(Full story) (exclusive to Reuters)
By Lionel Laurent
PARIS, Jan 18 (Reuters) - French banks BNP Paribas and Natixis are to focus investment-banking activity on a select list of large clients to help preserve capital and cut debt amid the euro zone debt crisis, according to memos obtained by Reuters.
The moves are a fresh indication that pressure on European banks to boost capital buffers and secure funding lines is threatening to overturn years of relationship-building as lenders fight for survival.
BNP, France's biggest listed bank, said in a document sent to employee representatives it was refocusing on "key strategic" clients and looking to cut its dollar net asset base by half at its structured-finance division, partly via asset sales.
"Our cuts in risk-weighted assets force our client coverage teams, in each zone and each country, to redefine the priority lists of preferred clients," it said. "This selection takes into account the currency of the client's financing, the client's past and future profitability and cross-selling opportunities."
Smaller rival Natixis, meanwhile, is to exit non-core activities and create a Global Transaction Banking unit offering cash management and trade finance, targeting 200 million euros ($255 million) revenue by 2015-16, according to a written presentation given to employee representatives on Jan. 13.
By Lionel Laurent
PARIS, Jan 18 (Reuters) - French banks BNP Paribas and Natixis are to focus investment-banking activity on a select list of large clients to help preserve capital and cut debt amid the euro zone debt crisis, according to memos obtained by Reuters.
The moves are a fresh indication that pressure on European banks to boost capital buffers and secure funding lines is threatening to overturn years of relationship-building as lenders fight for survival.
BNP, France's biggest listed bank, said in a document sent to employee representatives it was refocusing on "key strategic" clients and looking to cut its dollar net asset base by half at its structured-finance division, partly via asset sales.
"Our cuts in risk-weighted assets force our client coverage teams, in each zone and each country, to redefine the priority lists of preferred clients," it said. "This selection takes into account the currency of the client's financing, the client's past and future profitability and cross-selling opportunities."
Smaller rival Natixis, meanwhile, is to exit non-core activities and create a Global Transaction Banking unit offering cash management and trade finance, targeting 200 million euros ($255 million) revenue by 2015-16, according to a written presentation given to employee representatives on Jan. 13.
No comments:
Post a Comment