"Investment bank aims to double income and staff in key Asia-Pacific market by 2030." In an exclusive interview with Nikkei, Mohamed Kallala, Global Head of Natixis CIB, discusses the bank's plans to strengthen its operations in Japan.
Natixis CIB looks to expand aggressively in the infrastructure sector, notably data centers, which are crucial for generative artificial intelligence, and electricity. We will leverage our expertise accumulated in Europe and the U.S. to capture the entire value chain.
Mohamed Kallala
TOKYO -- As French bank Natixis expands Japanese operations into corporate financing, the company regards the market as a pillar of its Asia-Pacific business, CEO Mohamed Kallala told Nikkei in a recent interview.
Natixis -- part of Groupe BPCE, France's second-largest financial group -- had focused on securities-related services in Japan such as supporting bond offerings. With its recent acquisition of a banking license, the company plans a full-fledged foray into corporate financing. Natixis aims to double operating income in Japan to $200 million and its staff there to 140 people by 2030.
Kallala, who is specifically in charge of corporate and investment banking for Natixis, said the Japanese market is gradually improving and is on a growth trend.
Natixis looks to expand aggressively in the infrastructure sector, he said. More data centers, which are crucial for generative artificial intelligence, are expected to be constructed in Japan. Rising electricity demand also is anticipated. The bank intends to provide funding to meet those needs.
The company will leverage its expertise accumulated in Europe and the U.S. to capture the entire value chain, Kallala said. In addition to lending to a broader range of clients such as airlines, Natixis also looks to start offering commercial deposit services, cultivating potential clients among Japanese companies as well as foreign businesses.
Japan's megabanks -- Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group -- dominate lending to big companies. Kallala said Natixis may partner with the megabanks for large-scale deals it cannot handle alone.
S&P Global Ratings in October downgraded its credit rating on France's sovereign debt by one notch to A+, which some observers said could hurt French financial institutions. But Kallala said the downgrade is not that big of a problem, noting that France's rating after the move is the same as Japan's.
