Natixis 2019 first quarter results
Paris, May 9, 2019
1Q19 resultsDevelopment
and transformation at the core of New DimensionReported
net income at €764m in 1Q19 vs. €260m in 1Q18 (restated), up
+194%,notably driven by the disposal of the retail banking
activitiesFinancial strength with a Basel 3 fully-loaded CET1 ratio
at 11.3% pro forma, well above our 2020 target (11%)
RESILIENCE OF THE BUSINESS MODEL IN A
CHALLENGING ENVIRONMENT FORGLOBAL MARKET
REVENUES - NATIXIS’ 1Q19 UNDERLYING NET REVENUES1 AT
€2.1BN
AWM: Strong
AuM increase and flows back to positive territory
Strength of our active
asset management model with underlying net revenues1 slightly down
YoY, in part due tothe 4Q18 market effect. Excluding performance
fees, underlying net revenues1 are up +1% YoY
Strong AuM growth of
+6% over the quarter to reach €855bn
Flows turning positive
again (+€1bn) driven by Europe. Positive net inflows, notably at
Harris, in March
The average fee rate
remains in line with the New Dimension target at ~30bps
Creation of Thematics
Asset Management and partnership announced with Fiera Capital
CIB:
Underlying RoE1 ~10% despite
challenging market conditions, thanks to our diversified
expertise
Underlying net
revenues1 lower than 1Q18 amidst challenging market conditions and
with a high base effect in Global markets, partially offset by the
resilience of Global finance and the good performance of Investment
banking/M&A
Underlying RoE1 ~10%
in 1Q19 despite this context with sustained pipeline for Global
finance and IB/M&A
Expansion of our
M&A multi-boutiques model: acquisition of Azure Capital
Insurance:
High profitability and with a key milestone towards New Dimension
targets
Underlying net
revenues1 up +7% YoY in 1Q19 with a positive jaw effect and an
underlying RoE1 >30%
Gross inflows on
unit-linked products remain above the French market, with the gap
widening
Key step for Natixis
Assurances towards becoming a fully-fledged insurer (see Groupe
BPCE/Covéa announcement)
Payments:
Continuous growth dynamic
Underlying net
revenues1 up +11% YoY in 1Q19 with a positive jaw effect
Increase in business
volumes from PayPlug & Dalenys, up +26% YoY in 1Q19. Historical
processing activity +9% YoY
SUSTAINABLE VALUE CREATION AND FINANCIAL
STRENGTH
Disposal of
the retail banking activities (€586m capital gain)
supplemented by +37bps of organic capital creation
in 1Q19. Basel 3 FL CET1 ratio2 at 11.3% pro forma as at
March 31, 2019, well above our 2020 target (11%)
Transformation
& Business Efficiency: ~€50m of annual additional
costs savings identified by end-2020, raising the total to €300m
over New Dimension
Underlying net
income1 at €192m in 1Q19, impacted by IFRIC 21
Underlying
RoTE1 at 10.2% in 1Q19 and 13.2% over New Dimension3 as at March
31, 2019
Cash dividend
of 0.78€ per share4: €0.30 ordinary, €0.48 special
FOCUS ON THE IMPLEMENTATION OF OUR 2020
AMBITIONS
François
Riahi, Natixis Chief Executive Officer, said: “The first
quarter of 2019 was marked by a number of important developments in
the implementation of our New Dimension strategic plan. Our
partnership with Covéa is perfectly aligned with the growth
ambitions of our bancassurance model for Groupe BPCE, while the
addition of a new M&A boutique in Australia is fully consistent
with our CIB roadmap to expand in Investment banking with a
sectorial approach. In a challenging environment, especially for
market activities during the first two months of the year, and
despite a high basis for comparison due to our very strong first
quarter in 2018, the diversification and the uniqueness of our
business model enabled us to further strengthen our capital
position while confirming the payment of a €0.78 dividend per share
following the disposal of our retail banking activities.”
1Q19 RESULTS5
On May 9, 2019, the Board of Directors
examined Natixis’ first quarter 2019 results.
|
€m |
|
1Q19 restated |
1Q18 restated |
|
1Q19 o/w underlying |
1Q18 o/w underlying |
|
1Q19 vs. 1Q18 restated |
1Q19 vs. 1Q18 underlying |
1Q19 vs. 1Q18 underlying constant FX |
| Net revenues |
|
2,132 |
2,193 |
|
2,113 |
2,221 |
|
(3)% |
(5)% |
(8)% |
|
o/w businesses |
|
1,901 |
2,040 |
|
1,901 |
2,040 |
|
(7)% |
(7)% |
(10)% |
| Expenses |
|
(1,720) |
(1,675) |
|
(1,703) |
(1,660) |
|
3% |
3% |
0% |
|
o/w expenses excluding SRF |
|
(1,550) |
(1,515) |
|
(1,533) |
(1,500) |
|
2% |
2% |
(1)% |
|
Gross operating income |
|
412 |
518 |
|
410 |
561 |
|
(20)% |
(27)% |
(30)% |
| o/w GOI excluding SRF |
|
582 |
678 |
|
580 |
721 |
|
(14)% |
(19)% |
(22)% |
| Provision for credit losses |
|
(31) |
(36) |
|
(31) |
(36) |
|
|
|
|
|
Net operating income |
|
381 |
482 |
|
379 |
526 |
|
(21)% |
(28)% |
|
| Associates and other items |
|
685 |
13 |
|
3 |
13 |
|
|
|
|
|
Pre-tax profit |
|
1,066 |
495 |
|
382 |
539 |
|
115% |
(29)% |
|
| Income tax |
|
(215) |
(175) |
|
(137) |
(190) |
|
|
|
|
| Minority interests |
|
(86) |
(60) |
|
(53) |
(61) |
|
|
|
|
|
Net income - group share |
|
764 |
260 |
|
192 |
288 |
|
194% |
(33)% |
|
Natixis’ underlying net
revenues are higher or stable vs. 1Q18 for the vast
majority of the businesses with Payments up +11%
YoY, Insurance up +7% YoY, Investment
banking/M&A up +6% YoY and strong resilience for
Global finance as well as AWM.
Such results are partially offsetting Global
markets evolution set against a high 1Q18 and challenging
market conditions.
Underlying expenses are flat at
constant exchange rate despite investments being made to prepare
the future levers of growth. Excluding the SRF contribution of
€170m (+7%YoY) fully booked in 1Q due to IFRIC 21, expenses are
well under control and down -1% YoY at constant exchange rate.
The underlying cost/income ratio2 is at 73.0%, up
+550bps vs. 1Q18.
The underlying cost of risk is
slightly down YoY, remaining at low levels. Expressed in basis
points of loans outstanding (excluding credit institutions),
the businesses’ underlying cost of risk worked out
to 18bps in 1Q19.
The underlying tax rate is at
~36% in 1Q19 due to the non-deductibility of the SRF contribution.
The guidance is maintained at <30% for 2019
Net income (group share), adjusted for
IFRIC 21 and excluding exceptional items reached €334m in 1Q19.
