(we put this out several days ahead of the official announcement, which confirmed the lot)
(Full story)
* Due to unveil new strategic plan next week
* Eyes 900 mln eur in cost cuts, more cross-selling
* French banks grapple with weak economy, tougher regulatio
By Lionel Laurent and Matthias Blamont
PARIS, Nov 8 (Reuters) - BPCE, the parent group of French investment bank Natixis, will unveil a plan next week to double net income by 2017 to 4 billion euros ($5.35 billion) on the back of cost cuts and cross-selling, two sources told Reuters.
BPCE, which is set to present details of its strategy on Wednesday ahead of a Natixis investor day on Thursday, will be the first of France's big banks to explain to investors how it plans to boost growth in the face of tougher regulation after the 2008 financial crisis and French economic weakness.
"BPCE believes it can achieve 900 million euros in cost cuts and a doubling of net income to 4 billion euros between 2014 and 2017," said one of the sources with knowledge of the strategy. "There will also be a target of 800 million euros of extra cross-selling synergies.
"The strategy will be to cross-sell as much as possible with Natixis and (mortgage unit) Credit Foncier to increase assets under management, capital and liquidity...The emphasis is also on speeding up cost cuts."
A BPCE spokeswoman declined to comment.
Despite replenishing their balance sheets for years after the crisis, France's banks - and their peers across Europe - remain under pressure to find new ways of doing business as new global legislation curbs risk-taking and ramps up costs.
Natixis' bigger rivals BNP Paribas, Societe Generale and Credit Agricole are all due to present new strategic plans in 2014. SocGen and Credit Agricole on Thursday announced an asset swap designed to help narrow their business focus.
The fragile outlook for French banks' home market, where unemployment is stuck at 11 percent, was reinforced on Friday when ratings agency Standard & Poor's cut France's sovereign credit rating by one notch to AA from AA+.
Under the leadership of Chairman Francois Perol, parachuted in by former President Nicolas Sarkozy to prevent Natixis from collapsing during the financial crisis, Natixis has slashed its balance sheet and focused more on getting fees from stock and debt issuances than risky trading.
Unlisted retail bank BPCE, also headed by Perol, has also taken steps to better integrate Natixis into its nationwide network of 8,000 branches: Natixis is now in control of the group's insurance business and sources told Reuters it would work on developing products to cross-sell with BPCE.
But despite the bank's restructuring efforts, which have boosted capital strength and driven Natixis shares up over 100 percent year-to-date, analysts say cost cuts are needed in investment banking and asset management to improve returns.
Natixis has already laid out plans to cut 700 jobs across several investment-banking business lines.
(Full story)
* Due to unveil new strategic plan next week
* Eyes 900 mln eur in cost cuts, more cross-selling
* French banks grapple with weak economy, tougher regulatio
By Lionel Laurent and Matthias Blamont
PARIS, Nov 8 (Reuters) - BPCE, the parent group of French investment bank Natixis, will unveil a plan next week to double net income by 2017 to 4 billion euros ($5.35 billion) on the back of cost cuts and cross-selling, two sources told Reuters.
BPCE, which is set to present details of its strategy on Wednesday ahead of a Natixis investor day on Thursday, will be the first of France's big banks to explain to investors how it plans to boost growth in the face of tougher regulation after the 2008 financial crisis and French economic weakness.
"BPCE believes it can achieve 900 million euros in cost cuts and a doubling of net income to 4 billion euros between 2014 and 2017," said one of the sources with knowledge of the strategy. "There will also be a target of 800 million euros of extra cross-selling synergies.
"The strategy will be to cross-sell as much as possible with Natixis and (mortgage unit) Credit Foncier to increase assets under management, capital and liquidity...The emphasis is also on speeding up cost cuts."
Despite replenishing their balance sheets for years after the crisis, France's banks - and their peers across Europe - remain under pressure to find new ways of doing business as new global legislation curbs risk-taking and ramps up costs.
Natixis' bigger rivals BNP Paribas, Societe Generale and Credit Agricole are all due to present new strategic plans in 2014. SocGen and Credit Agricole on Thursday announced an asset swap designed to help narrow their business focus.
The fragile outlook for French banks' home market, where unemployment is stuck at 11 percent, was reinforced on Friday when ratings agency Standard & Poor's cut France's sovereign credit rating by one notch to AA from AA+.
Under the leadership of Chairman Francois Perol, parachuted in by former President Nicolas Sarkozy to prevent Natixis from collapsing during the financial crisis, Natixis has slashed its balance sheet and focused more on getting fees from stock and debt issuances than risky trading.
Unlisted retail bank BPCE, also headed by Perol, has also taken steps to better integrate Natixis into its nationwide network of 8,000 branches: Natixis is now in control of the group's insurance business and sources told Reuters it would work on developing products to cross-sell with BPCE.
But despite the bank's restructuring efforts, which have boosted capital strength and driven Natixis shares up over 100 percent year-to-date, analysts say cost cuts are needed in investment banking and asset management to improve returns.
Natixis has already laid out plans to cut 700 jobs across several investment-banking business lines.
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