitted to trading on a regulated market.

Multitude Group H1 2025 – Interim Board of Directors' Report 33

Unaudited condensed consolidated interim financial statements H1 2025

Condensed consolidated statement of profit or loss

EUR '000	Notes	Q2 2025	H1 2025	Q2 2024	H1 2024
Interest income	5	63,635	128,046	64,653	128,826
Interest expense	5	(11,407)	(21,724)	(10,090)	(18,670)
Net interest income		52,228	106,322	54,562	110,157
Fee and commission income	6	2,950	5,345	11	21
Fee and commission expense	6	(431)	(893)	-	-
Net fee and commission income		2,519	4,452	11	21
Fair value and foreign exchange gains and losses (net)	7	(826)	(1,524)	(1,193)	(1,229)
Other income	3, 8	371	373	261	275
Share of results of associates		465	992	(117)	(152)
Net operating income		54,757	110,615	53,525	109,072
Operating expenses:
Impairment loss on loans to customers	9, 13	(20,246)	(42,430)	(23,829)	(52,105)
Personnel expense	9	(10,603)	(19,840)	(9,491)	(18,874)
General and administrative expense	9	(9,493)	(18,984)	(8,308)	(16,510)
Depreciation and amortisation	9	(3,304)	(6,482)	(3,091)	(6,476)
Selling and marketing expense	9	(3,127)	(6,454)	(3,401)	(6,706)
Other expense	8	(10)	(153)	-	-
Profit before income taxes		7,974	16,272	5,405	8,401
Income tax expense	10	(1,051)	(2,116)	(732)	(1,150)
Profit for the period		6,923	14,156	4,673	7,251
Attributable to:
Owners of the parent company		6,923	14,156	4,673	7,251
Non-controlling interests		-	-	-	-
Earnings per share:
Basic earnings per share, EUR	11	0.28	0.56	0.13	0.20
Diluted earnings per share, EUR	11	0.27	0.54	0.12	0.19

Condensed consolidated statement of comprehensive income

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Profit for the period	6,923	14,156	4,673	7,251
Other comprehensive (loss) / income:
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations	(874)	351	128	(170)
Reclassification of foreign currency translation reserve to profit or loss on disposal of subsidiaries	(411)	(411)	-	-
Total other comprehensive (loss) / income	(1,285)	(60)	128	(170)
Total comprehensive income for the period	5,638	14,096	4,801	7,081
Attributable to:
Owners of the parent company	5,638	14,096	4,801	7,081
Non-controlling interests	-	-	-	-

Condensed consolidated statement of financial position

Unaudited condensed

statements H1 2025

consolidated interim financial

EUR '000	Notes	30 June 2025	31 December 2024
ASSETS
Cash and cash equivalents	14	277,855	249,458
Derivative financial assets	14	176	53
Loans to customers	13, 14	720,273	649,928
Debt investments	14	131,780	112,554
Other financial assets	14	50,615	27,104
Current tax assets		75	1,437
Prepaid expenses and other assets		2,425	2,514
Intangible assets		34,034	32,916
Right-of-use assets		5,052	4,948
Property, plant and equipment		2,438	2,606
Investments in associates		20,692	9,209
Deferred tax assets		5,465	6,004
Total assets		1,250,880	1,098,731
EQUITY AND LIABILITIES
Liabilities:
Derivative financial liabilities	14	528	735
Deposits from customers	14	927,452	800,805
Current tax liabilities		1,717	1,125
Debt securities	14	102,879	76,850
Lease liabilities	14	5,259	5,138
Other financial liabilities	14	9,679	14,168
Other liabilities		7,493	4,960
Deferred tax liabilities		-	1,197
Total liabilities		1,055,007	904,978
Equity:
Share capital		40,189	40,189
Treasury shares		(1,655)	(946)
Retained earnings		101,105	98,216
Unrestricted equity reserve		14,653	14,653
Translation differences		(3,450)	(3,390)
Other reserves		31	31
Total equity attributable to the owners of the parent company		150,873	148,753
Perpetual bonds		45,000	45,000
Non-controlling interests		-	-
Total equity		195,873	193,753
Total equity and liabilities		1,250,880	1,098,731

		Condensed consolidated statement of cash flows
--	--	------------------------------------------------	--	--	--	--

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period	6,923	14,156	4,673	7,251
Adjustments for:
Impairment loss on loans to customers	20,246	42,430	23,829	52,105
Depreciation and amortisation	3,304	6,482	3,092	6,476
Net interest income	(52,228)	(106,322)	(54,563)	(110,157)
Fair value and foreign exchange gains and losses (net)	826	1,524	1,193	1,229
Income tax expense	1,051	2,116	732	1,150
Other adjustments	(445)	(822)	368	628
Changes in operating assets:
Increase (-) in gross loans to customers	(81,771)	(118,316)	(28,292)	(69,858)
Increase (-) in debt investments	(9,300)	(18,830)	(34,839)	(41,168)
Increase (-) / decrease (+) in derivative financial instruments (net)	(1,132)	(1,242)	383	(3,688)
Increase (-) / decrease (+) in other assets	(13,943)	(23,330)	785	(1,348)
Changes in operating liabilities:
Increase (+) / decrease (-) in deposits from customers	34,411	121,473	(25,073)	(54,039)
Decrease (-) / increase (+) in other liabilities	(7,165)	(2,027)	2,564	3,185
Interest paid	(7,613)	(15,943)	(12,644)	(19,169)
Interest received	69,914	132,832	68,899	125,751
Income taxes refund / (paid)	1,145	739	(1,342)	(1,650)
Net cash flows (used in) / from operating activities	(35,777)	34,920	(50,237)	(103,303)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible assets	(162)	(208)	(163)	(253)
Purchase of intangible assets	(3,158)	(6,272)	(3,042)	(6,400)
Purchase of investments in associate	(599)	(13,958)	-	-
Dividends received from associate	2,851	2,851	-	-
Disposal of subsidiaries, net of cash disposed of	(704)	(704)	-	-
Purchase of business	-	-	(527)	(527)
Net cash flows (used in) investing activities	(1,772)	(18,291)	(3,732)	(7,180)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of perpetual bonds interests	(1,145)	(2,641)	(1,402)	(2,754)
Dividends paid	(9,421)	(9,421)	(4,116)	(4,116)
Proceeds from debt securities	948	25,851	74,181	74,181
Repayment of debt securities	-	-	(20,192)	(20,192)
Repayment of lease liabilities	(518)	(1,230)	(457)	(1,169)
Purchase of treasury shares	(271)	(914)	(89)	(89)
Net cash flows (used in) / from financing activities	(10,407)	11,645	47,925	45,861
Cash and cash equivalents, at the start of the period	325,991	249,458	225,033	283,712
Exchange (losses) / gains on cash and cash equivalents	(180)	123	6	(94)
Net (decrease) / increase in cash and cash equivalents	(47,956)	28,274	(6,043)	(64,622)
Cash and cash equivalents, as at 30 June	277,855	277,855	218,996	218,996

