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Good morning, and welcome to the Multitude's 2023 Q1 Results Earnings Call. Today, we will hear a presentation regarding 2023 Q1 results by CEO, Jorma Jokela; and CFO, Bernd Egger. We also have Chief Strategy and IR Officer, Lasse Makela available in the call. Afterwards, there will be a question-and-answer session. Questions can then be asked by audio line or chat.I would like now to hand over to Multitude's CEO, Jorma Jokela. Go ahead, Jorma.
Hello. Good morning, everybody. My name is Jorma Jokela. I'm the CEO and the Founder of Multitude. And I want to walk through Multitude's Q1 2023 results and achievement with my colleague, our CFO, Mr. Bernd Egger. I'm so proud to say that our success continues in Q1 as well, where main thanks going naturally our amazing people. They have executed our common plans and strategies so disciplined and professional.But before we start working through our latest financial and business performance, I want to share with you some words about Multitude and about our direction. We have an 18-year track record of building the successful and profitable global fintech ecosystem, our roots coming from Scandinavia, Finland, we have full EU by banking license, and we are listed in the Frankfurt Stock Exchange in the Prime Standard. Today, we operate business through 3 different business units and service over 400,000 customers in 18 countries with 700 colleagues.We have a amazing track record and capability of delivering the profit, growth and paid dividends for shareholders over our 18 years' history. And this is the path what we want to continue on the future too. Our inspiration to deliver amazing financial track record year-after-year comes from our unique market opportunities and Multitude's people passion to change the world and democratize financial service through digitalization, making them fast, easy and green. This is where the logic of all our products is naturally based as well. We want to build something unique or extraordinary, something where everyone can be proud of. Our vision, create the most valued financial ecosystem gives our people one goal and direction.Our financial ecosystem is built on the way that Multitude acts as a platform, where all our scalable elements are located in. And today, we have those 3 independent business units on the platform. SweepBank focus on shopping and mobile banking app, Ferratum on digital consumer lending, and CapitalBox on digital SME lending. And all business units are in different life cycle position and they have a different focus by today. On Multitude platform, we focus on improving scalability and explore the new opportunities for the crew. For example, in Q1, we invest in Sortter, one of the leading financial service conversion platform in Finland.Good. But today, our target is to lead our -- all of you, the 6 key takeaways. Maybe we can jump? Thanks. We are well on the track with our finance for this year. EBIT grew over 60% year-on-year. Results from CapitalBox turnaround is very visible, Ferratum performance continues to be the really solid and very strong, payment behavior and cash position stayed strong, and we expand our growth platform by making minority investments.Let's turn to next slide. And I want to jump to look the Q1 performance and achievement. Can we jump to next slide, please? Thanks. EBIT continued the growth during the whole last year, and this trend continued this year as well, ending at EUR9.6 million in the Q1, and this means amazing 64.8% EBIT growth year-on-year. Same time revenue ending in EUR54 million, which means we delivered stable revenue growth 4.4% year-on-year. Our rating agent, Fitch affirmed our rating at B+ with stable outlook. And when we look into going forward, we want to utilize our agile organization to scale the cost down, accelerate our profitability short and midterm and build our growth platform strategy value. Naturally, we want to confirm our EBIT guidance of EUR45 million for this year.Let's turn to next slide to look in the SweepBank. So growth continues with the shift towards profitability. We continue to deliver the strong net revenue growth 40.7% year-on-year, reaching EUR4.4 million during Q1. EBIT improved by EUR1 million year-on-year, thanks to our lower cost base, what we have earlier promised to execute as well. During Q1, our main focus was credit card and shopping app in Finland and prime lending in Latvia. And when we look in going forward, we will shift our focus from fast growth to profitable growth and improve our cost income ratio. We confirm our earlier intent to half our EBIT loss from last year and by 2024 to achieve positive EBIT.Let's go to look at Ferratum on the next slide, please. So solid and amazing performance continues. Net revenue grew slightly in Q1 ending