Multitude Bank plc, formerly known as Ferratum Bank plc, recorded €22.2 million in profit before tax during 2022, representing a 39 per cent increase from last year’s €16 million.

The Malta-based bank completed a rebrand last October following the broader rebranding of Multitude Group’s parent company Multitude SE.

The rise in profitability came following an increase in its net interest income from €125.8 million in 2021, to €145.8 million in 2022, representing the bank’s “continued efforts” to increase its lending business and investment operations.

Net fee and commission income remained relatively stable at €740,000, while net trading expense increased from 2021’s €86,000 to €652,000 in 2022.

Multitude Bank’s employee compensation and benefits increased by 3.8 per cent from the previous year’s figure to €8.1 million, and other operating costs also rose from €48.9 million in 2021 to €52.3 million in 2022. The largest increase in expenditure came in net impairment losses, as the bank suffered from an 18.9 per cent surge from 2021’s numbers, resulting in €62.1 million in expenses.

Its financial position reflected an increase of €43.7 million (seven per cent) in total assets, to a total of €647.8 million. The bank’s main assets are made up of loans and advances to customers, which increased from €328.1 million in 2021 to €407.8 million in 2022. An increase was also reported in its total liabilities, as they went up from €498.4 million to €521.5 million.

Over the course of 2022, the bank distributed a dividend amounting to €18 million, and received a capital contribution of the same amount from its ultimate parent company, Multitude SE, continuing to “strengthen” Multitude Bank’s equity structure.

In June 2022, Multitude Bank, which was still Ferratum Bank at the time, also started to offer its products in Slovenia. The bank’s investments are made up of investment in securitisation portfolio, amounting to €77.9 million, and two new investments in debt instruments, amounting to €21.1 million.

The bank’s Directors stated that during 2022, the Board “continued to evaluate” the effects of Eastern Europe’s geopolitical situation, which has “intensified” throughout 2022. While it remarked that it has no direct exposures to either Russia or Ukraine, the bank is “actively monitoring the situation and considering its circumstances and risk exposures” when analysing the impacts the war might have on its financial reporting.

Multitude Bank is primarily active in the origination of unsecured lending and credit products which are distributed through an online platform. In 2022, the bank provided its services in Estonia, Latvia, Czech Republic, Germany, Bulgaria, Sweden, Norway, Croatia, Denmark, Finland, Romania, and Slovenia.