Natixis Second-Quarter Net Falls 15% on Coface Writedownby
Natixis SA, the owner of the Harris Associates and Loomis Sayles fund-management brands, said second-quarter profit fell 15 percent because of a write down on its stake in export-credit insurer Coface SA and lower asset-management income.
Net income fell to 381 million euros ($422 million) from 450 million euros a year earlier, the Paris-based bank said in a statement Thursday. That beat the 345 million-euro average estimate of three analysts surveyed by Bloomberg. The company booked a 75 million-euro goodwill impairment on its Coface stake.
Natixis will be able to “attain the profitability targets” for 2017, Chief Executive Officer Laurent Mignon said in the statement. The firm plans to increase origination capacity at its corporate and investment banking unit, he said, without being more specific.
Income from capital markets rose 31 percent to 539 million euros as revenue from rates and foreign exchange grew “particularly strongly.” Equity-related business rose about 4 percent, Natixis said.
Revenue at the asset-management units fell about 2 percent, while quarterly insurance sales were unchanged at 156 million euros, Natixis said. U.S. asset-management operations had 1.6 billion euros of outflows in the three months ended June 30, mainly from Harris’s equity products.
Natixis, a unit of French consumer bank Groupe BPCE, is targeting a return on tangible equity of 11.5 percent to 13 percent next year.