Natixis 2019 second quarter results
Paris, August 1, 2019
2Q19 resultsA
well-balanced business model to navigate the current
environmentReported net income at €346m in 2Q19 and €1.1bn
in 1H19Financial strength with a Basel 3 fully-loaded CET1 ratio1
at 11.5%, well above our 2020 target (11%)
STRENGTH OF A DIVERSIFIED BUSINESS
MODEL2Q19 UNDERLYING NET REVENUES2 AT €2.3BN, STABLE VS. A
RECORD 2Q18
AWM: Strong
net revenue growth and positive net inflows in the US
notably
Strength of our active
asset management model with underlying net revenues2 up +11% YoY in
2Q19 (+4% in 1H19)in part driven by high levels of performance fees
that reached €138m this quarter (€171m in 1H19)
Demonstration of the
strength of the multiboutique model with €(2)bn net outflows on LT
products despite €(6)bnnet outflows at H2O. More than +€3bn net
inflows on LT products across other affiliates, of which +€2bn in
the US
The average fee rate
remains in line with the New Dimension target at ~30bps
Strong AuM growth of
+5% over the quarter to reach €898bn, including WCM
Projected partnership
between Ostrum AM and LBP AM to create a key player in life
insurance asset management
CIB: Revenue
diversification and tight cost control to create value despite an
elevated cost of risk due to a large single file
Underlying net
revenues2 down YoY in 2Q19 with a high base effect in Global
finance. Resilience of Global markets activities with revenues up
QoQ and FIC-T also up YoY. Growth from IB/M&A and our Green
& Sustainable Hub
Strict cost control,
down -7% YoY at constant exchange rate in 2Q19
Cost of risk elevated
this quarter driven by a large single file
Underlying RoE2 at
9.3% in 2Q19 and 11.7% with a normalized cost of risk of 30bps
Insurance:
Sustained growth and profitability
Underlying net
revenues2 up +7% YoY with a positive jaws effect both in 2Q19 and
1H19
Underlying RoE2
>30% in 1H19, in line with the New Dimension 2020 target
Payments:
Continued growth dynamic
Underlying net
revenues2 up +10% YoY with a positive jaws effect both in 2Q19 and
1H19
Increase in business
volumes from Dalenys & PayPlug, up more than +20%
SUSTAINABLE VALUE CREATION AND FINANCIAL
STRENGTH
Organic
capital creation of 38bps in 2Q19. Basel 3 FL CET1
ratio1 at 11.5% as at June 30, 2019, well
above our 2020 target (11%)
Underlying net
income2 at €363m in 2Q19 and €555m in 1H19, despite an
elevated cost of risk (63bps in 2Q19 and 43bps in 1H19)
Underlying
RoTE2 at 9.6% in 2Q19 and 10.8% with a normalized cost of risk of
30bps
Underlying
RoTE2 adjusted3 at 12.8% over New Dimension as at June 30,
2019
FOCUS ON THE IMPLEMENTATION OF OUR 2020
AMBITIONS
François
Riahi, Natixis Chief Executive Officer, said: “Natixis
recorded solid results across all its businesses in the second
quarter of 2019. Our diversified and balanced business model
proves, once again, its worth in an uncertain economic environment.
In Asset & Wealth Management our multi-boutique model
demonstrated its robustness. Revenues and assets under management
both continued to rise despite outflows at H2O and with net flows
in the United States turning back positive. We also announced our
ambition to create a 100% SRI-compliant European leader in
insurance-related fixed income asset management with La Banque
Postale. In Corporate & Investment Banking, we enjoyed
sustained performances, including in our capital markets activities
despite a less favorable environment than last year to which we
notably adapt through tighter cost control. In Insurance and
Payments, we continued to combine strong growth with a positive
jaws effect. We further bolstered our capital position with our
CET1 standing at 11.5%, above our 2020 objective.”
Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 13 for the reconciliation of the restated figures with the
accounting view [1] See note on methodology 2
Excluding exceptional items. Excluding exceptional items and
excluding IFRIC 21 for cost/income, RoE and RoTE (see note on
methodology) 3 Adjusting for the non-recurring impact on 4Q18
revenues from Asian equity derivatives and a 30bps normalized cost
of risk in 2Q19, net of tax 2Q19
RESULTS
On August 1, 2019, the Board of
Directors examined Natixis’ second quarter 2019
results.
|
€m |
|
2Q19 reported |
2Q18 restated |
|
2Q19 o/w underlying |
2Q18 o/w underlying |
|
2Q19 vs. 2Q18 restated |
|
2Q19 vs. 2Q18 underlying |
| Net revenues |
|
2,282 |
2,360 |
|
2,297 |
2,305 |
|
(3)% |
|
0% |
|
o/w businesses |
|
2,091 |
2,106 |
|
2,091 |
2,106 |
|
(1)% |
|
(1)% |
| Expenses |
|
(1,577) |
(1,528) |
|
(1,566) |
(1,514) |
|
3% |
|
3% |
| Gross operating
income |
|
705 |
832 |
|
730 |
791 |
|
(15)% |
|
(8)% |
| Provision for credit losses |
|
(110) |
(41) |
|
(110) |
(41) |
|
|
|
|
| Net operating
income |
|
595 |
791 |
|
620 |
750 |
|
(25)% |
|
(17)% |
| Associates and other items |
|
7 |
7 |
|
7 |
7 |
|
|
|
|
| Pre-tax
profit |
|
602 |
798 |
|
627 |
757 |
|
(25)% |
|
(17)% |
| Income tax |
|
(164) |
(234) |
|
(172) |
(220) |
|
|
|
|
| Minority interests |
|
(92) |
(57) |
|
(93) |
(56) |
|
|
|
|
|
Net income - group share |
|
346 |
507 |
|
363 |
481 |
|
(32)% |
|
(25)% |
Natixis’ underlying net
revenues are stable vs. a historically high 2Q18 with AWM
up +11%, Payments up +10% YoY and Insurance up +7% YoY. Within CIB,
Investment banking/M&A up +5% YoY and good resilience for
Global markets (-5% YoY excl. CVA/DVA), offsetting Global finance
evolution set against a 2Q18 historically high performance.
