Paris, November 7, 2017
Third-Quarter 2017 and Nine-Month 2017
Results
NET INCOME up 29% to €383m in 3Q17 and 31% to
€1.151bn in 9M17
3Q17 Net revenues up 10% across core
businesses, fueled by inveST. solutions
INVESTMENT SOLUTIONS: improving fee rates in
Asset Management and sound performance in insurance
- Asset Management: Net revenues up 18% in 3Q17
with fee rates expansion in both Europe and the US driven by a
positive mix effect. Net inflows of €3bn in 3Q17 (including €5bn
on long-term products) and AuM standing at €813bn at
end-September 2017 (including €23bn transfer out of CNP life
insurance assets). Strategic reinforcement in the Asia-Pacific
region with the acquisition of a 51.9% stake in Australian asset
manager Investors Mutual Ltd.
- Insurance: Overall turnover of €2.5bn, up 31% vs.
3Q16, excluding reinsurance agreement with CNP. Acquisition of
the remaining 40% of BPCE Assurances from Macif and Maif(1).
CIB: acceleration in investment banking
activities and m&a
- Global finance & Investment banking: Net revenues
down slightly in 3Q17 (-1% YoY) and up 8% in 9M17. Investment
Banking and M&A revenues up 13% in 3Q17 (+44% in 9M17 of which
+82% for M&A).
- Global markets: Net revenues up 17% (excluding
CVA/DVA) in 9M17, despite a slowdown in 3Q17 (-9% YoY due
to last year's relatively high basis of comparison as 3Q16
benefited from post Brexit volatility).
SFS: net revenues up 5% vs.
3Q16
- Strong business momentum in Specialized financing (Net
revenues up 6% YoY in 3Q17).
- Revenues from Payments up 4% vs. 3Q16. Finalization of
the Dalenys acquisition.
sharp increase in profitability in 3Q17 and
9M17(2)
- Core businesses net revenues up 10% in 3Q17 (€2.1bn)
and 12% in 9M17 (€6.6bn)
- Cost-income ratio improving by 250bps vs. 9M16 at
68.1%
- Marked contraction in the cost of risk for core
businesses to 14bps in 3Q17 and 23bps in 9M17
- Core businesses ROE of 13.2% in 3Q17 (+90bps vs. 3Q16)
and 15.1% in 9M17 (+210bps vs. 9M16)
- Natixis ROTE of 10.3% in 3Q17 (+130bps vs. 3Q16)
and 12.2% in 9M17 (+230bps vs. 9M16)
further decline in rwa and Reinforcement of the cet1
ratio
- €111.7bn of RWA, down 3% since the beginning of the year.
CET1 ratio(3) of 11.5% at end-September 2017
(+20bps vs. end-June 2017) factoring in a minimum dividend payout
of 50%.
(1) Transaction announced on September 7, 2017
and subject to approval from ACPR (2) Excluding exceptional items
and the IFRIC 21 impact for cost income ratio, ROE, and ROTE (2)
Based on CRR-CRD4 rules published on June 26, 2013, including the
Danish compromise - no phase-in except for DTAs on loss
carry-forwards (4) Subject to confirmation of the pre-notification
received from the ECB
The Board of Directors approved Natixis'
accounts for the third quarter of 2017 on November 7, 2017.
For Natixis, the main features of 3Q17
were:
- a 10% YoY increase in net revenues for core businesses, to
€2.068bn. Partly driven by a positive momentum at Coface,
Natixis grew overall revenues 15% YoY to €2.205bn.
The Investment Solutions business
experienced a 17% YoY increase in revenues fueled by solid activity
levels and improved product-mix in both Asset Management (net
revenues +18% YoY to €716m) and Insurance (net revenues +12% YoY to
€174m).
Asset Management recorded €3bn of net
inflows in 3Q17, with €5bn inflows on high value-added long-term
products outweighing €2bn outflows on money-market products. Assets
under management reached €813bn at end-September, including the
transfer out of €23bn of CNP Assurances assets during the
quarter.
In Insurance, overall turnover (excluding
reinsurance agreement with CNP) progressed 31% YoY to €2.5bn,
driven by a sound momentum in all segments.
Net revenues from Corporate & Investment
Banking rose 4% YoY. Excluding non-recurring items, they
declined 5% YoY to €787m. 3Q17 witnessed lower client activity in
capital markets relative to 3Q16 which benefited from the high
volatility sparked by the Brexit vote at the end of June 2016.
Investment Banking and M&A fared well, with revenues expanding
13% YoY.
Specialized Financial Services grew net
revenues 5% to €341m, with Specialized Financing rising 6% and
Financial Services 3%.
- a cost-income ratio, excluding IFRIC21(1),
of 70% in 3Q17, down 80bps YoY,
- a drop of provisions for credit losses across core
businesses to €28m vs. €62m in 3Q16, reflecting a
significant improvement in Corporate & Investment
Banking,
- a 29% growth in net income (group share) to €383m,
- core businesses ROE(1) of 13.2% excluding
IFRIC 21,
- a CET1 ratio(2) of 11.5% at end-September 2017,
- a leverage ratio(1) of 4.2% à
end-September 2017.
Laurent Mignon, Natixis Chief Executive
Officer, said: "Our solid third-quarter results and good
performances since the start of 2017 testify to the success of our
New Frontier strategic plan due for completion at year-end. During
the course of the plan, we have achieved our goal of becoming an
exclusively client-focused bank that delivers high value-added and
non-capital intensive solutions. We have expanded our international
footprint in asset management and Corporate & Investment
Banking, set up a single insurance arm to serve Groupe BPCE and its
two large networks, and continued to develop synergies with them in
terms of services and specialized financings.I would like to thank
all of our staff for their work and general dynamism during this
period. Their efforts have ensured Natixis is now widely recognized
for the strength of its expertise, and enjoys both financial
solidity and strong profitability. These achievements provide a
sound basis to begin executing on our new strategic plan which will
be unveiled on November 20."
- See note on methodology
- Based on CRR-CRD4 rules published on June 26, 2013, including
the Danish compromise without phase-in except for DTAs on tax-loss
carryforwards
1 - Natixis 3Q17 and
9M17 results
| €m |
|
3Q17 |
|
3Q17 |
o/wrecurring |
o/w exceptional |
|
9M17 |
9M17 |
o/wrecurring |
o/w exceptional |
|
reported |
vs. 3Q16 |
|
reported |
vs. 9M16 |
| Net
revenues |
|
2,205 |
|
15% |
2,231 |
(26) |
|
6,961 |
12% |
7,047 |
(86) |
| o/w core
businesses |
|
2,068 |
|
10% |
2,068 |
|
|
6,585 |
12% |
6,585 |
|
|
Expenses |
|
(1,530) |
|
6% |
(1,515) |
(15) |
|
(4,895) |
7% |
(4,842) |
(54) |
| Gross operating
income |
|
674 |
|
41% |
715 |
(41) |
|
2,066 |
27% |
2,205 |
(139) |
| Provision
for credit losses |
|
(55) |
|
(20)% |
(55) |
|
|
(193) |
(21)% |
(193) |
|
| Pre-tax
profit |
|
623 |
|
21% |
664 |
(41) |
|
1,917 |
29% |
2,056 |
(139) |
| Income tax |
|
(181) |
|
(2)% |
(194) |
13 |
|
(650) |
15% |
(695) |
45 |
| Minority
interests |
|
(59) |
|
73% |
(59) |
|
|
(116) |
|
(116) |
|
| Net income - group
share |
|
383 |
|
29% |
411 |
(28) |
|
1,151 |
31% |
1,245 |
(94) |
1.1
exceptional items
| €m |
|
|
3Q17 |
3Q16 |
|
9M17 |
9M16 |
|
| Exchange
rate fluctuations on DSN in currencies (Net revenues) |
|
Corporate
center |
(26) |
(3) |
|
(86) |
(10) |
|
Transformation & Business Efficiency Investment costs(1)
(Expenses) |
|
Business
lines & Corporate center |
(15) |
|
|
(35) |
|
|
Non-recurring additional Corporate Social Solidarity Contribution
resulting from agreement with CNP (Expenses) |
|
Insurance |
|
|
|
(19) |
|
| Goodwill
impairment on Coface (Change in value of goodwill) |
|
Financial
investments |
|
|
|
|
(75) |
| SWL
litigation (Net revenues) |
|
CIB |
|
(69) |
|
|
(69) |
| FV
adjustment on own senior debt (Net revenues) |
|
Corporate
center |
|
(110) |
|
|
(136) |
| Gain from
disposal of operating property assets (Gain or loss on other
assets) |
|
Corporate
center |
|
97 |
|
|
97 |
| Impact in
income tax |
|
|
13 |
29 |
|
45 |
41 |
| Impact in
minority interests |
|
|
|
|
|
|
44 |
| |
|
|
|
|
|
|
|
|
Total impact in net income (gs) |
|
|
(28) |
(56) |
|
(94) |
(109) |
- o/w €9m in Corporate Center in 3Q17 and €25m in 9M17
1.2
3Q17 results
| Excluding exceptional
items(1) |
|
3Q17 |
3Q16 |
|
3Q17 |
| €m |
vs. 3Q16 |
| Net
revenues |
|
2,231 |
2,106 |
|
6% |
| o/w core
businesses |
|
2,068 |
1,955 |
|
6% |
|
Expenses |
|
(1,515) |
(1,447) |
|
5% |
| Gross operating
income |
|
715 |
659 |
|
9% |
| Provision
for credit losses |
|
(55) |
(69) |
|
(20)% |
| Pre-tax
profit |
|
664 |
601 |
|
10% |
| Income tax |
|
(194) |
(213) |
|
(9)% |
| Minority
interests |
|
(59) |
(34) |
|
73% |
| Net income - (gs) -
restated |
|
411 |
354 |
|
16% |
| |
|
|
|
|
|
| €m |
|
3Q17 |
3Q16 |
|
3Q17 |
|
vs. 3Q16 |
| Restatement of IFRIC 21
impact |
|
(42) |
(39) |
|
|
| Net income - (gs) -
restated excl. |
|
369 |
315 |
|
17% |
| IFRIC
impact |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ROTE excl. IFRIC 21
impact |
|
10.3% |
9.0% |
|
+1.3pp |
- See page 3
Unless stated otherwise, the following
comments refer to results excluding exceptional items (see detail
p3).