EUR47.7 million (sic) [ EUR44.1 million ], 2.1% growth year-on-year. EBIT grew slightly ending at EUR12.5 million, which means 4% growth year-on-year. EBIT margin stayed strong at 28.3%. Net AR growth stabilized due to NPL portfolio sales and ending in Q1 at EUR299.1 million. Our focus going forward is to shift resource to higher-profit countries and continue strong cost control and process automatization, expand product portfolio and innovation support our future growth.We confirm our financial targets to continue to deliver over 5% EBIT growth year-on-year. Last one, but not least, let's go to look at CapitalBox. This is traditional turnaround case, back to growth and profit, we have a huge market opportunity to digitalize further SME financial industry. We have identified our shortcoming, made needed decision and actions. And like I say last time, we will see the first financial impact from CapitalBox soon and today is that day. I'm so happy to say that from Q1 numbers, you can see the first strong improvement, our turnaround actions.EBIT in Q1 grew amazing EUR2.3 million year-on-year, ending in EUR1.3 million. Strong performance comes mainly lending portfolio quality improvements and lower operating costs. Net revenue ending in EUR5.5 million, which is 1.5% growth year-on-year. This is still lower than our future expectations are. However, we are still in early stage to capture a turnaround result. And our focus going forward with CapitalBox is building the new distribution channels, product and underwriting innovation, increase automatization of underwriting and sales process. We are really comfortable with improvement what we have done so far, and we confirm our earlier targets to deliver a EUR5 million EBIT on this year and double it on the following year.Good. Let's turn to the next slide. In addition of our business overview, I would like to update you about our ESG matters. As part of ESG program, we set up last year our 2025 goals, targets and metrics for each ESG elements, and showing in this dashboard on the left side. On the right side, you will see ESG Q1 main actions or update. And like you can see, we had a busy and successful progress. We published our Scope 2 and 3 emissions. We completed the performance and development review. Board female presentation increased from 25% to 33%, and we kick off our double-materiality assessment process. On the future, we will continue to engage with stakeholders to support our focus to preparation to upcoming requirements under the Corporate Sustainability Reporting Directive. But now I want to thank all of you this amazing first quarter and let's jump to financial part with Bernd taking over.
Thank you very much, Jorma. Good morning, everybody. My name is Bernd Egger. As always, I'm happy to run you through the financial performance in the first quarter of 2023. If we switch to the P&L right away, then I would like to highlight, as a starting point, top line development year-on-year growth, positive 4.5% in net revenue or 6% in gross revenue. So quite positive given the current market circumstances.Secondly, credit losses, credit loss impairments up 6.8% to EUR19.8 million. That is pretty much in line with the growth -- revenue growth year-on-year. So from that perspective, actually, that is quite good news, stable performance, stable underwriting performance. Of course, this deviates a little bit country by country. We are not 1% satisfied in all markets, but from a high-level perspective a quite strong performance. Thirdly, operational expenses. Personnel expenses still very well on track. We have not only managed to show degressive cost development, but actually to reduce cost in key expense lines, also in absolute numbers.To give one example, personnel expenses reduced to EUR8.4 million compared to last year. This is equivalent to a reduction of 5.8%. Finally, financing costs. Here, we have an higher level than we had on average in 2022. So around about EUR1.5 million, EUR2 million deposit. Why is that? There are essentially [ 4 ] drivers. One is, as you all know, reference rates have gone up very significantly during the last 12 months. This means that both capital market instruments, but also deposits increase in pricing or in cost from our perspective.Secondly, as we will see in a couple of minutes, we have built up quite a significant cash buffer for a number of reasons during Q1 2023, so around about plus EUR70 million. Two reasons basically for that is, one is support growth and the other one is to protect us in terms of making sure that we have sufficient liquidity, especially in longer maturities also going forward. Reason #3, in Q1 with an exceptionally low foreign exchange result, lower in the sense that even a positive contribution after hedging costs, this has pretty much normalized in Q1 2023 