Condensed consolidated statement of changes in equity

EUR '000	Share capital	Treasury shares	Retained earnings	Perpetual bonds	Unrestrict ed equity reserve	Translation differences	Other reserves	Non controlling interests	Total equity
As at 1 January 2024	40,134	(103)	87,258	45,000	14,708	(3,382)	31	-	183,646
Comprehensive income:
Profit for the period	-	-	7,251	-	-	-	-	-	7,251
Exchange differences on trans lation of foreign operations	-	-	-	-	-	(170)	-	-	(170)
Total comprehensive income for the period	-	-	7,251	-	-	(170)	-	-	7,081
Transactions with owners:
Perpetual bonds interests	-	-	(2,902)	-	-	-	-	-	(2,902)
payments (net of tax) Dividend distribution	-	-	(4,116)	-	-	-	-	-	(4,116)
Share-based payments	-	44	500	-	-	-	-	-	544
Purchase of treasury shares	-	(89)	-	-	-	-	-	-	(89)
Increase in share capital	56	-	-	-	(56)	-	-	-	-
Total transactions with owners	56	(45)	(6,518)	-	(56)	-	-	-	(6,563)
As at 30 June 2024	40,190	(148)	87,991	45,000	14,652	(3,552)	32	-	184,166
As at 1 January 2024	40,134	(103)	87,258	45,000	14,708	(3,382)	31	-	183,646
Comprehensive income:
Profit for the period	-	-	20,234	-	-	-	-	-	20,234
Exchange differences on trans lation of foreign operations	-	-	-	-	-	(8)	-	-	(8)
Total comprehensive income for the period	-	-	20,234	-	-	(8)	-	-	20,226
Transactions with owners:
Perpetual bonds interests payments (net of tax)	-	-	(5,968)	-	-	-	-	-	(5,968)
Issue of treasury shares
under share-based payment plan	-	85	(85)	-	-	-	-	-	-
Share-based payments	-	-	893	-	-	-	-	-	893
Dividend distribution	-	-	(4,116)	-	-	-	-	-	(4,116)
Purchase of treasury shares	-	(928)	-	-	-	-	-	-	(928)
Increase in share capital	56	-	-	-	(56)	-	-	-	-
Total transactions with owners	56	(843)	(9,276)	-	(56)	-	-	-	(10,119)
As at 31 December 2024	40,189	(946)	98,216	45,000	14,653	(3,390)	31	-	193,753
As at 1 January 2025	40,189	(946)	98,216	45,000	14,653	(3,390)	31	-	193,753
Comprehensive income:
Profit for the period	-	-	14,156	-	-	-	-	-	14,156
Exchange differences on trans lation of foreign operations	-	-	-	-	-	351	-	-	351
Reclassification of foreign currency translation	-	-	-	-	-	(411)	-	-	(411)
reserve to profit or loss on disposal of subsidiaries
Total comprehensive income for the period	-	-	14,156	-	-	(60)	-	-	14,096
Transactions with owners:
Perpetual bonds interests payments (net of tax)	-	-	(2,113)	-	-	-	-	-	(2,113)
Issue of treasury shares under share-based	-	205	(205)	-	-	-	-	-	-
payment plan Share-based payments	-	-	472	-	-	-	-	-	472
Dividend distribution	-	-	(9,421)	-	-	-	-	-	(9,421)
Purchase of treasury shares	-	(914)	-	-	-	-	-	-	(914)
Total transactions with owners	-	(709)	(11,267)	-	-	-	-	-	(11,976)
As at 30 June 2025	40,189	(1,655)	101,105	45,000	14,653	(3,450)	31	-	195,873

Notes to condensed consolidated interim financial statements

1. General information

In this report, "Multitude", "the Group", "company", and "we" are used interchangeably. Multitude is a listed European FinTech company offering digital lending and online banking services to consumers, small and medium-sized enterprises (SMEs), and other FinTechs. Our business model includes customer groups that are not considered by other market participants. This gives us a strategic advantage and opens up access to financial resources for these customer groups. We provide services through three business units supported by our growth platform. The ultimate parent company, Multitude AG (registration number CHE-445.352.012), was established in 2005. Up until 30 June 2024, its registered address was located at Ratamestarinkatu 11 A, 00520 Helsinki, Finland. From 1 July 2024 until 30 December 2024, the parent company's registered address was located at ST Business Centre 120, The Strand, Gzira, Malta. As of 30 December 2024, the parent company is registered in Switzerland at Grafenauweg 8, 6300 Zug, Switzerland.

Multitude AG is listed on the Prime Standard of the Frankfurt Stock Exchange. Previously, it was traded under the ticker symbol "FRU". As of 30 June 2024, Multitude AG's ticker symbol was changed to "E4I" and on 30 December 2024 to "MULT". The Group includes Multitude Bank p.l.c., licensed by the Malta Financial Services Authority (MFSA), which is a significant part of the Group, and allows it to provide financial services and products to the European Economic Area.

1.1 Significant changes in the current reporting period

Placing of EUR 25.0 million floating rate callable Tier 2 Notes

In March 2025, Multitude Bank p.l.c. successfully launched the issue of EUR 25.0 million Floating Rate Callable Tier 2 Notes Due 2035 (ISIN: DE000A4D58U2).

Transactions related to Lea Bank AB

In January 2025, the Group applied for the approval of the Swedish Financial Supervisory Authority to acquire an additional stake in Lea Bank AB. This was subsequently approved by the authority, and the Group acquired 6.39% in several transactions during the following months. After the end of 2024, the Group acquired a total of 15.09% stake (including the committed amount) which increased the total stake to 24.99% as at 30 June 2025.

Lea Bank AB, at its Annual General Meeting on 14 May 2025, resolved to distribute a dividend of SEK 1.80 per share in accordance with the proposals of Lea Bank's Board of Directors. As a

result, Multitude is entitled to receive gross SEK 43.0 million, equivalent to EUR 4.0 million.These are the only material transactions with related parties during the period.

Annual General Meeting 2025

On 13 May 2025, Multitude AG held its Annual General Meeting (AGM) in Zurich, where shareholders approved the 2024 financial statements and declared an ordinary dividend of EUR 0.44 per share, payable on 19 May 2025. Additionally, shareholders approved the introduction of a capital band, permitting share capital adjustments within a range of EUR 40.2 million to EUR 46.2 million until 2030.

2. Summary of material accounting policies

2.1 Basis of preparation

This condensed consolidated interim financial report for the six-month reporting period ended 30 June 2025 has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2024 and any public announcements made by Multitude during the interim reporting period.

The condensed consolidated interim financial statements have been prepared on a historical cost basis, except for derivative financial instruments and contingent consideration which are measured at fair value through profit or loss (FVPL). The condensed consolidated interim financial statements are presented in thousand Euros ("EUR 000"). Figures in the financial statements, including subtotals and totals, may not sum precisely due to rounding. Multitude has applied similar accounting judgements, estimates, and assumptions for this interim report as those included in the annual report for the year ended 31 December 2024. The Group has prepared its condensed consolidated interim financial statements on the basis that it will continue to operate as a going concern.

2.2 Statement of compliance

The condensed consolidated interim financial statements of the Group have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) and adopted by the European Union. IFRS Accounting Standards comprise the following authoritative literature: IFRS Accounting Standards, IAS® Standards, Interpretations developed by the IFRS Interpretations Committee (IFRIC® Interpretations) or its predecessor body, the Standing Interpretations Committee (SIC® Interpretations).

2.3 Presentation of financial statements

The Group presents its statement of financial position in order of liquidity based on Multitude's intention and perceived ability to recover / settle the majority of assets / liabilities of the corresponding financial statement line item. An analysis regarding recovery or settlement within 12 months after the reporting date (current) and more than 12 months after the reporting date (non–current) is presented in Note 12.

2.4 New standards and amendments

This Note provides a summary of (a) new standards and amendments that are effective for the first time for periods commencing on or after 1 January 2025 (i.e. year ending 31 December 2025), (b) IFRS Interpretations Committee agenda decisions issued in the last six months and (c) forthcoming requirements, being standards and amendments that will become effective on or after 1 January 2026.

(a) New standards and amendments – applicable 1 January 2025. The following amendment applies for the first time to financial reporting periods commencing on or after 1 January 2025:

Title	Key requirements if relevant
Lack of exchangeability – Amendments to IAS 21	Not relevant. Multitude does not operate in countries with foreign currencies that lack exchangeability to the presentation currency of the Group.

(b) IFRS Interpretations Committee agenda decisions issued in 2025, the following agenda decisions were issued but not relevant for the preparation of reports in 2025. The date issued refers to the date of approval by the IASB as per the IASB's website.

Date issued	Topic
3 February 2025	Classification of Cash Flows related to Variation Margin Calls on "Collateralised to-Market" Contracts (IAS 7).
11 April 2025	Recognition of Revenue from Tuition Fees (IFRS 15)
11 April 2025	Recognition of Intangible Assets from Climate-related Expenditure (IAS 38)
11 April 2025	Guarantees Issued on Obligations of Other Entities
28 July 2025	Assessing Indicators of Hyperinflationary Economies (IAS 29)

(c) Forthcoming requirements. As at 30 June 2025, the following standards and amendments had been issued but were not mandatory for annual reporting periods ending on 31 December 2025.

