Leonteq Prepares Investors For Loss in 2025
Swiss-based Leonteq, which also maintains a significant presence in Singapore, has advanced its regulatory transformation and strengthened capital ratios, even as the structured-products specialist prepares investors for an underlying loss in 2025.
Leonteq highlights improved client activity and capital efficiency, but a reversal of hedging gains is weighing on results, according to a media release issued on Thursday.
The company has finalized the shift to the standardised approach for market risk under the Fundamental Review of the Trading Book – SA-FRTB – earlier than expected. The simplified standardised approach remains available during a phase-in to the end of 2026, yet management accelerated the transition and achieved a Common Equity Tier 1 ratio above fifteen percent as of the end of November 2025.
Swift Execution
CEO Christian Spieler said the swift execution supports the delivery of «sustainable value for clients and shareholders». However, the normalization of volatility in the second half erased earlier positive hedging contributions, resulting in an anticipated loss for the full year.
Leonteq is executing its resizing program to strengthen efficiency. The sale of its Japanese business is set to conclude in the first quarter of 2026, while nearshoring capacity in Lisbon has expanded to 97 employees, now 25 percent of non-sales and non-trading staff.
Fine in Germany
The company reports substantial progress in resolving supervisory measures imposed by Swiss regulator Finma in connection with historic distributor transactions, with only minor actions outstanding ahead of year-end review.
Separately, Germany’s BaFin issued a 35,000 euros fine linked to past supervisory control breaches. Leonteq notes that global compliance and risk management functions have been significantly reinforced in recent years, including more than doubling staff in control roles.
Leadership Transition in 2026
After more than eight years as Chairman, Christopher Chambers will not seek re-election at the 2026 Annual General Meeting.
The board has launched a succession process under the Nomination and Remuneration Committee.
At Least One More Year of Earnings Volatility
The company’s «ROE» strategy aims to broaden fee income streams and curb sensitivity to equity trading conditions.
While management emphasizes restored client confidence and strengthened capital foundations, investors face at least one more year of earnings volatility before strategic benefits are expected to flow more steadily to shareholders.
