Natixis Third-Quarter Net Rises 10% on Asset ManagementFabio Benedetti-Valentini
Natixis SA said profit rose 10 percent in the third-quarter, helped by higher asset-management and insurance revenue.
Net income increased to 281 million euros ($352 million) from 255 million euros a year earlier, according to an e-mailed statement from the Paris-based company. That compares with the 275 million-euro average estimate of three analysts surveyed by Bloomberg.
“The build-up of the savings unit is important,” Chief Executive Officer Laurent Mignon told journalists on a conference call today.
Natixis, the investment-banking and asset-management unit of France’s second-biggest lender by branches, last year set a goal for annual sales from its three main businesses to exceed 8 billion euros by 2017. Nine-month revenue rose 5.2 percent to 5.75 billion euros, the bank said today.
As part of its 2017 targets, Natixis is seeking 75 billion euros of net new funds at its asset-management unit, while expanding its international investment-banking revenue by 10 percent a year. It also set up an insurance hub for the retail-banking networks of its parent, Groupe BPCE.
Revenue at Natixis’s savings unit, which includes insurance, asset management and private banking, rose 16 percent to 689 million euros in the third quarter, while corporate- and investment-banking sales fell 9 percent to 674 million euros on “a demanding basis of comparison,” it said.
BPCE posted a 720 million-euro profit in the third quarter, down 3.5 percent from a year earlier, the bank said in a separate statement. BPCE’s core Tier 1 capital ratio under Basel 3 rules, a measure of financial strength, reached 11.5 percent at the end of September, it said.
BPCE, which took a 58 million-euro charge on its 9.9 percent stake in Italy’s Banca Carige SpA, hasn’t decided whether it will participate in the Genoa-based bank’s capital increase, CEO Francois Perol said. BPCE is waiting for “more details from Carige’s board of directors,” he said.
BPCE passed the European Central Bank’s health check of the region’s lenders, known as the comprehensive assessment. The Frankfurt-based ECB, starting today, is taking charge of direct supervision of the euro area’s 120 largest banks, its biggest expansion of powers since the euro was introduced.