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Leonteq AG / Key word(s): Annual Results PRESS RELEASE | LEONTEQ PUBLISHES FULL-YEAR 2022 RESULTS Zurich, 9 February 2023 | Ad hoc announcement pursuant to Art. 53 LR Leonteq AG (SIX: LEON) delivers record results in 2022 for the second consecutive year in a challenging environment with unprecedented market conditions. Financial highlights 2022
Attractive capital returns to shareholders
Change to the Executive Committee
Focused execution of Growth Strategy 2026
Outlook
1Tax provisions in the amount of CHF 12.3 million reclassified to taxes.
Strong performance in 2022 2022 was marked by unprecedented market conditions with elevated levels of overall market volatility, particularly in the first and third quarter of the year. Leonteq continued to focus on disciplined risk management and saw more than a two-fold increase in its net trading result in 2022. In view of the generally more challenging market environment for investors in 2022, Leonteq recorded subdued levels of client activity in most of its regions, resulting in a reduction in net fee income by around one-third compared to 2021. This was also driven by a significant decline in the number of large ticket transactions and higher fee expenses resulting from securities lending transactions. Despite these headwinds, Leonteq’s franchise remained strong, with around the same number of clients entering into transactions in 2022 as in the prior year. Furthermore, turnover generated with Leonteq’s own issued products remained relatively stable at CHF 13.6 billion, while turnover generated with Leonteq’s historic platform partners decreased to CHF 6.4 billion in 2022 from CHF 10.4 billion in 2021. This demonstrates investor confidence in Leonteq’s stand-alone position as an established player in the structured products market. The strong net trading result compensated for reduced client activity. As a result, total operating income grew by 9% to CHF 456.4 million in 2022. Total operating expenses rose to CHF 263.1 million in 2022, up 8% year on year, mainly reflecting continued investments in strategic initiatives in support of the Growth Strategy 2026. Leonteq also continued to further enhance its business and technology platform and increased its staff base to 582 FTEs at end-2022 (up 11%). Leonteq reported 11% growth in profit before taxes to CHF 193.3 million in 2022, up from CHF 174.5 million in 2021. Income tax expenses of CHF 36.9 million in 2022 were significantly higher than the CHF 18.8 million reported in the prior year, which benefited from tax-loss carry-forwards. As a result, and in line with the guidance provided on 27 December 2022, Leonteq reported Group net profit of CHF 156.4 million in 2022, in line with the record result of CHF 155.7 million in the prior year. Earnings per share rose by 1% to CHF 8.58, compared to CHF 8.47 in 2021. Shareholders’ equity totalled CHF 870.0 million as of 31 December 2022, compared to CHF 802.1 million as of 31 December 2021. Together with deferred fee income of CHF 62.8 million, Leonteq further strengthened its capital base to CHF 932.8 million as of 31 December 2022. Return on equity was 19% for 2022 (2021: 21%).