Natixis posted €2.231bn in net revenues in
3Q17, a 6% increase YoY.
Net revenues from core businesses also
progressed 6% YoY, reaching €2.068bn. Asset Management (+18%),
Insurance (+12%) and Specialized Financing (+6%) all experienced
significant growth. One year after the launch of the Fit-to-Win
strategic plan, Coface registered a marked improvement in activity
levels. Coface net revenues were up 35% YoY in 3Q17 and fueled a
25% increase in revenues from the Financial Investments
segment. Operating expenses came out at €1.515bn in
3Q17, a 5% YoY increase that is below revenue growth, resulting in
a cost-income ratio excluding IFRIC 21 falling 80bps vs. 3Q16 to
70%.
Gross operating income rose 9% to €715m
in 3Q17 vs. 3Q16.
Provisions for credit losses declined 20%
YoY to €55m despite a €22m provision allocated to the general
reserve in the Corporate Center. Expressed in basis points relative
to the loan book (excluding credit institutions), provisions for
credit losses across core businesses worked out to 14bps in 3Q17
vs. 30bps in 3Q16, the marked improvement being fueled by Corporate
& Investment Banking.
Tax expense dropped 9% YoY in 3Q17, with
the effective tax rate equating to 29%.The 73% YoY rise in
minority interests stemmed from the much-improved
contribution from Coface and higher performance fees generated by
certain European asset management affiliates.
Net income (group share) adjusted for
IFRIC 21 impacts and excluding exceptional items came out at €369m
in 3Q17, a 17% YoY increase. Including exceptional items (-€28m
impact net of tax in 3Q17) and IFRIC 21 (+€42m impact in 3Q17),
reported net income (group share) progressed 29%
YoY to €383m.
Excluding IFRIC 21, Natixis' ROTE equated to
10.3% and core businesses ROE amounted to 13.2%, up 130bps and
90bps respectively, relative to 3Q16.
1.3
9M17 results
| Excluding exceptional
items(1) |
|
9M17 |
9M16 |
|
9M17 |
| €m |
vs. 9M16 |
| Net
revenues |
|
7,047 |
6,414 |
|
10% |
| o/w core
businesses |
|
6,585 |
5,964 |
|
10% |
|
Expenses |
|
(4,842) |
(4,574) |
|
6% |
| Gross operating
income |
|
2,205 |
1,839 |
|
20% |
| Provision
for credit losses |
|
(193) |
(245) |
|
(21)% |
| Pre-tax
profit |
|
2,056 |
1,679 |
|
22% |
| Income tax |
|
(695) |
(608) |
|
14% |
| Minority
interests |
|
(116) |
(84) |
|
38% |
| Net income - (gs) -
restated |
|
1,245 |
987 |
|
26% |
| |
|
|
|
|
|
| €m |
|
9M17 |
9M16 |
|
9M17 |
|
vs. 9M16 |
| Restatement of IFRIC 21
impact |
|
42 |
39 |
|
7% |
| Net income - (gs) -
restated excl. |
|
1,287 |
1,026 |
|
25% |
| IFRIC
impact |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ROTE excl. IFRIC 21
impact |
|
12.2% |
9.9% |
|
+2.3pp |
- See page 3
Unless stated otherwise, the following
comments refer to results excluding exceptional items (see detail
p3).
Natixis posted net revenues of €7.047bn in
9M17, a 10% increase compared to the year-earlier
period.
During the first nine months of the year,
core businesses net revenues increased by 10% to €6.585bn,
driven by solid performances in Global Markets in 1H17 and robust
momentum in Asset Management and Insurance since the beginning of
the year.
Net revenues from Financial Investments inched
up 1% YoY and reflected the completion of the process of divesting
Corporate Data Solutions entities in 2Q17 and the continued
improvement in Coface revenues since the beginning of the year,
testifying to the measures implemented as part of the Fit-to-Win
strategic plan.
Operating expenses amounted to €4.842bn
vs. €4.574bn in 9M16.
The cost-income ratio excluding IFRIC 21
fell 2.5pp YoY in 9M17 and reached 68.1%.
Gross operating income rose 20% YoY to
€2.205bn.
Natixis overall provisions for credit
losses totaled €193m, a 21% decrease relative to 9M16. This
drove a 22% improvement in pre-tax profit to €2.056bn during
the same period.
The effective tax rate of 34% in 9M17 is in line
with the annual trajectory.
Net income (group share), adjusted for
IFRIC 21 impacts and excluding exceptional items, came out at
€1.287bn in 9M17, a 25% increase YoY. Including exceptional items
(-€94m impact net of tax in 9M17) and IFRIC 21 (-€42m impact in
9M17), reported net income (group share) progressed
31% YoY to €1.151bn.
Excluding IFRIC 21, Natixis' ROTE equated to
12.2% and core businesses ROE amounted to 15.1%, up 230bps and
210bps respectively, relative to 9M16.
2 - Financial structure
Natixis' Basel 3 CET1 ratio(1) worked out
to 11.5% at September 30, 2017.
Based on a Basel 3 CET1 ratio of 11.3% at June
30, 2017, the respective impacts in the third quarter of 2017 were
as follows:
- effect of allocating net income (group share) to retained
earnings in 3Q17: +34bps,
- planned dividend for 3Q17: -16bps,
- RWA, FX and other effects: +3bps.
Basel 3 capital and risk-weighted
assets(1) amounted to €12.9bn and €111.7bn respectively at
September 30, 2017.
EQUITY CAPITAL - TIER ONE CAPITAL - BOOK
VALUE PER SHARE
Equity capital (group share) totalled
€19.7bn at September 30, 2017, of which €2.1bn was in the form of
hybrid securities (DSNs) recognized in equity capital at fair value
(excluding capital gain following reclassification of hybrids).
Core Tier 1 capital (Basel 3 - phase-in)
stood at €12.8bn and Tier 1 capital (Basel 3 - phase-in) at
€14.6bn.
Natixis' risk-weighted assets totalled
€111.7bn at September 30, 2017 (Basel 3 - phase-in), breakdown as
follows:
- Credit risk: €78.0bn
- Counterparty risk: €7.2bn
- CVA risk: €2.2bn
- Market risk: €10.3bn
- Operational risk: €14.0bn
Under Basel 3 (phase-in), the CET1 ratio
amounted to 11.4%, the Tier 1 ratio to 13.1% and the
total solvency ratio to 15.3% at September 30,
2017.
Book value per share was €5.54 at
September 30, 2017 based on 3,136,961,140 shares excluding treasury
stock (the total number of shares stands at 3,137,360,238).
