Leonteq (LEON) H2 2024 earnings summary

Executive summary

• Profit before taxes in 2024 was CHF 7.9 million, down from CHF 18.4 million in 2023, and net profit was CHF 5.8 million, down from CHF 20.6 million.

• Shareholders' equity increased to CHF 804 million, and book value per share rose 4% to CHF 46.1.

• Dividend of CHF 0.25 per share proposed, with a payout ratio of 76%.

• FINMA concluded regulatory proceedings, requiring remediation measures and appointing an audit mandatary.

• Christian Spieler appointed CEO, effective March 2025.

Financial highlights

• Net fee income increased 1% to CHF 214.4 million despite margin compression.

• Net trading result fell to CHF 21.5 million from CHF 37 million, impacted by low volatility and an operational risk event.

• Operating expenses (excluding provisions) declined 6% to CHF 220 million; staff base reduced to 583 FTEs.

• Total operating income declined 8% to CHF 238.5 million; operating expenses down 5% to CHF 230.6 million.

• Platform assets grew 15% to CHF 13.4 billion, with new partners' business up 52%.

Outlook and guidance

• Expectation to report a profitable result for 2025 on an underlying basis, excluding one-off restructuring and regulatory transition charges.

• 2026 financial targets withdrawn; new midterm targets to be announced after regulatory transition.

• Plans to return freed-up capital to shareholders after full implementation of new regulatory regime.

• Operating expenses for 2025 expected at CHF 220 million, excluding one-off charges.

• Cost right-sizing program of up to CHF 10 million planned.