Accounting for exceptional items (+€572m net of tax in 1Q19) and
IFRIC 21 impact (-€142m in 1Q19), the reported net income (group
share) in 1Q19 is at €764m.
Natixis delivered a 10.2% underlying
RoTE6 excluding IFRIC 21 impact and an average 13.2% over New
Dimension7. The businesses’ underlying RoE2 reached 12.3% and an
average 14.6%over New Dimension3.
Following Natixis’ change of perimeter
after the disposal of the retail banking activities, ~€50m of
additional cost savings have been identified on top of the ~€250m
existing target, raising the 2020 cost savings target to
~€300m. These savings will be fully captured by the end of
2020 (~€15m by end-2019 and ~€50m by end-2020) and will impact all
the business lines. The cost savings initiative notably includes
Natixis’ real estate/location strategy, further internalization of
IT staff and reduction of other running costs. By the end of 2018,
~€180m of cost savings had been fully captured of which ~€145m were
prorata temporis, i.e. ~€35m of cost savings are to be crystallized
through the 2019 P&L thanks to 2018 initiatives, on top of
ongoing projects. Additional ~€30m of one-off investment expenses
to be booked in 2019 in exceptional items.
1Q19 RESULTSExceptional
items
|
€m |
|
1Q19 |
1Q18 |
|
Exchange rate fluctuations on DSN in currencies (Net revenues) |
Corporate center |
19 |
(28) |
|
Transformation & Business Efficiency Investment costs
(Expenses) |
Business lines & Corporate center |
(17) |
(13) |
|
Fit to Win investments & restructuring expenses (Expenses) |
Corporate center |
0 |
(2) |
|
Disposal of subsidiary in Brazil (Gain or loss on other
assets) |
CIB |
(15) |
|
|
Capital gain - Disposal of retail activities (Gain or loss on other
assets) |
Corporate center |
697 |
|
|
Total impact on income tax |
|
(79) |
15 |
|
Total impact on minority interests |
|
(33) |
1 |
|
Total impact on net income (gs) |
|
572 |
(27) |
€586m positive net impact from the
disposal of the retail banking activities: €697m capital gain minus
€78m income tax minus €33m minority interests
TRANSFORMATION & BUSINESS EFFICIENCY
Investment costs by reporting line
|
€m |
1Q19 |
1Q18 |
|
AWM |
(5) |
(1) |
|
CIB |
(3) |
(2) |
|
Insurance |
0 |
0 |
|
Payments |
0 |
0 |
|
Financial Investments |
0 |
0 |
|
Corporate center |
(9) |
(10) |
|
Impact on expenses |
(17) |
(13) |
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p3)
Asset & Wealth
Management
| €m |
|
1Q19 |
1Q18 |
1Q19 vs. 1Q18 |
1Q19 vs. 1Q18 constant FX |
|
Net revenues |
|
773 |
799 |
(3)% |
(7)% |
| o/w Asset management8 |
|
742 |
762 |
(3)% |
(7)% |
| o/w Wealth management |
|
31 |
37 |
(16)% |
(16)% |
|
Expenses |
|
(553) |
(548) |
1% |
(4)% |
| Gross operating
income |
|
220 |
252 |
(12)% |
(16)% |
| Provision for credit losses |
|
1 |
0 |
|
|
| Associates and other items |
|
(2) |
0 |
|
|
|
Pre-tax profit |
|
219 |
251 |
(13)% |
|
| Cost/income ratio2 |
|
71.0% |
68.0% |
+3.0pp |
|
| RoE after tax2 |
|
12.1% |
14.0% |
(1.9)pp |
|
Underlying net revenues from
Asset & Wealth Management (AWM) are up +1% YoY in 1Q19
excluding AM performance fees (-4% YoY at constant exchange
rate), illustrating the resilience of our model. Asset
management underlying net revenues down -6% YoY in North
America (€372m) and up +14% in Europe (€171m) over 1Q19.
Wealth management underlying revenues are down
-16% YoY in 1Q19, due to the perimeter effect from the disposal of
Selection 1818.
The Asset management fee rate excluding
performance fees (€32m in 1Q19; ~5% of 1Q19 AM revenues
vs. €65m in 1Q18; ~9% of 1Q18 AM revenues) stood at ~30bps in 1Q19,
in line with New Dimension target, the 4Q18 market effect impacting
the weight of average AuM from North America in the mix. In Europe,
the fee rate stood at 16bps (27bps excl. Life insurance General
Accounts) in 1Q19, the increase being primarily driven by the
higher share of alternative strategies (liquid and illiquid). In
North America, the fee rate stood at 38bps with a lower share of
average AuM from Harris following the 4Q18 market effect.
Asset management net inflows
positive at +€1bn in 1Q19 with net inflows on LT products of a
similar amount in March. As anticipated in New Dimension, the
momentum for alternative strategies (liquid and illiquid) remains
strong with close to €2bn net inflows in 1Q19 as opposed to
strategies such as Core Fixed Income. In Europe (including Dynamic
Solutions), net inflows reached +€4bn in 1Q19 and are positive
across a vast majority of our European affiliates. In North
America, 1Q19 saw net outflows of -€3bn with a recovery post 4Q18
and flows coming back to positive territory, notably for Harris, in
March.
Asset management AuM reached
€855bn as at March 31, 2019 and are up +6% QoQ, starting 2Q19 above
their 2Q18 average level. The +€38bn positive market effect is
largely driven by North America while AuM also benefited from a
+€7bn FX/perimeter effect. Wealth management AuM
reached €27.0bn as at March 31, 2019 with positive net inflows in
1Q19.
Expenses are down -4% YoY at
constant exchange rate in 1Q19 with AM variable costs adjusting to
the revenue environment and investments being made to prepare the
next levers of growth.
The underlying RoE2 reached
12.1% in 1Q19 vs. 14.0% in 1Q18 and 11.5% in 1Q17. The
underlying cost/income ratio2 reached 71.0% in 1Q19 vs.
68.0% in 1Q18.
Fiera Capital Corporation and Natixis
Investment Managers today announced they have entered into a
long-term strategic partnership that will establish Fiera
Capital as Natixis’ preferred Canadian distribution platform,
giving Fiera Capital’s clients access to Natixis’ wide range of
highly active investment strategies. As part of the agreement,
Natixis has strengthened its commitment to the Canadian market
through the acquisition of an 11.0% stake in Fiera Capital (limited
impact on Natixis’ CET1 ratio), and Natixis Investments Managers’
CEO, Jean Raby, will join Fiera Capital’s board of directors
(see ad-hoc press release). Unless specified
otherwise, the following comments and data refer to underlying
results, i.e. excluding exceptional items (see detail p3)
Corporate & Investment
Banking
| €m |
|
1Q19 |
1Q18 |
1Q19 vs. 1Q18 |
1Q19 vs. 1Q18 constant FX |
|
Net revenues |
|
807 |
944 |
(15)% |
(17)% |
| Net revenues excl. CVA/DVA |
|
816 |
943 |
(13)% |
(16)% |
|
Expenses |
|
(579) |
(565) |
3% |
0% |
| Gross operating
income |
|
228 |
379 |
(40)% |
(42)% |
| Provision for credit losses |
|
(30) |
(31) |
|
|
| Associates and other items |
|
2 |
6 |
|
|
|
Pre-tax profit |
|
201 |
355 |
(44)% |
|
| Cost/income ratio9 |
|
68.7% |
57.5% |
+11.2pp |
|
| RoE after tax1 |
|
9.6% |
17.1% |
(7.5)pp |
|
Underlying net revenues are
down -15% YoY in 1Q19 (-17% YoY at constant exchange rate) with
contrasted performances. Up in Investment banking/M&A, stable
in Global finance, both businesses featuring sustained pipeline
beyond 1Q19. Such performances are partially offsetting Global
markets evolution set against a high 1Q1, especially for FICT and
with a slow start to the year followed by improving market
conditions towards quarter-end.
