Multitude Bank plc has reported a profit after tax of €22.8 million for the financial year ending 31st December 2025, up from €17.5 million in 2024, according to its latest financial statements.

The Malta-licensed credit institution operates a digital-first lending model focused on consumer and corporate credit across multiple European markets.

The bank’s core activity remains the origination of consumer lending products distributed through an online platform, alongside corporate lending through a relationship-driven and multi-channel model. During 2025, it provided services across a wide footprint, including Estonia, Latvia, Germany, Sweden, Poland, and several other European jurisdictions.

Net interest income declined by 3 per cent to €157.9 million (2024: €162.1 million). However, this was offset by a significant rise in net fee and commission income, which increased to €9.4 million from €3.6 million, largely driven by higher brokerage fees.

Overall operating income rose by €3 million year-on-year.

Operating expenditure increased by 5 per cent to €78.8 million, primarily due to higher spending on IT infrastructure and marketing. Meanwhile, net impairment losses on lending declined to €64.8 million from €71.3 million in 2024.

As a result, profit before tax rose to €23.6 million, compared to €17.6 million in the previous year.

Loan book and deposits drive balance sheet growth

Total assets grew by 28 per cent, reaching €1.3 billion as at 31 December 2025, up from €1.02 billion in 2024.

Loans and advances to customers remained the bank’s largest asset class, increasing from €498.9 million to €672.2 million, partly reflecting growth in corporate lending.

The bank also expanded its investment portfolio, with total debt investments reaching €288.3 million. This includes €194 million in securitisation exposures and €94.2 million in bonds, primarily secured by underlying loan portfolios.

Customer deposits continued to be the main funding source, rising to €1.03 billion from €800.8 million the year before. These deposits are largely sourced from Germany and Sweden, with products offering maturities between three and 36 months.

Strong capital and liquidity position maintained

The bank reported a Liquidity Coverage Ratio (LCR) of 686.1 per cent as at year-end 2025, well above regulatory requirements, although down from 1338.1 per cent in 2024.

Its total capital ratio stood at 21.97 per cent, exceeding the minimum regulatory requirement of 17.68 per cent, while its Common Equity Tier 1 (CET1) ratio reached 16.53 per cent, also above the required threshold.

Investment strategy focused on secured exposures

The bank’s debt investment strategy continued to centre on securitised SME loan portfolios and secured bond instruments. Its securitisation exposure includes senior Class A notes in Luxembourg- and Lithuania-based structures backed by SME loans across Northern and Eastern Europe.

Bond investments are secured by pledged loan portfolios and additional collateral, including cash deposits, financial instruments, and real estate, with performance monitored through predefined covenants.