Annual Report 2017

Financial Highlights

Platform assets Leonteq (CHFbn)
34%
annualised growth
  • 0.7
    2012
  • 3.0
    2017
Platform assets banking partners (CHFbn)
26%
annualised growth
  • 2.6
    2012
  • 8.4
    2017
Banking & insurance partners
9
partners onboarded
  • 2
    2012
  • 11
    2017
Structured products issued
27%
annualised growth
  • 7,960
    2012
  • 26,575
    2017
Unit linked life insurance policies
40%
annualised growth
  • 6,282
    2012
  • 33,388
    2017
Clients
> 450
clients gained
  • 580
    2012
  • 1,059
    2017
Turnover (CHFbn)
17%
annualised growth
  • 12.1
    2012
  • 26.8
    2017
Net fee income (CHFm)
15%
annualised growth
  • 121
    2012
  • 247
    2017
Employees
170
jobs created
  • 270
    2012
  • 440
    2017
Retained earnings (CHFm)
CHF 179
million earnings retained
  • 46
    2012
  • 225
    2017
Share price (CHF)
23%
annualised growth
  • 23
    IPO 2012
  • 63
    2017
Market capitalisation (CHFm)
CHF 705
million shareholder value created
  • 300
    IPO 2012
  • 1,005
    2017

PDF Annual Report 2017

Shareholders' letter

leonteq_marco amato-christopher chambers-rgb

Dear shareholders

   

Leonteq successfully completed its turn-around programme within one year. We have increased our issuance capacity with key partner banks, taken the necessary rightsizing measures, and demonstrated our ability to rigorously manage our cost base. The underlying business is healthy and we have seen solid demand for structured products across all regions and business lines despite the historically low levels of volatility. We have onboarded renowned banking and insurance partners and made further progress with our expansion in Asia.

  

Turn-around achieved

Total operating income grew 4% year-on-year to CHF 215.4 million in 2017, primarily driven by a solid increase in net fee income of 18%, to CHF 247.0 million, which was partially offset by a decrease in net trading income. Net fee income grew as a result of an increased client demand across all business lines as well as the resolution of issues with key banking partners. The decrease in net trading income reflects negative contributions from hedging activities resulting from record low levels of volatility in 2017 and the negative treasury carry on Leonteq’s own products.

In line with cost guidance we provided at the beginning of the year, total operating expenses amounted to CHF 192.1 million for 2017. Our management team continued to rigorously execute the cost reduction programme and delivered annualised savings of CHF 24.4 million. The staff base was reduced from its peak at 523 FTEs in October 2016 to 440 FTEs at year-end 2017 and we completed of the optimisation of excess office space in London and Zurich.

After we returned to profitability in the first half of 2017, net profit improved to CHF 21.9 million in the second half of 2017 compared to a loss of CHF -20.0 million in the prior-year period. Despite one-off costs of CHF 15.9 million for the full year of 2017, net profit for 2017 rose to CHF 23.1 million and earnings per share amounted to CHF 1.45 both up 34% year on year. Leonteq’s total eligible capital was CHF 419.7 million as at 31 December 2017 and risk-weighted assets increased by 26% on the back of business growth and an increase in platform assets. The BIS total capital ratio was 19.6% as at 31 December 2017, versus 22.7% at end-2016. To preserve the capital base and invest in further business growth, the Board of Directors will propose to the Annual General Meeting of 28 March 2018 that no dividend be distributed for the financial year 2017.

  

Healthy business & partner network expanded

Leonteq’s platform assets came in at a record level of CHF 11.4 billion as at 31 December 2017. Driven by positive client sentiment and solid demand for structured products, we issued 26,575 structured products in 2017 and grew total turnover by 28% to CHF 26.8 billion. Serviced net new insurance policies more than doubled in 2017 and a record of 33,388 policies were outstanding on the platform at end-2017. We recorded strong growth in net fee income across all our regions and continued to make progress to go onshore in Japan.

In the second half of 2017, Leonteq and Standard Chartered Bank, a leading global financial institution, have started collaboration for the issuance and distribution of structured products under the Standard Chartered Bank Notes, Certificates and Warrants Programme. We also have made solid progress with Crédit Agricole CIB after the go-live in the first quarter of 2017.