Tangible book value per share (after deducting
goodwill and intangible assets) was €4.43.
LEVERAGE RATIO (2)
The leverage ratio worked out to 4.2% at
September 30, 2017.
OVERALL CAPITAL ADEQUACY RATIOAs at
September 30, 2017, the financial conglomerate's capital excess was
estimated at around €3bn.
- Based on CRR-CRD4 rules as reported on June 26, 2013, including
the Danish compromise - without phase-in except for DTAs on
tax-loss carryforwards
- See note on methodology
- - results by Business line
Investment SolutionsData excludes
exceptional items(1)
|
€m |
3Q17 |
3Q16 |
3Q17 vs. 3Q16 |
9M17 |
9M17 vs. 9M16 |
9M17 vs. 9M16. constant exchange rate |
| Net
revenues |
940 |
804 |
17% |
2,750 |
12% |
12% |
| o/w Asset
management |
716 |
609 |
18% |
2,079 |
12% |
12% |
| o/w
Insurance |
174 |
155 |
12% |
538 |
13% |
|
| o/w Private
Banking |
36 |
34 |
7% |
100 |
(1)% |
|
|
Expenses |
(622) |
(558) |
11% |
(1,866) |
8% |
8% |
| Gross operating
income |
318 |
246 |
29% |
884 |
21% |
20% |
| Provision for credit
losses |
0 |
0 |
|
0 |
|
|
| Gain or
loss on other assets |
0 |
0 |
|
9 |
(52)% |
|
|
Pre-tax profit |
319 |
249 |
28% |
902 |
19% |
19% |
| |
|
|
|
|
|
|
| Cost/income
ratio(1) |
66.7% |
69.8% |
-3.1pp |
67.7% |
-2.3pp |
|
| ROE after tax(1) |
15.2% |
12.9% |
+2.3pp |
14.7% |
+1.0pp |
|
- See note on methodology and excluding IFRIC 21 impact on
the calculation of the cost-income ratio and ROE
During 3Q17, the Investment Solutions
business recorded a significant revenues increase in Asset
Management (net revenues +18% YoY), partly driven by improved fee
rates in both Europe and the US, and in Insurance (+12% YoY),
fueled by solid activity levels in both life and non-life
segments.
On a year-on-year basis, net revenues from
Investment Solutions progressed 17% in 3Q17 and 12% in 9M17 to
reach €940m and €2.750bn respectively. Over the same periods,
operating expenses increased by 11% and 8% respectively, resulting
in a 3.1pp drop in the cost-income ratio in 3Q17 and 2.3pp in 9M17,
excluding IFRIC 21 impacts.
Gross operating income improved 29% YoY in 3Q17
and 21% in 9M17.
The "Gain or loss on other assets" line included
€9m of proceeds from the divestment of the Caspian private equity
funds in 1Q17.
ROE after tax and excluding IFRIC 21 amounted to
15.2% in 3Q17, up 2.3pp compared to 3Q16. The 9M17 ratio was 1.0pp
higher than in 9M16.
Net revenues from Asset Management
progressed 18% YoY in 3Q17 to reach €716m (+21% at constant
exchange rates) and included increases of 40% in Europe to €228m
and 6% in the US to €393m.
Expenses remained under control, rising 13% in
3Q17 and 8% in 9M17 relative to the respective year-earlier
periods. Gross operating income advanced 29% in 3Q17 and 21% in
9M17.
In 3Q17, margins excluding performance fees
reached 30.1bps (+2.2bps YoY) and progressed by 1.8bps in Europe to
14.5bps and 0.9bps in the US to 39.3bps. In 9M17, margins worked
out to 28.8bps, up 0.5bps YoY.
This margin growth was driven by an improved mix
linked to the €3bn overall net inflows recorded in 3Q17, resulting
from €2bn outflows on money-market products and €5bn inflows on
long-term products. Out of these inflows, €4bn were booked by
European affiliates on higher value-added products such as
alternative funds, equities and real assets.
Assets under management amounted to €813bn at
end-September. During the quarter, positive market effects (impact
of +€13bn) offset negative exchange-rate movements (impact of
-€14bn). The decline in AuM relative to June 30 is linked to the
transfer out of €23bn of CNP life insurance assets, with a limited
impact on revenues of -€1.6m for a full year.
Natixis announced on October 3, 2017
the acquisition of a majority stake (51.9%) in Investors Mutual
Limited (IML) in Australia, which becomes a new affiliate of
Natixis Global Asset Management. With IML, a well-established
asset manager with AuM of AU$9.1bn (€6.1bn), Natixis Global Asset
Management achieves its first major acquisition in Australia and
increases its exposure to the local retail market and the
Australian superannuation industry. In addition, with IML, Natixis
Global Asset Management is reinforcing its distribution platform in
Australia, following the establishment of an office in Sydney in
2015. This marks an important step in Natixis Global Asset
Management's ambition to expand its presence in Australia and APAC
as a whole.
In Insurance, overall turnover excluding
reinsurance agreement with CNP amounted to €8.9bn in 9M17, up 63%
YoY. Growth was driven by increases of 11% in the Personal
Protection and Payment Protection segment and 8% in the Property
& Casualty segment. In Life Insurance, turnover jumped 84% YoY
in 9M17, reflecting the successful rollout of the new product range
in the Caisse d'Epargne networks.
Unit-linked instruments accounted for 49% of
Life Insurance net inflows in 9M17 (+15pp YoY) and 35% of gross
inflows, well above the 28% average for the market as a whole
(source: FFA at end-September 2017).
Insurance AuM expanded 15% and reached €53bn at
end-September 2017.
On September 7, 2017, Natixis announced
the signature of an agreement(1) for Natixis Assurances to acquire
40% of BPCE Assurances from Macif (25%) and Maif (15%). Following
this transaction, Natixis Assurances will be BPCE Assurances' sole
shareholder.BPCE Assurances is France's third-largest
bancassurer(2) and markets Property & Casualty insurance
products for Caisses d'Epargne customers and health insurance
products for Caisses d'Epargne and Banque Populaire customers.
- Completion of the transaction subject to approval from
the France's Autorité de Contrôle Prudentiel et de Résolution (2)
Argus de l'Insurance - 2016 bancassurance rankings
Corporate & Investment
BankingData excludes exceptional items(1)
| €m |
3Q17 |
3Q16 |
3Q17 |
9M17 |
9M17 |
|
vs. 3Q16 |
|
vs. 9M16 |
| Net
revenues |
787 |
826 |
(5)% |
2,803 |
12% |
| Net
revenues excl. CVA/DVA |
780 |
813 |
(4)% |
2,774 |
13% |
| o/w Global
Markets |
361 |
397 |
(9)% |
1,500 |
17% |
| o/w Global
Finance & IB |
406 |
412 |
(1)% |
1,279 |
8% |
|
Expenses |
(500) |
(468) |
7% |
(1,614) |
10% |
| Gross operating
income |
288 |
358 |
(20)% |
1,189 |
15% |
| Provision
for credit losses |
(16) |
(50) |
(67)% |
(94) |
(46)% |
|
Pre-tax profit |
274 |
310 |
(12)% |
1,103 |
27% |
| |
|
|
|
|
|
| Cost/income
ratio(1) |
64.6% |
58.0% |
+6.6pp |
57.2% |
-1.0pp |
| ROE after tax(1) |
11.5% |
11.5% |
stable |
15.5% |
+4.1pp |
- See note on methodology and excluding IFRIC 21 impact on the
calculation of the cost-income ratio and ROE
After the robust momentum observed in 1H17, net
revenues from Corporate & Investment Banking declined in
3Q17 relative to 3Q16. The slowdown came from Capital Markets
whilst Investment Banking and M&A activities continued to make
strong progress. For 9M17 as a whole, CIB posted €2.803bn in net
revenues, up 12% YoY.
International platforms raised their
contribution to overall CIB revenues from 54% in 9M16 to 57% in
9M17, driven by strong momentum on the Asia-Pacific platform, where
revenues climbed 44% YoY in 9M17.
Operating expenses amounted to €1.614bn in 9M17
vs. €1.462bn a year earlier while the cost-income ratio excluding
IFRIC 21 declined 1.0pp YoY to 57.2%.
Gross operating income made solid progress,
advancing 15% YoY to €1.189bn in 9M17, despite a lower 3Q17.
Provisions
for credit losses continued to come down to reach €16m in 3Q17
(-67% vs. 3Q16) and €94m in 9M17
(-46% vs.
