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Leonteq (LEON) investor relations material
Leonteq H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Underlying profit before taxes rose 33% year-on-year to CHF 17–17.1 million in H1 2025, with a robust CET1 ratio of 14.4% and decisive cost reduction actions supporting profitability.
Strategic focus on resizing underperforming areas, optimizing established activities, and expanding high-potential initiatives, including new partnerships and product launches.
Legacy compliance issues and regulatory changes remain a challenge but are expected to be resolved by end-2025, with ongoing FINMA scrutiny and compliance audits.
New financial targets for 2027 include profit before taxes of CHF 60–80 million and a return on tangible equity of ~10%.
Plans to return excess capital to shareholders via share buy-backs in H1 2027, subject to CET1 ratio thresholds.
Financial highlights
Total operating income declined by 7% year-on-year to CHF 124–124.3 million, mainly due to lower net fee income and net interest result, partially offset by a surge in net trading income.
Underlying operating expenses decreased 11% to CHF 107–107.2 million, reflecting cost discipline and lower provisions.
Net fee income dropped to CHF 88 million, driven by margin reduction and fewer large ticket transactions.
Net trading result increased to CHF 39.5 million, up by CHF 30 million from previous semesters due to higher market volatility.
Group net profit was CHF 9.3 million, with EPS at CHF 0.53, both down year-on-year.
Outlook and guidance
On track to meet full-year 2025 guidance, with underlying total operating expenses targeted at CHF 220 million and up to CHF 10 million in one-off costs.
Aims for 7% compound revenue growth from 2024–2027 with a broadly flat cost base and a return on tangible equity of ~10% by 2027.
Confident in resolving legacy compliance matters by end of 2025, expected to support H2 2025 and beyond.
Ordinary dividend payout ratio set at ~30% of group net profits from 2025 onwards, with share buy-backs if CET1 ratio exceeds 15%.
First excess capital return to shareholders targeted for H1 2027.
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