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French Bank Natixis Reports 15% Rise in Net Profit

Shares in Natixis jumped Thursday after the French bank said first-half net profit rose 15% that it had reduced its exposure to the U.S. subprime market.

Natixis said net profit rose to 1.57 billion euros ($2.14 billion) from 1.36 billion euros, boosted by a 178 million euros ($242 million) profit from restructuring its asset management division.

The shares gained 6.4% to 15.70 euros ($21.40) in late morning trading in Paris, after climbing nearly 10% earlier in the session.

Natixis said it had eliminated all of its direct financing to so-called subprime borrowers in the U.S. from 1.5 billion euros ($2.04 billion) at the end of last year.

Still, the bank has 281 million euros ($383 million) outstanding in subprime-linked loans that are awaiting securitization. It also has some indirect exposure on debt structures linked to subprime loans.