9M16). Pre-tax
profit climbed 27% YoY in 9M17.
ROE after tax and excluding IFRIC 21 came out
unchanged at 11.5% in 3Q17 relative to a year earlier and rose
4.1pp again on a YoY basis in 9M17, thanks notably to a tight grip
on RWAs (-7% YoY).
Excluding CVA/DVA effects, net revenues from
Global Markets increased 17% YoY to €1.500bn in 9M17. This
growth was achieved despite a slowdown in 3Q17, particularly in
FIC-T, due to last year's relatively high basis of comparison as
3Q16 benefited from the volatility that followed the Brexit vote at
end-June 2016.
FIC-T posted net revenues of €259m in 3Q17 and
€1.017bn in 9M17 (+13% vs. 9M16). The Rates segment saw revenues
increase 31% YoY in 9M17, fueled by robust client activity. The
Securities Financing Group(1) and GSCS segments also performed
strongly over the period, expanding revenues by 39% and 10%
respectively.
Equities grew net revenues by 26% YoY in 9M17,
despite weak volatility in 3Q17 which led to a 4% decline in
revenues vs. 3Q16.
Net revenues from Global Finance &
Investment Banking progressed 8% YoY in 9M17 to reach €1.279bn
and were relatively stable YoY in 3Q17.
Within Global Finance, origination activities
lifted revenues 11% YoY in 9M17. New structured financing
production remained relatively flat during the period, though GEC
and Real Estate Finance both enjoyed strong momentum. Aviation,
Export & Infrastructure finance also fared very well in 3Q16
(new production up 47% in 3Q17 vs. 3Q16).
Investment Banking and M&A expanded revenues
by 44% in 9M17 vs. 9M16, with M&A standalone showing an 82%
increase during the same period.
(1) Merger of the Fixed
Income and Treasury businesses' repo and collateral management
activities
Specialized Financial ServicesData excludes
exceptional items(1)
| €m |
3Q17 |
3Q16 |
3Q17 |
9M17 |
9M17 |
|
vs. 3Q16 |
|
vs. 9M16 |
| Net
revenues |
341 |
325 |
5% |
1,032 |
2% |
| Specialized
financing |
214 |
203 |
6% |
651 |
4% |
| Financial
services |
126 |
122 |
3% |
381 |
stable |
|
Expenses |
(227) |
(215) |
5% |
(685) |
4% |
| Gross operating
income |
114 |
110 |
4% |
347 |
stable |
| Provision for credit
losses |
(13) |
(12) |
10% |
(49) |
17% |
|
Pre-tax profit |
101 |
98 |
3% |
298 |
(12)% |
| |
|
|
|
|
|
| Cost/income
ratio(1) |
67.2% |
67.0% |
+0.2pp |
66.1% |
+0.9pp |
| ROE after
tax(1)(2) |
14.5% |
14.4% |
+0.1pp |
14.8% |
-1.5pp |
- See note on methodology and excluding IFRIC 21 impact on the
calculation of the cost-income ratio and ROE
- Excluding capital gain on real-estate asset in 2Q16
Net revenues from Specialized Financial
Services grew 5% YoY in 3Q17, with Specialized Financing rising
6% and Financial Services 3% in the same period. For 9M17 as whole,
net revenues increased 2% to €1.032bn.
In 3Q17, revenues progressed 13% YoY in Sureties
& Guarantees and 6% in Leasing and Consumer Finance. Employee
Savings Schemes and Payments improved net revenues by 6% and 4%
respectively, during the same period.
Operating expenses in Specialized Financial
Services increased 5% YoY in 3Q17. After restating for changes in
the scope of consolidation, expenses rose 3% and the cost-income
ratio excluding IFRIC 21 declined 80bps YoY to 66.2%.
Provisions for credit losses worked out to €13m
in 3Q17 and €49m in 9M17.
Pre-tax profit amounted to €101m in 3Q17, up 3%
vs. 3Q16.
ROE after tax and excluding IFRIC 21 equated to
14.8% in 9M17 vs. 16.3% in 9M16 excluding the €31m gain on the
divestment of a building booked in 2Q16 under "Other assets". ROE
was unchanged in 3Q17 at 14.5%.
Financial
Investments
Data excludes exceptional items(1)
| €m |
3Q17 |
3Q16 |
3Q17 |
9M17 |
9M17 |
|
vs. 3Q16 |
|
vs. 9M16 |
| Net
revenues |
171 |
137 |
25% |
480 |
1% |
| Coface |
161 |
119 |
35% |
438 |
7% |
| Corporate Data
Solutions |
0 |
8 |
|
10 |
(69)% |
| Other |
10 |
10 |
3% |
31 |
(8)% |
|
Expenses |
(135) |
(151) |
(11)% |
(433) |
(7)% |
| Gross operating
income |
36 |
(14) |
|
47 |
|
| Provision for credit
losses |
(4) |
(7) |
(46)% |
(14) |
(56)% |
| Gain or
loss on other assets |
0 |
7 |
|
22 |
27% |
|
Pre-tax profit |
33 |
(17) |
|
57 |
|
(1) See note on methodology
Net revenues from Financial Investments
grew 25% YoY in 3Q17, buoyed by markedly higher revenues at Coface,
testifying to the initial benefits of the measures implemented as
part of the Fit-to-Win plan. The strategy of divesting Corporate
Data Solutions entities was completed by the sale of Ellisphère in
2Q17 which generated a €22m gain booked under "Gain or loss on
other assets".
Pre-tax profit amounted to €57m in 9M17 vs. a
€7m loss in 9M16.
In 3Q17, Coface net revenues advanced 56%
YoY at constant scope and exchange-rate (+35% in current terms) and
reached €163m. Claims expense was well down, particularly in Asia
and North America, with the loss ratio falling to 46.3% in 3Q17 vs.
72.4% in 3Q16. The cost ratio worked out to 35.4% vs. 36.9% in
3Q16, excluding the public guarantee management business. All in
all, the combined ratio net of reinsurance amounted to 81.6%.
In 9M17, Coface net revenues advanced 19%
YoY at constant scope and exchange-rate (+7% in current terms) and
reached €439m. Excluding the public guarantee management business -
sold on January 1, 2017 - the combined ratio net of reinsurance
would have worked out to 89.8% in 9M17, 10pp lower than the 99.8%
in 9M16. The loss ratio was down 10.2pp relative to 9M16 at 54.4%
thereby leading to a full-year 2017 target of below 54% (vs. 58%
previously). Cost savings amounted to €12m in 9M17 and were
ahead of the trajectory set out in the plan.
Coface confirmed the objectives included in the
strategic plan, namely €30m of cost savings in 2018 and a combined
ratio of 83% throughout the cycle.
Appendices
Note on methodology:
The results at 09/30/2017 were examined by
the board of directors at their meeting on 11/07/2017.Figures
at 09/30/2017 are presented in accordance with IAS/IFRS accounting
standards and IFRS Interpretation Committee (IFRIC) rulings as
adopted in the European Union and applicable at this date.
2016 figures are presented pro forma of new
intra-pole organizations:
- CIB: The 1H16 quarterly series have been restated for
the change in CIB organization announced on
March 15, 2016. The new presentation of businesses within
CIB mainly takes into account the creation of a new business line:
Global Finance & Investment banking housing all financing
businesses (structured & plain vanilla financing), as well as
M&A, Equity Capital Markets, and Debt Capital Markets.
- SFS: Within Financial services, transfer of the
Intertitres activity from Employee savings scheme to the Payments
business. Employee savings scheme becomes Employee savings plans.
The 2016 series have been restated accordingly to this new
organization.
2017 presentation: transfer of short term
treasury activities run by Treasury & collateral management
department from FIC-T in CIB to Financial Management
Division in 04/01/2017 in accordance with the French banking law.
To ensure comparability, in this presentation CIB refers to CIB
including Treasury & collateral management.
Business line performances using Basel 3
standards:
- The performances of Natixis business lines are presented using
Basel 3 standards. Basel 3 risk-weighted assets are based on
CRR-CRD4 rules as published on June 26th, 2013 (including the
Danish compromise treatment for qualified entities).
- Natixis' ROTE is calculated by taking as the numerator
net income (group share) excluding DSN interest expenses on
preferred shares after tax. Equity capital is average shareholders'
equity group share as defined by IFRS, after payout of dividends,
excluding average hybrid debt, average intangible assets and
average goodwill.
