Latest news with #ChristianSpieler
Mint
6 days ago
- Business
- Mint
Leonteq Sees Shareholder Returns in 2027 as CEO Seeks Turnaround
(Bloomberg) -- Swiss derivatives firm Leonteq AG said it would seek to return excess capital to shareholders by 2027 as part of a strategic revamp, after it posted first-half profit that missed estimates. Leonteq targets a payout ratio of about 30% beyond a capital ratio of 15% from the first half of 2027, it said in an earnings release on Thursday. The current CET1 capital ratio stands at 14.4%. Chief Executive Officer Christian Spieler also announced the sale of the firm's Japanese business and an exit from the 'Bench' Savings Initiative, a pension solution it offered together with Glarner Kantonalbank, saying he saw 'areas that required change' when he started at Leonteq earlier this year. Leonteq is known for developing a low-cost derivative platform used by banks and insurance companies, though has seen its business model upended by tighter regulation after allegations that it has aided tax evasion and money laundering. The firm's shares have lost 70% over the past three years, leaving its valuation at under 500 million Swiss francs. Uncertainty around legacy compliance matters also weighed on client activity, according to the statement, adding that Leonteq now expects the issues to be resolved by end of the year. For Leonteq, a sale of some of its businesses may enable the firm's core business to move beyond the sanctions issued last year by Swiss regulator Finma, in which it was forced to hand over about $9 million in illegally obtained profits. In addition, the firm has been forced to scale back previously-lucrative business, steps that led to it issuing a profit warning in December. The firm is reporting a capital number for the first time since it was ordered to follow a new regulatory regime requiring it to back risk-weighed assets with capital. Regulators last year said the firm had been doing business with 'dubious, unregulated' distributors of its products. Finma ordered the firm to take a raft of corrective measures including cutting off business relationships with those distributors, and said it would appoint an auditor to monitor compliance. More stories like this are available on
Fintech News ME
11-06-2025
- Business
- Fintech News ME
Switzerland's Leonteq Partners with Emirates Islamic on Shari'a-Compliant Structured Products
Leonteq, a Zurich-based fintech company, announced today the formation of a partnership with Emirates Islamic, a financial institution in the UAE, to manufacture and distribute Shari'a-compliant structured products. The collaboration builds on Leonteq's strategic move into the Gulf region. In 2022, the firm introduced a Shari'a-compliant trust certificate issuance programme through IBDAA Certificate Issuer (IBDAA), a dedicated Islamic issuance vehicle. Amanie Advisors, a recognised Shari'a advisory firm, has been engaged by Leonteq to provide guidance on the Shari'a aspects of the programme and subsequent initiatives involving IBDAA. Under this partnership, Emirates Islamic will co-develop certain trust certificates issued by IBDAA and offer these products through its distribution network. Leonteq will support the initiative by providing a full range of services, including issuance arrangements, Shari'a-compliant hedging, and lifecycle management. This collaboration marks a notable development in the Islamic structured product space, bringing together Leonteq's capabilities in investment solutions, structuring, and technology with Emirates Islamic's market presence, credit standing (rated A+ by Fitch), and reach in the UAE wealth management sector. Clients of Emirates Islamic will gain access to investment solutions that were previously limited in availability or scale. These products will be issued via IBDAA, which is among the first Islamic issuance entities able to offer a broad range of payoff structures across various asset classes, supported by automation and flexible investment thresholds. Christian Spieler, CEO of Leonteq, commented: 'We are proud to partner with Emirates Islamic, a top tier institution in the Middle East. This collaboration will allow clients of Emirates Islamic to benefit from Leonteq's longstanding expertise in white-labelling solutions and marks a milestone for Leonteq's growth ambitions in the Middle East.' Farid AlMulla, CEO of Emirates Islamic, said: 'We have always endeavoured to offer Islamic solutions that make a difference in the lives of our customers and beyond. This new partnership will enable our clients, in particular, to benefit from an even bigger product universe that further enhances their investment choices and access to global markets.' Emirates Islamic, a member of the Emirates NBD Group, was established in 2004. It offers a wide range of Shari'a-compliant retail, business, and corporate banking services through a network of 40 branches across the UAE.
