Natixis Second-Quarter Profit Falls 29% on Debt Charge

Natixis SA, the investment-banking and asset-management unit of France’s second-largest lender by branches, reported a 29 percent decline in second-quarter profit after booking an accounting charge tied to its own debt.

Net income on a pro-forma basis dropped to 248 million euros ($330 million) from 349 million euros a year earlier, the Paris-based bank said in an e-mailed statement today. The bank took a 20 million-euro charge on its debt, after booking a 91 million-euro gain in the year-earlier period.

The pro-forma figures exclude costs related to the decision to sell back its holdings in French regional banks Banques Populaires and Caisses d’Epargne, Natixis’s parents. Natixis will book third-quarter gains of about 150 million euros from the transaction, offsetting costs incurred in the first part of the year, Chief Executive Laurent Mignon said by phone.

Natixis, whose common equity Tier 1 ratio reached 9.7 percent at the end of June, will make a 2 billion-euro exceptional dividend payment to shareholders on Aug. 19 after completing the sale of the holdings today. The bank announced the planned payout in February.

Revenue at the savings unit, which includes asset management, insurance and private banking, rose 13 percent, it said. While pretax profit at Natixis’s savings division rose 15 percent in the second quarter, corporate- and investment-banking pretax earnings fell 6 percent, hurt by lower capital-markets revenue, according to the statement.

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