with EUR1.3 million around about foreign exchange costs. So this is pretty much a normal level given the current market circumstances.And then we have 2 one-off factors that essentially account for EUR1 million or a little bit less than EUR1 million. That is on the one hand side, a one-off impact between EUR500,000 and EUR600,000 related to the exit from Australia. So that has a cost impact of a little bit less than EUR600,000 on the finance result, and we also had a onetime contribution of EUR380,000 to the deposit, the compensation scheme. So these 2 cost factors are not going to be sustainable, but we have around about EUR1 million impact on the result on the finance cost in Q1 2023.Profit before tax, a little bit below EUR3 million. This is an increase of 17% compared to last year. Net profit, EUR2.2 million, slight increase. But I would like to highlight that if we net or adjust for the impact of exit in Australia in Q1, the net profit would have been EUR3.2 million. So the exit from Australia has a net impact of EUR1 million in aggregate, which means that this would be equivalent to an increase in net profitability from a little bit more than EUR2 million to -- EUR3.2 million adjusted, so an increase of more than 50%.If we have a look at the balance sheet. Non-current assets, loan books increased a little bit to EUR512 million, financial assets increased to EUR32 million. This EUR32 million is essentially the warehouse lending business that is growing quite nicely, still a little bit early stage, but really starting making meaningful contribution both to revenue and to profitability as part of the SweepBank offering. Deferred tax assets slightly down. This is EUR300,000 related to exit Australia write-off of tax loss carry-forward position. Most notably, cash increased EUR70 million. So this is mainly deposit driven. We will talk about deposits in a minute, but that is the most significant change in the balance sheet on the asset side over the last 3 months.Let's on the next page continue with deposits. As I pointed out, we have increased deposits quite significantly for a number of reasons, firstly, to support cash. So we expect growth in both the lending business but also in the investment in warehouse lending business. And in order to have cash readily available, we have increased cash basis already now. Secondly, our expectation with regards to the interest rate level is that interest rate levels will not go down over the next 3 to 6 potentially longer months. This is why we have put quite some emphasis on increasing the deposit base in the longer maturities.So longer maturities means 24 and 36 months, and that is something that will ideally turn out to be cost efficient going forward. So currently, we have a very sound term structure. We have no upcoming repayments, a very solid debt position. Equity is slightly up to EUR183.4 million. This is equivalent to a net equity ratio of 30%. Net equity ratio is of relevance since this is the relevant covenant for the new bond with ample room to grow. So very far away from the relevant covenant of 18%.On the next page, a quick look at the portfolios comparing Q1 2022 with Q1 2023, since the 1-year perspective gives a little bit more insight than just a quarterly perspective. From a 12-month perspective quarter year-on-year, first quarter, the key messages are Ferratum and CapitalBox have increased the portfolios by around about EUR10 million each. Sweep, including the warehouse lending portfolios increased by a little bit less than EUR55 million. So in aggregate over the last 12 months, an increase in loan portfolio, including investment portfolio of a little bit less than EUR75 million.Let's talk on the next page about the segments. Ferratum revenue up by around about 2% to net EUR44.1 million. This represents 81.7% of total revenue, which in turn indicates that the other 2 businesses, so CapitalBox and Sweep are gradually approaching the 20% -- the aggregate 20% share in total revenues. Impairments up slightly by EUR1.4 million to EUR15.5 million, still on a good level, 1 or 2 markets that we serve close attention and, yes, our focus areas going forward, but overall, big picture, still very solid and good underwriting and credit loss management and also portfolio management performance.Portfolio management is equally important. Costs in total operational expenses, marketing expenses in its totality around about EUR1 million less in Q1 '23 compared to last year. That brings earnings before interest and tax for Ferratum to EUR12.5 million, again, a very solid performance from a profitability perspective. SweepBank revenues up from EUR3.1 million to EUR4.4 million. Net credit losses going up slightly to EUR3.6 million. In the prime lending portfolio, as Jorma has pointed out, we have a very clear focus on those markets