- Natixis' ROE: results used for calculations are net
income (group share), deducting DSN interest expenses on preferred
shares after tax. Equity capital is average shareholders' equity
group share as defined by IFRS, after payout of dividends,
excluding average hybrid debt, and excluding unrealized or deferred
gains and losses recognized in equity (OCI).
- ROE for business lines is calculated based on normative
capital to which are added goodwill and intangible assets for the
business line. Normative capital allocation to Natixis' business
lines is carried out on the basis of 10% of their average Basel 3
risk-weighted assets. Business lines benefit from remuneration of
normative capital allocated to them. By convention, the
remuneration rate on normative capital is maintained at 3%.
Net book value: calculated by taking
shareholders' equity group share, restated for hybrids and capital
gains on reclassification of hybrids as equity instruments. Net
tangible book value is adjusted for goodwill relating to equity
affiliates, restated goodwill and intangible assets as follows:
| In
€m |
09/30/2017 |
| Intangible assets |
716 |
|
Restatement for Coface minority interest & others |
(47) |
|
Restated intangible assets |
669 |
| In
€m |
09/30/2017 |
| Goodwill |
3,450 |
| Restatement for Coface
minority interests |
(165) |
|
Restatement for Investment Solutions deferred tax liability &
others |
(477) |
|
Restated goodwill |
2,808 |
Own senior debt fair-value adjustment:
calculated using a discounted cash-flow model, contract by
contract, including parameters such as swaps curve, and revaluation
spread (based on the BPCE reoffer curve). Adoption of IFRS 9
standards, on November 22, 2016, authorizing the early application
of provisions relating to own credit risk as of FY2016 closing. All
impacts since the beginning of the financial year 2016 are
recognized in equity, even those that had impacted the income
statement in the interim financial statements for March, June and
September 2016.
Leverage ratio: based on delegated act
rules, without phase-in except for DTAs on tax-loss carryforwards
and with the hypothesis of a roll-out for non-eligible subordinated
notes under Basel 3 by eligible notes. Repo transactions with
central counterparties are offset in accordance with IAS 32 rules
without maturity or currency criteria. Leverage ratio disclosed
including the effect of intragroup cancelation - pending ECB
authorization.
Exceptional items: figures and comments on
this press release are based on Natixis and its businesses' income
statements excluding non- operating and/or exceptional items
detailed page 3. Natixis and its businesses' income statements
including these items are available in the appendix of this press
release.
Restatement for IFRIC 21 impact: The
cost/income ratio and the ROE excluding IFRIC 21 impact calculation
in 9M17 takes into account three quarter of the annual duties and
levies concerned by this new accounting rule.
Earnings capacity: net income (group
share) restated for exceptional items and the IFRIC 21 impact.
Expenses: sum of operating expenses and
Depreciation, amortization and impairment on property, plant and
equipment and intangible assets.
3Q17 results: from data excluding
exceptional items to reported data
| |
|
|
|
|
|
|
|
|
| in
€m |
3Q17 excl. exceptional items |
|
Exchange rate fluctuations on DSN in currencies |
Transformation & Business Efficiency
Investment costs |
|
|
3Q17 reported |
|
| Net
revenues |
2,231 |
|
(26) |
|
|
|
2,205 |
|
|
Expenses |
(1,515) |
|
|
(15) |
|
|
(1,530) |
|
| Gross operating
income |
715 |
|
(26) |
(15) |
|
|
674 |
|
| Provision for credit
losses |
(55) |
|
|
|
|
|
(55) |
|
| Associates |
5 |
|
|
|
|
|
5 |
|
| Gain or loss on other
assets |
(1) |
|
|
|
|
|
(1) |
|
|
Pre-tax profit |
664 |
|
(26) |
(15) |
|
|
623 |
|
| Tax |
(194) |
|
8 |
5 |
|
|
(181) |
|
| Minority
interests |
(59) |
|
|
|
|
|
(59) |
|
| Net
income (group share) |
411 |
|
(18) |
(10) |
|
|
383 |
|
|
|
|
|
|
|
|
|
|
|
9M17 results: from data excluding exceptional items to
reported data
| |
|
|
|
|
|
|
|
|
|
| in €m |
9M17 excl. exceptional items |
|
Exchange rate fluctuations on DSN in currencies |
Transformation & Business Efficiency
Investment costs |
Non-recurring additional Corporate Social Solidarity
Contribution resulting from agreement with CNP |
|
|
9M17 reported |
|
| Net
revenues |
7,047 |
|
(86) |
|
|
|
|
6,961 |
|
| Expenses |
(4,842) |
|
|
(35) |
(19) |
|
|
(4,895) |
|
| Gross
operating income |
2,205 |
|
(86) |
(35) |
(19) |
|
|
2,066 |
|
| Provision
for credit losses |
(193) |
|
|
|
|
|
|
(193) |
|
|
Associates |
18 |
|
|
|
|
|
|
18 |
|
| Gain or loss on other assets |
27 |
|
|
|
|
|
|
27 |
|
| Pre-tax
profit |
2,056 |
|
(86) |
(35) |
(19) |
|
|
1,917 |
|
| Tax |
(695) |
|
28 |
11 |
6 |
|
|
(650) |
|
| Minority interests |
(116) |
|
|
|
|
|
|
(116) |
|
| Net income (group share) |
1,245 |
|
(58) |
(24) |
(13) |
|
|
1,151 |
|
|
|
|
|
|
|
|
|
|
|
|
Natixis - Consolidated
| in
€m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
3Q17 vs. 3Q16 |
|
9M16 |
9M17 |
9M17 vs. 9M16 |
|
|
| Net
revenues |
2,063 |
2,211 |
1,924 |
2,520 |
2,347 |
2,410 |
2,205 |
15% |
|
6,198 |
6,961 |
12% |
|
|
|
Expenses |
(1,605) |
(1,522) |
(1,447) |
(1,664) |
(1,771) |
(1,594) |
(1,530) |
6% |
|
(4,574) |
(4,895) |
7% |
|
|
| Gross operating
income |
458 |
689 |
477 |
856 |
576 |
815 |
674 |
41% |
|
1,624 |
2,066 |
27% |
|
|
| Provision for credit
losses |
(88) |
(88) |
(69) |
(60) |
(70) |
(67) |
(55) |
(20)% |
|
(245) |
(193) |
(21)% |
|
|
| Associates |
8 |
7 |
4 |
(6) |
7 |
6 |
5 |
6% |
|
19 |
18 |
(4)% |
|
|
| Gain or loss on other
assets |
29 |
31 |
104 |
12 |
9 |
18 |
(1) |
|
|
164 |
27 |
(84)% |
|
|
| Change in
value of goodwill |
0 |
(75) |
0 |
0 |
0 |
0 |
0 |
|
|
(75) |
0 |
|
|
|
| Pre-tax
profit |
407 |
564 |
516 |
801 |
523 |
772 |
623 |
21% |
|
1,486 |
1,917 |
29% |
|
|
| Tax |
(172) |
(211) |
(184) |
(255) |
(214) |
(255) |
(181) |
(2)% |
|
(567) |
(650) |
15% |
|
|
| Minority
interests |
(34) |
28 |
(34) |
(50) |
(28) |
(29) |
(59) |
73% |
|
(40) |
(116) |
|
|
|
| Net
income (group share) |
200 |
381 |
298 |
496 |
280 |
487 |
383 |
29% |
|
879 |
1,151 |
31% |
|
|
Natixis - Breakdown by Business division in
3Q17
|
in €m |
Investment Solutions |
CIB |
SFS |
Financial Investments |
Corporate Center |
|
3Q17 reported |
| Net
revenues |
940 |
787 |
341 |
171 |
(34) |
|
2,205 |
|
Expenses |
(624) |
