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Leonteq, a Zurich-based fintech firm that operates a marketplace for structured investment products, has cut its profit forecast for this year after lower customer demand in the second half of 2022.
Swiss fintechs recorded a continued decline in customer demand due to the overall difficult nature of the current market conditions. However, the company said its monthly net profit commission remained stable over the period.
“At the same time, Leonteq continued to maintain a prudent approach to risk management, with net trading results compensating for subdued client activity, especially in the third quarter of 2022,” the company said. business updateAs a result, Leonteq expects to report group net profit in 2022 in an area equivalent to the previous year’s record CHF 155.7 million and EPS of CHF 8.47 (previous guidance indicated It was to exceed the group net profit for the year). profit).”
In early October, the Financial Times reported that whistleblowers accused Ernst & Young Global Limited, one of the Big Four accounting firms, of whitewashing suspicious transactions found in the firm’s records. However, Leonteq denied the allegations in its response.
Swiss Fintech said both internal and external investigations into its records found no evidence to support the allegations. “Leonteq strongly refutes these allegations, which were first filed internally in 2021 and thoroughly investigated by Leonteq’s compliance department.”
Meanwhile, earlier this year, Swissquote partnered with Leonteq to become an issuer of structured investment products. Under the collaboration, the financial services provider has issued its own structured product under the brand Yield Booster.
Swissquote yield boosters are quanto derivatives, meaning that the underlying asset is expressed in one currency and settled in another. This allows investors to gain exposure to foreign assets without the corresponding exchange rate risk. You can get it, Swissquote explains on its website.
Leonteq, a Zurich-based fintech firm that operates a marketplace for structured investment products, has cut its profit forecast for this year after lower customer demand in the second half of 2022.
Swiss fintechs recorded a continued decline in customer demand due to the overall difficult nature of the current market conditions. However, the company said its monthly net profit commission remained stable over the period.
“At the same time, Leonteq continued to maintain a prudent approach to risk management, with net trading results compensating for subdued client activity, especially in the third quarter of 2022,” the company said. business updateAs a result, Leonteq expects to report group net profit in 2022 in an area equivalent to the previous year’s record CHF 155.7 million and EPS of CHF 8.47 (previous guidance indicated It was to exceed the group net profit for the year). profit).”
In early October, the Financial Times reported that whistleblowers accused Ernst & Young Global Limited, one of the Big Four accounting firms, of whitewashing suspicious transactions found in the firm’s records. However, Leonteq denied the allegations in its response.
Swiss Fintech said both internal and external investigations into its records found no evidence to support the allegations. “Leonteq strongly refutes these allegations, which were first filed internally in 2021 and thoroughly investigated by Leonteq’s compliance department.”
Meanwhile, earlier this year, Swissquote became an issuer of structured investment products by partnering with Leonteq. Under the collaboration, the financial services provider has issued its own structured product under the brand Yield Booster.
Swissquote yield boosters are quanto derivatives, meaning that the underlying asset is expressed in one currency and settled in another. This allows investors to gain exposure to foreign assets without the corresponding exchange rate risk. You can get it, Swissquote explains on its website.
