Swiss-based derivative boutique Leonteq characterizes 2023 as disappointing and far below expectations.
Swiss structured products specialist reported that group net profit fell 87 percent to 20.6 million francs in 2023, according to an ad hoc announcement issued by the company on Thursday.
As a result, it indicated that it would cut its annual dividend by three-quarters to 1 franc a share from 4 previously.
Low Market Volatility
Leonteq said the market conditions last year had been «unprecedented», with «materially» lower market volatility depressing its trading performance.
«Our 2023 results are disappointing and significantly below our expectations. However, our client franchise demonstrated its resilience throughout challenging market conditions while we further broadened our offering,» indicated chief executive Lukas Ruflin in the announcement.
Stable Fee Income
The specialist reported that net fee income remained «relatively stable» at 213.2 million francs, implying a 2 percent decline when adjusted for currency fluctuations. On a reported basis, it was down 4 percent.
The net trading result suffered the most severe impact last year, falling 85 percent to 36.6 million francs.
Solid Franchise
Despite this, Leonteq maintained its client franchise remained «solid», with transactions up 15 percent. The number of new products issued was also up by almost a third.