Title	Key requirements if relevant	Effective Date
Amendments to IFRS 9 and IFRS 7 - Contracts Refer encing Nature-de pendent Electricity	Not relevant. Multitude does not have contracts referencing nature-dependent electricity.	1 January 2026
Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instru ments	1. Derecognition of Financial Liabilities (IFRS 9) Electronic Transfers: Relevant. Allows entities to derecognise a financial liability settled through electronic payment systems before the settlement date if certain specific criteria are met. The option must be applied consistently to all such transactions. 2. Classification of Financial Assets (IFRS 9) Basic Lending Arrangement: Relevant. Provides guidance on assessing whether contractual cash flows align with a basic lending arrangement, with added examples for clarity. Non-Recourse Features: Relevant. Clarifies that a financial asset has non-recourse features if cash flows are limited to those generated by specific assets. Contractually Linked Instruments: Not relevant. Multitude does not have performance-linked contractual arrangements. 3. Disclosure Requirements (IFRS 7) Equity Investments at Fair Value. Not relevant because Multi tude does not have equity instruments held at fair value through profit or loss. Contingent Contractual Terms: Relevant. Mandates disclosure of contractual terms that could alter cash flows based on contingent events, covering financial assets and liabilities at amortised cost or fair value.	1 January 2026
IFRS 18 Presenta tion and Disclosure in Financial State ments	Relevant. IFRS 18 introduces mandatory subtotals, such as "operating profit," to improve clarity in financial performance reporting. It requires classification of income and expenses into specific categories like operating, investing, and financing. Management-defined performance measures (MPMs) must be clearly labelled, reconciled with IFRS measures, and explained for their usefulness. Comparative information for all reported amounts must be provided, with explanations for any changes. The standard emphasises proper aggregation and disaggregation to ensure meaningful and clear financial statements. Finally, IFRS 18 will replace IAS 1 while retaining its key principles.	1 January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures	Not relevant. Multitude, as a group of companies that prepares a comprehensive set of consolidated financial statements, is not impacted by the changes in IFRS 19, as it is not a subsidiary of another entity.	1 January 2027

The IFRS 18 is expected to have a material impact on the future financial statements of the Group, introducing significant changes to the presentation and disclosure of income and other financial elements within the primary statements. In addition to IFRS 18, the Group is actively working on assessing and implementing all forthcoming IFRS Accounting Standards. We are conducting detailed analyses to evaluate the implications of these standards on our financial reporting processes and developing comprehensive implementation plans.

The Group remains committed to ensuring full compliance with all applicable IFRS requirements by the respective effective dates and will continue to monitor guidance and updates to be fully prepared for their adoption.

3. Changes in Group companies

The consolidated financial statements include the parent company and all subsidiaries in which the parent company directly or indirectly holds a majority of voting rights or otherwise exercises control. At the end of H1 2025, the scope of consolidation includes 18 Group companies as compared to 24 at the end of 2024. Major subsidiaries include Multitude Bank p.l.c. (100% ownership), Multitude IT Labs s.r.o. (100% ownership), CapitalBox AB (100% ownership), Vector Procurement Solutions Inc. (100% ownership). The full list of Group companies is available in consolidated financial statements for 2024.

As part of the Group's initiative to optimise its structure by reducing the number of entities that are not essential to its future operations, the following subsidiaries were disposed during H1 2025:

• Suomen Joustava Oy was disposed in January 2025.
• Ferratum Latvia SIA was disposed in January 2025.
• fe Business Services OÜ and Guarantee Services OÜ were disposed in April 2025. The transaction included a contingent cash consideration with a fair value on the date of disposal amounting to EUR 9.9 million, based on net profit generated over a period of three years and one month from the date of disposal. This contingent cash consideration is accounted for as financial asset measured at fair value through profit or loss.
• Ferratum Mexico S. de R.L. de C.V was disposed in June 2025.

None of these disposals meet the criteria for classification as discontinued operations under IFRS 5. The financial information related to these transactions at the date of disposal is presented below.

EUR '000	Suomen Joustava Oy	fe Business Services OÜ and Guarantee Services OÜ	Ferratum Mexico S. de R.L. de C.V	Ferratum Latvia SIA
Consideration received or receivable:
Cash	-	2,216	2	850
Fair value of contigent consideration	-	9,851	-	-
Total disposal consideration	-	12,067	2	850
Carrying amount of net assets sold	(141)	(12,068)	(52)	(848)
(Loss) / gain on disposal before reclassification of foreign currency translation reserve	(141)	(1)	(50)	2
Reclassification of foreign currency translation reserve to profit or loss on disposal of subsidiary	-	-	411	-
(Loss) / gain on disposal of subsidiary	(141)	(1)	361	2

In June 2025, Multitude Services GmbH, a wholly owned subsidiary of Multitude AG, was merged into its parent through an intragroup merger. As part of this merger, all assets, liabilities, rights, and obligations of the subsidiary were transferred by operation of law to the parent company.

During H1 2025 the Group increased its stake in Lea Bank AB by 15.09%, bringing its total stake to 24.99% as of the end of H1 2025. This investment is classified as investment in associates accounted for by using equity method.

4. Segment information

Multitude has three business units, Consumer Banking (under Ferratum brand), SME Banking (under CapitalBox brand) and Wholesale Banking (under Multitude Bank brand), which are considered operating and reportable segments within the definition described in IFRS 8. Multitude Bank p.l.c. is a regulatory service provider for each business unit within the Group. The Chief Operating Decision Maker (CODM) is defined as the Group CEO supported by business unit CEOs. The measurement principles and allocation between business units follow the information provided to the CODM as required by IFRS 8.

The CODM monitors the operating results of the business units separately for the purpose of making decisions about resource allocation and performance assessment. The performance of the business units is evaluated using various key indicators and is consistently reconciled with the profit before income taxes stated in the consolidated financial statements. Profit before income taxes serves as the primary measure of the profitability of these business units.

Consumer Banking

Consumer Banking offers digital loans for individuals' daily needs, such as unplanned, short-term financing needs resulting from unexpected life events. By the end of H1 2025, it offered three product categories: Instalment Loans (including Micro Loan, Plus Loan and Prime Loan), Credit Limit, and Credit Card. The business unit's operations spanned across 14 markets: Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, Germany, Latvia, the Netherlands, Norway, Poland, Romania, Slovenia and Sweden.

SME Banking

SME Banking provides financing solutions to small and medium-sized enterprises (SMEs). By the end of H1 2025, it had established five distinct products: Instalment Loans, Invoice Purchasing, Credit Lines, Secured Loans, and Purchase Financing (BNPL). It operates in five markets: Finland, Sweden, Denmark, Lithuania, and the Netherlands.

Wholesale Banking

Wholesale Banking is a highly adaptable business unit operating within Multitude Bank's own infrastructure. It focuses on delivering customer value through two core offerings: Secured Debt and Payment Solutions. Wholesale Banking addresses more complex financing needs where agility and bespoke structuring set it apart in a competitive market. The business was initially launched in 2023 under the SweepBank unit, with Wholesale Banking becoming a separate business unit in January 2024. Within Wholesale Banking, the core focus lies in the origination and structuring of Secured Debt facilities between EUR 5.0 million and EUR 30.0 million. Payment Solutions offer institutional clients a seamless and secure infrastructure for transaction processing and financial operations.

The results of operations from the Group's operating and reportable segments for the current period H1 2025 and comparable period H1 2024 are shown in the following tables.

Operating and reportable segments for Q2 2025

EUR '000	Consumer Banking	SME Banking	Wholesale Banking	Total
Interest income	50,383	8,693	4,559	63,635
Interest expense	(6,964)	(1,982)	(2,461)	(11,407)
Net interest income	43,419	6,711	2,098	52,228
Fee and commission income	2,359	-	593	2,950
Fee and commission expense	(431)	-	-	(431)
Net fee and commission income	1,928	-	593	2,519
Fair value and foreign exchange gains and losses (net)	(654)	(172)	-	(826)
Other income	371	-	-	371
Share of results of associates	370	-	95	465
Net operating income	45,434	6,537	2,786	54,757
Operating expenses:
Impairment loss on loans to customers	(17,031)	(2,374)	(841)	(20,246)
Personnel expense	(7,675)	(2,055)	(873)	(10,603)
General and administrative expense	(7,027)	(1,692)	(774)	(9,493)
Depreciation and amortisation	(2,818)	(353)	(133)	(3,304)
Selling and marketing expense	(2,162)	(916)	(49)	(3,127)
Other expense	(10)	-	-	(10)
Profit / (loss) before income taxes	8,711	(853)	116	7,974
Loans to customers, 30 June 2025	506,042	147,963	66,268	720,273
Debt investments, 30 June 2025	-	-	131,780	131,780

Operating and reportable segments for H1 2025

EUR '000	Consumer Banking	SME Banking	Wholesale Banking	Total
Interest income	102,273	17,298	8,475	128,046
Interest expense	(13,405)	(3,832)	(4,487)	(21,724)
Net interest income	88,868	13,466	3,988	106,322
Fee and commission income	4,259	-	1,086	5,345
Fee and commission expense	(893)	-	-	(893)
Net fee and commission income	3,366	-	1,086	4,452
Fair value and foreign exchange gains and losses (net)	(1,196)	(328)	-	(1,524)
Other income	373	-	-	373
Share of results of associates	847	-	145	992
Net operating income	92,258	13,138	5,219	110,615
Operating expenses:
Impairment loss on loans to customers	(36,112)	(4,907)	(1,411)	(42,430)
Personnel expense	(14,309)	(3,919)	(1,612)	(19,840)
General and administrative expense	(14,468)	(3,078)	(1,438)	(18,984)
Depreciation and amortisation	(5,548)	(688)	(246)	(6,482)
Selling and marketing expense	(4,315)	(2,033)	(106)	(6,454)
Other expense	(153)	-	-	(153)
Profit / (loss) before income taxes	17,353	(1,487)	406	16,272
Loans to customers, 30 June 2025	506,042	147,963	66,268	720,273
Debt investments, 30 June 2025	-	-	131,780	131,780

