Leonteq lowers profit expectations on reduced demand (updated)

Leonteq AG

27/12/2022 07:13

(Adds details and litigation)
       ZURICH, Dec 27 (Reuters) - Swiss fintech Leonteq
 LEON.S  said on Tuesday that it was lowering its profit
expectations for 2022 due to reduced client demand in the second
half of the year. 
    "Leonteq continued to register reduced client demand on the
back of an overall challenging market environment but recorded
stable monthly net fee income over the same period," it said. 
    The company said it expects to report a group net profit for
2022, without giving any exact numbers. Its previous guidance
was that it would exceed the prior year's group net profit of
155.7 million Swiss francs ($167.3 million).
    Leonteq's shares plunged in October after the Financial
Times said whistleblowers had accused consultants EY of
whitewashing suspicious trades in an investigation it conducted
this year for Leonteq.
    The company, which offers structured investment products,
said internal and external investigations had found no evidence
to support the allegations raised by the Financial Times.
    On Tuesday Leonteq also said that it had reached a
settlement in a legacy case originally put forward by Old Mutual
International, since acquired by Utmost, related to alleged
events that took place between 2012 and 2016.
    ($1 = 0.9305 Swiss francs)
 (Reporting by Noele Illien; Editing By Tom Hogue, Kirsten
Donovan)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))