  

Corporate Governance improved

We continued our process to strengthen the Board’s independence with the completion of the Extraordinary General Meeting on 22 November 2017. The Board of Directors of Leonteq AG has increased from seven to eight members, whereof five are independent.

To strengthen the efficiency and accountability of the management, the Board of Directors decided to reduce the Executive Committee from 11 to 6 members at the beginning of 2017. Further top management changes followed in September 2017 with the appointment of a new General Counsel and a Chief Risk Officer and a Chief Executive Officer on an interim basis in October 2017. Founding partner Jan Schoch left the company at the end of October 2017 and sold his entire stake in Leonteq.

   

Focus on profitable growth going forward

Going forward, our priorities will include further expanding the scope of our existing cooperation with banking partners and broadening the product offering. Rigorous cost management will continue while management will selectively invest in new hires and in important growth projects. Total operating expenses of around CHF 180 million are expected for the full year 2018. To drive profitable growth going forward, we will continue to focus on automation of payoffs and front-to-back processes as well as on implementing additional measures to boost client profitability and optimise balance sheet usage at transaction level. We have launched a new project to reduce capital intensity of our structured product business by transferring market risk to external hedge providers.

We thank all our stakeholders for their trust and continued support.

  

  

PDF Annual Report 2017

Corporate governance

General principles

As a publicly listed Swiss company, Leonteq AG (the ‘Company’ or ‘Leonteq’, together with its subsidiaries the ‘Group’) is subject to and complies with the Directive on Information relating to Corporate Governance (‘DCG’), its annexes and commentary issued by SIX Swiss Exchange.

The information provided in this section complies with the Corporate Governance Directive of SIX Swiss Exchange that entered into force on 1 September 2014, with the revised version of the Guideline on the Corporate Governance Directive dated 10 April 2017 and with the guidelines and recommendations contained in the Swiss Code of Best Practice for Corporate Governance compiled by Economiesuisse, the Swiss business federation, dated 28 August 2014. It also complies with Appendix 1 of this Code, ‘Recommendation on Compensation for Boards of Directors and Executive Boards’, dated 28 August 2014 and which entered into force on 1 October 2014; this takes into account arts. 663bbis and 663c para. 3, of the Swiss Code of Obligations, articles entered into force on 1 January 2007 and which address transparency concerning the compensation of members of the Board of Directors and the Executive Committee.

The Ordinance against Excessive Compensation pertaining to Listed Stock Corporations (‘OaEC’) entered into force on 1 January 2014. Leonteq has undertaken the steps necessary to ensure timely compliance with the OaEC’s requirements. The requirement to provide the possibility of electronic voting had already been introduced at the 2014 Annual General Meeting (AGM). To the extent necessary amendments to the Articles of Association were proposed to and approved by the 2014 Annual General Meeting.

  

Corporate governance framework

Leonteq’s corporate governance framework comprises its governing bodies and its corporate governance policies, which define the competencies of the governing bodies and other corporate governance rules and procedures.

The governing bodies of the Group are

  • The General Meeting
  • The Board of Directors
  • The External Auditors

The shareholders elect the members of the Board of Directors and the independent external auditors on an annual basis and approve required resolutions at the General Meeting such as the consolidated financial statements, amendments of Articles of Association and total compensation of members of the Board of Directors and the Executive Committee. The Board is responsible for the overall strategic direction, supervision and control of the Group and appoints the members of the Executive Committee. The Executive Committee is responsible for the day-to-day management of the Group’s business and for developing and implementing business plans.

Leonteq’s corporate governance policies comprise the Articles of Association and the Organisa- tional Management Regulations. The Articles of Association define the purpose of the business, the capital structure and the basic organisational framework. The Organisational Management Regulations define the organisational structure of the Group and the responsibilities and area of authority of the Board and its committees, the competencies of the Executive Committee, as well as the relevant reporting procedures. Further internal policies define the Group’s standards of business conduct and ethical values that the Board and all employees are required to follow, including adherence with applicable laws and regulations.