Operating and reportable segments for Q2 2024

EUR '000	Consumer Banking	SME Banking	Wholesale Banking	Total
Interest income	53,506	8,320	2,827	64,653
Interest expense	(6,616)	(2,022)	(1,452)	(10,090)
Net interest income	46,890	6,298	1,375	54,563
Fee and commission income	11	-	-	11
Fair value and foreign exchange gains and losses (net)	(933)	(260)	-	(1,193)
Other income	2	259	1	261
Share of results of associates	-	-	(117)	(117)
Net operating income	45,969	6,297	1,260	53,525
Operating expenses:
Impairment loss on loans to customers	(19,741)	(4,008)	(81)	(23,829)
Personnel expense	(6,429)	(2,472)	(590)	(9,491)
General and administrative expense	(6,153)	(1,611)	(544)	(8,308)
Depreciation and amortisation	(2,621)	(375)	(95)	(3,091)
Selling and marketing expense	(2,186)	(1,174)	(41)	(3,401)
Profit / (loss) before income taxes	8,839	(3,343)	(92)	5,405
Loans to customers, 30 June 2024	462,810	130,154	737	593,701
Debt investments, 30 June 2024	-	-	103,282	103,282

Operating and reportable segments for H1 2024

EUR '000	Consumer Banking	SME Banking	Wholesale Banking	Total
Interest income	107,637	16,043	5,146	128,826
Interest expense	(12,568)	(3,656)	(2,446)	(18,670)
Net interest income	95,070	12,387	2,700	110,157
Fee and commission income	21	-	-	21
Fair value and foreign exchange gains and losses (net)	(962)	(267)	-	(1,229)
Other income	13	261	1	275
Share of results of associates	-	-	(152)	(152)
Net operating income	94,142	12,381	2,549	109,072
Operating expenses:
Impairment loss on loans to customers	(43,972)	(7,985)	(148)	(52,105)
Personnel expense	(13,035)	(4,645)	(1,194)	(18,874)
General and administrative expense	(12,293)	(3,204)	(1,013)	(16,510)
Depreciation and amortisation	(5,601)	(697)	(178)	(6,476)
Selling and marketing expense	(4,343)	(2,297)	(66)	(6,706)
Profit / (loss) before income taxes	14,898	(6,447)	(50)	8,401
Loans to customers, 30 June 2024	462,810	130,154	737	593,701
Debt investments, 30 June 2024	-	-	103,282	103,282

5. Interest income and expense

Interest income is the main income from the Group's operations, and hence it is disaggregated into categories for analysis purposes based on the source asset types.

Interest income

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Interest income on loans to customers	60,269	120,426	61,035	121,330
Interest income on debt investments	2,652	6,430	2,713	4,903
Interest income on bank deposits	714	1,190	905	2,593
Total interest income	63,635	128,046	64,653	128,826

The Group analyses interest income by type and geographic market, representing how economic factors impact nature, amount, timing, uncertainty, and cash flows of the above income streams. Interest income is displayed by geographic region for the current and comparative periods, as follows:

Interest income by geographic market

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Country of domicile - Switzerland*	70	70	-	-
Northern Europe	29,883	59,226	28,341	55,377
Eastern Europe	21,733	44,610	24,290	46,805
Western Europe	11,739	23,654	11,920	26,376
Other	210	486	102	268
Total interest income	63,635	128,046	64,653	128,826

* The country of domicile was changed to Malta since 1 July 2024. On 30 December 2024, it was subsequently changed to Switzerland.

A breakdown of interest expense by type for the current reporting period and comparative period is presented in the table below.

Interest expense

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Interest expense on deposits from customers	(8,148)	(15,989)	(7,120)	(14,265)
Interest expense on debt securities	(2,817)	(5,084)	(2,877)	(4,223)
Interest expense on lease liabilities	(107)	(210)	(93)	(182)
Interest expense on other financial liabilities*	(335)	(441)	-	-
Total interest expense	(11,407)	(21,724)	(10,090)	(18,670)

* Interest expense on other financial liabilities arise from funds received as deposit collateral.

6. Fee and commission income and expense

Fee and commission income

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Brokerage fee	1,790	3,684	6	11
Loan servicing fee	591	591	-	-
Other fee and commission income	569	1,070	5	10
Total fee and commission income	2,950	5,345	11	21

There are no contract assets and liabilities relating to fee and commission income as at 30 June 2025 and 31 December 2024. There are no significant payment terms concerning fee and commission income and no discounting to present value is applied. Following the disposal of certain Group companies, Multitude began providing loan servicing to third parties at the end of H1 2025, generating fee income not derived from lending activities.

The Group analyses fee income by type and geographic market, representing how economic factors impact nature, amount, timing, uncertainty, and cash flows of the above income streams. Fee income is displayed by geographic region for the current and comparative periods, as follows:

Fee and commission income by geographic market

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Country of domicile - Switzerland*	-	-	-	-
Eastern Europe	2,379	4,273	-	-
Western Europe	569	1,062	-	-
Northern Europe	2	10	11	21
Total fee and commission income	2,950	5,345	11	21

* The country of domicile was changed to Malta since 1 July 2024. On 30 December 2024, it was subsequently changed to Switzerland.

Fee and commission expense

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Brokerage fee expense	(431)	(893)	-	-
Total fee and commission expense	(431)	(893)	-	-

Brokerage fee expense represents direct cost of services provided in determination of net fee and commission income.

7. Fair value and foreign exchange gains and losses (net)

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Unrealised foreign exchange (loss) / gain	(575)	4	(1,971)	(1,263)
Realised (loss) / gain on derivative financial assets and liabilities	(235)	(1,235)	1,117	(1,129)
Loss on revaluation of contingent consideration	(68)	(68)	-	-
Realised foreign exchange gain / (loss)	32	(548)	1,214	859
Unrealised gain / (loss) on derivative financial assets and liabilities	20	323	(1,553)	304
Total fair value and foreign exchange gains and losses (net)	(826)	(1,524)	(1,193)	(1,229)

Most of the foreign exchange impact on the statement of profit and loss is generated by Swedish Krona monetary items on the statement of financial position of Group companies. The impact is mitigated by the utilisation of foreign exchange forward contracts presented as part of derivative financial instruments.

Multitude incurred EUR 68 thousand of loss on revaluation of contingent consideration which is measured at fair value through profit or loss.

8. Other income and expense

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
OTHER INCOME:
Gain from disposal of subsidiaries	363	363	-	-
Gain from disposal of property, plant and equipment	8	8	-	1
Gain from cancellation of lease	-	2	-	1
Other income	-	-	261	273
Total other income	371	373	261	275
OTHER EXPENSE:
Loss on cancellation of lease	(8)	(8)	-	-
Loss on disposal of subsidiaries	(2)	(142)	-	-
Loss on disposal of property, plant and equipment	-	(3)	-	-
Total other expense	(10)	(153)	-	-

One of the main drivers of other income in H1 2025 was the disposal of Ferratum Mexico S. de R.L. de C.V., which resulted in a gain of EUR 361 thousand, mainly due to the recycling of the translation reserve. Another key item was the disposal of Suomen Joustava Oy, which resulted in a loss of EUR 141 thousand.

9. Operating expenses

The Group presents an analysis of the operating expenses by their nature for the current financial period and the comparative period in the table below:

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Impairment loss on loans to customers	(20,246)	(42,430)	(23,829)	(52,105)
Personnel expense	(10,603)	(19,840)	(9,491)	(18,874)
General and administrative expense	(9,493)	(18,984)	(8,308)	(16,510)
Depreciation and amortisation	(3,304)	(6,482)	(3,092)	(6,476)
Selling and marketing expense	(3,127)	(6,454)	(3,401)	(6,706)
Total operating expenses	(46,773)	(94,190)	(48,121)	(100,671)

Impairment loss on loans to customers includes EUR 2.2 million of invoicing and collection costs in H1 2025 (H1 2024: EUR 2.2 million). The year-on-year decrease in impairment losses is primarily due to the ongoing impact of the key corporate initiative aimed at reducing credit losses, which was implemented in 2024. As part of this initiative, the Group integrated new data sources, introduced enhanced underwriting models, and refined its collection processes. Since then, the financial benefits of these actions have exceeded expectations.

The primary driver of the increase in general and administrative expense was the higher contribution to the depositor compensation scheme, which rose from EUR 0.1 million in H1 2024 to EUR 1.2 million in H1 2025. Additionally, costs related to IT hosting and licensing increased by EUR 0.7 million yearon-year.

