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• Profit Before Taxes: CHF 7.9 million for 2024, down from CHF 18.4 million in 2023.

• Group Net Profit: CHF 5.8 million in 2024, compared to CHF 20.6 million in 2023.

• Shareholders' Equity: Close to CHF 804 million in 2024, up from CHF 780 million in 2023.

• Book Value Per Share: Increased by 4% to CHF 46.10.

• Dividend Proposal: CHF 0.25 per share for 2024, with a payout ratio of 76%.

• Client Transactions: Over 275,000 processed in 2024, a 40% increase from 2023.

• Product Issuance: Nearly 47,000 products issued, up 22% from the previous year.

• Revenue from New Business Initiatives: Grew by 22% to CHF 131 million, contributing close to 60% of group economic revenues.

• Overall Turnover: Increased by 30% to almost CHF 28 billion in 2024.

• Net Income: Slight increase of 1% to CHF 214 million in 2024.

• Net Trading Result: Decreased to CHF 21.5 million from CHF 37 million in 2023.

• Total Operating Expenses: Excluding provisions, declined by 6% to CHF 220 million in 2024.

• Staff Base: Decreased from 591 to 583 full-time equivalents.

• Balance Sheet: Increased by 15% to CHF 10.7 billion at the end of 2024.

• Financial Liabilities: Leonteq issued products increased to CHF 5.2 billion from CHF 4.7 billion in 2023.

• Warning! GuruFocus has detected 5 Warning Signs with XSWX:LEON.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Leonteq AG (XSWX:LEON) reported a 30% increase in overall turnover compared to 2023, reaching almost CHF 28 billion.

• The company processed over 275,000 client transactions in 2024, marking a 40% increase from the previous year.

• Leonteq's shareholders' equity increased by 3% to CHF 804 million, indicating a strong capital position.

• Revenues from new business initiatives grew by 22% to CHF 131 million, contributing close to 60% of the group economic revenues.

• The company achieved a market share of 30% in yield enhancement products, securing the number one position in the market.

Negative Points

• Profit before taxes dropped significantly to CHF 7.9 million in 2024 from CHF 18.4 million in 2023.

• Group net profit decreased to CHF 5.8 million in 2024 compared to CHF 20.6 million the previous year.

• The net trading result fell to CHF 21.5 million from CHF 37 million in 2023, impacted by low market volatility.

• Margins reduced from 90 basis points in 2023 to 70 basis points in 2024 due to lower market volatility and competitive pressures.

• FINMA concluded investigations into the distribution of financial products, identifying certain shortcomings and ordering organizational measures for remediation.