   

Corporate Governance Framework

 AR2017_Leonteq-AG_Corporate-Governance-Framework

Leonteq AG is the Swiss holding company responsible for the overall management of the Leonteq Group. The registered shares of Leonteq AG are traded on the main standard of SIX Swiss Exchange in Zurich (security no. 19089118, ISIN CH0190891181, symbol LEON). On 31 December 2017 the Company’s market capitalisation was CHF 1,004.5 million.

   

Non-listed companies belonging to the Group

Name Registered offices Capital Stake %
Leonteq Securities AG1 Europaallee 39
8004 Zurich
CHF 15,000,000 100
Leonteq Securities (Europe) GmbH2 Goetheplatz 2
60311 Frankfurt/Main
EUR 200,000 100
Leonteq Securities  (Hong Kong) Ltd.   Suites 3508 – 3509 35th Floor,
Two International Finance Centre,
No. 8 Finance Street, Central Hong Kong
HKD 10,000,000 100
Leonteq Securities (Japan) Preparation Ltd.³ Chose Ark Hills South Tower 9F,
1-4-5 Roppongi, Minato-ku, Tokyo
JPY 20,000,000 100
Leonteq Securities (Monaco) SAM Villa Les Aigles, 15 avenue d’Ostende
98001 Monaco
EUR 500,000 99.9
Leonteq Securities (Singapore) PTE Ltd. 8 Marina View, #36-03/04
Asia Square Tower 1, Singapore 018960
SGD 1,000,000 100

1 . Including branches in Guernsey (Block F, Hirzel Court, St Peter Port, Guernsey GY1 2NQ, Channel Islands) and in Amsterdam (ITO Tower, Gustav Mahlerplein 66-A, 1082 MA Amsterdam).

2 . Including branches in London (3 Lloyds Avenue, London EC3N 3DS; new address as of 25 January 2018: 108 Cannon Street, London EC4N 6EU) and Paris (40, Rue la Pérouse, 75116 Paris).

3 . Leonteq is in the process of moving its Japanese business onshore and obtaining a licence during the course of 2018; the subsidiary will be then renamed Leonteq Securities (Japan) Ltd.

  

Significant shareholders

Leonteq’s major shareholders comprise 7,870,246 shares, or 49.36% of the voting rights, as of 31 December 2017.

Shareholder name Number of shares Voting rights
in %
Raiffeisen Switzerland Cooperative4 4,626,397 29.02
Lukas Ruflin family interests5, 6 1,283,762 8.05
Sandro Dorigo7  390,082 2.45
Subtotal shareholders’ agreement 6,300,241 39.51
Rainer-Marc Frey8, 9  1,015,000 6.37
Credit Suisse Funds AG10 478,750 3.00
Directors and Executives11 76,255 0.40
Total significant shareholders 7,870,246 49.36

4 158,879 shares are directly held by Notenstein La Roche Private Bank Ltd, St. Gallen as a wholly owned subsidiary of Raiffeisen Switzerland Cooperative, St. Gallen.

5 Lukas Ruflin family interests represents all holdings by Lukas Ruflin (founding partner), Clairmont Trust Company Limited and Thabatseka LP; Clairmont Trust Company Limited acts as trustee of a trust which holds shares in Leonteq AG through Thabatseka LP (which in turn is indirectly wholly owned by Clairmont Trust Company Limited); the trust was settled by Lukas Ruflin.

6 In addition holds 462,325 call options, written by Raiffeisen, with the following conditions: strike CHF 210 (adjusted by cumulative dividends per share from 2015 to 2025); subscription ratio 1:1; maturity 19 October 2025; European style.

7 Founding partner.

8 H21 Macro Limited, Cayman Islands is the direct shareholder of the shares. Horizon21 AG, Pfäffikon SZ, Switzerland acts as fund management company.