In line with an increase in headcount, personnel expenses recorded a slight rise from EUR 18.9 million in H1 2024 to EUR 19.8 million in H1 2025, primarily driven by higher wages and salaries, which rose from EUR 15.5 million to EUR 16.2 million over the same period. At the same time, social security costs increased by EUR 0.3 million year-on-year.

10. Income tax expense

EUR '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Current income tax expense	(812)	(1,580)	(236)	(505)
Deferred tax expense	(239)	(536)	(496)	(645)
Total income tax expense	(1,051)	(2,116)	(732)	(1,150)

Income tax expense is recognised based on estimate of the weighted average effective annual income tax rate expected for the full financial year. The estimated average annual tax rate for the period ending 30 June 2025 is 13.0% (30 June 2024: 13.7%).

Due to the disposal of Group companies domiciled in Estonia, the Group is no longer expected to pay withholding tax on the distribution of dividends from such entities. As a result, the related deferred tax liability was derecognised from the consolidated statement of financial position, with the net effect presented under gains or losses on the disposal of subsidiaries.

11. Earnings per share

The calculation of earnings per share attributable to the owners of the parent company includes an adjustment for interest paid on perpetual bonds, less the tax benefit on the interest expense, arising from the classification of perpetual bonds as a liability (and the deductibility of the associated interest expense) under Finnish tax regulations. The calculation of basic earnings per share is shown in the table below:

	Q2 2025	H1 2025	Q2 2024	H1 2024
Profit for the period (EUR '000)	6,923	14,156	4,673	7,251
Perpetual bonds interests recognised directly in retained earnings, net of tax (EUR '000)	(916)	(2,113)	(1,875)	(2,902)
Profit for the period, after perpetual bonds interests (EUR '000)	6,007	12,043	2,798	4,349
Weighted average number of ordinary shares in issue (N '000)	21,403	21,445	21,634	21,634
Basic earnings per share attributable to the ordinary equity holders, EUR	0.28	0.56	0.13	0.20

Calculation of diluted earnings per share is shown in the table below.

	Q2 2025	H1 2025	Q2 2024	H1 2024
Profit for the period (EUR '000)	6,923	14,156	4,673	7,251
Perpetual bonds interests recognised directly in retained earnings, net of tax (EUR '000)	(916)	(2,113)	(1,875)	(2,902)
Profit for the period, after perpetual bonds interests (EUR '000)	6,007	12,043	2,798	4,349
Weighted average number of ordinary shares and potential ordinary shares (N '000)	22,435	22,443	22,556	22,556
Diluted earnings per share attributable to the ordinary equity holders, EUR	0.27	0.54	0.12	0.19

Weighted number of ordinary shares is adjusted by weighted number of potential shares derived from matching share plans. Share based payment plans that are currently employed by Multitude do not create obligation to issue new shares and the Group has the right to utilise treasury shares to fulfil its obligations towards participants of the plans.

Calculation of weighted average number of ordinary shares and potential ordinary shares used in determination of basic and diluted earnings per share is shown in the table below.

N '000	Q2 2025	H1 2025	Q2 2024	H1 2024
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share	21,403	21,445	21,634	21,634
Adjustments for calculation of diluted earnings per share:
- Matching share plan	1,032	998	749	749
- Performance share plan	-	-	173	173
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share	22,435	22,443	22,556	22,556

As the performance share plans concluded in 2024, they no longer had a dilutive effect in 2025

12. Current and non-current assets and liabilities

Asset and liability line items presented based on the Group's intention and perceived ability to recover or settle these amounts within or after one year as at 30 June 2025:

EUR '000	Within one year	After one year	Total as at 30 June 2025
ASSETS:
Cash and cash equivalents	277,855	-	277,855
Derivative financial assets	176	-	176
Loans to customers	502,646	217,627	720,273
Debt investments	2,419	129,361	131,780
Current tax assets	75	-	75
Other financial assets	39,149	11,466	50,615
Prepaid expenses and other assets	2,425	-	2,425
Intangible assets	-	34,034	34,034
Right-of-use assets	-	5,052	5,052
Property, plant and equipment	-	2,438	2,438
Investments in associates	-	20,692	20,692
Deferred tax assets	-	5,465	5,465
Total	824,745	426,135	1,250,880
LIABILITIES:
Derivative financial liabilities	528	-	528
Deposits from customers	631,729	295,723	927,452
Current tax liabilities	1,717	-	1,717
Debt securities	109	102,770	102,879
Lease liabilities	1,909	3,350	5,259
Other financial liabilities	4,979	4,700	9,679
Other liabilities	7,493	-	7,493
Total	648,464	406,543	1,055,007

Asset and liability line items presented based on the Group's intention and perceived ability to recover or settle these amounts within or after one year as at 31 December 2024:

EUR '000	Within one year	After one year	Total as at 31 December 2024
ASSETS:
Cash and cash equivalents	249,458	-	249,458
Derivative financial assets	53	-	53
Loans to customers	457,548	192,380	649,928
Debt investments	1,754	110,800	112,554
Current tax assets	1,437	-	1,437
Other financial assets	15,506	11,598	27,104
Prepaid expenses and other assets	2,514	-	2,514
Intangible assets	-	32,916	32,916
Right-of-use assets	-	4,948	4,948
Property, plant and equipment	-	2,606	2,606
Investments in associates	-	9,209	9,209
Deferred tax assets	-	6,004	6,004
Total	728,270	370,461	1,098,731
LIABILITIES:
Derivative financial liabilities	735	-	735
Deposits from customers	542,295	258,510	800,805
Current tax liabilities	1,125	-	1,125
Debt securities	211	76,639	76,850
Lease liabilities	1,825	3,313	5,138
Other financial liabilities	9,468	4,700	14,168
Other liabilities	4,955	5	4,960
Deferred tax liabilities	-	1,197	1,197
Total	560,614	344,364	904,978

13. Loans to customers

The expected credit loss (ECL) for loans to customers is determined by projecting the probability of default (PD), estimated exposure at default (EAD), and loss given default (LGD) at a collective portfolio level as allowable under IFRS 9 in the case of retail portfolios comprising individually insignificant exposures that are homogenous in nature. These three components are multiplied together effectively calculating the forward-looking ECL, which is then discounted back to the reporting date. The discount rate used in the ECL calculation is the actual effective interest rate or an approximation thereof.

The 12-month ECL is calculated by multiplying the 12-month PD, LGD, and EAD. Lifetime ECL is calculated on a similar basis for the residual life of the exposure. The PD, EAD and LGD parameters are derived from internally developed statistical models and other historical data, adjusted to reflect forward-looking information as described below in this Note. The PD represents the likelihood of a borrower defaulting on its financial obligation, either over the next 12 months (12M PD), or over the remaining lifetime (Lifetime PD) of the obligation.

In the case of micro lending facilities with bullet repayment characteristics, the Group utilises roll-rate methodology in order to estimate its PDs. This methodology employs statistical analysis of historical data and experience of delinquency and default to estimate the amount of loans that will eventually be written off as unrecoverable. This methodology is applied at territory or country level with adaptations to reflect the different nature of the respective markets in which the Group operates. Under this methodology, loans are grouped into ranges according to the number of days past due and statistical analysis is used to estimate the likelihood that loans in each range will progress through the various stages of delinquency and ultimately prove irrecoverable.

In the case of credit facilities with characteristics of instalment loans or revolving facilities, the Group utilises curve-stitching methodology in order to estimate its PDs. Under this approach, an analysis of historical default data is carried out in order to estimate cumulative monthly loss rates at various snapshot dates. Subsequently, statistical analysis is employed in order to combine curves with different historical performance windows into a single PD curve over the expected lifetime of the micro-credit exposures. This methodology is also applied at territory or country level in order to incorporate adaptations to reflect the nature of the different markets in which the Group operates. Under this approach, loans are also grouped into ranges according to the number of days past due, with an individual lifetime PD curve being calculated for each range.

EAD is based on the amounts Multitude expects to be owed at the time of default, over the next 12 months (12M EAD) or over the remaining lifetime (Lifetime EAD). EAD represents the expected exposure in the event of a default (including any expected drawdowns of committed facilities). The 12-month and lifetime EADs are determined based on the total balance of receivable at the reporting date, taking into account the total amount receivable from borrowers inclusive of principal, interest and fees that are accounted for as part of the effective interest rate. This is deemed an adequate representation of the expected balance at default in the case of the Multitude's credit facilities given that the Group models its ECLs on a collective portfolio level with the modelling of the EAD for each future month on an individual loan-by-loan basis not being deemed practical. Additionally, in the case of revolving credit facilities the Group also factors in expected drawdowns of committed facilities.

