Natixis ‘ loss from stock derivatives rises to 250m euros
French bank Natixis ‘ loss on derivatives based on shares rises to 250m euros
France-based investment bank Natixis SA has made a 250 million euro ($274 million) loss so far from the start of this year from derivatives based on its shares. The bank regarded complex derivatives as a key monetization tool.
According to sources who have information on the subject, the bank lost around 150 million euros since April. The loss was partly due to companies cutting their dividend payments due to coronavirus, the sources said.
Increasing the pressure on CEO François Riahi, these results may change later in the year. Recorded loss is currently equivalent to the loss from Korean stock derivatives in 2018.
Like the contracts that take the value of stock derivatives from ordinary shares, and like most investment banks, Natixis doesn’t explain how much money they earn from these products.