that performed well.And the second key driver in the SweepBank offering currently is the warehouse lending. Focus is, therefore, on lower risk on top performance businesses. Marketing and operational expenses, similar picture, actually a higher reduction, EUR5.1 million, down from EUR6.4 million. This now we start seeing the consequences of the actions and the decisions taken in the second half of the previous year. EBIT minus EUR4.2 million. Obviously, the ambition is to scale down or to maintain cost on a stable level going down gradually, so that in combination with the expectation that we see revenues to increase further the ambition to reduce negative EBIT contribution significantly during this year is still the key target when it comes to SweepBank offering.CapitalBox, very positive development in terms of the fact that we see very clearly the impact from all the actions that have been taken during the summer and the second half of 2022. Credit losses, you might recall that during Q1 2022, we had a little bit of issues with credit losses in CapitalBox. This has improved significantly, so an excellent performance here. Cost structure is in very good shape. What that means altogether is that with a revenue base of EUR5.9 million gross, EUR5.5 million net and with a solid underwriting, extremely solid underwriting and stable cost base. We see positive EBIT for the second quarter in a row now, in fact, we have doubled the positive EBIT from Q4 2022 and are now at EUR1.3 million positive. So a strong performance and in very good shape and set for future growth. This is how I would describe CapitalBox.On the next slide, as always, a very quick look at asset quality. Key message here is super simple. Credit losses over loan portfolio continued to go down slightly. We are slightly below 4%, in fact, for the first time, which is a very strong development. The trend is confirmed. I guess that is the most or I think this is the most relevant statement to make in -- with regard to the very strong asset quality.Finally, let's take a look on the next page, cash development. The cash level is currently at EUR227 million. We are on the upper end of the target corridor. I've explained why we have built up some cash resources. So here, we are pretty much where we want to be. Of course, we're not super happy with the fact that cost of cash is going up, but from a cash management perspective, from a liquidity perspective, in very good shape. By the way, I would like to add that we hold our cash de facto exclusively with European rated banks. So we do not have any exposure to non-European banks that you might have heard about or read about in the past couple of months.Finally, on the last slide, as always, also a quick look at funding comparing the funding mix, the financing mix between Q1 '22 and Q1 '23. This has -- obviously, the picture has changed very significantly over the last 12 months. Why? We have reduced the dependence upon debt capital markets very significantly, repaid '22 and '23 bonds, you are familiar with that and issued a new instrument in December. We have shifted the liability structure very much to deposits for the reasons that I've outlined a number of times, easier to manage more cost-efficient, and also from a risk perspective, the -- I don't want to say perfect, but the perfect funding tool, but at least, I would say, the most manageable and cost-efficient funding tool.From a risk perspective, again, de facto now about risks, close to 100%, around about 99% of our deposits are within the EUR100,000 threshold. That means that they are protected by guarantee schemes, which in turn means that the risk of bank runs in challenging times is extremely low. So a very well diversified deposit base. Last but not least, I've mentioned it last time, we will need to see how the market circumstances will look like over the next couple of weeks. The intention still is to do a small tap issue on the 2022 bonds, but that is to be seen over the next couple of weeks.Thank you. With that, Jorma, I would again hand over to you.
Good. Good. Thanks, Bernd. Thanks, Bernd. And I think from my side, I just want to repeat what I already mentioned, our key takeaways. We are well track on our guidance. We have a good EBIT growth, 64.8%. CapitalBox turnaround, you can see how visible this is already today, even it's very early stage. Ferratum continues the solid performance, very strong performance. Payment behavior, cash position is very solid, strong. And we have expanded our growth platform by making minority investments.Good. I think we are ready and open for the all Q&A part.
Thank you, speakers. [Operator Instructions] And we already received the first question via audio. And I would hand over to the person who has dialed in ended by 414. We kindly ask you to unmute yourselves.