Global markets net revenues
excl. CVA/DVA are up QoQ in 1Q19 both for FICT and Equity and down
-28% YoY at constant scope vs. a high 1Q18. FICT
net revenues are down -34% YoY in 1Q19 on the back of less
favorable market conditions across Rates and FX offsetting a
positive momentum on Credit and with a solid performance from the
Americas platform. We remain highly selective on profitable deals
while 1Q18 FICT revenues were close to historic highs creating a
high base effect. Equity net revenues are down
-13% YoY in 1Q19 excluding cash equity with a solid recovery post
4Q18. The hedging program on the Asian derivatives book designed to
protect this book from negative market impacts has been fully
completed with no additional negative P&L impact.
Global finance net revenues are largely flat YoY
with a strong performance from Energy & Natural Resources (ENR)
as well as Infrastructure and Aviation within Real Assets (RA),
offsetting lower revenues in Real Estate on a historically high
1Q18 that was mainly driven by the Americas platform performance.
New loan production remains robust with ENR up
+32% YoY and RA up +50% YoY with a strong momentum for
Infrastructure (more that x2 YoY). The distribution rate on
Real Assets is close to 70% in 1Q19 (~65% in 1Q18).
Investment banking and M&A net revenues are up
+6% YoY including a good performance in ECM, sustained ASF activity
and double-digit growth in M&A thanks to the successful
integration of Fenchurch and Vermillion. The proportion of
revenues generated from service fees10 is up at 41% in
1Q19 vs. 38% 1Q18.
The underlying expenses are
flat YoY at constant exchange rate despite investments being made
to develop our sectorial expertise as well as the expansion of our
high-expertise, asset-light M&A boutique model. The
underlying cost/income ratio1 reached 68.7% in 1Q19 vs.
57.5% in 1Q18.
The underlying cost of risk is
stable YoY.
The underlying RoE1 of CIB
reached 9.6% in 1Q19 vs. 17.1% in 1Q18. RWA are
under control (up <1% QoQ, in part due to IFRS 16).
Strengthening of our multi-boutique
model in M&A with the acquisition of a majority stake in Azure
Capital Limited, an Australia-based M&A boutique
reinforcing our presence in APAC in an attractive market for
domestic and offshore investors with a strong focus on Energy &
Natural Resources as well as Infrastructure to leverage on our
sectorial approach with Australia being a strategic country for
most of our sectors of expertise (see ad-hoc press
release). Unless specified otherwise, the following
comments and data refer to underlying results, i.e. excluding
exceptional items (see detail p3)
Insurance
| €m |
|
1Q19 |
1Q18 |
1Q19 vs. 1Q18 |
|
Net revenues |
|
218 |
204 |
7% |
|
Expenses |
|
(125) |
(118) |
6% |
| Gross operating
income |
|
93 |
86 |
8% |
| Provision for credit losses |
|
0 |
0 |
|
| Associates and other items |
|
0 |
3 |
|
|
Pre-tax profit |
|
93 |
89 |
5% |
| Cost/income ratio11 |
|
51.7% |
50.9% |
+0.8pp |
| RoE after tax1 |
|
33.4% |
33.1% |
+0.3pp |
Underlying net revenues are up
+7% YoY in 1Q19 driven by both Life and P&C.
Underlying expenses are up +6%
YoY in 1Q19, translating into a positive jaws effect and an
underlying cost/income ratio1 below the ~54% 2020
target at 51.7% (50.9% in 1Q18).
The underlying gross operating
income is up +8% YoY in 1Q19.
The underlying
RoE1 continues to improve at 33.4% in
1Q19 (33.1% in 1Q18), above the ~30% target set for New Dimension
by 2020.
The Global turnover12 reached
€3.3bn in 1Q19, down -6% YoY (Life and Personal protection €3.0bn,
down -7% YoY and P&C €0.4bn, up +4% YoY). Net
inflows2 in Life insurance reached €1.7bn in 1Q19 of which
36% in the form of unit-linked products (29% of gross inflows with
the gap widening vs. the French market13). Assets under
management in Life insurance reached €63.0bn as at
end-March 2019 (+5% QoQ) of which 24% in the form of unit-linked
products (€15.2bn, up +8% QoQ).The P&C combined
ratio worked out to 92.5% in 1Q19, up +0.2pp YoY.
The equipment rate for the Banques Populaires
moved up +0.6pp QoQ at 26.0% and +0.5pp QoQ for the Caisses
d’Epargne at 29.1%.
Natixis to take over P&C new
business for the Banques Populaires’ private customers as of 2020,
as part of Groupe BPCE’s renewed partnership with Covéa announced
today. Natixis Assurances is becoming a fully-fledged
insurer for Groupe BPCE networks through the deployment of a single
industrial model for the Banques Populaires and Caisses d’Epargne.
BPCE Assurances, subsidiary 100% owned by Natixis Assurances since
2017, will take over the Auto and Household new business for the
Banques Populaires’ private customers from BPCE IARD, entity
co-owned (50%/50%) by Natixis Assurances and Groupe Covéa (through
MAAF). Progressive roll-out starting in 2020 with revenue accretion
as soon as year 1, paving the way for future growth beyond 2020
(see ad-hoc press release). Unless specified
otherwise, the following comments and data refer to underlying
results, i.e. excluding exceptional items (see detail p3)
Payments
| €m |
|
1Q19 |
1Q18 |
1Q19 vs. 1Q18 |
|
Net revenues |
|
103 |
93 |
11% |
|
Expenses |
|
(88) |
(79) |
10% |
| Gross operating
income |
|
16 |
14 |
14% |
| Provision for credit losses |
|
0 |
0 |
|
| Associates and other items |
|
0 |
0 |
|
|
Pre-tax profit |
|
16 |
14 |
14% |
| Cost/income ratio14 |
|
84.1% |
84.5% |
-0.4pp |
| RoE after tax1 |
|
12.5% |
13.4% |
-0.9pp |
Underlying net revenues are up
+11% YoY in 1Q19 and 41% of 1Q19 revenues have been with direct
clients.
