Natixis SA, the French bank seeking â?¬3.7 bn in new capital, reported a second-quarter loss that exceeded analysts' estimates on writedowns tied to U.S. bond insurers.Natixis posted a net loss of â?¬1.02 bn in the second quarter.
The bank reported â?¬1.51 bn of writedowns and said it plans to scale back risk at the investment banking division and review the pace of the unit's international development. Shareholders will meet tomorrow in Paris to authorize the rights offer aimed at raising new capital. Larger Paris-based rival Credit Agricole SA reported a 94 percent drop in profits today.
Natixis was down 39 cents, or 6.9 per cent, to â?¬5.30 by 9:30 a.m. in Paris, bringing declines this year to 60 per cent. French daily La Tribune yesterday reported that the bank may sell shares at a discount of 30 percent to 40 percent, or even more, to ensure the success of the rights offer.