The LGD represents the Group's expectation of the extent of loss on a defaulted exposure. Hence, the LGD represents expected credit losses on the EAD given the event of default, taking into account, among other attributes, the mitigating effect of collateral values (if any) at the time it is expected to be realised and the time value of money. The LGD is determined based on the factors which impact the recoveries made post default.

Given that its credit facilities are generally unsecured in nature, the Group estimates LGD parameters based on the history of recovery rates in respect of claims against defaulted customers, which rates are highly impacted by collective debt recovery strategies. Moreover, the Group's LGDs comprise the effects of Multitude's ability to dispose of overdue loans originated in specific territories to other parties at pre-established prices, that are dependent on the credit quality or ageing of the loans. Estimated LGDs are also impacted by historical one-off portfolio sales and the expected future uncontracted portfolio sales activity. Recoveries from loan portfolio sales are calculated on a discounted cash flow basis using the contractual interest rate as the discounting factor. The Group has a number of contractual agreements in place with third parties by virtue of which loans which are within the stipulated days past due will be sold to a third party in batch at an agreed price. The Group is also capable of selling loans on the market.

The ECL is measured from the initial recognition of the financial asset. The maximum period considered when measuring ECL (be it 12-month or lifetime ECL) is the maximum contractual period over which Multitude is exposed to credit risk. With respect to non-revolving credit facilities, the contractual life of the facility is considered. In the case of revolving credit facilities, provided that such facilities do not have a fixed term or repayment structure, the Group defines the lifetime of such exposures as 24 months in line with observed borrower behaviour in the respective territories. The lifetime of revolving credit facilities is re-assessed by the Group at a territory level based on more recent borrower behaviour patterns on a periodic basis. The tables below show the Group's gross outstanding loans to customers balances, risk grading, and basis for ECL recognition and measurement, including the movements and balances of loss allowances for loans to customers for the periods presented:

			Days past due*
Risk grade	Category	Basis for ECL	Lower range	Upper range	UTP	30 June 2025	31 December 2024
Regular	Performing	Stage 1 (12-month ECL)		0 to 30	-	657,818	590,612
Watch	Underperforming	Stage 2 (lifetime ECL)	31 - 45	31 - 60	-	20,079	22,688
Substandard	Underperforming	Stage 2 (lifetime ECL)	46 - 60	61 - 90	-	11,178	13,075
Doubtful	Non-performing	Stage 3 (lifetime ECL)	61 - 180	91 - 180	Yes	26,402	31,557
Loss	Non-performing	Stage 3 (lifetime ECL)	More than 180 days		-	137,998	130,596
Total						853,475	788,528

Gross outstanding loans to customers risk grading and basis for ECL recognition

*Lower and upper ranges of days past due are based on DPD thresholds of 60 and 90 days, respectively, to be considered as non-performing.

At and for the period ended 30 June 2025:

EUR '000 30 June 2025
	Stage 1 12-month ECL	Stage 2 Lifetime ECL	Stage 3 Lifetime ECL	Total
GROSS LOANS TO CUSTOMERS
At 1 January 2025	590,612	35,763	162,153	788,528
Total changes in gross carrying amounts arising from transfers in stages, originations and derecognitions	70,939	(4,329)	48,580	115,190
Financial assets written off and sold during the period		-	(45,400)	(45,400)
Exchange differences		(177)	(933)	(4,843)
Net changes in gross loans to customers	67,206	(4,506)	2,247	64,947
Gross loans to customers as at 30 June 2025	657,818	31,257	164,400	853,475
LOSS ALLOWANCES
At 1 January 2025	28,761	11,626	98,213	138,600
Increase in allowances - charged to profit or loss	(2,093)	(2,057)	45,922	41,772
Other movements
Unwind of discount	-	-	(926)	(926)
Financial assets written off and sold during the period	-	-	(45,400)	(45,400)
Exchange differences	(168)	(60)	(616)	(844)
Net changes in loss allowances	(2,261)	(2,117)	(1,020)	(5,398)
Loss allowance as at 30 June 2025	26,500	9,509	97,193	133,202
Impaired loan coverage ratio ("ILCR")	4.03%	30.42%	59.12%	15.61%

The impairment loss recognised in the statement of profit or loss for H1 2025 amounted to EUR 42.4 million. The total comprises impairment losses of EUR 41.8 million on loans to customers, EUR 0.4 million on debt investments, and EUR 0.2 million on other financial assets.

At and for the period ended 30 June 2024:

EUR '000				30 June 2024
	Stage 1 12-month ECL	Stage 2 Lifetime ECL	Stage 3 Lifetime ECL	Total
GROSS LOANS TO CUSTOMERS
At 1 January 2024	532,234	44,264	114,119	690,617
Total changes in gross carrying amounts arising from transfers in stages, originations and derecognitions	29,131	(4,029)	48,187	73,289
Financial assets written off and sold during the period	-	-	(42,987)	(42,987)
Exchange differences	(3,231)	(232)	(687)	(4,149)
Net changes in gross loans to customers	25,901	(4,261)	4,513	26,153
Gross loans to customers as at 30 June 2024	558,135	40,003	118,632	716,770
LOSS ALLOWANCES
At 1 January 2024	31,282	14,361	69,025	114,669
Increase in allowances - charged to profit or loss	3,296	(947)	49,756	52,105
Other movements
Unwind of discount	-	-	(34)	(34)
Financial assets written off and sold during the period	-	-	(42,987)	(42,987)
Exchange differences	(191)	(74)	(418)	(684)
Net changes in loss allowances	3,105	(1,021)	6,317	8,400
Loss allowance as at 30 June 2024	34,387	13,340	75,342	123,069
Impaired loan coverage ratio ("ILCR")	6.16%	33.35%	63.51%	17.17%

The table below summarises the Group's movements and the balances of gross loans to customers and loss allowances for loans to customers for the year ended and as at 31 December 2024:

EUR '000	Stage 1 12-month ECL	Stage 2 Lifetime ECL	Stage 3 Lifetime ECL	Total
GROSS LOANS TO CUSTOMERS
As at 1 January 2024	532,234	44,264	114,119	690,617
Transfers in between stages:
Transfers out of Stage 1	(90,694)	20,165	70,529	-
Transfers out of Stage 2	11,217	(41,005)	29,788	-
Transfers out of Stage 3	-	153	(153)	-
Total changes from transfers in between stages	(79,477)	(20,687)	100,164	-
Other changes in gross loans to customers:
New financial assets originated during the period	890,963	42,333	68,604	1,001,900
Financial assets sold and repaid during the period	(747,823)	(29,593)	(110,208)	(887,624)
Financial assets written off during the period	-	-	(9,080)	(9,080)
Exchange differences	(5,285)	(554)	(1,446)	(7,285)
Net changes in gross loans to customers	58,378	(8,501)	48,034	97,911
Gross loans to customers as at 31 December 2024	590,612	35,763	162,153	788,528
LOSS ALLOWANCES Loss allowances, as at 1 January 2024	31,282	14,361	69,025	114,668
Transfers in between stages:
Transfers out of Stage 1	(7,341)	1,564	5,777	-
Increase due to transfers out of Stage 1	-	5,228	27,251	32,479
Transfers out of Stage 2	3,572	(13,372)	9,800	-
(Decrease) / Increase due to transfers out of Stage 2	(2,943)	-	4,633	1,690
Transfers out of Stage 3	-	50	(50)	-
Increase due to changes in DPD buckets	1,299	19	13,097	14,415
Total changes from transfers in between stages	(5,413)	(6,511)	60,508	48,584
Other changes in loss allowances:
New financial assets originated during the period	53,839	14,034	34,718	102,591
Financial assets sold and repaid during the period	(48,929)	(10,329)	(57,801)	(117,059)
Financial assets written off during the period	-	-	(9,080)	(9,080)
Remeasurements from changes in model	(1,653)	240	2,178	765
Unwind of discount	-	-	(378)	(378)
Exchange differences	(365)	(169)	(957)	(1,491)
Net changes in loss allowances	(2,521)	(2,735)	29,188	23,932
Loss allowances as at 31 December 2024	28,761	11,626	98,213	138,600
Impaired loan coverage ratio ("ILCR")	4.87%	32.51%	60.57%	17.58%

Transfers out of Stage 1 are driven by the underlying gross loans to customers to have significant increase in credit risks since initial recognition (Stage 2) or become credit-impaired (Stage 3). In contrast, transfers out of Stages 2 or 3 result from the underlying gross loans to customers no longer meeting said definitions.

