Following a subdued start to the financial year 2019, Leonteq delivered a solid performance in a challenging market environment. However, the Asia region saw a decrease in net fee income year on year, reflecting reduced client activity.
Group net profit totaled 62.7 million Swiss francs for the full year 2019, compared to 91.5 million francs in 2018, Swiss-based derivatives boutique Leonteq announced on Thursday.
Due to macroeconomic uncertainty and increased competition, the Asia region saw a 12 percent decrease in net fee income year on year to 28.2 million francs. As part of its regional growth strategy, Leonteq is preparing to increase its footprint in Europe and the Middle East by opening new offices in Milan and Dubai in 2020, subject to regulatory approvals, the firm added.
Conservative Dividend Payments
According to further information, Leonteq is now entering a new phase of conservative dividend payments following a period with no pay-outs to shareholders.
At its Annual General Meeting on 31 March 2020, the Board of Directors will propose a distribution of 0.50 francs per share, which is to be paid in equal amounts out of retained earnings and capital contribution reserves.
Headcount Increase
Economic revenues saw a sharp decline to 8.1 million francs in January 2019, compared to 26.1 million francs in January 2018. As a result, net fee income decreased by 17 percent to 120.9 million francs in the first half of 2019.
In the second half of the year, client demand recovered, with 14 percent growth in net fee income to 144 million francs compared to the prior-year period. Despite significant investments in key initiatives, total operating expenses increased by only 1 percent to 191.1 million francs, reflecting Leonteq’s disciplined cost management.
In line with the announced hiring plan, headcount increased to 508 FTEs at the end-2019 from 486 FTEs at end-2018. Personnel expenses rose by 1 percent to 116.9 million francs in 2019.