9 Creation of obligation to notify: 13 March 2017.

10 Creation of obligation to notify: 25 October 2017.

11 Excluding shareholdings of the founding partners.

   

For notifications received and individual reports of significant shareholders published during 2017 by Leonteq AG according to art. 120 of the Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading (Financial Market Infrastructure Act, FMIA) of 19 June 2015, reference is made to the Disclosure Office publication platform of SIX Exchange Regulation:

https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html

  

  

PDF Annual Report 2017

Compensation report

General principles

Leonteq wants to attract and retain employees who are crucial for the Company’s future success. Leonteq is committed to fair, balanced and performance-oriented compensation practices that align long-term employee and shareholder interests, and which incentivise appropriate risk-taking while fostering adequate risk awareness. Leonteq’s compensation system is designed to:

  • support a performance culture based on merit, to differentiate and reward excellent performance, both in the short- and the long-term, and to recognise the Company’s values
  • enable the Group to attract and retain employees, motivating them to achieve results with integrity and fairness, whilst benefiting from the career opportunities offered by a growth company, and
  • be consistent with and promote effective risk management practices, together with the Group’s compliance and control culture.

  

  

PDF Annual Report 2017

Business & financial review

Leonteq successfully completed the turn-around within one year. The underlying business is healthy and Leonteq recorded solid demand for structured products across all regions and business lines, despite the historical low volatility environment.

    

Group results

Leonteq successfully completed its turn-around programme in 2017. Driven by positive client sentiment and solid demand for structured products, Leonteq issued 26,575 structured products in 2017 (+27%), a record high. Backed by this favourable market environment and resolved issues with its banking platform partners, total turnover grew by 28% to CHF 26.8 billion. Total operating income increased by 4% to CHF 215.4 million in 2017 driven by an 18% growth in net fee income to CHF 247.0 million and despite negative contributions from hedging activities in the amount of CHF -13.2 million on the back of historically low volatility levels. Leonteq continued its rigorous cost management, reduced its staff base, optimised the use of office space in London and Zurich and achieved annualised savings of CHF 24.4 million, in line with its previous cost guidance. Leonteq posted a group net profit of CHF 23.1 million in 2017, representing an increase of 34%.
  
Income statement
CHF million FY 2017 FY 2016 Change
y-o-y
H2 2017 H1 2017 H2 2016 Change
y-o-y
Net fee income 247.0 209.0 18% 127.6 119.4 100.4 27%
Net trading income/(loss) (25.8) 5.5 N/a (9.4) (16.4) (10.1) (7%)
Net interest income/(expense) (8.8) (7.5) 17% (3.9) (4.9) (2.6) 50%
Other ordinary income 3.0 0.0 n/a 0.9 2.1 0.0 n/a
Total operating income 215.4 207.0 4% 115.2 100.2 87.7 31%
Personnel expenses (113.6) (111.5) 2% (57.0) (56.6) (62.3) (9%)
Other operating expenses (50.0) (56.6) (12%) (24.1) (25.9) (32.4) (26%)
Depreciation (19.2) (16.8) 14% (9.9) (9.3) (9.3) 6%
Changes to provisions (9.3) (4.5) 107% (2.1) (7.2) (4.5) (53%)
Total operating expenses (192.1) (189.4) 1% (93.1) (99.0) (108.5) (14%)
Profit/(loss) before taxes 23.3 17.6 32% 22.1 1.2 (20.8) n/a
Taxes (0.2) (0.4) (50%) (0.2) 0.0 0.8 n/a
Group net profit/(loss) 23.1 17.2 34% 21.9 1.2 (20.0) n/a

PDF Annual Report 2017

Consolidated financial statements

Leonteq AG

Consolidated income statement for the years ended 31 December 2017 and 2016

  

CHF thousands  Note 2017 2016
Fee income from securities trading and investment activities    250,867  213,413
Fee expense    (3,850)  (4,421)
Net fee income 10  247,017  208,992
Result from trading activities and the fair value option 11  (25,776)  5,462
Interest and discount income    1,623  2,026
Interest expense    (10,546)  (9,798)
Changes in value adjustments for default risks and losses from interest operations    125  311
Net result from interest operations 9  (8,798)  (7,461)
Other ordinary income 12  2,971  44
Total operating income    215,414  207,037
Personnel expenses  13  (113,661)  (111,608)
Other operating expenses  14  (50,042)  (56,625)
Depreciation of long-lived assets  23  (19,158)  (16,772)
Changes to provisions and other value adjustments, and losses  31  (9,260)  (4,474)
Total operating expenses    (192,121)  (189,479)
Result from operating activities    23,293  17,558
Taxes 15  (222)  (361)
Group net profit    23,071 17,197
 of which allocated to shareholders of Leonteq AG    23,071  17,197
Share information      
Basic earnings per share (CHF) 37  1.47 1.09
Diluted earnings per share (CHF) 37  1.45 1.08

