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Natixis released its Q4 20 numbers yesterday evening, but that was only a small detail in the light of the offer its main shareholder (BPCE) is planning to make on the 30% stake it does not own in the company, at a price of €4. This is well below the €19 IPO price but optimists will say it is well above the September 2020 price. However, this should not mask the erratic strategies of successive managements and is a stark reminder to any minorities.
Natixis confirmed yesterday that it had found an agreement with H2O’s management to sell to it its own stakes (50.01%).
This was expected following the Q3 20 announcements that Natixis was looking to sell the asset manager that has been causing much trouble to the whole group. No price has been mentioned but it should be very symbolic and is not a key point as Natixis is only looking at getting rid of the asset manager (it should free up a small amount of capital).
Natixis released yesterday its numbers for Q3 20. P&L numbers were mostly resilient as revenues were above expectations, while total expenses and loan losses were roughly in line with expectations. The most relevant news was about the future of asset manager H2O which is 50.01% owned by Natixis.
An article in the French newspaper Les Echos yesterday helped Natixis’ share price to outperform the banking sector (+7% vs +1% for the sector even if the share price is still down 53% ytd vs 40% for the sector).
Some options regarding the future of Natixis are indeed being explored. This has been a recurring issue for some months now.
The H2O saga is continuing with another series of negative news regarding the faith of the illiquid bonds H2O has in its portfolio and which are linked to (controversial) German financier Windhorst.
It looks, in the end, as if the asset manager never really managed to sell these bonds but may have used a complex montage with suspicious brokers.
Natixis released its Q2 20 numbers. The top line was rather disappointing due to losses in the equity division (CIB) offset, however, by good cost controls. Loan losses were in line with expectations and guidance for FY2020’s total loan losses is unchanged.
The most important news from this release is the “departure” of CEO François Riahi after only two years. He is replaced by Nicolas Namias (BPCE’s head of group finance and strategy and Natixis’ former CFO).
Natixis is down about 5% following an article in the FT regarding the endless H2O matter.
According to the FT, the UK’s financial regulator, the FCA, is probing H2O over the Windhorst bonds. As a reminder, a year ago, the FT already unveiled the high exposure of H2O to Lars Windhorst’s companies via some illiquid bonds. Lars Windhorst is a controversial German financier.
Natixis released its numbers for Q1 20. As expected these were mostly impacted by a sharp increase in loan losses and trading income has suffered from market dislocation at the end of March. Cost of risk is at 117bp on an annualised basis vs 60-65bp for the three other French banks but still slightly higher expectations.
The CET1 ratio at 11.4% is 10bp higher qoq and 310bp higher than regulatory requirements (which have been recently softened).
After a strong opening (like other banks), Natixis is down about 8-9% due more negative news from H2O. The market has already been slashing its estimates on Natixis and its IM division due to falling financial markets (and the immediate impact on the AuMs and management fees). H2O has been a specific issue for one year and with “dangerous relations” between the AM and controversial investor Lars Windhorst. A sharp drop in H2O’s flagship funds will therefore add to the turmoil.
Natixis released its numbers for Q419. Top line growth was solid vs. expectations at a time when costs were strongly under control in the two main divisions (CIB and A&WM).
CET1 ratio at 11.3% was 10bps above the 2020 CET1 ratio target but 20bps lower QoQ. DPS at 0.31€ was in line with expectations however (>80% pay-out ratio).
Natixis released its numbers for Q3 19. Gross operating profit was 7.6% higher than expected (+2.2% vs our own expectations), mainly driven by the Asset and wealth management division. The CET1 ratio at 11.5% was flat qoq. Management is now targeting a CET1 ratio of 11.2% by end-2020 (vs 11% previously) through a decrease in Natixis’ 2018–20 budget (minimum payout ratio of 60% is unchanged however).
Natixis released this afternoon its numbers for Q2 19. Net revenues were above expectations, mainly driven by the wealth and asset management division. With costs under control, the gross operating income is 16% higher than expected. H2O, which has been under radar for three months (investment in illiquid assets mainly focused on German financier Lars Windhorst), recorded positive inflows in July (total €-6bn for Q2 19).
Natixis is down about 6% today (Stoxx600 banks is down 0.7%). This follows the _FT_’s article on Tuesday regarding one of Natixis’ flagship asset managers (H2O).
Natixis released this afternoon its numbers for 2018 and Q4 18.
