By Andrea Figueras
Leonteq on Monday lowered its profit forecast for 2023 due to a challenging market environment, citing inflationary pressure, rising interest rates and lower market volatility that damped trading activity.
The Swiss fintech company now expects a pretax profit between 40 million and 70 million Swiss francs ($44.6 million-$78 million) for the current year after a previous outlook in a range of CHF70 million-CHF100 million.
For the first half, Leonteq estimates between CHF20 million and CHF30 million of pretax profit but a slightly higher group net profit due to positive tax effects, it said.
This previous year had benefited from “unprecedented market conditions,” it said.
“Whilst Leonteq’s client franchise remained strong in the year-to-date 2023 with a slight increase in net fee income year-on-year, net trading result was subdued primarily driven by reduced levels of market volatility,” the company said.
Write to Andrea Figueras at [email protected]
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