  

Leonteq AG

Consolidated statement of other comprehensive income for the years ended 31 December 2017 and 2016

  

CHF thousands  Note 2017 2016
Group net profit    23,071  17,197
Other comprehensive (loss)/income that will not be reclassified to the income statement      
Remeasurement of the defined benefit plan 33  10,181  396
Change in own credit    —    —  
Income tax on items that will not be reclassified 33  (2,153)  (84)
Total other comprehensive (loss)/income that will not be reclassified to the income statement    8,028  312
Other comprehensive (loss)/income that may be reclassified to the income statement      
Currency translation adjustments 33  460  (176)
Hedge accounting reserves 33  130  (130)
Total other comprehensive (loss)/income that may be reclassified to the income statement    590  (306)
Total other comprehensive (loss)/income 33  8,618  6
Total comprehensive income    31,689  17,203
of which allocated to shareholders of Leonteq AG    31,689  17,203

Leonteq AG

Consolidated statement of financial position as of 31 December 2017 and 2016

CHF thousands  Note  31.12.2017  31.12.2016
Assets      
Cash in hand  
Amounts due from banks 16 900,931 524,276
Amounts due from securities financing transactions 18 13,533 41,481
Amounts due from customers 17 108,048 37,860
Trading financial assets 19 2,344,410 2,238,601
Trading inventories 20 88,962
Positive replacement values of derivative financial instruments 21 1,629,717 1,694,772
Other financial assets designated at fair value through profit or loss 22 1,141,602 908,374
Accrued income and prepaid expenses   18,005 16,730
Current tax assets 15 1,003 964
Deferred tax assets 15 2,362 3,719
Long-lived assets 23 52,451 55,495
Other assets 24 46,921 35,933
Total assets   6,347,945 5,558,205
Total subordinated claims   6,666 803
   of which subject to mandatory conversion and/or debt waiver  
Liabilities      
Amounts due to banks 25  534,460 439,754
Liabilities from securities financing transactions 18  377,397 324,127
Amounts due to customers 26  168,109 302,282
Trading financial liabilities 27  101,246 90,993
Negative replacement values of derivative financial instruments 21  1,563,016 1,464,126
Other financial liabilities designated at fair value through profit or loss 28  3,040,531 2,422,805
Accrued expenses and deferred income    115,854 96,765
Current tax liabilities 15  1,167 680
Deferred tax liabilities 15  234 264
Other liabilities 29  17,345 23,017
Expected credit loss provision 30  1,310 1,435
Provisions 31  8,890 6,674
Total liabilities   5,929,559 5,172,922
Equity      
Share capital 32  15,945 15,945
Share premium    172,532 172,532
Retained earnings    224,787 205,121
Accumulated other comprehensive income/(loss) 33 (2,614) (11,232)
Own shares 32 (15,335) (14,280)
Group net profit   23,071 17,197
Total shareholders’ equity   418,386 385,283
Total liabilities and equity   6,347,945 5,558,205
Total subordinated liabilities  
      of which subject to mandatory conversion and/or debt waiver  

  

Leonteq AG

Consolidated statement of changes in equity for the years ended 31 December 2017 and 2016

  

  

