The Swiss derivatives firm's radical revamp is taking hold, with the firm returning to profit. Leonteq also disclosed a bright spot in its Asian expansion efforts.
The Swiss structured products boutique said it returned to profit last year, which marks the conclusion of a dramatic turnaround which has seen the ouster of its co-founder and fintech star Jan Schoch.
«We have increased our issuance capacity with key partner banks, taken the necessary rightsizing measures and demonstrated our ability to rigorously manage our cost base,» stand-in boss and finance chief Marco Amato said in a statement on Thursday.
The firm, which has been looking for a permanent Chief Executive since October, when Schoch left acrimoniously, didn't mention the search in its statement, in line with finews.com's reporting on Monday.
Asian Tie-Up
Leonteq's full-year net profit rose 34 percent to 23.1 million Swiss francs, even after a one-time charge of 15.9 million francs. The firm said it has finished with measures such as job cuts and relinquishing unneeded office space in Zurich as well as London. Nevertheless, Leonteq is deciding against a shareholder payout for 2017, electing instead to bolster its capital base as well as reinvest in growth.
Its transaction volume climbed 28 percent to 26.8 million francs; the issuance of 26,575 structured products last year reflects continued solid demand from market participants, Leonteq said.
Notably, the firm said it began working with Standard Chartered to issue and distribute the British bank's structured products in Switzerland, Europe, Hong Kong and Singapore. The move represents a fillip for temporary CEO Amato, who told finews.com last month that Asian growth is his top priority.