Transfers in between stages or changes within DPD buckets that do not necessarily impact the ECL model stages could also increase (decrease) loss allowances during the year. Remeasurements from changes in ECL model, inputs and assumptions are mainly driven by updating the calculations, statistics and modelling parameters relating to EAD, PD, LGD, and EIR based on the most recent available information at the reporting date. The unwind of discount is driven by the amortisation of the ECL present value for long outstanding loans to customers.

The following table shows the breakdown of movement in loss allowances with reconciliation to
profit or loss for 2024:

LOSS ALLOWANCES	Stage 1	Stage 2	Stage 3	Total
Loss allowances as at 1 January 2024	31,282	14,362	69,025	114,669
Transfers in between stages:
Transfers out of Stage 1	(7,341)	1,564	5,777	-
Increase due to transfers out of Stage 1	-	5,228	27,252	32,480
Transfers out of Stage 2	3,572	(13,372)	9,800	-
(Decrease) / Increase due to transfers out of Stage 2	(2,943)	-	4,632	1,689
Transfers out of Stage 3	-	50	(50)	-
Increase due to changes in DPD buckets	1,299	19	13,097	14,415
Total net changes from transfers in between stages	(5,413)	(6,511)	60,508	48,584
Other changes in loss allowances:
Net remeasurement of ECLs due to repayments of financial assets	(22,672)	(4,786)	(26,783)	(54,241)
New financial assets originated during the period	53,837	14,035	34,718	102,590
Remeasurements from changes in model	(1,653)	240	2,178	765
Unwind of discount	-	-	(378)	(378)
Exchange differences	(365)	(170)	(957)	(1,492)
Net changes in loss allowances recognised through profit or loss statement	23,734	2,808	69,286	95,828
Financial assets sold and repaid during the period	(26,255)	(5,545)	(31,017)	(62,817)
Financial assets written off during the period	-	-	(9,080)	(9,080)
Net changes in loss allowances	(2,521)	(2,735)	29,188	23,932
Loss allowances as at 31 December 2024	28,761	11,625	98,214	138,600

Macro-economic variables

The calculation of ECL incorporates forward-looking information. The Group has identified key drivers of credit risk and credit losses for each portfolio of financial instruments and, using historical data, has analysed relationships between macroeconomic variables, credit risk and credit losses. This analysis is conducted at a territory and sub-portfolio level to consider possible differences in customer behaviour and default experience arising from different product characteristics.

To be able to determine the manner in which economic conditions will be impacting the ECL estimates, the Group first performs an assessment to select the Macroeconomic Variable (MEV) which has the highest correlation to credit risk factors for a certain country and product. The Group does this through the implementation of a one-step Error Correction Model (ECM). The ECM is a multiple regression model that automatically corrects short-term deviations from the long-term equilibrium relationship such that the defaulted loan amount is restored back to its long-term equilibrium at a specific speed of adjustment.

Through the utilisation of this model, the Group has determined a set of four MEVs to which the Group's portfolios are the most sensitive, namely Gross Domestic Product, Personal Disposable Income, and Unemployment Rate for Micro Loans, Plus Loans, Credit Limit facilities, Credit Cards and Prime Loans, whereas Consumption Rate Private is the key driver for Instalment Loans, Credit Lines, Purchase Financing (BNPL) and corporate loans. Personal Disposable Income reflects the net income available to households after taxes and transfers. It is calculated for the entire population of a country. The choice of macroeconomic variable to be used for a particular territory and product is determined through an optimised approach in which the ECM is run separately for each of these variables. The variable that is ultimately applied for the territory / product is the one that produces the most statistically significant result.

In order to capture a range of possible future outcomes, three possible scenarios are considered in the determination of the Group's ECL. The 'base line' scenario represents the most likely outcome. It is based on forecasted economic variables, provided by Oxford Economics, and provides the best estimate view of each respective country within the Group's lending portfolio. Apart from the 'base line' scenario, the Group considers two other macroeconomic scenarios – 'Upside' and 'Downside' scenarios – which respectively represent a more optimistic and a more pessimistic outcome, as further explained in this section.

Each scenario is weighted by a probability of occurrence, determined by a combination of macroeconomic research and expert credit judgement, taking account the range of possible outcomes, each chosen scenario represents. The weightings assigned to each economic scenario are 60%, for the 'Base' scenario, 20% for the 'Downside' scenario and 20% for the 'Upside' scenario. The number of scenarios used is based on the analysis of each major product type to ensure that non-linearities are captured. The number of scenarios and their attributes are reassessed at each reporting date. The probability weightings assigned to the respective scenarios reflect an unbiased evaluation of the range of possible outcomes.

In relation to the debt investments, the Group also incorporates these macroeconomic forecasts in its periodical assessments on the pledged loan portfolios, in order to assess whether the Group should provide for expected credit losses. Such assessments are based on the credit information supplied by the bond issuers which the Multitude Group has invested in. In order for its ECL methodology to represent an appropriate estimation of its credit risk emanating from said investments, the Group assesses the ECL on each credit portfolio securing the Group's investment separately.

During 2025 and 2024, the Group has also incorporated climate risk factors in its ECL calculations by calculating separately the ECL impact from climate risk factors when compared to the weightings in the model as explained above. A 5% weighting for the climate risk scenario is incorporated in the Downside scenario while downsizing the traditional risks to 15%, the latter which is traditionally assigned a 20% weighting, to avoid double counting of macroeconomic factors. Based on the results observed, the Group assessed that there is no statistically significant impact from climate risk.

The macroeconomic variables presented pertain to a specific territory where the particular product is available. The pertinent macroeconomic variables relating to the Group's lending portfolio as at 30 June 2025, utilised in the multiple regression, are sourced from Oxford Economics and are listed below.

Unemployment rate

In %	2025			2026			2027
	Base	Down	Up	Base	Down	Up	Base	Down	Up
Croatia	4.19	4.22	4.18	4.55	4.82	4.41	5.00	5.28	4.80
Czechia	4.35	4.35	4.34	4.43	4.55	4.30	4.13	4.47	3.88
Denmark	2.83	2.86	2.82	2.72	3.02	2.54	2.52	2.90	2.26
Netherlands	3.86	3.90	3.84	3.95	4.30	3.79	3.83	4.24	3.60
Poland	5.10	5.11	5.09	4.89	5.01	4.76	4.68	5.01	4.44

Personal disposable income

Billion units 2025				2026		2027
	Cur.	Base	Down	Up	Base	Down	Up	Base	Down	Up
Bulgaria	BGN	95.77	95.83	95.82	96.90	96.81	97.33	98.68	98.47	99.08
Denmark	DKK	1,324.05	1,324.65	1,324.57	1,357.89	1,356.21	1,363.31	1,387.66	1,384.79	1,392.99
Germany	EUR	2,140.62	2,141.04	2,141.11	2,182.63	2,178.94	2,190.15	2,216.59	2,210.12	2,225.33
Norway	NOK		2,064.50 2,065.72	862.02	2,095.10	2,099.03	889.55	2,134.16	2,138.37	899.62
Romania	RON	861.50		861.39 2,064.76	883.82	882.96	2,096.46	895.59	893.21	2,132.32
Sweden	SEK	3,208.91		3,209.51 3,209.88	3,213.69	3,204.65	3,221.36	3,251.14	3,237.66	3,260.32

Consumption rate private

Billion units 2025				2026		2027
	Cur.	Base	Down	Up	Base	Down	Up	Base	Down	Up
Finland	EUR	118.61	118.49	118.63	120.58	118.78	120.81	122.60	120.83	122.86

Gross domestic product

Billion units		2025				2026		2027
	Cur.	Base	Down	Up	Base	Down	Up	Base	Down	Up
Bulgaria	BGN	145.73	145.46	145.80	149.17	147.31	149.79	152.59	150.71	153.71
Croatia	EUR	67.55	67.47	67.58	68.84	68.22	69.15	70.24	69.59	70.74
Estonia	EUR	28.80	28.75	28.82	30.47	30.15	30.65	31.56	31.23	31.84
Finland	EUR	230.78	230.38	230.88	232.87	229.35	233.97	235.39	231.86	237.37
Latvia	EUR	32.49	32.43	32.51	33.81	33.41	33.99	34.74	34.31	35.01
Netherlands	EUR	955.17	953.64	955.72	963.47	950.70	969.55	976.89	961.23	986.22
Romania	RON		1,223.83 1,223.60	1,224.41	1,252.01	1,245.54	1,258.39	1,284.33	1,268.94	1,295.04
Slovenia	EUR	54.27	54.20	54.31	55.64	55.10	56.01	56.87	56.22	57.44
Lithuania	EUR	59.02	58.90	59.06	59.92	59.26	60.30	61.74	61.06	62.28
Sweden	SEK	6,482.72	6,474.57	6,486.11	6,628.12	6,540.89	6,665.05	6,756.14	6,652.67	6,820.94

