Zurich-based structured products specialist achieved record revenues for the first half of the year, surpassing its previous highest half-year profit 59.2 million Swiss francs, achieved in the second half of 2018.
In line with the guidance provided in June, Leonteq reported a record group net profit of 74.4 million Swiss francs ($80.96 million) for the first half of 2021, according to results published on Thursday.
Leonteq cited strong client activity, disciplined risk management and the focused execution of its strategy as behind the strong results.
The improvement from the same period the year before is significant. Hit hard by the coronavirus crash, the firm recorded a profit of 5.5 million francs in the first half of 2020.
Strong Figures
Leonteq's operating income doubled compared to the previous year to 205.8 million francs, driven by strong income from commissions and net fee income of 170 million francs and a positive trading result of 35.4 million francs.
The transaction volume increased slightly by 3 percent to 15.9 billion Swiss francs, driven by an increase in Leonteq's own products. Income from products with cryptocurrencies as underlyings increased tenfold to 9.2 million francs compared to 2020.
«Focused Execution»
«We have demonstrated that the diligent and focused execution of our strategy over the past three years is starting to yield attractive investment returns,» Lukas Ruflin, Leonteq CEO, said in a statement.
The firm expects to propose a shareholder distribution of more than 0.75 francs per share. From the 2022 financial year, it will transition to a «progressive dividend policy,» with a payout ratio of more than 50 percent of profits.
Leonteq said it will be expanding its product offering and issuer universe, and will further accelerate its digital solutions. It also aims to become a leading ESG provider for structured investment products.