As we are now used to in all Natixis’ earnings release, both P&L numbers and capital were more than decent.
Total revenues at €2.25bn were 5.5% above expectations and 4.2% higher yoy (adjusted for the €259m loss on Asian equity derivatives already announced in December 2018). Better than expected numbers in the flagship AM division contributed to these numbers.
Total expenses were 3% higher than expected and 2% higher yoy. Profit
On Tuesday evening (18 December), Natixis disclosed it is expecting a 10% decrease in Q4 18 revenues due to unexpected one-off losses amounting to about €260m (about €180m post-tax).
Its share price was down about 6% yesterday as the market was digesting the news. Losses represent indeed about 1.5% of the total market capitalisation.
Given the current market conditions, investors are more comfortable with demanding a higher risk premium to compensate for more potential unexpected losses to com
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Aviva’s Q1 22 trading update was slightly above our expectations although this remains very much tied to the top-line and profitability could be impacted as of H1. Do the operations really mean that much for the share price with high dividends as a back-up? The latter are expected to continue as the firm has stated that it will release capital above its 180% solvency ratio.
Companies: Aviva plc
Companies: Plus500 Ltd.
Duke has raised £20m in new equity capital, subject to shareholder approval, to fund their continued expansion. The new capital will also support the company's target of increasing their debt facility by a further £25m, and therefore providing a total of £45m of new capital to invest. The increasing scale and diversification of the portfolio is forecast to eventually increase free cash flow per share once full deployment has taken place and will allow Duke to seek a reduction in its debt facilit
Companies: Duke Royalty Limited
Weekly round-up of AIM-listed healthcare news.
Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics
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*A corporate client of Hybridan LLP
Dish of the day
EnSilica (ENSI.L), has join AIM. EnSilica provides an end-to-end service for the design and supply of mixed signal ASICs, outsourcing certain elements such as the wafer fabrication of the manufacturing and packaging to third parties - otherwise known as a Fabless Semiconductor Model. ASICs are Integrated Circuits or semiconductor chips developed for a particular use or product rather than for general purpose usage. ASICs help
Companies: YGEN AFRN ALBA ART BLV CCS EPWN FIPP NWT KETL
Belvoir has acquired TIME Group Ltd, an appointed representative of Mortgage Advice Bureau (MAB) for an initial £3.7m cash cost. TIME provides mortgage and related financial services and is a good step forward in Belvoir’s growth strategy, within which the potential in Financial Services plays a key part. The initial cost represents 5.8x FY 2021 PBT and we have upgraded our FY 2022E EPS by +3% and 2023E by +7%. In FY 2021, Belvoir’s Financial Services division grew revenue by +44% organically an
Companies: Belvoir Group PLC
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Following its 30 April year end, Purplebricks preclose reveals instructions and revenue in 2H have resulted in an £8.8m EBITDA loss for the year.
Companies: Purplebricks Group Plc
ADX Energy (ADX AU)C; Target price of A$0.060 per share: Flow rate at the top end of expectations at important appraisal well - The Anshof-3 well flowed ~75 bbl/d of light oil (and no water) on test from the Eocene reservoir. This has positive implications for production, reserves and the upside case. The flow rate was at the upper end of expectations (40-80 bbl/d). The well has not been acidized yet which could boost production rate b
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Companies: H&T Group plc
Feature article: Latest ONS survey: steady as she goes…and ignore retail investors at your peril
The ONS (Office for National Statistics) has been charting the beneficial ownership of UK-quoted companies periodically since the early 1960s. The latest paper was published in March 2022, and considers the data for December 2020.
At December 2020, “Rest of the World” investors owned 56.3% of the market, a further growth since the last survey, while UK institutions’ ownership edged up to 31.6%.
Companies: VTA TRX SCE STX AVO ARBB PANR RECI PCA OCI IBT ICGT FAS FCSS FEV FJV FSV DNL CLIG BBGI
Landsec intends to shift a third of its portfolio from low-yielding mature assets to profitable new developments. Now, all leans on being abe to execute disposals quickly.
Companies: Land Securities Group PLC
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Clipper Logistics has left the Main Market following a Cash takeover.
What’s cooking in the IPO kitchen?
According to news reports, The Very Group, is looking to float after calling off their plan for a £4bn IPO last year due to a volatile market. The ecommerce group is owned by the Barclays family. According to the Sunday Times, the retailer has offered incentives to senior leaders at the firm for pulling off a flotation, which the Barclays family now hope to
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