- Payment Processing & Services: Steady +6%
YoY revenue growth in Natixis Payments’ historical activities in
1Q19. Number of card transactions processed up +9% YoY in 1Q19 and
progressive ramp-up of Instant Payment
- Merchant Solutions: Solid business volumes
generated by Dalenys (medium/large corp.) and PayPlug (SME), up
+26% YoY in 1Q19. Synergies ongoing between entities and within
Groupe BPCE with the deployment of PayPlug and Android POS platform
within the Caisses d’Epargne network. Partnership with Retailtech
Wynd to offer unique omnichannel solution.
- Prepaid & Issuing Solutions: Robust growth
in 1Q19 driven by meal vouchers and the contribution of our
Benefits & Rewards activity (Titres Cadeaux and Comitéo). Set
up of a Payment in a Box solution around the S-Money platform and
Natixis’ partnership with Visa. Number of mobile payments more than
x2.4 vs. 1Q18
Underlying
expenses are up +10% YoY in 1Q19, translating into a
positive jaws effect and an underlying gross operating income
growth of +14% YoY in 1Q19 despite investments still being made.
The underlying cost/income ratio1 reached 84.1% in
1Q19 vs. 84.5% in 1Q18.
The underlying RoE1 of Payments
reached 12.5% in 1Q19 vs. 13.4% in 1Q18.
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p3)
Financial investments
| €m |
|
1Q19 |
1Q18 |
1Q19 vs. 1Q18 |
|
Net revenues |
|
193 |
190 |
2% |
|
Coface |
|
175 |
177 |
(1)% |
|
Other |
|
18 |
13 |
40% |
|
Expenses |
|
(133) |
(128) |
4% |
| Gross operating
income |
|
60 |
62 |
(3)% |
| Provision for credit losses |
|
(2) |
(6) |
|
| Associates and other items |
|
0 |
2 |
|
|
Pre-tax profit |
|
58 |
58 |
(1)% |
The net combined ratio15 of
Coface reached 74.5% in 1Q19 vs. 72.5% in 1Q18 with a cost
ratio moving from 32.7% to 31.9% and a loss ratio moving from 39.8%
to 42.6%.
Corporate Center
| €m |
|
1Q19 |
1Q18 |
1Q19 vs. 1Q18 |
|
Net revenues |
|
19 |
(9) |
|
| Expenses |
|
(225) |
(222) |
2% |
|
SRF |
|
(170) |
(160) |
7% |
|
Other |
|
(55) |
(62) |
(11)% |
| Gross operating
income |
|
(207) |
(231) |
(10)% |
| Provision for credit losses |
|
0 |
1 |
|
| Associates and other items |
|
2 |
1 |
|
|
Pre-tax profit |
|
(204) |
(229) |
(11)% |
Underlying net revenues from
the Corporate Center are up +€28m YoY in 1Q19 due to positive FVA
(Funding Value Adjustment) impacts.
Underlying expenses excluding
the SRF contribution are down -11% YoY. SRF final contribution for
2019 up €10m YoY.
The P&L drag at the pre-tax profit level has
been reduced by €35m YoY in 1Q19 excluding SRF.
FINANCIAL STRUCTURE
Basel 3 fully-loaded
ratios16Natixis’ Basel 3 fully-loaded CET1
ratio worked out to 11.6% as at March 31, 2019.
- Basel 3 fully-loaded CET1 capital amounted to
€11.1bn
- Basel 3 fully-loaded RWA amounted to
€96.4bn
Based on a Basel 3 fully-loaded CET1 ratio of
10.8% as at December 31, 2018, the respective 1Q19 impacts were as
follows:
- IFRS 16 FTA impact: -11bps
- Effect of allocating net income (group share) to retained
earnings in 1Q19: +16bps (o/w -13bps from IFRIC 21)
- 1Q19 ordinary dividends: -8bps
- Disposal of retail banking activities: +70bps (+226bps minus
-156bps of special dividend)
- RWA and other effects: +8bps
Pro forma for strategic operations announced
today (Fiera Capital Corporation, Azure Capital Limited: ~5bps CET1
ratio impact combined) and already announced (WCM Investment
Managers and Massena Partners: ~15bps CET1 ratio impact combined),
as well as the Irrevocable Payment Commitment deduction from
capital (IPC), Natixis Basel 3 fully-loaded CET1 ratio pro forma
would be 11.3% (vs. a pro forma ratio of 11.1% at the end of
December 2018).
Basel 3 regulatory ratios1 As
at March 31, 2019, Natixis’ Basel 3 regulatory capital
ratios stood at 10.9% for the CET1, 13.1% for the Tier 1 and 15.5%
for the total capital ratio.
- Core Tier 1 capital stood at €10.5bn and
Tier 1 capital at €12.6bn
- Natixis’ RWA totaled €96.4bn, breakdown as
follows:
- Credit risk: €65.2bn
- Counterparty risk: 6.5bn
- CVA risk: €1.5bn
- Market risk: €9.9bn
- Operational risk: €13.3bn
Book value per shareEquity
capital (group share) totaled €20.8bn as at March 31, 2019, of
which €2.0bn in the form of hybrid securities (DSNs) recognized in
equity capital at fair value (excluding capital gain following
reclassification of hybrids).
Natixis’ book value per share stood at
€5.16 as at March 31, 2019 based on 3,150,673,938
shares excluding treasury shares (the total number of shares being
3,153,078,482). The tangible book value per share (after deducting
goodwill and intangible assets) was €3.90.
Leverage ratio1
The leverage ratio worked out to
4.1% as at March 31, 2019.
Overall capital adequacy
ratioAs at March 31, 2019, the financial conglomerate’s
excess capital was estimated at around €3.8bn (based on own funds
including current financial year’s earnings).
APPENDICES
Note on methodology:
The results at 31/03/2019 were examined
by the board of directors at their meeting on
09/05/2019.Figures at 31/03/2019 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
Changes in Natixis’ account presentation
following the disposal of the retail banking activities to BPCE
S.A.
- Employee savings plan is reallocated to Asset & Wealth
Management
- Film industry financing is reallocated to Corporate &
Investment Banking
- Insurance is not impacted
- Payments becomes a standalone business line
- Financial Investments are isolated and include Coface, Natixis
Algeria and the private equity runoff activities. The Corporate
Center is refocused on Natixis’ holding and ALM functions and
carries the Single Resolution Fund contribution within its
expenses
Additional impacts on the quarterly
series from the disposal of the retail banking activities to BPCE
S.A.
- New support function services provided by Natixis to the
activities sold (TSA / SLA), as well as the cancellation of
services or analytical items that have been made obsolete following
such a disposal are factored in
- The reclassification as Net revenues of the residual IT and
logistic services that continue to be provided to the activities
sold. Such services now being provided to entities that do not fall
under Natixis’ scope of consolidation anymore, they have been
reclassified as Net revenues instead of expense deductions
- The implementation of introductory fees between the Natixis CIB
Coverage and the entities sold
In order to ensure comparability between the
2018 and 2019 quarterly series, these impacts have been simulated
retroactively as of January 1st, 2018, even though they only impact
the published financial statements as of their implementation date
in 2019. These items essentially impact the Corporate Center and
more marginally the CIB. The others business lines are
unimpacted
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 based on 10.5% 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 2%.
