Natixis eyes Australia, China and Hong Kong expansion
(9 December 2016 – Global) French lender Natixis predicts revenue from Asian corporate and investment banking (CIB) may grow by up to 20 percent this year as it looks to expand operations in the region.
The bank said Asian CIB revenues have grown at a "double-digit" rate in the past five to six years. The bank’s Chairman, and head of its parent company Groupe BPCE, Francois Perol indicated that it is aiming to maintain that trend as it targets opportunities in infrastructure, project and acquisition finance.
The division will hire more staff to add to the 600 people it employs in Asian markets including Hong Kong, China and Australia, he said.
"We're doing a few things in which we're very good on a global basis for selected customers," Perol said in an interview.
"We have plenty of room for growth here based upon this model."
Natixis expansion comes as competitors such as ANZ, Westpac, Standard Chartered and Barclays and retreat from the region, impacted by worsening economic conditions and regulatory restrictions.
"This is an area where growth is faster than what we've experienced in other areas of the world, especially in Europe," Perol said.
"A few banks are reducing their presence. This is not the case for us."
Around 40 percent of the bank’s revenue is from corporate and investment banking, according to Bloomberg data. The unit recorded a 43 percent gain in pretax profit in the third quarter. Regionally, Asia adds around 11 percent to the CIB revenue pool, with that contribution expected to rise, Perol said.
He said the lender also remains keen to target Chinese companies that are making acquisitions and setting up partnerships around the world, even as authorities take steps to curb outflows of yuan from the country.
"We think this is a strategic trend and a long-term trend that will go on" even though the Chinese government wants to be careful regarding capital outflows, said Perol. It's "very much linked to the transformation of the Chinese economy."
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