(502) |
(228) |
(135) |
(41) |
|
(1,530) |
| Gross operating
income |
315 |
285 |
113 |
36 |
(75) |
|
674 |
| Provision
for credit losses |
0 |
(16) |
(13) |
(4) |
(22) |
|
(55) |
| Net operating
income |
315 |
268 |
100 |
33 |
(97) |
|
619 |
| Associates |
2 |
3 |
0 |
0 |
0 |
|
5 |
| Other
items |
(1) |
0 |
0 |
0 |
0 |
|
(1) |
|
Pre-tax profit |
316 |
271 |
100 |
33 |
(98) |
|
623 |
| |
|
|
|
Tax |
|
(181) |
| |
|
|
|
Minority interests |
|
(59) |
| |
|
|
|
Net income (gs) |
|
383 |
IFRIC 21 effects by business line
|
|
|
Effect in Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| in €m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
|
9M16 |
9M17 |
| Investment
Solutions |
(11) |
4 |
4 |
4 |
(28)
(1) |
9(2) |
9(2) |
|
(4) |
(9) |
| CIB |
(31) |
10 |
10 |
10 |
(28) |
9 |
9 |
|
(10) |
(9) |
| Specialized
Financial Services |
(7) |
2 |
2 |
2 |
(6) |
2 |
2 |
|
(2) |
(2) |
| Financial
Investments |
(2) |
1 |
1 |
1 |
(1) |
0 |
0 |
|
(1) |
0 |
| Corporate center |
(57) |
1 |
28 |
28 |
(92) |
34 |
29 |
|
(28) |
(29) |
| Total Natixis |
(107) |
18 |
45 |
45 |
(156) |
55 |
50 |
|
(45) |
(50) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect in Net Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in €m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
|
9M16 |
9M17 |
| Specialized Financial Services (Leasing) |
(2) |
1 |
1 |
1 |
(1) |
0 |
0 |
|
0 |
0 |
| Total Natixis |
(2) |
1 |
1 |
1 |
(1) |
0 |
0 |
|
0 |
0 |
- -€14m in recurring expenses and -€14m in non-recurring expenses
linked to the additional Corporate Social Solidarity Contribution
resulting from agreement with CNP
- €4.7m in recurring expenses and €4.7m in non-recurring expenses
linked to the additional Corporate Social Solidarity Contribution
resulting from agreement with CNP
Investment Solutions
| in
€m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
3Q17 vs. 3Q16 |
9M16 |
9M17 |
9M17 vs. 9M16 |
| Net
revenues |
825 |
832 |
804 |
904 |
891 |
920 |
940 |
17% |
2,460 |
2,750 |
12% |
|
Asset Management |
626 |
623 |
609 |
689 |
667 |
696 |
716 |
18% |
1,858 |
2,079 |
12% |
|
Private Banking |
34 |
33 |
34 |
35 |
34 |
30 |
36 |
7% |
101 |
100 |
(1)% |
|
Insurance |
167 |
156 |
155 |
169 |
187 |
177 |
174 |
12% |
478 |
538 |
13% |
|
Expenses |
(590) |
(579) |
(558) |
(623) |
(645) |
(620) |
(624) |
12% |
(1,727) |
(1,890) |
9% |
| Gross operating
income |
234 |
253 |
246 |
280 |
246 |
299 |
315 |
28% |
733 |
860 |
17% |
| Provision
for credit losses |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
0 |
0 |
|
| Net operating
income |
234 |
253 |
246 |
281 |
246 |
300 |
315 |
28% |
734 |
860 |
17% |
| Associates |
4 |
2 |
5 |
(10) |
4 |
3 |
2 |
(59)% |
11 |
9 |
(13)% |
| Other
items |
18 |
(2) |
(2) |
2 |
9 |
0 |
(1) |
|
14 |
8 |
(47)% |
|
Pre-tax profit |
256 |
253 |
249 |
273 |
259 |
302 |
316 |
27% |
759 |
877 |
16% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cost/Income ratio |
71.6% |
69.6% |
69.4% |
69.0% |
72.4% |
67.5% |
66.5% |
|
70.2% |
68.7% |
|
| Cost/Income ratio
excluding IFRIC 21 effect |
70.2% |
70.0% |
69.8% |
69.4% |
69.3% |
68.5% |
67.5% |
|
70.0% |
68.4% |
|
| RWA (Basel 3 - in
€bn) |
16.4 |
17.0 |
17.3 |
18.1 |
18.0 |
17.4 |
17.6 |
2% |
17.3 |
17.6 |
2% |
| Normative capital
allocation (Basel 3) |
4,350 |
4,381 |
4,467 |
4,491 |
4,641 |
4,609 |
4,477 |
stable |
4,399 |
4,575 |
4% |
| ROE after tax (Basel
3)(1) |
13.9% |
14.0% |
13.1% |
12.3% |
12.6% |
14.4% |
15.3% |
|
13.7% |
14.1% |
|
| ROE after tax (Basel 3)
excluding IFRIC 21 effect(1) |
14.5% |
13.8% |
12.9% |
12.1% |
14.3% |
13.8% |
14.7% |
|
13.7% |
14.3% |
|
- Normative capital allocation methodology based on 10% of the
average RWA-including goodwill and intangibles
Corporate & Investment Banking
| in
€m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
3Q17 vs. 3Q16 |
9M16 |
9M17 |
9M17 vs. 9M16 |
| Net
revenues |
782 |
887 |
757 |
896 |
984 |
1,032 |
787 |
4% |
2,426 |
2,803 |
16% |
| Global
Markets |
407 |
507 |
410 |
477 |
608 |
553 |
368 |
(10)% |
1,324 |
1,529 |
15% |
| FIC-T |
291 |
319 |
291 |
317 |
397 |
361 |
259 |
(11)% |
901 |
1,017 |
13% |
| Equity |
123 |
154 |
106 |
150 |
176 |
205 |
102 |
(4)% |
384 |
483 |
26% |
| CVA/DVA
desk |
(7) |
33 |
13 |
10 |
36 |
(13) |
7 |
(47)% |
39 |
29 |
(25)% |
| Global Finance &
Investment Banking |
362 |
407 |
412 |
412 |
400 |
472 |
406 |
(1)% |
1,181 |
1,279 |
8% |
| Other |
12 |
(26) |
(65) |
7 |
(25) |
7 |
13 |
|
(79) |
(5) |
(94)% |
|
Expenses |
(512) |
(482) |
(468) |
(569) |
(563) |
(552) |
(502) |
7% |
(1,462) |
(1,617) |
11% |
| Gross operating
income |
270 |
405 |
289 |
327 |
421 |
481 |
285 |
(1)% |
964 |
1,187 |
23% |
| Provision
for credit losses |
(71) |
(53) |
(50) |
(21) |
(29) |
(48) |
(16) |
(67)% |
(175) |
(94) |
(46)% |
| Net operating
income |
198 |
352 |
239 |
306 |
392 |
432 |
268 |
12% |
789 |
1,092 |
38% |
| Associates |
3 |
4 |
3 |
3 |
3 |
3 |
3 |
(13)% |
11 |
8 |
(26)% |
| Other
items |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
0 |
0 |
|
|
Pre-tax profit |
202 |
356 |
242 |
309 |
394 |
435 |
271 |
12% |
800 |
1,100 |
38% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cost/Income ratio |
65.5% |
54.4% |
61.8% |
63.5% |
57.2% |
53.4% |
63.8% |
|
60.3% |
57.7% |
|
| Cost/Income ratio
excluding IFRIC 21 effect |
61.5% |
55.5% |
63.2% |
64.7% |
54.4% |
54.3% |
65.0% |
|
59.9% |
57.3% |
|
| RWA (Basel 3 - in
€bn) |
67.0 |
68.8 |
64.9 |
66.1 |
64.4 |
61.3 |
60.4 |
(7)% |
64.9 |
60.4 |
(7)% |
| Normative capital
allocation (Basel 3) |
6,935 |
6,772 |
7,064 |
6,672 |
6,805 |
6,641 |
6,317 |
(11)% |
6,924 |
6,588 |
(5)% |
| ROE after tax (Basel
3)(1) |
7.9% |
14.2% |
9.3% |
13.6% |
16.1% |
18.0% |
11.7% |
|
10.4% |
15.3% |
|
| ROE after tax (Basel 3)
excluding IFRIC 21 effect(1) |
9.1% |
13.8% |
8.9% |
13.2% |
17.2% |
17.6% |
11.3% |
|
10.5% |
15.5% |
|
- Normative capital allocation methodology based on 10% of the
average RWA-including goodwill and intangibles
Specialized Financial Services
| in
€m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
3Q17 vs. 3Q16 |
9M16 |
9M17 |
9M17 vs. 9M16 |
| Net
revenues |
343 |
341 |
325 |
341 |
344 |
347 |
341 |
5% |
1,009 |
1,032 |
2% |
| Specialized
Financing |
214 |
211 |
203 |
210 |
219 |
217 |
214 |
6% |
628 |
651 |
4% |
|
Factoring |
38 |
39 |
40 |
43 |
40 |
40 |
39 |
(2)% |
117 |
118 |
1% |
|
Sureties & Financial Guarantees |
55 |
43 |
46 |
45 |
54 |
46 |
52 |
13% |
144 |
151 |
5% |
|
Leasing |
51 |
58 |
48 |
53 |
54 |
60 |
51 |