Note on Natixis’ RoE and RoTE
calculation in 1Q19: Calculations based on quarter-end balance
sheet to reflect the disposal of the retail banking activities. The
€586m net capital gain is not annualized
Net book value: calculated by
taking shareholders’ equity group share (minus distribution of
dividends proposed by the Board of Directors and submitted to the
approval of the General Shareholders' Meeting on May 28, 2019),
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:
|
€m |
31/03/2019 |
| Goodwill |
3,839 |
| Restatement for Coface minority
interests |
(162) |
|
Restatement for AWM deferred tax liability & others |
(339) |
|
Restated goodwill |
3,338 |
|
€m |
31/03/2019 |
| Intangible assets |
679 |
|
Restatement for Coface minority interest & others |
(49) |
|
Restated intangible assets |
630 |
Own senior debt fair-value
adjustment: calculated using a discounted cash-flow model,
contract by contract, including parameters such as swap curves 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
Regulatory (phased-in) capital and
ratios: based on CRR-CRD4 rules as reported on June 26, 2013,
including the Danish compromise - phased in. Presentation excluding
current financial year’s earnings and accrued dividend (based on a
60% pay-out17)
Fully-loaded capital and ratios: based
on CRR-CRD4 rules as reported on June 26, 2013, including the
Danish compromise - without phase-in. Presentation including
current financial year’s earnings and accrued dividend (based on a
60% pay-out1)
Leverage ratio: based on
delegated act rules, without phase-in (presentation including 1Q19
earnings and accrued dividend1) 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 5. Figures and comments that are referred to
as ‘underlying’ exclude such exceptional items.
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, the RoE and the RoTE
excluding IFRIC 21 impact calculation takes into account ¼ of the
annual duties and levies concerned by this 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
Natixis - Consolidated P&L (restated)
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
2,193 |
2,360 |
2,156 |
2,040 |
2,132 |
|
(3)% |
|
Expenses |
(1,675) |
(1,528) |
(1,499) |
(1,656) |
(1,720) |
|
3% |
| Gross operating
income |
518 |
832 |
658 |
383 |
412 |
|
(20)% |
| Provision for credit losses |
(36) |
(41) |
(93) |
(23) |
(31) |
|
|
| Associates |
7 |
3 |
6 |
13 |
3 |
|
|
| Gain or loss on other assets |
6 |
4 |
0 |
44 |
682 |
|
|
| Change in value of goodwill |
0 |
0 |
0 |
0 |
0 |
|
|
|
Pre-tax profit |
495 |
798 |
570 |
418 |
1,066 |
|
115% |
| Tax |
(175) |
(234) |
(154) |
(110) |
(215) |
|
|
| Minority interests |
(60) |
(57) |
(59) |
(127) |
(86) |
|
|
|
Net income (group share) |
260 |
507 |
358 |
181 |
764 |
|
194% |
Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
below for the reconciliation of the restated figures with the
accounting view
Natixis - Reconciliation between management and
accounting figures
1Q19
|
€m |
1Q19 underlying |
|
Exceptional items |
|
1Q19 restated |
Residual contribution from perimeter
sold |
|
1Q19 reported |
| Net revenues |
2,113 |
|
19 |
|
2,132 |
22 |
|
2,154 |
|
Expenses |
(1,703) |
|
(17) |
|
(1,720) |
(23) |
|
(1,742) |
| Gross operating
income |
410 |
|
2 |
|
412 |
0 |
|
412 |
| Provision for credit losses |
(31) |
|
|
|
(31) |
0 |
|
(31) |
| Associates |
3 |
|
|
|
3 |
0 |
|
3 |
| Gain
or loss on other assets |
0 |
|
682 |
|
682 |
0 |
|
682 |
| Pre-tax profit |
382 |
|
684 |
|
1,066 |
0 |
|
1,066 |
| Tax |
(137) |
|
(78) |
|
(215) |
0 |
|
(215) |
|
Minority interests |
(53) |
|
(34) |
|
(86) |
0 |
|
(86) |
|
Net income (group share) |
192 |
|
572 |
|
764 |
0 |
|
764 |
1Q18
|
€m |
1Q18 underlying |
|
Exceptional items |
|
1Q18 restated |
Contribution from perimeter sold |
|
1Q18 reported |
| Net revenues |
2,221 |
|
(28) |
|
2,193 |
220 |
|
2,412 |
|
Expenses |
(1,660) |
|
(15) |
|
(1,675) |
(120) |
|
(1,795) |
| Gross operating
income |
561 |
|
(43) |
|
518 |
100 |
|
618 |
| Provision for credit losses |
(36) |
|
|
|
(36) |
(8) |
|
(43) |
| Associates |
13 |
|
|
|
13 |
0 |
|
13 |
| Gain or
loss on other assets |
0 |
|
|
|
0 |
0 |
|
0 |
| Pre-tax profit |
539 |
|
(43) |
|
495 |
92 |
|
587 |
| Tax |
(190) |
|
15 |
|
(175) |
(29) |
|
(204) |
|
Minority interests |
(61) |
|
1 |
|
(60) |
0 |
|
(60) |
|
Net income (group share) |
288 |
|
(27) |
|
260 |
63 |
|
323 |
Natixis - IFRS 9 Balance sheet
|
Assets (in €bn) |
31/03/2019 |
31/12/2018 |
|
Cash and balances with central banks |
20.3 |
24.3 |
|
Financial assets at fair value through profit and loss18 |
219.3 |
214.1 |
|
Financial assets at fair value through Equity |
11.1 |
10.8 |
|
Loans and receivables1 |
119.2 |
96.6 |
|
Debt instruments at amortized cost |
1.5 |
1.2 |
|
Insurance assets |
104.3 |
100.5 |
|
Non-current assets held for sale |
0.0 |
25.6 |
|
Accruals and other assets |
15.9 |
16.8 |
|
Investments in associates |
0.7 |
0.7 |
|
Tangible and intangible assets |
2.3 |
1.1 |
|
Goodwill |
3.8 |
3.8 |
|
Total |
498.4 |
495.5 |
|
Liabilities and equity (in €bn) |
31/03/2019 |
31/12/2018 |
|
Due to central banks |
0.0 |
0.0 |
|
Financial liabilities at fair value through profit and loss1 |
211.9 |
208.2 |
|
Customer deposits and deposits from financial institutions1 |
101.8 |
109.2 |
|
Debt securities |
45.7 |
35.0 |
|
Liabilities associated with non-current assets held for sale |
0.0 |
9.7 |
|
Accruals and other liabilities |
