Natixis expects to book a roughly 10% year-over-year decline in fourth-quarter net revenues, driven by the current market turmoil in Asia.
The French investment bank said net revenues in the quarter should reach approximately €2 billion, compared to the year-ago €2.25 billion. The bank said the model it used to manage some products traded with Asian clients has led to a hedging strategy, which will result in a €100 million reduction in its net revenues. This comes on top on a €160 million provision to cover the management of the product book.
Absent of the nonrecurring item, fourth-quarter net revenues would be in line with the same period a year ago despite less favorable market conditions.
Despite the expected decline, Natixis said it will keep its strategic plan unchanged and maintained its ordinary payout ratio target of at least 60%. It also reiterated plans to pay a special dividend totaling €1.5 billion from the sale of its retail banking activities to BPCE SA, to be paid upon completion of the deal.