Yes. This is Philipp Haessler from Pareto. Can you hear me?
Yes, we can hear you.
Perfect. Okay. I have 3 questions, please. Firstly, on revenue growth, which was relatively weak with an increase by only 4% in Q1. Maybe you can update us how Q2 has developed so far and what your expectation is for the next quarter? Then on the average interest costs, which you pay on the deposits. Could you give us a figure at the end of Q1, which -- and how it has changed versus Q -- the end of 2022? And last but not least, the loan volume declined quarter-on-quarter at Sweep. Can you maybe elaborate a little bit further on this? You also mentioned the warehouse lending. Maybe some more details would be very helpful.
Good. Philipp, it's very nice to hear you. It's -- maybe we can do in other way that -- maybe Bernd, do you want to take this deposit part question, and I can start with the revenue and the SweepBank part, if that's okay? And then you can help me and add. It's -- so the revenue growth in the -- when we look at the revenue growth in the Q1, that's true that it's only 4.4% on the year-on-year. It's -- there is -- there is one important element what we have to understand is seasonality as well.So it's -- if we look to Q1, it's typical, the seasonality in the Q1, it's a little bit lower as well. But I think the second driver behind is that we have focused lots of more to profitability customer base and profitability products rather than revenue growth. So that's -- there is like 2 main drivers why the revenue is on that level. Of course, exit from Australia, it's take after some volume from there as well. So that's a likely impact as well. But those are like 2, 3 main explanation on the revenue part.When we look from the SweepBank and lending volume, there we have been doing a very, very similar explanation actually, very similar drivers. So we actually make the decision on the last year, end of the last year that we want to suspend the lending in the several countries on the prime lending, and we want to focus only the few markets there in the -- mainly in the Latvian and the Finnish markets. And the driver there was behind that, that those was highest profitability in our portfolio, and that's the reason why we see that we want to shift the focus from those, and that was decreased a little bit loan volume behind there as well. Go ahead, Bernd.
And I take over, and -- yes, I think it's a very good question on deposits and maybe I can extend the question a little bit to some other questions that were raised with regards to the finance costs and elaborate a little bit on that. So first of all, we have increased deposits quite significantly to some EUR580,000, a little bit more than that during Q1. The interest rate levels start at 1%, currently, for overnight money, go up to 1.4% for 3 months, 2% for 6 months and so on and so forth, [ 345% ] for 24 months and [ 360% ] for 36 months.However, given the current market circumstances, unfortunately, this is not the NPS. So we're in the process of increasing a little bit, especially again at the longer end, and that will bring us for the 24-month and 36-month product in the range of 4% roughly. This will not immediately have an impact on P&L, but it's something that is just a fact. So these are the rates at which deposits are currently being acquired. From an average perspective, at the end of Q1 between EUR1.8 million and EUR1.9 million. Why? Because the old long-term term deposits are still on the book. So this is a gradual process of seeing an increase in weighted average cost of deposit funding. So [ 186 ] to be precise at the end of Q1.That -- I guess that was it on the deposits. Just one additional statement that is of relevance to the finance cost. Deposits come with additional costs. So it's not only the interest rate, it's also the cost for the deposit compensation scheme, so essentially guarantee protection that all clients benefit from, This comes with a deposit volume of up to EUR100,000. And that has an impact, an onetime impact of EUR380,000 on Q1 as well. This is why I said combining the [ EUR500,000 to EUR600,000 ] Australia, plus the EUR380,000 one-time effect. So essentially normalized financing costs would be a little bit almost EUR1 million lower than we see now in Q1.
Good. And maybe actually, we have a chat open here, there is questions as well, and I just see that there's questions [indiscernible]. It's exactly the same question that Q1 this year revenue EBIT are higher than Q1 last year in 2022, but it's slightly less than in Q4 in the last year, especially the Ferratum part, and is there some specific reason?And I think that's exactly what I mentioned earlier. It's like there is seasonal effective, there is Australia impact and the focus on the more profitability, the product on the SweepBank there. So those 2 -- first 2 was in the Ferratum related and then the second one was more the Sweep related.