17.8 |
17.0 |
|
Insurance liabilities |
93.4 |
89.5 |
|
Contingency reserves |
1.7 |
1.7 |
|
Subordinated debt |
4.0 |
4.0 |
|
Equity attributable to equity holders of the parent |
20.8 |
19.9 |
|
Minority interests |
1.4 |
1.3 |
|
Total |
498.4 |
495.5 |
Natixis - 1Q19 P&L by business
line
|
€m |
AWM |
CIB |
Insurance |
Payments |
Financial investments |
Corporate Center |
|
1Q19 |
|
|
restated |
| Net revenues |
773 |
807 |
218 |
103 |
193 |
37 |
|
2,132 |
|
Expenses |
(558) |
(582) |
(125) |
(88) |
(133) |
(234) |
|
(1,720) |
| Gross operating
income |
216 |
225 |
93 |
16 |
60 |
(196) |
|
412 |
|
Provision for credit losses |
1 |
(30) |
0 |
0 |
(2) |
0 |
|
(31) |
| Net operating
income |
216 |
195 |
93 |
16 |
58 |
(196) |
|
381 |
|
Associates and other items |
(2) |
(12) |
0 |
0 |
0 |
699 |
|
685 |
|
Pre-tax profit |
214 |
183 |
93 |
16 |
58 |
503 |
|
1,066 |
| |
|
|
|
Tax |
|
(215) |
| |
|
|
|
|
Minority interests |
|
(86) |
| |
|
|
|
|
Net income (gs) |
|
764 |
Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 12 for the reconciliation of the restated figures with the
accounting view
Asset & Wealth
Management
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
799 |
842 |
841 |
1,032 |
773 |
|
(3)% |
|
Asset Management19 |
762 |
805 |
805 |
998 |
742 |
|
(3)% |
|
Wealth management |
37 |
37 |
36 |
34 |
31 |
|
(16)% |
|
Expenses |
(548) |
(569) |
(584) |
(642) |
(558) |
|
2% |
| Gross operating
income |
251 |
273 |
257 |
389 |
216 |
|
(14)% |
|
Provision for credit losses |
0 |
(1) |
(1) |
0 |
1 |
|
|
| Net operating
income |
251 |
272 |
256 |
390 |
216 |
|
(14)% |
| Associates |
0 |
0 |
0 |
2 |
0 |
|
|
| Other
items |
0 |
(3) |
(2) |
41 |
(2) |
|
|
|
Pre-tax profit |
251 |
269 |
255 |
433 |
214 |
|
(15)% |
| Cost/Income ratio |
68.6% |
67.6% |
69.4% |
62.3% |
72.1% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
68.1% |
67.7% |
69.6% |
62.4% |
71.6% |
|
|
| RWA (Basel 3 - in €bn) |
11.7 |
11.8 |
12.5 |
12.3 |
12.5 |
|
6% |
| Normative capital allocation (Basel
3) |
4,143 |
4,065 |
4,150 |
4,363 |
4,364 |
|
5% |
| RoE after tax (Basel 3)20 |
13.7% |
15.2% |
13.9% |
19.6% |
11.5% |
|
|
| RoE
after tax (Basel 3) excl. IFRIC 212 |
14.0% |
15.1% |
13.8% |
19.5% |
11.8% |
|
|
Corporate & Investment Banking
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
944 |
976 |
828 |
518 |
807 |
|
(15)% |
|
Global markets |
527 |
457 |
334 |
14 |
366 |
|
(31)% |
|
FIC-T |
378 |
299 |
252 |
231 |
251 |
|
|
|
Equity |
148 |
145 |
97 |
(219) |
125 |
|
|
|
Equity excl. cash |
143 |
140 |
97 |
(219) |
125 |
|
|
|
Cash equity |
5 |
4 |
0 |
0 |
0 |
|
|
|
CVA/DVA desk |
1 |
13 |
(15) |
2 |
(9) |
|
|
|
Global finance21 |
341 |
394 |
341 |
362 |
337 |
|
(1)% |
|
Investment banking22 |
82 |
85 |
78 |
126 |
87 |
|
6% |
|
Other |
(7) |
41 |
74 |
16 |
16 |
|
|
|
Expenses |
(566) |
(551) |
(525) |
(559) |
(582) |
|
3% |
| Gross operating
income |
378 |
425 |
302 |
(41) |
225 |
|
(41)% |
|
Provision for credit losses |
(31) |
(37) |
(98) |
(9) |
(30) |
|
|
| Net operating
income |
347 |
388 |
204 |
(50) |
195 |
|
(44)% |
| Associates |
4 |
3 |
3 |
3 |
2 |
|
|
| Other
items |
3 |
0 |
0 |
0 |
(15) |
|
|
|
Pre-tax profit |
353 |
391 |
207 |
(47) |
183 |
|
(48)% |
| Cost/Income ratio |
60.0% |
56.4% |
63.5% |
107.9% |
72.2% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
57.7% |
57.2% |
64.4% |
109.4% |
69.1% |
|
|
| RWA (Basel 3 - in €bn) |
59.7 |
61.7 |
61.2 |
61.1 |
61.8 |
|
4% |
| Normative capital allocation (Basel
3) |
6,435 |
6,416 |
6,676 |
6,631 |
6,634 |
|
3% |
| RoE after tax (Basel 3)23 |
16.0% |
17.6% |
9.0% |
NR |
7.6% |
|
|
| RoE
after tax (Basel 3) excl. IFRIC 213 |
17.0% |
17.2% |
8.7% |
NR |
8.6% |
|
|
Insurance
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
204 |
193 |
192 |
201 |
218 |
|
7% |
|
Expenses |
(118) |
(108) |
(103) |
(118) |
(125) |
|
6% |
| Gross operating
income |
86 |
85 |
89 |
83 |
93 |
|
8% |
|
Provision for credit losses |
0 |
0 |
0 |
0 |
0 |
|
|
| Net operating
income |
86 |
85 |
89 |
83 |
93 |
|
8% |
| Associates |
3 |
0 |
3 |
9 |
0 |
|
|
| Other
items |
0 |
0 |
0 |
0 |
0 |
|
|
|
Pre-tax profit |
89 |
85 |
92 |
91 |
93 |
|
5% |
| Cost/Income ratio |
58.0% |
56.1% |
53.8% |
58.9% |
57.5% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
51.1% |
58.5% |
56.2% |
61.2% |
51.7% |
|
|
| RWA (Basel 3 - in €bn) |
7.3 |
7.0 |
7.1 |
7.3 |
8.0 |
|
10% |
| Normative capital allocation (Basel
3) |
853 |
868 |
828 |
841 |
858 |
|
1% |
| RoE after tax (Basel 3)24 |
28.6% |
26.4% |
30.3% |
30.7% |
29.4% |
|
|
| RoE
after tax (Basel 3) excl. IFRIC 211 |
33.0% |
24.9% |
28.8% |
29.2% |
33.3% |
|
|
Payments
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
93 |
95 |
96 |
105 |
103 |
|
11% |
|
Expenses |
(79) |
(88) |
(84) |
(90) |
(88) |
|
10% |
| Gross operating
income |
14 |
7 |
12 |
15 |
16 |
|
14% |
|
Provision for credit losses |
0 |
0 |
0 |
(2) |
0 |
|
|
| Net operating
income |
14 |
7 |
12 |
13 |
16 |
|
13% |
| Associates |
0 |
0 |
0 |
0 |
0 |
|
|
| Other
items |
0 |
1 |
0 |
0 |
0 |
|
|
|
Pre-tax profit |
14 |
8 |
12 |
13 |
16 |
|
14% |
| Cost/Income ratio |
85.2% |
92.2% |
87.6% |
85.7% |
84.8% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
84.5% |
92.4% |
87.9% |
85.9% |
84.1% |
|
|
| RWA (Basel 3 - in €bn) |
1.0 |
1.2 |
1.0 |
1.1 |
1.1 |
|
13% |
| Normative capital allocation (Basel
3) |
295 |
300 |
352 |
332 |
356 |
|
21% |
| RoE after tax (Basel 3)25 |
12.8% |
7.4% |