6% |
158 |
165 |
5% |
|
Consumer Financing |
65 |
66 |
64 |
64 |
66 |
66 |
67 |
6% |
194 |
199 |
2% |
|
Film Industry Financing |
5 |
6 |
5 |
6 |
5 |
7 |
5 |
3% |
16 |
17 |
9% |
| Financial
Services |
129 |
130 |
122 |
131 |
125 |
129 |
126 |
3% |
381 |
381 |
stable |
|
Employee savings plans |
22 |
25 |
20 |
21 |
21 |
22 |
21 |
6% |
67 |
65 |
(4)% |
|
Payments |
83 |
81 |
80 |
86 |
81 |
83 |
83 |
4% |
244 |
248 |
2% |
|
Securities Services |
24 |
23 |
23 |
24 |
23 |
23 |
22 |
(3)% |
70 |
68 |
(2)% |
|
Expenses |
(225) |
(220) |
(215) |
(220) |
(232) |
(227) |
(228) |
6% |
(661) |
(686) |
4% |
| Gross operating
income |
118 |
121 |
110 |
122 |
113 |
120 |
113 |
3% |
348 |
346 |
(1)% |
| Provision
for credit losses |
(13) |
(17) |
(12) |
(16) |
(21) |
(14) |
(13) |
10% |
(41) |
(49) |
17% |
| Net operating
income |
105 |
104 |
98 |
106 |
92 |
105 |
100 |
2% |
307 |
297 |
(3)% |
| Associates |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
0 |
0 |
|
| Other
items |
0 |
31 |
0 |
0 |
0 |
0 |
0 |
|
31 |
0 |
|
|
Pre-tax profit |
105 |
135 |
98 |
106 |
91 |
105 |
100 |
2% |
338 |
297 |
(12)% |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cost/Income ratio |
65.7% |
64.6% |
66.2% |
64.4% |
67.3% |
65.5% |
66.8% |
|
65.5% |
66.5% |
|
| Cost/Income ratio
excluding IFRIC 21 effect |
63.4% |
65.4% |
67.0% |
65.1% |
65.3% |
66.2% |
67.4% |
|
65.2% |
66.3% |
|
| RWA (Basel 3 - in
€bn) |
13.7 |
14.8 |
14.6 |
15.4 |
15.2 |
16.0 |
15.7 |
8% |
14.6 |
15.7 |
8% |
| Normative capital
allocation (Basel 3) |
1,629 |
1,626 |
1,730 |
1,709 |
1,885 |
1,813 |
1,827 |
6% |
1,662 |
1,841 |
11% |
| ROE after tax (Basel
3)(1) |
16.9% |
21.8% |
14.8% |
16.2% |
13.2% |
15.8% |
14.7% |
|
17.8% |
14.6% |
|
| ROE after tax (Basel 3)
excluding IFRIC 21 effect(1) |
18.3% |
21.3% |
14.4% |
15.8% |
14.3% |
15.5% |
14.4% |
|
17.9% |
14.7% |
|
- Normative capital allocation methodology based on 10% of the
average RWA-including goodwill and intangibles
Financial Investments
| in
€m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
3Q17 vs. 3Q16 |
|
9M16 |
9M17 |
9M17 vs. 9M16 |
| Net
revenues |
183 |
155 |
137 |
224 |
153 |
156 |
171 |
25% |
|
475 |
480 |
1% |
|
Coface |
156 |
133 |
119 |
197 |
131 |
146 |
161 |
35% |
|
409 |
438 |
7% |
|
Corporate data solutions |
15 |
9 |
8 |
10 |
10 |
0 |
0 |
|
|
32 |
10 |
(69)% |
|
Others |
12 |
12 |
10 |
18 |
11 |
10 |
10 |
3% |
|
34 |
31 |
(8)% |
|
Expenses |
(162) |
(153) |
(151) |
(174) |
(151) |
(147) |
(135) |
(11)% |
|
(466) |
(433) |
(7)% |
|
Gross operating income |
21 |
1 |
(14) |
50 |
2 |
9 |
36 |
|
|
9 |
47 |
|
|
Provision for credit losses |
(6) |
(18) |
(7) |
(6) |
(5) |
(5) |
(4) |
(46)% |
|
(31) |
(14) |
(56)% |
|
Net operating income |
15 |
(17) |
(20) |
44 |
(3) |
4 |
33 |
|
|
(22) |
34 |
|
|
Associates |
0 |
0 |
(3) |
1 |
0 |
0 |
0 |
|
|
(3) |
1 |
|
|
Other items |
11 |
(75) |
7 |
0 |
0 |
22 |
0 |
|
|
(57) |
22 |
|
|
Pre-tax profit |
27 |
(91) |
(17) |
45 |
(2) |
26 |
33 |
|
|
(82) |
57 |
|
Corporate center
| in
€m |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
|
9M16 |
9M17 |
| Net
revenues |
(69) |
(3) |
(100) |
155 |
(25) |
(45) |
(34) |
|
(172) |
(104) |
|
Expenses |
(116) |
(87) |
(55) |
(78) |
(180) |
(48) |
(41) |
|
(259) |
(270) |
| Gross operating
income |
(185) |
(91) |
(155) |
77 |
(205) |
(93) |
(75) |
|
(431) |
(374) |
| Provision
for credit losses |
2 |
0 |
0 |
(18) |
(15) |
0 |
(22) |
|
2 |
(37) |
| Net operating
income |
(183) |
(91) |
(155) |
59 |
(220) |
(93) |
(97) |
|
(429) |
(411) |
| Associates |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
0 |
0 |
| Other
items |
0 |
2 |
99 |
10 |
1 |
(4) |
0 |
|
100 |
(3) |
|
Pre-tax profit |
(183) |
(89) |
(56) |
68 |
(220) |
(97) |
(98) |
|
(328) |
(414) |
Regulatory capital in 3Q17 & financial
structure Basel 3
|
Regulatory reporting, in €bn |
|
|
Shareholder's equity group share |
19.7 |
|
Goodwill & intangibles |
(3.3) |
|
Dividend |
(0.6) |
|
Other deductions |
(0.7) |
|
Hybrids restatement in Tier 1(1) |
(2.3) |
|
CET1 Capital |
12.8 |
|
Additional T1 |
1.9 |
|
Tier 1 Capital |
14.6 |
|
Tier 2 Capital |
2.4 |
|
Total prudential Capital |
17.0 |
| (1)
Including capital gain following reclassification of hybrids as
equity instruments |
| In
€bn |
3Q16 CRD4 phased |
4Q16 CRD4 phased |
1Q17 CRD4 phased |
2Q17 CRD4 phased |
3Q17 CRD4 phased |
| CET1 Ratio |
11.3% |
10.8% |
10.9% |
11.2% |
11.4% |
| Tier 1 Ratio |
12.8% |
12.3% |
12.8% |
13.1% |
13.1% |
| Solvency Ratio |
15.1% |
14.5% |
15.1% |
15.4% |
15.3% |
| Tier 1 capital |
14.5 |
14.2 |
14.6 |
14.7 |
14.6 |
|
RWA |
113.1 |
115.5 |
114.1 |
112.6 |
111.7 |
| In
€bn |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
| Equity group share |
19.1 |
19.8 |
20.5 |
19.5 |
19.7 |
| Total
assets(1) |
522 |
528 |
509 |
510 |
513 |
- Statutory balance sheet
|
Breakdown of risk-weighted assets In €bn |
09/30/2017 |
| Credit risk |
78.0 |
|
Internal approach |
62.1 |
|
Standard approach |
15.9 |
| Counterparty
risk |
7.2 |
|
Internal approach |
6.3 |
|
Standard approach |
0.9 |
| Market risk |
10.3 |
|
Internal approach |
4.2 |
|
Standard approach |
6.1 |
|
CVA |
2.2 |
|
Operational risk - Standard approach |
14.0 |
| Total
RWA |
111.7 |
Leverage ratioAccording to the rules of
the Delegated Act published by the European Commission on October
10, 2014, including the effect of intragroup cancelation - pending
ECB authorization
|
€bn |
09/30/2017 |
|
Tier 1 capital (1) |
14.8 |
|
Total prudential balance sheet |
420.5 |
|
Adjustment on derivatives |
(45.5) |
|
Adjustment on repos (2) |
(27.3) |
|
Other exposures to affiliates |
(29.9) |
| Off
balance sheet commitments |
37.2 |
|
Regulatory adjustments |
(4.0) |
|
Total leverage exposures |
351.0 |
|
Leverage ratio |
4.2% |
(1) Without phase-in except for DTAs on tax loss
carryforwards - supposing replacement of existing subordinated
issuances when they become ineligible (2) Repos with clearing
houses cleared according to IAS32 standard, without maturity or
currency criteria
Normative capital allocation and RWA breakdown at
end-September 2017 - under Basel 3
| in
€bn |
RWA (end of period) |
In % of the total |
AverageGoodwill and intangibles |
Average capital allocation beginning of
period |
ROE after tax in 9M17 |
|
CIB |
60.4 |
60% |
0.2 |
6.6 |
15.3% |
|
Investment Solutions |
17.6 |
18% |
2.8 |
4.6 |
14.1% |
|
SFS |
15.7 |
16% |
0.3 |
1.8 |
14.6% |
|
Financial Investments |
6.3 |
6% |
0.1 |
0.7 |
|
|
TOTAL (excl. Corporate Center) |
