Leonteq Sees Reduced Client Demand, Expects Lower Profit in 2022

Switzerland-based fintech Leonteq has announced a business update for second half of 2022 to date. The company continued to register reduced client demand on the back of an overall challenging market environment but recorded stable monthly net fee income over the same period.

At the same time, Leonteq continued to maintain a prudent approach to risk management with its net trading result compensating for subdued client activity, particularly in the third quarter of 2022.

As a result, Leonteq expects to report a group net profit for 2022 in the area of the prior-year record result of CHF 155.7 million, equivalent to EPS of CHF 8.47 (previous guidance was to exceed the prior year's group net profit).

Earlier this month, Leonteq has announced the introduction of its ETP+ label​, which aims to improve safety for investors, and launching its first exchange traded product (ETP) under the new label. Leonteq is the first issuer of ETP products on the Swiss market to be licensed by FINMA as a securities firm.