Thank you very much, Jorma. We also received another question by audio. Please go ahead, Mr. Marius Fuhrberg.
Yes. I hope you can hear me.
Yes, we can hear you.
Perfect. Two questions from my side, please. The first one on your investment in Sortter. I might have missed it, but do you have any options to actually increase your stake any further? And whenever you see that this investment or the corporation runs really well? And maybe also, do you consider making similar investments to such platforms in other countries as well? And the second question then is, with regards to your cash on balance, do you make use of the ECB refinancing facility for that or do you keep your cash with basically other normal banks?
Okay. Good. Thanks, Marius. Maybe I can take the Sortter investment in the first and then Bernd, if you can take this cash on balance question. I think it's -- if that's okay, Bernd?
Absolutely.
Perfect. Perfect. So maybe again, just a few words about the sharing with Sortter. So we have been following the Sortter, the -- growing in the Finnish market as a customer role in the already while. And we have seen that there is a really strong team. There is a really solid performance. They have done really good to improve and increase the marketing activities and the customer easily get the loan through this platform. And then we opened the conversation with the management and interim [indiscernible] there.And our thinking process behind this minority investment was that we want to support them to growing into other countries as well and scaling that one, because we believe that they have a really great technology behind there and it's very scalable. Of course, it's a relatively small start-up on the way that they are -- they don't have like a big private equity company behind who supporting them, so we want to supporting them. And it's fitting very well in our platform strategy there as well. And what is important now that in this point that this is the non-controlling minority stake there.So we are not like take a role there for the -- controlling the company and start running this company. We let the management continue what they have done over these several years, very successful. We want to more to support and help them and bring our confidence on the regulatory part, how to expand around the Europe in different markets. And maybe we can look and support and the acquisitions around the other countries as well because we believe that there is a lot of opportunities.We have an option agreement there as well to increase our share position there. So that is the option on the later on, on the road there as well. But first, we want to naturally see how well this management can now execute the plans and our plans what we have talked about together the expansion there.
Good. And I continue with the question what we do with the cash that sits on the balance sheet. First of all, obviously, the ambition is to reduce the burden, the cost burden related to deposits as much as we can. What we have done over the last couple of weeks, essentially 2 new initiatives. One is we hold cash, not only overnight with partner banks but also short-term deposits. Short-term means a week, 2 weeks up to a month at quite attractive rates.And again, when I talk about banks, and I'm talking about de facto exclusively about European rated banks. That's one that is going to help us mitigate funding cost. And the second one is, yes, we work with ECP/National Banks. And in our specific case, as the bank is under the supervision of the Maltese authorities. So we work closely with the National Bank or the Central Bank, I should say, of Malta, and we hold cash there at quite attractive rates in the region of up to 300 basis points. Currently, we hold EUR55 million with the National Bank of Malta -- Central Bank of Malta.
Thank you very much. Thank you very much, Mr. Fuhrberg. As there are no further questions via online, I would say, let's move to the questions from the chat.
Good. We have a first question was coming already a while ago, it was coming [ Stefan ] [indiscernible]. There is a question concerning that other finance costs is minus EUR1,240,000. Is the negative impact of the selling of Ferratum, Australia included in Q1 2023, how big is the loss in the P&L?Then the second question from him is related for the -- is the financial result heavily impact of the development of Swedish krona? How much of the Euro SEK, Swedish krona is hedged? Yes. That's the first 2 questions. And then there's 2 more, and I can take. But Bernd, do you want to start in with these 2?