9.6% |
10.1% |
12.0% |
|
|
| RoE
after tax (Basel 3) excl. IFRIC 211 |
13.4% |
7.2% |
9.4% |
9.9% |
12.5% |
|
|
Financial investments
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
190 |
174 |
197 |
181 |
193 |
|
2% |
|
Coface |
177 |
156 |
180 |
165 |
175 |
|
|
|
Others |
13 |
18 |
17 |
16 |
18 |
|
|
| Expenses |
(130) |
(125) |
(131) |
(140) |
(133) |
|
2% |
|
Gross operating income |
59 |
49 |
66 |
41 |
60 |
|
1% |
|
Provision for credit losses |
(6) |
1 |
1 |
3 |
(2) |
|
|
| Net operating
income |
54 |
50 |
67 |
44 |
58 |
|
8% |
| Associates |
0 |
0 |
0 |
0 |
0 |
|
|
| Other
items |
2 |
3 |
0 |
0 |
0 |
|
|
|
Pre-tax profit |
56 |
53 |
67 |
44 |
58 |
|
3% |
| RWA
(Basel 3 - in €bn) |
5.3 |
5.6 |
5.5 |
5.6 |
5.7 |
|
6% |
Corporate Center
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
|
1Q19 vs. 1Q18 |
| Net revenues |
(37) |
79 |
3 |
3 |
37 |
|
|
| Expenses |
(232) |
(87) |
(71) |
(107) |
(234) |
|
1% |
|
SRF |
(160) |
0 |
0 |
0 |
(170) |
|
7% |
|
Others |
(73) |
(86) |
(71) |
(107) |
(64) |
|
(12)% |
|
Gross operating income |
(269) |
(7) |
(68) |
(104) |
(196) |
|
(27)% |
|
Provision for credit losses |
1 |
(4) |
4 |
(15) |
0 |
|
|
| Net operating
income |
(269) |
(11) |
(63) |
(118) |
(196) |
|
(27)% |
| Associates |
0 |
0 |
0 |
0 |
0 |
|
|
| Other
items |
1 |
2 |
2 |
3 |
69926 |
|
|
|
Pre-tax profit |
(268) |
(9) |
(62) |
(115) |
503 |
|
|
1Q19 results: from data excluding
non-operating items to restated data
| €m |
1Q19 underlying |
|
Exchange rate fluctuations on DSN in
currencies |
Transformation & Business Efficiency investment
costs |
Disposal of subsidiary in Brazil |
Capital gain - Disposal of retail banking
activities |
|
1Q19 restated |
| Net
revenues |
2,113 |
|
19 |
|
|
|
|
2,132 |
|
Expenses |
(1,703) |
|
|
(17) |
|
|
|
(1,720) |
| Gross operating
income |
410 |
|
19 |
(17) |
|
|
|
412 |
| Provision for credit losses |
(31) |
|
|
|
|
|
|
(31) |
| Associates |
3 |
|
|
|
|
|
|
3 |
| Gain or
loss on other assets |
0 |
|
|
|
(15) |
697 |
|
682 |
| Pre-tax profit |
382 |
|
19 |
(17) |
(15) |
697 |
|
1,066 |
| Tax |
(137) |
|
(6) |
5 |
|
(78) |
|
(215) |
| Minority
interests |
(53) |
|
|
|
|
(33) |
|
(86) |
|
Net income (group share) |
192 |
|
13 |
(12) |
(15) |
586 |
|
764 |
Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 12 for the reconciliation of the restated figures with the
accounting view
Natixis - 1Q19 capital & Basel 3 financial
structureSee note on methodology
Fully-loaded
|
€bn |
31/03/2019 |
|
Shareholder’s Equity |
20.8 |
|
Hybrid securities (Including capital gain following
reclassification of hybrids as equity instruments) |
(2.1) |
|
Goodwill & intangibles |
(3.8) |
|
Deferred tax assets |
(0.7) |
|
Dividend provision |
(2.5) |
|
Other deductions |
(0.5) |
|
CET1 capital |
11.1 |
|
CET1 ratio |
11.6% |
|
Additional Tier 1 capital |
1.8 |
|
Tier 1 capital |
12.9 |
|
Tier 1 ratio |
13.4% |
|
Tier 2 capital |
2.3 |
|
Total capital |
15.2 |
|
Total capital ratio |
15.8% |
|
Risk-weighted assets |
96.4 |
Regulatory
|
€bn |
31/03/2019 |
|
Fully-loaded CET1 capital |
11.1 |
|
Current financial year’s earnings |
(0.8) |
|
Current financial year’s accrued dividend |
0.1 |
|
CET1 capital |
10.5 |
|
CET1 ratio |
10.9% |
|
Additional Tier 1 capital |
2.1 |
|
Tier 1 capital |
12.6 |
|
Tier 1 ratio |
13.1% |
|
Tier 2 capital |
2.4 |
|
Total capital |
15.0 |
|
Total capital ratio |
15.5% |
|
Risk-weighted assets |
96.4 |
IFRIC 21 effects by business line
Effect in expenses
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
| AWM |
(4) |
1 |
1 |
1 |
(4) |
| CIB |
(22) |
7 |
7 |
7 |
(24) |
| Insurance |
(14) |
5 |
5 |
5 |
(13) |
| Payments |
(1) |
0 |
0 |
0 |
(1) |
| Financial investments |
0 |
0 |
0 |
0 |
0 |
| Corporate center |
(119) |
40 |
40 |
40 |
(119) |
|
Total Natixis |
(160) |
53 |
53 |
53 |
(161) |
Historical figures restated for the disposal of
the retail banking activities
Normative capital allocation and RWA
breakdown - 31/03/2019
|
€bn |
RWA EoP |
% of total |
Goodwill &
intangibles1Q19 |
Capital allocation 1Q19 |
RoE after tax 1Q19 |
| AWM |
12.5 |
15% |
3.1 |
4.4 |
11.5% |
| CIB |
62.0 |
74% |
0.2 |
6.6 |
7.6% |
| Insurance |
8.0 |
10% |
0.1 |
0.9 |
29.4% |
|
Payments |
1.1 |
1% |
0.2 |
0.4 |
12.0% |
|
Total (excl. Corporate center and Financial
investments) |
83.7 |
100% |
3.6 |
12.2 |
|
|
RWA breakdown (€bn) |
31/03/2019 |
| Credit risk |
65.2 |
|
Internal approach |
54.5 |
|
Standard approach |
10.7 |
| Counterparty
risk |
6.5 |
|
Internal approach |
5.6 |
|
Standard approach |
0.9 |
| Market risk |
9.9 |
|
Internal approach |
4.4 |
|
Standard approach |
5.5 |
| CVA |
1.5 |
|
Operational risk - Standard approach |
13.3 |
|
Total RWA |
96.4 |
Fully-loaded leverage ratio27 According 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 |
31/03/2019 |
| Tier 1
capital1 |
13.2 |
| Total prudential balance sheet |
396.0 |
| Adjustment on derivatives |
(38.0) |
| Adjustment on repos28 |
(26.2) |
| Other exposures to affiliates |
(41.2) |
| Off balance sheet commitments |
36.1 |
| Regulatory adjustments |
(5.1) |
|
Total leverage exposures |
321.6 |
|
Leverage ratio |
4.1% |
Net book value as at March 31, 2019
|
€bn |
31/03/2019 |
| Shareholders’ equity (group
share) |
20.8 |
| Deduction of hybrid capital
instruments |
(2.0) |
| Deduction of gain on hybrid
instruments |
(0.1) |
| Distribution |
(2.5) |
| Net book value |
16.3 |
| Restated intangible assets29 |
0.6 |