CHF thousands Note Share
capital
Share
premium
Retained
earnings reserves
OCI OWN SHARES GROUP 
NET PROFIT/(LOSS)
TOTAL 
SHAREHOLDERS’ EQUITY
DEFINED
BENEFIT PLANS
CHANGE 
IN OWN CREDIT
HEDGE  
ACCOUNTING
RESERVE
CURRENCY 
TRANSLATION
ADJUSTMENTS
Balance as of 
31 December 2015
15’945 200,172  146,571 (10,861) (377) (4,025) 68,635 416,060
Impact of change in accounting
principle
(1,746) (1,746)
Balance as of 1 January 2016 15,945 200,172 144,825 (10,861) (377) (4,025) 68,635 414,314
Reallocation of retained earnings 68,635 (13,707) (68,635) (13,707)
Employee participation schemes 13 5,368 5,368
Capital increase/decrease 32
Acquisition of own shares 32 (10,255) (10,255)
Dividends and other distributions1, 2 32 (27,640) (27,640)
Other allocations to/(transfers from)
other comprehensive income
33 (13,707) 312 13,707 (130) (176) 6
Group net profit/(loss) 17,197 17,197
Balance as of 
31 December 2016
15’945 172,532 205,121 (10,549) (130) (553) (14’280) 17,197 385,283

CHF thousands Note Share
capital
Share
premium
Retained
earnings reserves
OCI OWN SHARES GROUP 
NET PROFIT/(LOSS)
TOTAL 
SHAREHOLDERS’ EQUITY
DEFINED
BENEFIT PLANS
CHANGE 
IN OWN CREDIT
HEDGE  
ACCOUNTING
RESERVE
CURRENCY 
TRANSLATION
ADJUSTMENTS
Balance as of 
31 December 2016
15’945 172,532 205,121 (10,549) (130) (553) (14,280) 17,197 385,283
Reallocation of retained earnings 17,197 (17,197)
Employee participation schemes 13 2,469 2,469
Capital increase/decrease 32
Acquisition of
own shares
32 (1,055) (1,055)
Dividends and other distributions1, 2 32
Other allocations to/(transfers from)
other comprehensive income
33 8,028 (130) 460 8,618
Group net profit/(loss) 23,071 23,071
Balance as of 
31 December 2017
15,945 172,532 224,787 (2,521) (93) (15,335) 23,071 418,386

1  Dividends and other distributions are distributions of capital contribution reserves.

2  From the total distribution of capital contribution the distribution on own shares has been deducted.

  

Leonteq AG

Consolidated statement of cash flows for the years ended 31 December 2017 and 2016

  

CHF thousands 2017 2016
Cash flow from operating activities    
Group net profit  23,071  17,197
Reconciliation to net cash flows from operating activities    
Non-cash positions in Group net profit    
   Depreciation  17,229  16,772
   Impairment of long lived assets  1,929  905
   Deferred tax expense / (benefit)  1,327  (160)
   Change in expected credit loss provision  (125)  1,435
   Share-based benefit programs  2,469  5,368
   Change of general provision  9,259  4,474
   Other non-cash income and expenses  8,644  (1,564)
Net (increase)/decrease in assets related to operating activities    
   Amounts due from banks  (241,655)   36,244 
   Amounts due from securities financing transactions  27,948  15,143
   Amounts due from customers  (70,188)  41,203
   Trading financial assets  (105,809)  212,143
   Trading inventories  (88,962)
   Positive replacement values of derivative financial instruments  65,055  202,124
   Other financial assets designated at fair value through profit or loss  (233,228)  451,744
   Accrued income and prepaid expenses  (1,275)  2,934
   Other assets  (10,988)  (8,461)
Net increase/(decrease) in liabilities related to operating activities    
   Amounts due to banks  128,209  9,037
   Liabilities from securities financing transactions  (134,173)  17,262
   Amounts due to customers  53,270  (192,187)
   Trading financial liabilities  10,253  (37,457)
   Negative replacement values of derivative financial instruments  98,890  (128,763)
   Other financial liabilities designated at fair value through profit or loss  617,726  (782,378)
   Accrued expenses and deferred income  19,089  (4,172)
   Other liabilities  (5,672)  1,086
   Utilisation of general provision  (7,329)  —  
Current taxes, non-cash adjustment  848 294
Current taxes paid  (400)  1,540
Cash flow from operating activities  185,413  (118,237)
Cash flow from investing activities    
   Purchases of long-lived assets  (16,108)  (33,397)
   Proceeds from long-lived assets  30  —  
Cash flow from investing activities  (16,078)  (33,397)
Cash flow from financing activities    
   Distribution of capital reserves  (0)  (27,640)
   Purchases of own shares  (5,166)  (11,591)
   Transfer out of own shares  4,111  1,336
Cash flow from financing activities  (1,055)  (37,895)
   Exchange rate differences 224  (176)
Net (decrease)/increase in cash and cash equivalents  168,503  (189,705)
Cash and cash equivalents, beginning of the year  85,477  275,182
Cash and cash equivalents at the balance sheet date  253,980  85,477
Cash and cash equivalents    
   Due from banks on demand³  356,094  221,094
   Due to banks on demand  (102,114)  (135,617)
Net cash and cash equivalents at the balance sheet date  253,980  85,477
Further information:    
Dividends received  54,378  62,209
Interest received  2,142  2,026
Interest paid  10,860  9,886

