The bank’s revenues were stable versus a record 2Q2018 with growth from investment banking and the Green & Sustainable Hub. However, issuance and sales of structured products were down 54% and 63%, respectively, according to SRP data.
Natixis has reported net income of €346m in the second quarter of 2019 and €1.1 billion in 1H2019.
Underlying net revenues were stable compared to a ‘historically high’ 2Q2018. Within corporate & investment banking, net revenues were up five percent year-on-year in the second quarter (+6% in 1H2019), in part driven by green & sustainable initiatives, with ‘great successes’ on green investment solutions for retail clients as well as green and social loans, according to the bank.
One of the ‘green & sustainable’ initiatives of the bank was a green bond campaign with Crelan in Belgium, which closed at the end of June and comprised three products, each of which was linked to the Climate Orientation Priority 50 Equally Weighted 4.5% Decrement Index, which was developed by Euronext in collaboration with Natixis’ Green & Sustainable Hub, a cross asset green & sustainable financing and investment solutions platform.
The three products sold a combined €18m and 100% of the funds raised is used to finance green projects with an objective of climate change and mitigation.
Natixis issued 38 structured products worth an estimated €385m between April 1 and June 30 2019, significantly down from 83 products with sales of €1 billion that were launched during the same quarter last year, according to SRP data.
Twenty-eight structures were distributed in the bank’s domestic market France where they were available via a number of private banks, brokerage firms and financial advisers, including, among others, Banque Privée Européenne, Equitim, i-Kapital, Marigny Capital, and Milleis.
Apart from the aforementioned products in Belgium, it also sold two products in Italy while in Spain there was a collaboration with Deutsche Bank for Nota Select Dividend 3, a 10-year medium-term note tied to the Eurostoxx Select Dividend 30 Index that sold €26m in the subscription period.
Outside of Europe, the bank was active in Taiwan, where it sold products via Fubon Bank (two), Mega International Commercial Bank, and Yuanta Securities (one each) during the quarter.
Asset management AUM reached €898 billion as at June 30 2019, up five percent quarter-on-quarter, while wealth management stood at €30 billion. Liabilities and equity on the bank’s balance sheet included debt securities worth €48 billion, up from €45.7 billion end-March.
‘Natixis recorded solid results across all its businesses in the second quarter of 2019,’ stated François Riahi (pictured), chief executive officer, commenting on the results. ‘In corporate & investment banking, we enjoyed sustained performances, including in our capital markets activities despite a less favourable environment than last year to which we notably adapt through tighter cost control.’
Click the link to read the full 2Q2019 results and the presentation.