Leonteq (LEON) H1 2024 earnings summary

Executive summary

• Achieved group net profit of CHF 15.7 million in H1 2024, reversing a CHF -8.2 million loss in H2 2023, but down from CHF 28.8 million in H1 2023.

• Record client activity: 24,000 products issued and 146,409 transactions, with turnover up 66% from H2 2023 to CHF 15.8 billion.

• CEO Lukas Ruflin announced intention to step down and return to the board after successor appointment.

• Cost base optimized through staff and contractor reductions since end-2023.

• Maintained a strong capital base at CHF 871.4 million as of June 2024.

Financial highlights

• Total operating income rose 18% sequentially to CHF 133.4 million, but down year-over-year due to lower net trading and fewer large-ticket transactions.

• Net fee income increased 32% from H2 2023 to CHF 118 million, with Europe up 52%.

• Net trading result at CHF 11.2 million, down 40% sequentially due to low market volatility.

• Operating expenses stable at CHF 120.5 million, with cost measures implemented.

• Cost/income ratio improved to 90% from 106% in H2 2023.

Outlook and guidance

• Reiterates ambition to grow full-year 2024 profits versus 2023, supported by improved interest outlook and recovering structured products market.

• Expects additional CHF 11 million in cost benefits for H1 2025 from staff and compensation reductions and one-off cost normalization.

• Run rate for H1 2025 operating expenses targeted at ~CHF 110 million.

• Ongoing investments in technology, digital platforms, and new business lines, with midterm revenue targets for retail flow business.

• Growth Strategy 2026 targets CHF 450–500 million total operating income and >15% ROE.