Derivatives boutique Leonteq hit an initial target set up by new management last year. The way forward looks to be somewhat bumpier after a flurry of market volatility fizzled early this year.
Leonteq's net profit more than tripled on the year to 91.5 million Swiss francs ($91.4 million), the structured products maker said in a statement on Thursday. The company's cost-income ratio sank to 67 percent, from nearly 90 percent year-ago.
The reading is a partial vindication on targets for Lukas Ruflin, whose first move when becoming CEO of Leonteq last May was to hit shareholders with a big cash call and halt dividends. He had also sought to trim Leonteq's spending in order to hit a cost-income ratio of less than 70 percent by next year, as well as lift revenue to 300 million francs.
Tough Start to 2019
Leonteq wants to hike staff levels by roughly 5 percent this year in order to hit the second target (last year, revenue was 282.4 million). If the company looks to be within striking distance of the target already, an easing of the financial market volatility which spurs demand for Leonteq's products may make the goal tough to achieve.
«Against the backdrop of market, economic and political uncertainties in many parts of the world, levels of client activity decreased at the beginning of 2019 and Leonteq therefore had a subdued start into the year», the company said.