The Board of Directors will propose a dividend of CHF 4.00 (2021: 3.00) per share for the financial year 2022 at the Annual General Meeting on 30 March 2023, which is to be paid in equal amounts out of retained earnings and capital contribution reserves. In addition, the Board of Directors has approved the launch of a programme to buy back up to CHF 18 million of Leonteq AG shares, equivalent to a pro-forma distribution of CHF 1.00 per share. The dividend in cash together with the share buyback thus correspond to a total distribution of CHF 5.00 per share for the financial year 2022, and a payout ratio of 58% of Group net profit, in line with the previously announced target of more than 50%. From the financial year 2023 onwards, Leonteq will continue to target a payout ratio of more than 50% of Group net profits, with the ambition to pay an annual dividend of at least CHF 2.00 per share combined with the intention to launch annual share buyback programmes if financial results permit. Christopher Chambers, Chairman of Leonteq, stated: “Leonteq’s business has developed strongly in recent years and the company’s capital base has been significantly strengthened. Our refined capital return policy takes into account these developments. Our strong capitalisation further gives us the strategic flexibility to execute a larger direct share buyback if a sizeable block of shares becomes available. The Board of Directors is convinced that this accretive approach will offer attractive returns for our shareholders over the years to come.” The share buyback programme for the financial year 2022 is expected to be launched at the beginning of April 2023 and to run until the end of December 2023. The execution of the programme is subject to market conditions and regulatory approvals. The shares are planned to be bought via a second trading line on SIX Swiss Exchange. Shares that have been repurchased under the programme are expected to be cancelled under the new Swiss capital band regime to be approved at the Annual General Meeting 2023. Marco Amato, Deputy CEO & CFO of Leonteq since 2016, will step down from his role by 31 August 2023 to pursue new opportunities. CEO Lukas Ruflin said: “We owe Marco considerable thanks for his services to the benefit of the company. In addition to his current role, he also served as interim CEO from October 2017 to April 2018 during a challenging period for the company. During his tenure, Marco and his team have notably improved the Group’s financial planning processes and delivered increased transparency in reporting. He also was a driving force behind Leonteq’s Growth Strategy 2026 and the company’s sustainability initiative in recent years. Marco was thus in many ways instrumental in Leonteq’s development over the last more than six years, and we wish him all the best for the future.” A search process to find a successor has been initiated by the Board of Directors. Focused execution of Growth Strategy 2026 2022 marked the beginning of a new five-year strategy cycle and Leonteq made tangible progress in executing Growth Strategy 2026 across all four dimensions:
The presentation can be followed live via audio webcast. If you wish to join the phone Q&A session, please dial in using the following numbers 10-15 minutes before the start of the presentation and ask for ‘Leonteq full-year 2022 results’:
This press release, the full-year 2022 results presentation and the Annual Report 2022 are available at: https://www.leonteq.com/fullyearresults A digital playback of the telephone conference will be available approximately one hour after the event and can be accessed for one month at: https://www.leonteq.com/fullyearresults
Important dates
Alternative Performance Measures used in this press release The definitions of Alternative Performance Measures used in this press release are provided in the Annual Report 2022 on page 7.
Investor Relations
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, through which it serves over 50 markets. Leonteq AG is listed on the SIX Swiss Exchange (SIX: LEON). www.leonteq.com
DISCLAIMER This press release issued by Leonteq AG (the “Company”) serves for information purposes only and does not constitute research. This press release and all materials, documents and information used therein or distributed in the context of this press release do not constitute or form part of and should not be construed as, an offer (public or private) to sell or a solicitation of offers (public or private) to purchase or subscribe for shares or other securities of the Company or any of its affiliates or subsidiaries in any jurisdiction or an inducement to enter into investment activity in any jurisdiction, and may not be used for such purposes. Copies of this press release may not be made available (directly or indirectly) to any person in relation to whom the making available of the press release is restricted or prohibited by law or sent to countries, or distributed in or from countries, to, in or from which this is restricted or prohibited by law. This press release may contain specific forward-looking statements, e.g. statements including terms like “believe“, “assume“, “expect“, "target" “forecast“, “project“, “may“, “could“, “might“, “will“ or similar expressions. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may result in a substantial divergence between the actual results, financial situation, development or performance of the Company or any of its affiliates or subsidiaries and those explicitly or implicitly presumed in these statements. These factors include, but are not limited to: (1) general market, macroeconomic, governmental and regulatory trends, (2) movements in securities markets, exchange rates and interest rates and (3) other risks and uncertainties inherent in our business. Against the background of these uncertainties, you should not rely on forward-looking statements. Neither the Company nor any of its affiliates or subsidiaries or their respective bodies, executives, employees and advisers assume any responsibility to prepare or disseminate any supplement, amendment, update or revision to any of the information, opinions or forward-looking statements contained in this press release or to adapt them to any change in events, conditions or circumstances, except as required by applicable law or regulation. End of Inside Information |
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