The derivatives boutique suffered a slide in profits. One bad month was behind the drop, as well as write-downs and a dim economy.
Leonteq's net profit dropped 25 percent on the year to 30.2 million Swiss francs ($30.6 million), the structured products specialist said in a statement on Thursday. The Swiss firm suffered a torrid January, when profit shrank by more than one-third on the year.
It said high market, economic, and political uncertainty held clients back from trading more. Leonteq cut spending by 2 percent in the six months, not enough to offset an 8 percent drop in revenue to 124.6 million francs.
Calming Nerves
Last week, the company surprised investors with the news that Raiffeisen, a troubled Swiss cooperative bank which is offloading stakes acquired in a post-crisis spending spree, will stick with a 29 percent in Leonteq. The move cleared considerable uncertainty for Leonteq.
The company replaced management last year following a troubled period of big promises and management strife. New CEO Lukas Ruflin, who controls 8 percent of Leonteq's stock, quickly replenished capital and has sought to calm investors jitters about the company's profitability.
