In This Article:
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Total Operating Income: CHF133.4 million, up 18% compared to the second half of 2023.
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Net Profit: CHF15.7 million in the first half of 2024, compared to a net loss of CHF8.2 million in the second half of 2023.
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Turnover: CHF15.8 billion, a 66% increase compared to the second half of 2023.
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Net Fee Income: CHF118 million, 32% higher than in the second half of 2023.
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Net Trading Result: CHF11.2 million, approximately CHF7 million lower than the previous semesters.
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Total Operating Expenses: CHF120.5 million, a 1% increase compared to the second half of 2023.
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Balance Sheet: Increased by 15% to CHF10.6 billion at the end of the first half of 2024.
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Shareholders' Equity: Increased by 4% to CHF814.4 million as of June 30, 2024.
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Capital Base: Grew to CHF871 million compared to CHF837.9 million at the end of last year.
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Headcount: Reduced to 573 FTEs from 591 at the end of 2023.
Release Date: July 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Leonteq AG (XSWX:LEON) experienced a 66% growth in terminal transactions compared to the second half of 2023, demonstrating strong client activity.
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The company returned to profitability with a Group net profit of CHF15.7 million in the first half of 2024, compared to a net loss of CHF8.2 million in the second half of 2023.
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Leonteq AG's balance sheet light business model showed substantial growth, contributing significantly to the company's turnover.
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The company maintained a strong capital base, with shareholders' equity increasing by 4% to CHF814.4 million as of June 30, 2024.
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Leonteq AG's proprietary technology platform, Links, saw a 67% increase in product initiation, enhancing client engagement and operational efficiency.
Negative Points
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Leonteq AG faced a challenging market environment with continued low market volatility impacting net trading results.
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The net fee income margin decreased to 67 basis points from 82 basis points in the second half of 2023, partly due to high competition and exceptional transactions.
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The company recognized CHF8.2 million in provisions for legal and regulatory cases, impacting financial results.
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Despite strong turnover growth, the revenue contribution from the balance sheet light business was slightly lower compared to the turnover increase.
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Leonteq AG's share price performance has been disappointing, attributed partly to the earnings volatility inherent in its business model.
Q & A Highlights
Q: Can you provide more details on the new business initiatives in H1 2024 and their performance? A: Hans Widler, Interim CFO, explained that the balance sheet light business, particularly brokerage, was a major growth driver. The fund derivatives and AMC business activities also performed well, focusing on B2B and direct customer activities.