Leonteq AG (SIX: LEON) announced today that it expects to report profit before taxes between CHF 20-30 million for the first half of 2023. Whilst Leonteq’s client franchise remained strong in the year-to-date 2023 with a slight increase in net fee income year-on-year, net trading result was subdued primarily driven by reduced levels of market volatility. As a result, Leonteq revises its full-year 2023 outlook for profit before taxes to CHF 40-70 million.
Despite the continued challenging market environment in the year-to-date 2023, Leonteq’s client franchise remained strong with a slight increase in net fee income year-over-year. The Group further recorded relatively stable platform assets and turnover year-on-year.
The year-to-date 2023 was further characterised by material lower levels of market volatility, continued inflationary pressure and corresponding interest rate hikes. Against this backdrop, Leonteq recorded a normalised net trading result with limited but positive contributions from its hedging and treasury activities. This compared to a very strong performance in the prior-year period which benefited from unprecedented market conditions.
As a result of these factors, Leonteq expects to report profit before taxes between CHF 20-30 million for the first half of 2023 and group net profits that will be slightly higher than this due to positive tax effects. Furthermore, Leonteq revises its full-year 2023 outlook for profit before taxes to CHF 40-70 million (previous guidance: CHF 70-100 million).
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Leonteq
Leonteq is a Swiss fintech company with a leading marketplace for structured investment solutions. Based on proprietary modern technology, the company offers derivative investment products and services and predominantly covers the capital protection, yield enhancement and participation product categories. Leonteq acts as both a direct issuer of its own products and as a partner to other financial institutions. Leonteq further enables life insurance companies and banks to produce capital-efficient, unit-linked pension products with guarantees. The company has offices and subsidiaries in 13 countries across Europe, Middle East and Asia. Leonteq AG is listed on the SIX Swiss Exchange (SIX: LEON).
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