Fintech firm Leonteq issued an update to its business and announced it settled a legal case relating to issues stemming from alleged events beginning a decade ago.
Leonteq said that so far in the second half of this year, it continued to suffer from reduced client demand resulting from an overall challenging environment, according to a statement Tuesday, causing it to revise down profit expectations for the year.
Leonteq expects to book a group net profit of «in the area» of 2021's record result of 155.7 million Swiss francs. That is a change from the guidance issued in October, as finews.com reported, that it would exceed the prior year's profit growth.
Stable Fee Income
Despite the headwinds, the company «recorded stable monthly net fee income over the same period.» Still, it did not provide any figures, adding it is taking a «prudent» approach to risk management as its net trading result is compensating for the reduced activity, particularly in the third quarter.
Legal Settlement
The company also announced it reached a settlement, without disclosing terms, in a civil case that it had previously disclosed which was brought by the English Commercial Court. The legacy case involved events that allegedly took place between 2012 to 2016.
