Natixis earnings drop, shares rise on reserve requirements
French investment bank Natixis posted a 16 percent drop in third quarter net earnings Tuesday, but its shares rose after it said it would meet higher reserve requirements without tapping markets.
The 305 million euros (422 million euros) in net earnings was below the analyst consensus of 356.5 million euros, according to Dow Jones Newswires.
However Natixis said it would be able to meet the higher reserve requirements, known as Basel III, by 2013, six years earlier than necessary, and without seeking more capital from investors.
The bank's share price rose 1.47 percent to 4.479 euros.
Natixis said it was steadily reducing the illiquid assets in its portfolio, which generated a loss of 31 million euros in the third quarter compared to 84 million in the second.
© 2010 AFP