14. Financial assets and liabilities classification and fair value

Financial assets

The table below summarises the Group's financial assets presented based on their classification, subsequent measurement, at amortised cost or FVPL; and fair value measurement hierarchy, level 1, 2 or 3; as at 30 June and as at 31 December 2024:

	Fair value	30 June 2025		31 December 2024
EUR '000	hierarchy	Carrying amount	Fair value	Carrying amount	Fair value
FINANCIAL ASSETS AT FVPL
Other financial assets:
- Contingent consideration	Level 3	9,783	9,783	-	-
Derivative financial assets	Level 2	176	176	53	53
FINANCIAL ASSETS AT AMORTISED COST
Loans to customers	Level 3	720,273	720,273	649,928	649,928
Cash and cash equivalents	Level 1	277,855	277,855	249,458	249,458
Debt investments:
- Debt investments in bonds	Level 3	122,564	121,111	108,904	108,444
- Debt investments in securitisation portfolio	Level 3	9,216	10,980	3,650	4,576
Other financial assets:
- Receivables from sold portfolios	Level 3	18,666	18,666	8,195	8,195
- Loans to related parties	Level 3	11,767	11,767	11,641	11,641
- Receivables from banks	Level 3	4,206	4,206	4,206	4,206
- Other receivables	Level 3	6,193	6,193	3,062	3,062
Total		1,180,699	1,181,010	1,039,097	1,039,563

The fair value of derivative financial assets is determined using level 2 fair value hierarchy. The derivative assets include only foreign currency forward contracts where the Group agrees to sell a predetermined amount of its foreign currency at a predetermined price.

As part of the consideration for the disposal of a subsidiary, the Group is entitled to contingent consideration linked to the future profitability of the sold entity. The fair value of this contingent consideration is measured using the level 3 fair value hierarchy, applying a discounted cash flow model at each reporting date based on expected future performance. This value is remeasured at each reporting date to reflect changes in assumptions and market conditions. Payments will be received over time as the buyer reports the subsidiary's profitability, and changes in fair value are recognised in profit or loss.

The fair value of cash and cash equivalents is classified as level 1 fair value hierarchy because it has a fixed nominal value and is measured using quoted prices in active markets without adjustments, including observable spot exchange rates for foreign currency holdings.

Debt investments include debt investments in bonds and debt investments in securitisation portfolio. The debt investments in securitisation portfolio are made up of notes issued by structured unconsolidated entities. In respect of such investments, the Group is the holder of Class A notes, which are senior notes that have a higher credit quality, and rank first in the priority of payment amongst the other creditors. Other debt investments in bonds include investments in secured bonds issued by other companies. The fair values of debt investments were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

Other financial assets classified as financial assets at amortised cost mainly include loans to related parties, receivables from banks and receivables from sold portfolios. Receivables from banks include mandatory deposits held with other banks as collateral for hedging. Receivables from sold portfolios include mainly short-term receivables from third party, on behalf of which Multitude originated the loans. Loans to related parties comprise a corporate loan issued by Multitude Bank p.l.c. to Sortter Oy and loans to members of the Leadership Team.

The fair values of the remaining financial assets measured at amortised cost are determined using level 3 fair value measurement based on significantly unobservable inputs. The Group estimates that the carrying amounts of these financial assets reasonably approximate their fair values as they are derived from the purchase price agreed upon in orderly transactions on 30 June 2025 and 31 December 2024.

Financial liabilities

The table below summarises the Group's financial liabilities presented based on their classification, subsequent measurement, at amortised cost or FVPL; and fair value measurement hierarchy, level 1, 2 or 3; as at 30 June 2025 and as at 31 December 2024:

EUR '000	Fair value hierarchy	30 June 2025		31 December 2024
		Carrying amount	Fair value	Carrying amount	Fair value
FINANCIAL LIABILITIES AT FVPL
Derivative financial liabilities	Level 2	528	528	735	735
FINANCIAL LIABILITIES AT AMORTISED COST
Deposits from customers	Level 3	927,452	927,452	800,805	800,805
Debt securities	Level 1	102,879	108,220	76,850	79,816
Other financial liabilities	Level 3	9,679	9,679	14,168	14,168
Lease liabilities		5,259	-	5,138	-
Total		1,045,797	1,045,879	897,696	895,524

The fair value of derivative financial liabilities is determined using level 2 fair value hierarchy. Derivative financial liabilities include only foreign currency forward contracts where the Group agrees to sell a predetermined amount of its foreign currency at a predetermined price.

The fair value of debt securities that includes only listed bonds (2024 Multitude Capital Oyj senior unsecured bonds, 2022 Multitude Bank p.l.c. tranche bonds and 2025 Multitude Bank p.l.c. floating rate callable Tier 2 Notes) is determined using level 1 fair value hierarchy based on the published quotes in the Frankfurt Stock Exchange Open Market and Malta Stock Exchange.

The fair value of the remaining financial liabilities measured at amortised cost is determined using level 3 fair value hierarchy based significantly on unobservable inputs. The Group estimates that the carrying amounts of these financial liabilities reasonably approximate their fair values as it is derived from the purchase price agreed upon in orderly transactions on 30 June 2025 and 31 December 2024.

2024 Multitude Capital Oyj senior unsecured bonds

The Multitude Capital Oyj senior unsecured bonds (ISIN: NO0013259747) were issued in June 2024 with a coupon rate of 3-month Euribor plus 6.75%, maturing in June 2028. On 17 December 2024, Multitude Capital Oyj issued an additional EUR 20.0 million of bonds which were fully subscribed by the issuer and not recognised on the statement of financial position as at 31 December 2024. As of 30 June 2025, the senior unsecured bonds are presented as debt securities in the Group's consolidated statement of financial position, have outstanding nominal and carrying amounts of EUR 78.8 million (EUR 77.0 million as at 31 December 2024) and EUR 76.1 million (EUR 73.9 million as at 31 December 2024), respectively.

2022 Multitude Bank tranche bonds

The Multitude Bank p.l.c. tranche bonds (ISIN: MT0000911215) were issued on 27 April 2022 with a coupon rate of 6.00% maturing in April 2032. Of the EUR 5.1 million bonds issued, EUR 2.0 million was issued to Multitude AG, which was eliminated at the Group level as part of the consolidation process. At 30 June 2025, the tranche bonds are presented as debt securities in the Group's consolidated statement of financial position and have outstanding nominal and carrying amounts of EUR 3.1 million (EUR 3.1 million as at 31 December 2024) and EUR 2.8 million (EUR 2.9 million as at 31 December 2024), respectively.

2025 Multitude Bank p.l.c. floating rate callable Tier 2 Notes

On 10 March 2025, Multitude Bank p.l.c. issued EUR 25.0 million aggregate principal amount of Floating Rate Callable Tier 2 Notes due 2035 (ISIN: DE000A4D58U2) with a coupon rate of 3-month Euribor plus 11.00%, maturing in March 2035. The Group paid EUR 0.9 million of issue costs and discount that are included in the proceeds from debt securities line item of the consolidated statement of cash flows. As of 30 June 2025, these outstanding notes are recognised as debt securities in the Group's consolidated statement of financial position, have a nominal amount of EUR 25.0 million (nil as at 31 December 2024) and a carrying amount of EUR 24.0 million (nil as at 31 December 2024).

15. Dividends

Multitude AG's Board of Directors proposed, and the Annual General Meeting approved, a gross dividend of EUR 0.44 per share, totaling EUR 9.4 million. This distribution, relating to the financial year ended 31 December 2024, was paid in May 2025. For the comparative period, the Group declared a dividend of EUR 0.19 per share, amounting to a total distribution of EUR 4.1 million, in respect of the financial year ended 31 December 2023. The dividend was paid in May 2024.

16. Events occurring after the reporting period

In July 2025, Saldodipje SL and Ferratum Bulgaria EOOD, both wholly owned subsidiaries, were disposed of.

Investor relations contacts

For any questions relating to Investor Relations, please contact us at: ir@multitude.com

Bernd Egger

Chief Financial Officer

• E: bernd.egger@multitude.com
• M: +49 173 7931235

Adam Hansson Tönning

Head of Investor Relations and Treasury E: adam.tonning@multitude.com M: +46 707 238624

Approval of the Condensed Consolidated Interim Financial Statements and the Interim Board of Directors' Report

Multitude Group H1 2025 – Interim Board of Directors' Report 63

Zug, 20 August 2025

Adam Hansson Tönning

M: +46 707 238624

Head of Investor Relations and Treasury

E: adam.tonning@multitude.com

Ari Tiukkanen Chairman of the Board

(report preparer)

For further information on the Multitude share and all publications, please visit

www.multitude.com