Latest news with #Leonteq
Bloomberg
6 days ago
- Business
- Bloomberg
Leonteq Sees Shareholder Returns in 2027 as CEO Seeks Turnaround
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%.
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
Zawya
11-06-2025
- Business
- Zawya
Emirates Islamic partners with Leonteq to unveil innovative Shariah-compliant structured products
Dubai: Emirates Islamic, one of the leading Islamic financial institutions in the UAE, has announced a new partnership with Leonteq Securities AG (Leonteq), one of the leading structured product issuers headquartered in Switzerland, for the distribution of Shariah-compliant structured products. This milestone collaboration will expand the Shariah-compliant product offering of Emirates Islamic in the Wealth Management domain and combines capabilities designed to bring best-in-class Islamic solutions to the market that are not only relevant and innovative, but also deeply aligned with customers' evolving needs. Leonteq's recently launched Shariah-compliant Trust Certificate Issuance and Offering Programme will be used to issue these Shariah-compliant structured products. Emirates Islamic will co-design products issued under this programme, while Leonteq will provide end-to-end services including issuance arrangement, Shariah-compliant hedging instruments and lifecycle management. These Shariah-compliant structured products represent a dynamic and increasingly important asset class for sophisticated investors seeking Shariah-compliant instruments, customised risk-return profiles, capital protection, and market-linked opportunities. Through this agreement, Emirates Islamic is combining the strength of Leonteq's structuring expertise and global product capabilities with the deep client relationships, regulatory robustness and market insights of Emirates Islamic. This collaboration will provide clients access to tailored investment strategies that align with their unique objectives and risk appetites. Farid AlMulla, Chief Executive Officer at Emirates Islamic, commented: 'Emirates Islamic is pleased to partner with Leonteq to drive Islamic banking innovation in the region. The announcement adds relevance as we recognise the growing appetite among investors in the region for diversification and enhanced yield strategies. This partnership further reinforces our position as a forward-thinking financial institution with a promise to offer our customers best-in-class Shariah-compliant products of the highest ethical standards.' Mohammad Kamran Wajid, Deputy CEO at Emirates Islamic, said: 'We are excited to initiate a partnership with Leonteq. At Emirates Islamic, we have always been committed to remain at the forefront of banking innovation, delivering well-governed and client-centric investment solutions through our various channels. The collaboration with Leonteq is a shared vision to facilitate access to sophisticated investment solutions while maintaining the highest standards of transparency, suitability and governance.' Victor Hayek, CEO MENA of Leonteq, stated: 'We are thrilled to unveil our partnership with Emirates Islamic, showcasing a unique approach at the forefront of Islamic innovation. This collaboration enables Emirates Islamic clients to access an exclusive Shariah-compliant structured product offering, co-designed with Emirates Islamic, at a highly competitive minimum ticket size.' About Emirates Islamic: Emirates Islamic (DFM: EIB), part of Emirates NBD Group, is a leading Islamic financial institution in the UAE. Established in 2004 as Emirates Islamic Bank, the bank has established itself as a major player in the highly competitive financial services sector in the UAE. Emirates Islamic offers a comprehensive range of Shariah-compliant products and services across the Personal, Business and Corporate banking spectrum with a network of 40 branches and 229 ATMs/CDMs across the UAE. In the fast-growing area of online and mobile banking, the bank is an innovator, being the first Islamic bank in the UAE to launch a mobile banking app and offer Apple Pay, as well as being the first Islamic bank in the world to launch Chat Banking services for customers via WhatsApp. Emirates Islamic has consistently received local and international awards, in recognition of its strong record of performance and innovation in banking. Emirates Islamic was recognized as 'Best Overall Islamic Bank' and 'Most Innovative Islamic Bank' at the Islamic Finance News Awards 2024. The Bank was also named the 'Most Innovative Islamic Bank' at the prestigious Euromoney Islamic Finance Awards 2024. As part of its commitment to the UAE community, the Emirates Islamic Charity Fund provides financial aid to those in need, with a focus on food, shelter, health, education and social welfare contributions. For further information please visit About LEONTEQ Leonteq is a Swiss fintech company with a leading marketplace for structured investment solutions. Based on proprietary modern technology, the company offers derivative investment products and services and predominantly covers the capital protection, yield enhancement and participation product classes. Leonteq acts as both a direct issuer of its own products and as a partner to other financial institutions. Leonteq further enables life insurance companies and banks to produce capital-efficient, unit-linked pension products with guarantees. The company has offices and subsidiaries in 13 countries across Europe, Middle East and Asia. Leonteq Securities AG is the main operating subsidiary of Leonteq AG. The company is a securities firm regulated by the Swiss Financial Market Authority FINMA and was assigned a BBB credit-rating by Fitch Ratings. Leonteq AG is listed on the SIX Swiss Exchange (SIX: LEON) and was assigned with an AA ESG-rating by MSCI.
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.
Yahoo
27-03-2025
- Business
- Yahoo
Leonteq's (VTX:LEON) Dividend Is Being Reduced To CHF0.25
Leonteq AG's (VTX:LEON) dividend is being reduced from last year's payment covering the same period to CHF0.25 on the 2nd of April. This means that the dividend yield is 1.4%, which is a bit low when comparing to other companies in the industry. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Even a low dividend yield can be attractive if it is sustained for years on end. The last dividend made up quite a large portion of free cash flows, and this was made worse by the lack of free cash flows. We think that this practice can make the dividend quite risky in the future. Looking forward, earnings per share is forecast to rise exponentially over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 6.5%, which would make us comfortable with the dividend's sustainability, despite the levels currently being elevated. See our latest analysis for Leonteq The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was CHF1.50 in 2015, and the most recent fiscal year payment was CHF0.25. This works out to a decline of approximately 83% over that time. A company that decreases its dividend over time generally isn't what we are looking for. Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share. Over the past five years, it looks as though Leonteq's EPS has declined at around 37% a year. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. The payments are bit high to be considered sustainable, and the track record isn't the best. Overall, we don't think this company has the makings of a good income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've identified 4 warning signs for Leonteq (1 can't be ignored!) that you should be aware of before investing. Is Leonteq not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