Yes, I'll take the finance costs Australia related and the hedging and the Swedish krona related questions. So first of all, on other finance costs and the impact of Australia. Australia exit in its totality has an impact of EUR1 million on net profit. That's EUR500,000 to EUR600,000 is financing expenses, around about EUR300,000 is risk -- EUR200,000 to EUR300,000 and the remaining a little bit less than EUR300,000 is write-off of deferred tax assets.So that's the composition. And yes, this is impacting the financing cost as well as, for instance, also this onetime contribution to the debt compensation scheme. So, so much on Australia, and financing costs, is the financial result heavily impacted the development of Swedish krona, how much of Euro SEK is hedged? Impacted, yes, but not in the sense that we have a really big post-hedging exposure to Swedish krona. The overall strategy is to pretty much hedge in the region of 100% against Swedish krona movements, obviously, there's always a little bit of fluctuation.So movement is between 90% and 110% with a target level of 100%. So what we are seeing here is rather hedging costs than the negative impact of the open residual positions. When interest rates go up, hedging costs go up. I mean, this is a clear -- that's just a fact, and this is why hedging costs go up. I would like to add just one sentence, if I may. We are working on an initiative to incur a larger proportion of deposit funding directly in Swedish [ krona ]. This will have a number of positive impact and one -- once the portfolio is meaningful, will also result in a lower open position in Swedish krona and hence, reduce the cash, not the hedging cost in Swedish krona.
Good. And then [ Stefan ] have a second -- the third question related to SweepBank financial is still on track full year. In Q1, more than EUR4 million negative EBIT versus target of the EUR10 million negative on the full year. And I think here, the short answer is that, yes, we still see that we are on the track there. The year was not starting as strong like we hold with the Sweep. So that's obviously, but we still see that we have -- we are on the track with the Sweep there.Of course, the coming months, we'll be playing the big role on there, it's a full year numbers as well and how strongly we can especially focus in the more profitability customer segments there because the question is not how much you can spend, how much you can scale up your lending portfolio, it's a question of how you can select a positive selection on your customer base and control your credit loss there. Cost wise, I think, yes, it's very well under control. But of course, the question is, it's always this customer segment question there.Good. That is for Sweep. And then the fourth question, will there be -- will there be a Capital Markets Day in June as discussed last call. Short answer, no. We have an internal talk about lots on the Capital Markets Day, and we are looking for the opportunity organized this spring, like we do in the 2 years back. However, we come out of the solution that we like to see this better, the right better timing will be in the second half of this year when we have more information on the 2023 year's numbers and a few strategic choice what we are currently working there that we can open this more for the all investors as well.So currently, management are looking for the opportunities in the September, during October time of the -- more close to October time what we are looking there. But we did not have a public -- exactly day yet. We naturally look in the calendar, the investor calendar and different events that it's not too much overlapping with anything that people have opportunity join there as well. But that's a more or less management current preparation timetable and a few of the timing there as well.And then the last question from Stefan that why is loan portfolio growth weak in Q1 with only EUR2.6 million quarter-on-quarter, will it be higher the next quarter? Do interim shall support the current drive? I think it's -- we have already answered this question a little bit separate side. So it's -- there is for those, few answer what I have already told related to Australia exit. We have a portfolio sales done. We have a seasonality effective there from the Ferratum part. And then, of course, the shift from the more profitability customer rather than increase aggressively just the lending portfolio behind them.Then, of course, this question is always the accounting allocation as well, like Bernd mentioned earlier, this warehouse lending is not allocated as a net AR is like investment -- under the balance sheet in the investments and that we have to calculate inside there as well what we showed the real life, a little bit higher portfolio across there.The answer that is the portfolio will be growing to significant higher in the coming quarter. I think it's maybe -- I only want to comment here that we are sticking to our guidance, and we will deliver that one. And that's my commitment and our team commitment.Good. Bernd, then the next question is coming from [ Johannes Wild ], what amount of finance cost should we expect in the next quarter? Do you want to comment that one?