| Restated goodwill1 |
3.3 |
|
Net tangible book value30 |
12.3 |
|
€ |
|
| Net book value per
share |
5.16 |
|
Net tangible book value per share |
3.90 |
1Q19 Earnings per share
|
€m |
31/03/2019 |
| Net income (gs) |
764 |
| DSN interest expenses on preferred
shares after tax |
(24) |
|
Net income attributable to shareholders |
741 |
|
Earnings per share (€) |
0.24 |
Number of shares as at March 31, 2019
|
|
31/03/2019 |
|
Average number of shares over the period, excluding treasury
shares |
3,148,288,020 |
| Number
of shares, excluding treasury shares, EoP |
3,150,673,938 |
| Number
of treasury shares, EoP |
2,404,544 |
Net income attributable to shareholders
|
€m |
1Q19 |
| Net income (gs) |
764 |
|
DSN interest expenses on preferred shares after tax |
(24) |
|
RoE & RoTE numerator |
741 |
|
Natixis RoTE31 |
|
€m |
31/03/2019 |
|
| Shareholders’ equity (group
share) |
20,849 |
|
| DSN deduction |
(2,122) |
|
| Dividend provision |
(2,551) |
|
| Intangible assets |
(630) |
|
|
Goodwill |
(3,338) |
|
| RoTE
Equity end of period |
12,208 |
|
|
Average RoTE equity (1Q19) |
12,208 |
|
|
1Q19 RoTE annualized with no IFRIC 21
adjustment |
9.9% |
|
| IFRIC
21 impact |
142 |
|
|
1Q19 RoTE annualized excl. IFRIC 21 |
14.5% |
|
|
Natixis
RoE1 |
|
€m |
31/03/2019 |
|
| Shareholders’ equity (group
share) |
20,849 |
|
| DSN deduction |
(2,122) |
|
| Dividend provision |
(2,551) |
|
| Exclusion of unrealized or deferred
gains and losses recognized in equity (OCI) |
(429) |
|
|
RoE Equity end of period |
15,748 |
|
|
Average RoE equity (1Q19) |
15,748 |
|
|
1Q19 RoE annualized with no IFRIC 21
adjustment |
7.7% |
|
| IFRIC
21 impact |
142 |
|
|
1Q19 RoE annualized excl. IFRIC 21 |
11.3% |
|
Doubtful loans32
|
€bn |
31/12/2018Pro forma excl. IFRS 5 |
31/03/2019Under IFRS 9 |
| Provisionable commitments33 |
1.7 |
1.7 |
| Provisionable commitments / Gross
debt |
1.8% |
1.5% |
| Stock of provisions34 |
1.3 |
1.3 |
| Stock
of provisions / Provisionable commitments |
76% |
76% |
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 first quarter 2019 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 May 10th, 2019 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 |
|
|
|
|
|
|
|
|
Damien Souchet |
T + 33 1 58 55 41 10 |
|
Daniel Wilson |
T + 33 1 58 19 10 40 |
|
Noemie Louvel |
T + 33 1 78 40 37 87 |
|
Sonia Dilouya Vanessa Stephan |
T + 33 1 58 32 01 03T + 33 1 58 19 34 16 |
|
|
|
|
|
|
www.natixis.com
Figures restated as communicated on April 11, 2019 following the
disposal of the retail banking activities. See page 12 for the
reconciliation of the restated figures with the accounting
view
1 Excluding exceptional items. Excluding exceptional items and
excluding IFRIC 21 for cost/income, RoE and RoTE (see note on
methodology)
2 See note on methodology
3 Adjusting for the non-recurring impact on 4Q18 revenues from
Asian equity derivatives, net of tax
4 Proposal subject to the approval of the General Shareholders’
meeting on May 28, 2019
1Figures restated as communicated on April 11, 2019 following
the disposal of the retail banking activities. See page 12 for the
reconciliation of the restated figures with the accounting view
6 See note on methodology. Excluding exceptional items and
excluding IFRIC 21
7 Adjusting for the non-recurring impact on 4Q18 revenues from
Asian equity derivatives, net of tax
8 Asset management including Private equity and Employee savings
plan2 See note on methodology. Excluding exceptional items and
excluding IFRIC 21
9 See note on methodology. Excluding exceptional items and
excluding IFRIC 21
10 ENR, Real Assets, ASF
11 See note on methodology. Excluding exceptional items and
excluding IFRIC 21
12 Excluding reinsurance agreement with CNP
13 Source: FFA
14 See note on methodology. Excluding exceptional items and
excluding IFRIC 21
15 Reported ratios, net of reinsurance
16 See note on methodology
17 Pay-out ratio based on reported net income group share minus
DSN interest expenses on preferred shares after tax and excluding
the €586m net capital gain from the disposal of the retail banking
activities
18 Including deposit and margin call
19 Asset management including Private equity and Employee
savings plan
20 Normative capital allocation methodology based on 10.5% of
the average RWA-including goodwill and intangibles
21 Including Film industry financing
22 Including M&A
23 Normative capital allocation methodology based on 10.5% of
the average RWA-including goodwill and intangibles
24 Normative capital allocation methodology based on 10.5% of
the average RWA-including goodwill and intangibles
25 Normative capital allocation methodology based on 10.5% of
the average RWA-including goodwill and intangibles
26 Including €697m capital gain from the disposal of the retail
banking activities
27 See note on methodology. Without phase-in -
supposing replacement of existing subordinated issuances when they
become ineligible
28 Repos with clearing houses cleared according to IAS32
standard, without maturity or currency criteria
29 See note on methodology
30 Net tangible book value = Book value – goodwill - intangible
assets
31See note on methodology. Returns based on
quarter-end balance sheet to reflect the disposal of the retail
banking activities. The €586m net capital gain is not
annualized
32 On-balance sheet, excluding repos, net of
collateral
33 Net commitments
34 Specific and portfolio-based provisions