Leonteq Terminates Cooperation With DBS Bank

Leonteq, which develops technology to distribute structured investments, has stopped its cooperation with Singapore's DBS because of diverging interests.

Leonteq, DBS, Avaloq and Numerix have ceased their cooperation to develop and implement an integrated, multi-issuer investment products distribution system due to «diverging interests on some business model and exclusivity discussions,» the Zurich-based company said in a statement today.

Leonteq, which develops and operates investment platforms for companies such as Deutsche Bank, will continue to implement buy-side automation initiatives on its own and with partners such as Avaloq.

Minimal Impact on Result

Leonteq also ended the cooperation with DBS on the distribution of equity-linked structured investment products. DBS contributed some 6 percent to the turnover in 2015. Leonteq expects the financial impact of the termination on the result to be «non-material» compared with a year earlier.

The Swiss company regrets the end of the cooperation with DBS, but remains convinced that the open platform, which is the essence of its business model, addresses the needs of its current and future partners.

Leonteq's profit rose 10 percent to 68.6 million francs last year. The board of directors proposes to raise the dividend to 1.75 francs a share from 1.50 francs a year earlier.

Asia CEO Back to Switzerland – New Head of Sales

The company appointed David Schmid, CEO Asia, as head of sales and member of the executive board with immediate effect. Leonteq in 2016 will move to its new headquarters at Europaallee, close to Zurich's main station. This will allow it to accommodate all Zurich-based staff in one place and make room for «further staff growth,» the company said.

«We have had a very good start to 2016, and are optimistic for the further development of our business in the years to come, despite prevalent geo-strategic risks,» said Leonteq Chief Executive Jan Schoch in the statement.

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