Yes, to a certain extent, absolutely. I mean we have 2 factors that we need to take into consideration, EUR6.7 million this quarter, as I've pointed out, impacted by 2 items that are essentially a one-off character, that total is a little less than EUR1 million. So if you take out the EUR1 million, then this is a little bit better descriptive of the economic nature of the finance cost in Q1. At the same time, we need to factor in that we still see a gradual increase, especially when it comes to weighted average cost of deposit cost, which is currently at [ 1.8%, 1.9% ]. This will go up a little bit.So it's hard to give you a specific number, but this EUR5.7 million, so EUR6.7 million minus EUR1 million, I think is a reasonable starting point, then factoring a little bit of cost growth and volume growth, and then we should be there. So in the region of EUR6 million plus/minus next quarter, that is around about the magnitude that I think would be a fair estimate. But please don't take it as a guidance. This is...
Good, good. Good. Okay. Thanks, Bernd. Then the next question is -- unfortunately, I don't see here in -- the name of the question, but the question is coming from the -- thanks for the update. Social engineering scam is the biggest fraud problem facing European banks today. With potential legislation making banks liable for the repayment, what step is the true [indiscernible] to keep you and your customers safe from the scam?This is a huge topic, and this is a really, really important topics there. We have been working in the internal in the 3 different ways. So we have the first one. We have very intensive internal training process as going over the last 1.5 years, where we practically doing the internal different case in the very visible and we're sharing those and we educate our internal people because that's building the awareness there in the internal.The second one is we're doing the same process with our customers, not really it's -- it's you cannot doing this so deeply, but we're doing the customer training there as well. And then the third one is we have a different technical solutions, how we prevent us or how we like protect our customers and us for those actions, what I don't want to open over here. But those are like the 3 main pools how we're working and dealing this challenge. It's naturally the -- not only us, it's touching in the all financial sectors and not only financial sectors, it's actually going even beyond that one, all online shops as well.Good. Bernd, do you want to add there something to that question or...
No. Excellent question, and I totally agree to your answer.
Good. All right, I hope that the next question -- from 3 questions regarding CapitalBox. What was the biggest impact on CapitalBox? Why did impairments decrease so much? How does the further development in this year looks like?Short answer, it's -- if we're looking for the CapitalBox on the Q1, there was 2 main drivers. The first driver coming from the credit loss and second, from the operational cost, mainly in the staff cost and fixed cost as well. So we reduced significant of the staff and the fixed cost on the end of the last year and without impact for our execution there. There was -- but this is actually -- execution is even increasing there.The -- what is coming from the payment behavior and our portfolio quality behind there. There, the main driver has been [ our out of the session ]. Our -- we have improved multiple way in our underwriting process and of course, our current portfolio management as well. There is not one single element what we haven't done is probably end-to-end process from the -- starting from the new customer in-taking, to how we do the risk assessment, how we manage the portfolio, how we manage from the delay payments, our customers will have late payers there. And all of these points we are doing the improvements there, what was the leading the better portfolio quality there.So there is no one tricky, how you say, like how one-trick pony that what we have done that now the portfolio of quality looks better. It's across the life cycles from the customer. According to our -- like the future developments here, it's -- we see that the revenue continue to growth. We see that it's continue growing the -- even the stronger what it is currently. We see that, of course, the credit loss, it's a question what you have to be very careful on this type of the market situation as well.So that's we keep -- our target is to keep, this is pretty stable, not doing like a huge improvement here. It might be a little bit volatile as well there in the quarter-on-quarter there. And the focus is to bring a few new products on the market on the near future and building the stronger, the cross-selling -- customer cross-selling approach there to accelerate our profitability customer sales there.And I'm not sure the customer acquisition cost, it's one of the key drivers there as well on the future. But in general, I think it's -- we are very, very positive on the development what team have done on the last 6 months, and we believe that this development will be continued as well.Good, good. That is -- now it's coming to answer from the social engineering scam question as well. This question comes from Pratik Choudhary from LexisNexis Risk Solutions. Good. Good question. Thanks. Okay.
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