Derivates provider Leonteq defined a set of strategic goals and has now presented an overhaul of its structure as it bids to reach the targets set for 2020.

Following a series of setbacks and the subsequent decline of its share price, the management of Leonteq has drawn the line: today, co-founder and CEO Jan Schoch will outline a set of restructuring measures and long-term targets at a presentation for investors in Zurich.

With a view to further scale the business and exploit its growth potential, Leonteq has decided to set up operations along three divisions, Investment Solutions, Banking Solutions and Insurance & Wealth Planning Solutions.

Leonteq to Cut Costs

Leonteq will introduce four key performance indicators with adjusted targets it wants to meet by the end of the financial year 2020. The more focused business model will allow further cost savings, the company said in a statement on its Website today.

Investment solutions is required to increase growth of the transaction volume to 15 percent from a current 14 percent. And banking solutions needs to boost the number of platform partners to 10 from a current three. At insurance and wealth planning, the platform partners are set to be increased to five from one.

Cooperations Pay Off

While the company focuses on the new performance targets, it also wants to improve the cost-income-ratio to below 65 percent from a current 69 percent.

Leonteq was also able to present first results of its efforts to reach out to further partners.

Raiffeisen, with which Leonteq agreed on a cooperation in February, will launch the first structured investment products by the end of November. Raiffeisen will be in charge of product distribution into its own channels, while Leonteq will be responsible for distribution to non-Raiffeisen channels in Switzerland, and for distribution in Europe and Asia.

Aargauische Kantonalbank

Notenstein La Roche Private Bank, a subsidiary of Raiffeisen Switzerland, will cease to issue structured investment products under its own name, but will continue to offer Raiffeisen products to its clients.

Leonteq has also been able to win Aargauische Kantonalbank (AKB) as a partner for structured investment products. Leonteq is acting as the manufacturer and issuer, while AKB is the guarantor of the products. They will be distributed by both AKB and Leonteq in Switzerland, and by Leonteq internationally.