Natixis maps out bold growth plans for Asia
French lender aims to double revenue in the region in four years with gradual expansion in its wholesale and asset management businesses
After the global financial meltdown of 2008, it was fairly rare to hear about lenders in developed countries touting an expansion in Asia when some were scrambling to survive and others were trying to cope with a tougher regulatory and capital environment.
Natixis, the fourth-largest bank by market capitalisation in France, instead laid out a bold target to double its revenue in Asia in four years after it plans to spend up to €1.5 billion (HK$16 billion) for acquisitions in the fund management business in the United States.
Laurent Mignon, the chief executive of the Paris-based bank, told the South China Morning Post that the firm's plan was to expand the wholesale banking and asset management businesses gradually and strategically in Asia where it could leverage its existing expertise in structured financing, fixed-income and special equity financing solutions.
"Our planned target is achievable because the forecast growth in revenue for the next four years is only 15 per cent per annum, even after we had achieved a growth rate of 35 per cent in 2013," said Mignon.
He also stressed the importance of organic growth in the firm's wholesale banking business rather than buying an existing operation in Asia due to concerns over "cultural integration".
Mignon, who joined Natixis in May 2009, declined to give specific sales figures in the firm's wholesale banking business but said the unit represented about 10 per cent of its investment banking revenue.
Wholesale banking refers to structured financing in energy, commodities and aircraft leasing.