Leonteq (LEON) investor relations material

Business overview

• Enables clients such as asset managers, private banks, and family offices to manage portfolios across diverse market environments, offering exposure to thematic indices and wealth preservation solutions.

• Operates in structured products markets with growing outstanding volumes across Switzerland, EMEA, and APAC.

• Maintains a large B2B4C distribution network covering over 40 target markets and serving more than 1,500 clients, with revenues diversified across Switzerland, Europe, and Asia & Middle East.

• Offers a broad cross-asset structured product platform, manufacturing and distributing both own-issued and partner products, with over 400 product variations and CHF ~30bn in total platform turnover.

• Leverages a fintech-driven, award-winning platform with high automation, strong regulatory compliance, and a significant IT and quant talent pool.

Strategic direction

• Focuses on consistent execution of a return-on-equity strategy, targeting profit before taxes of CHF 60-80 million and a return on tangible equity of ~10% by 2028.

• Implements resizing and cost management in less profitable areas, while optimizing established segments for higher efficiency and capital returns.

• Expands initiatives with strong growth potential, such as actively managed certificates, quantitative investment strategies, and retail flow business.

• Maintains a capital return policy with a payout ratio of ~30% and share buy-backs, subject to a CET1 ratio above 15%.

Financial and operational highlights

• Achieved tangible cost reductions through a resizing program, with operating expenses and FTEs declining across regions, and increased use of near-shoring in Lisbon.

• Enhanced regulatory framework implemented, with RWA calculations under FRTB-SA and a CET1 capital ratio of 16.5% as of June 2026.

• Board committed to maintaining CET1 ratio well above 15% on a sustainable basis.

• Expansion in quantitative indices, with over 700 available and a 10% market share in listed mini-futures and warrants within 14 months.