Cost synergies account for EUR 224 million

In the aftermath of the presentation for analysts and managers of the project of reconciliation of the Bank activities of large squirrel and the Banques Populaires in a common holding company called "Natixis", Philippe Dupont, CEO of Groupe Banque Populaire, which will provide for six years the Presidency of the Executive Board of Natixis, details the strategy and governance of the new together.

What the transformation of Natexis Banques Populaires in Natixis change it gives

With this friendly and structuring operation for the future, our two groups take a ticket to go without return. It is now up to write a new history. This Bank will immediately be among the first 15 capitalization of the stock exchange of Paris. It will also be one of the first 15 banks of the euro area in own funds. If one includes banks Epargne and Banques Populaires, the new group will be number two of the euro area by the size of its own "hard" (Tier-1) funds.

What growth objectives you set you

The collaborative work since June 6 on each of our businesses have allowed us to set ambitious and realistic plan for the period 2005-2010. By focusing on our forces, i.e. without external growth, we expect to grow our revenues by 10 per year on average. Which is in fact the performance of Natexis Banques Populaires between 2000 and 2005. We want to also bring our coefficient of operation of 68 to 60 over the period and to ensure, on average, our net result of approximately 13 annual growth. As to the profitability of capital, we intend to carry a 16 by 2010.

Have you measured the expected synergies between Natexis and Ixis avoir

Yes, they will be in total EUR 522 million at end of 2010. Cost synergies account for EUR 224 million. It mainly economies of scale on certain trades, such as the conservation of titles, electronic payment, or management of assets, and reductions in charges on the support functions. As expected, the areas of overlap between the two houses are marginal. Revenue synergies, they will reach EUR 298 million and will be for the bulk of the expansion of our offer in Bank funding and investment (BFI) to products with high added value related to structured finance, capital markets or derivatives actions yet. To speed up cross-selling, we strengthen the "coverage" function, which will be directly attached to the Presidency and the Directorate-General.

Natixis will be interested in the results of the two networks. What to expect

It is for us one of the key elements for the success of the operation. In total, 38 of the result net pro forma 2005 is directly or indirectly backed networks, or as much as the BFI. This configuration will allow us to ensure the regularity of our profits while allowing us to develop our other businesses. In asset management, for example, where we we already put the European fifth by managed assets, we still have a margin of significant progress in particular in the "retail" pane

Do you have ambitions in "M & A

We are already present on the midcaps. As the partnership developed by Ixis with Lazard, he gave far any satisfaction. We intend to continue it in the same terms. The participation of the Caisse nationale of Caisses d'Epargne in Lazard part of inputs to Natixis.

The presence of Natixis international you think it sufficient

In BFI, 48 of our revenues come from the international. In asset management, 61 of our workforce are out of France. This is already important. But Europe and the United States to generate the essential. We now intend to accelerate the development of our Asian locations. This will go through the recruitment of additional local staff.

Dominique Ferrero will be your CEO. How are you assign roles

There is no reserved area. We shall be, under the Banking Act, the two leaders, i.e. "four eyes" as devoted. It is a global responsibility. The only difference is that I am the President of the Executive Board and that Dominique is the Director General.

That you reply to those who suspect it to be closer to the Banques Populaires that of Caisses d'Epargne

We have a team whose members were chosen on principles of jurisdiction and non-membership. Our choice is focused from the outset on Dominique Ferrero and this decision is today, Charles Milhaud and myself, particularly wise. It is an advantage to be known and practised in the past. This will allow me furthermore to perform my duties as head of the Groupe Banque Populaire investing me in the Chair of the Executive Board of Natixis.

When you appoint the fifth member of the Executive Board

It is not expected to strengthen the Executive Board in the coming months. The Natixis articles provide that the number of members may be, if need be, to seven. But each thing in its time: such an extension will be if it appears that the powers of the Executive Board must be completed. My ambition would find leaders in the Caisses d'Epargne, Banques Populaires, or Natixis. Failing this, need to recruit outside.

Is the logical from the creation of Natixis not the merger of the central bodies of the two groups

The subject is not news. We have the means, with the new organization, to continue to develop sustainably. But not extent the future. Will be when the time comes, if the leaders of the two groups must be other steps, consider the decision them up.

In your mind, is there a group built around the BFI or three groups (two retail banks and a BFI)

There are two groups and Natixis, which develops six trades, including the BFI. Together, they can now mobilize a massive firepower on three levels: the stock market for Natixis, debt and equity to the central bodies, the surplus equity for the parent companies of the Caisses d'Epargne and Banques Populaires.

What will be the distribution of Natixis policy

We planned to distribute half of the net dividend in 2006 and, if possible, the following years.

Is Natixis intended to serve as a tool of external growth common to both groups, especially overseas retail banking

The priority of Natixis is to focus on crafts belonging to its perimeter and success integration within 18 months. It is therefore not intended to acquire retail networks in emerging countries, sometimes high prices on the synergies that it is possible to identify. But our two groups have shown in the past their ability to make movement the time come.