  

Fund of cash

  

CHF thousands  Note  2017  2016
Due from banks on demand3   356,094  221,094
Cash overdrafts   (102,114)  (135,617)
Total fund of cash   253,980  85,477

3  The “Due from banks on demand” balance is included in balance sheet line item “Amounts due from banks”.

  

  

  

PDF Annual Report 2017

Statutory financial statements

Leonteq AG

Income statement

  

CHF thousands  Note 2017 2016
Operating income      
Dividend income from Leonteq Securities AG                   — 30,000
Interest income from Leonteq Securities AG 6         9,252 11,726
Interest expense on cash overdrafts   (2) (6)
Interest expense to Leonteq Securities AG   (8)
Total operating income   9,250 41,712
Operating expenses      
Personnel expenses 7 2,002 3,120
Other operating expenses 8 2,839 754
Total operating expenses   4,841 3,874
Profit/(loss) before taxes   4,409 37,838
Taxes 9 114 108
Net profit/(loss)   4,295 37,730

  

Leonteq AG

Balance sheet

  

Assets

CHF thousands  Note 31.12.2017 31.12.2016
Current assets      
Due from banks 1 6,855 1,271
Due from subsidiaries 2 345 259
Accrued income and prepaid expenses 3 2,395 3,496
Total current assets   9,595 5,026
Non-current assets      
Due from Leonteq Securities AG   7,000 7,000
Financial investments 4 100,000 150,000
Investments in subsidiaries 5 192,179 135,825
Total non-current assets   299,179 292,825
Total assets   308,774 297,851
whereof subordinated in favour of Leonteq Securities AG   109,147 160,191

  

Liabilities & Shareholders’ equity

CHF thousands  Note 31.12.2017 31.12.2016
Short-term liabilities      
Due to banks   3
Due to Leonteq Securities AG   7,256
Accrued expenses   725 293
Total short-term liabilities   7,981 296
Total liabilities   7,981 296
Shareholders’ equity      
Share capital 13 15,945 15,945
Legal reserves   185,761 185,761
whereof general legal reserves   3,189 3,189
whereof reserves from capital contributions   182,572 182,572
Own shares 13 (15,336) (14,279)
Profit carried forward   110,128 72,398
Net profit/(loss)   4,295 37,730
Total shareholders’ equity   300,793 297,555
Total liabilities and shareholders’ equity   308,774 297,851

  

Proposal to the Annual General Meeting

Proposed appropriation of retained earnings

  

The Board of Directors proposes the following allocation of retained earnings:

CHF thousands 2017 2016
Net profit 4,295 37’730
Profit carried forward 110,128 72’398
Accumulated profit 114,423 110’128
Distribution of profit    
Allocation to general legal reserves
Allocation to other reserves
Profit carried forward 114’423 110’128

  

Proposed distribution from reserves from capital contribution

  

Subject to the approval by the Annual General Meeting, the Board of Directors proposes the distribution from reserves from capital contributions/dividend of CHF 0 per share (2016 CHF 0 per share):

CHF thousands 31.12.2017 31.12.2016
Reserves from capital contributions    
Balance carried forward 182,572 182’308
Distribution from reserves from capital contributions
on treasury shares relating to the prior year period
264
Proceeds from capital increase
Balance before distribution 182,572 182’572
whereof confirmed by the tax authorities 168,997 168’997
Proposed distribution from reserves from capital contributions
Balance after distribution 182,572 182’572

  

  

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