Mutual risk

26 November 2007 By Pierre Briancon

A E407m hit from the credit crunch in the third quarter is a blow to the French bank, but its troubled US monoline will get $1.5bn from Banques Populaires and Caisse d Epargne. The two shareholders can t agree on much beyond that, leaving Natixis near future in suspense.

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Natixis, the French investment bank, on Sunday said its net banking income in the the third quarter came in at E1.4bn, down 8% over last year on a proforma basis, with a negative impact from the credit crunch of about E407m, breaking down into E238m of writeoffs and trading losses at its corporate and investment banking division, E140m at its troubled US monoline CIFG, and E28m at its assetmanagement arm. Net profit in the quarter was up 16% to E437m.

Natixis' two main shareholders, Banques Populaires and Caisses d'Epargne, last week agreed to a $1.5bn bailout of CIFG, which they will buy from Natixis at a later stage.

Shares of Natixis were down 4% in midday trading.

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