100.0 |
100% |
3.4 |
13.7 |
|
Net book value as of September 30, 2017
| in
€bn |
09/30/2017 |
|
Shareholders' equity (group share) |
19.7 |
| Deduction of hybrid
capital instruments |
(2.1) |
| Deduction of gain on
hybrid instruments |
(0.3) |
| Net
book value |
17.4 |
| Restated intangible
assets(1) |
0.7 |
| Restated
goodwill(1) |
2.8 |
| Net
tangible book value(2) |
13.9 |
| in € |
|
| Net book value per
share(3) |
5.54 |
| Net
tangible book value per share(3) |
4.43 |
(1) See note on methodology (2) Net tangible
book value = Book value - goodwill - intangible assets (3)
Calculated on the basis of 3,136,961,140 shares - end of period
Earnings per share (9M17)
| in
€m |
09/30/2017 |
| Net income (gs) |
1,151 |
| DSN interest expenses
on preferred shares after tax |
(71) |
| Net
income attributable to shareholders |
1,080 |
| Average
number of shares over the period, excluding treasury shares |
3,135,812,983 |
|
|
|
|
Earnings per share (€) |
0.34 |
| Net income attributable to shareholders |
|
| |
|
| in
€m |
3Q17 |
9M17 |
| Net income (gs) |
383 |
1,151 |
| DSN
interest expenses on preferred shares after tax |
(25) |
(71) |
| ROE
& ROTE numerator |
358 |
1,080 |
| NATIXIS ROTE |
| in
€m |
09/30/2017 |
| Shareholders' equity
(group share) |
19,730 |
| DSN deduction |
(2,342) |
| Dividends
provision(1) |
(540) |
| Intangible assets |
(669) |
|
Goodwill |
(2,811) |
| ROTE
Equity end of period |
13,368 |
| Average ROTE equity
(3Q17) |
13,328 |
| 3Q17
ROTE annualized |
10.8% |
| Average ROTE equity
(9M17) |
13,305 |
| 9M17
ROTE annualized |
10.8% |
| NATIXIS ROE |
|
| in
€m |
09/30/2017 |
|
| Shareholders' equity
(group share) |
19,730 |
|
| DSN deduction |
(2,342) |
|
| Dividends
provision(1) |
(540) |
|
| Exclusion of unrealized or deferred gains and
lossesrecognized in equity (OCI) |
(503) |
|
| |
| ROE
Equity end of period |
16,345 |
|
| Average ROE equity
(3Q17) |
16,359 |
|
| 3Q17
ROE annualized |
8.8% |
|
| Average ROE equity
(9M17) |
16,455 |
|
| 9M17
ROE annualized |
8.7% |
|
(1) Dividend based on
50% of the net income attributable to shareholders
Balance sheet
|
Assets (in €bn) |
09/30/2017 |
12/31/2016 |
|
Cash and balances with central banks |
41.2 |
26.7 |
|
Financial assets at fair value through profit and loss |
180.2 |
187.6 |
|
Available-for-sale financial assets |
57.2 |
55.0 |
|
Loans and receivables |
173.8 |
199.1 |
|
Held-to-maturity financial assets |
1.9 |
2.1 |
|
Accruals and other assets |
51.6 |
50.5 |
|
Investments in associates |
0.7 |
0.7 |
|
Tangible and intangible assets |
2.4 |
2.5 |
|
Goodwill |
3.5 |
3.6 |
|
Total |
512.5 |
527.8 |
|
Liabilities and equity (in €bn) |
09/30/2017 |
12/31/2016 |
| Due
to central banks |
0.0 |
0.0 |
|
Financial liabilities at fair value through profit and loss |
141.8 |
146.2 |
|
Customer deposits and deposits from financial institutions |
194.4 |
187.9 |
|
Debt securities |
32.1 |
48.9 |
|
Accruals and other liabilities |
42.9 |
48.7 |
|
Insurance companies' technical reserves |
74.7 |
68.8 |
|
Contingency reserves |
1.9 |
2.0 |
|
Subordinated debt |
3.7 |
4.2 |
|
Equity attributable to equity holders of the parent |
19.7 |
19.8 |
|
Minority interests |
1.3 |
1.3 |
|
Total |
512.5 |
527.8 |
Doubtful loans (inc. financial
institutions)
| In
€bn |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
3Q17 |
|
Doubtful loans(1) |
4.2 |
4.1 |
4.0 |
3.8 |
3.5 |
|
Collateral relating to loans written-down(1) |
(1.6) |
(1.5) |
(1.4) |
(1.2) |
(1.0) |
|
Provisionable commitments(1) |
2.6 |
2.6 |
2.6 |
2.6 |
2.4 |
|
Specific provisions(1) |
(1.7) |
(1.7) |
(1.6) |
(1.7) |
(1.6) |
|
Portfolio-based provisions (1) |
(0.4) |
(0.4) |
(0.4) |
(0.4) |
(0.4) |
|
|
|
|
|
|
|
|
Provisionable commitments(1)/ Gross debt |
2.2% |
2.0% |
2.1% |
2.4% |
2.1% |
|
Specific provisions/Provisionable commitments(1) |
64% |
65% |
64% |
64% |
65% |
|
Overall provisions/Provisionable commitments(1) |
79% |
81% |
79% |
80% |
81% |
| (1)
Excluding securities and repos |
|
|
|
|
|
Disclaimer
This media release may contain objectives and
comments relating to the objectives and strategy of Natixis. Any
such objectives inherently depend on assumptions, project
considerations, objectives and expectations linked to future and
uncertain events, transactions, products and services as well as
suppositions regarding future performances and synergies.
No Insurance can be given that such objectives
will be realized. They are subject to inherent risks and
uncertainties, and are based on assumptions relating to Natixis,
its subsidiaries and associates, and the business development
thereof; trends in the sector; future acquisitions and investments;
macroeconomic conditions and conditions in Natixis' principal local
markets; competition and regulation. Occurrence of such events is
not certain, and outcomes may prove different from current
expectations, significantly affecting expected results. Actual
results may differ significantly from those implied by such
objectives.
Information in this media release relating to
parties other than Natixis or taken from external sources has not
been subject to independent verification, and Natixis makes no
warranty as to the accuracy, fairness, precision or completeness of
the information or opinions herein. Neither Natixis nor its
representatives shall be liable for any errors or omissions, or for
any prejudice resulting from the use of this media release, its
contents or any document or information referred to herein.
Included data in this press release have not
been audited.
NATIXIS financial disclosures for the third
quarter 2017 are contained in this press release and in the
presentation attached herewith, available online at www.natixis.com
in the "Investors & shareholders" section.
The conference call to discuss the results,
scheduled for Wednesday November 8th, 2017 at 9:00 a.m. CET, will
be webcast live on www.natixis.com (on the "Investors &
shareholders" page).
Contacts:
|
Investor Relations: |
investorelations@natixis.com |
|
Press Relations: |
relationspresse@natixis.com |
|
|
|
|
|
|
|
|
Pierre-Alexandre Pechmeze |
T + 33
1 58 19 57 36 |
|
Elisabeth de Gaulle |
T + 33 1 58 19 28 09 |
| Damien
Souchet |
T + 33
1 58 55 41 10 |
|
Olivier Delahousse |
T + 33 1 58 55 04 47 |
| Souad
Ed Diaz Brigitte Poussard |
T + 33
1 58 32 68 11T + 33 1 58 55 59 21 |
|
Sonia
Dilouya |
T + 33 1 58 32 01 03 |
www.natixis.com
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