PARIS (Reuters) - French investment bank Natixis CNAT.PA announced on Monday it was replacing its CEO with the finance chief of its parent company in order to prepare a new strategy after it reported its second straight quarterly loss.
Natixis shares have almost halved this year, prompting reports its parent company BCPE was considering taking it private - a prospect the group denied.
Natixis said the board of directors had appointed Nicolas Namias, head of group finance and strategy at BPCE, as the bank’s new CEO with effect from Aug. 4.
Natixis reported on Monday a 57 million euro ($67 million) loss for the second quarter as its equity trading suffered and the bank increased provisions for potential bad loans due to the COVID-19 crisis.
Natixis said Francois Riahi, CEO since mid-2018, was leaving due to “strategic differences” regarding options for the bank’s future plans.
“To prepare the new strategic plan due to be presented next summer, and with a view to initiating this new stage in the life of the company, the board of directors decided to appoint Nicolas Namias as chief executive officer with effect from August 4th, 2020,” the bank said in a statement.
Riahi had a bumpy ride at the helm of France’s fourth-biggest bank.
The bank booked equity derivatives trading losses in late 2018, faced concerns over liquidity and governance at one of its asset management affiliates in 2019 and has reported quarterly losses this year, driven by a spike in provisions for bad loans and equity trading losses.
Natixis said it would “adjust the setup of equity derivatives business towards our key strategic clients”.
Reporting by Maya Nikolaeva; Editing by Benoit Van Overstraeten/David Clarke/Susan Fenton
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