Underlying expenses are well
under control and up +1% YoY at constant exchange rate, in part
reflecting the strong top-line performance across AWM, Insurance
and Payments. CIB costs down -7% YoY at constant exchange rate.
The underlying cost/income ratio1 is at 70.5%, up
+250bps vs. 2Q18.
The underlying loan loss
provisioning increased above its normalized level this
quarter, mainly driven by a large single file in France. Expressed
in basis points of loans outstanding (excluding credit
institutions), the businesses’ underlying cost of
risk worked out to 63bps in 2Q19 vs. a normalized level of
~30bps.
Underlying tax rate at ~28% in
2Q19. YoY increase in minority interests on the back of a higher
performance from some European AM affiliates and Coface.
Net income (group share), adjusted for IFRIC 21
and excluding exceptional items reached €315m in 2Q19. Accounting
for exceptional items (-€17m net of tax in 2Q19) and IFRIC 21
impact (+€47m in 2Q19), the reported net income (group share) in
2Q19 is at €346m.
Businesses’ underlying
RoE1 reached 12.6% in 2Q19 and 13.9%
under a normalized2 cost of risk.
Natixis’ underlying
RoTE1 reached 9.6% in 2Q19 excl. IFRIC 21
and 10.8% under a normalized2 cost of risk.
1 See note on methodology. Excluding exceptional items and
excluding IFRIC 21 2 Normalizing the 2Q19 cost of risk at 30bps
1H19 RESULTS1
|
€m |
|
1H19 restated |
1H18 restated |
|
1H19 o/w underlying |
1H18 o/w underlying |
|
1H19 vs. 1H18 restated |
|
1H19 vs. 1H18 underlying |
| Net revenues |
|
4,414 |
4,553 |
|
4,410 |
4,526 |
|
(3)% |
|
(3)% |
|
o/w businesses |
|
3,992 |
4,146 |
|
3,992 |
4,146 |
|
(4)% |
|
(4)% |
| Expenses |
|
(3,297) |
(3,202) |
|
(3,269) |
(3,173) |
|
3% |
|
3% |
| Gross operating
income |
|
1,117 |
1,350 |
|
1,141 |
1,353 |
|
(17)% |
|
(16)% |
| Provision for credit losses |
|
(141) |
(77) |
|
(141) |
(77) |
|
|
|
|
| Net operating
income |
|
976 |
1,273 |
|
1,000 |
1,276 |
|
(23)% |
|
(22)% |
| Associates and other items |
|
692 |
20 |
|
9 |
20 |
|
|
|
|
| Pre-tax
profit |
|
1,668 |
1,293 |
|
1,009 |
1,295 |
|
29% |
|
(22)% |
| Income tax |
|
(379) |
(409) |
|
(308) |
(410) |
|
|
|
|
| Minority interests |
|
(178) |
(117) |
|
(145) |
(117) |
|
|
|
|
|
Net income - group share |
|
1,110 |
767 |
|
555 |
769 |
|
45% |
|
(28)% |
Natixis’ underlying net
revenues are higher or stable vs. 1H18 for the vast
majority of the businesses with Payments up +10% YoY, Insurance up
+7% YoY, AWM up +4% YoY and IB/M&A up +6% YoY. 1H19 revenue
evolution to be put in the context of a historically high 1H18, in
particular 1Q18 for Global markets and 2Q18 for Global finance.
Underlying expenses are well
under control and up +1% YoY at constant exchange rate reflecting
solid revenue growth across most businesses, investments being made
(e.g. strategic projects, support functions) and the increase in
the SRF contribution. CIB costs down -3% YoY at constant exchange
rate. The underlying cost/income ratio2 is at
71.7%, up +390bps vs. 1H18.
The underlying loan loss
provisioning almost doubled vs. 1H18 on the back of a
large single file impact in 2Q19 and is thus not representative of
the normalized cost of risk. Expressed in basis points of loans
outstanding (excluding credit institutions), the
businesses’ underlying cost of risk worked out to 43bps in
1H19.
Underlying tax rate at ~31% in
1H19 due to the non-deductibility of the SRF contribution in 1Q.
Guidance maintained at <30% for 2019.
Net income (group share), adjusted for IFRIC 21
and excluding exceptional items reached €650m in 1H19. Accounting
for exceptional items (+€555m net of tax in 1H19) and IFRIC 21
impact (-€95m in 1H19), the reported net income (group share) in
1H19 is at €1,110m.
Businesses’ underlying
RoE2 reached 12.5% in 1H19 and 12.9%
under a normalized cost of risk3.
Natixis’ underlying
RoTE2 reached 9.9% in 1H19 excl. IFRIC 21
and 10.3% under a normalized cost of risk3.
1 Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 13 for the reconciliation of the restated figures with the
accounting view 2 See note on methodology.
Excluding exceptional items and excluding IFRIC 21 3 Normalizing
the 1H19 cost of risk at 30bps
2Q19 & 1H19
RESULTSExceptional items
|
€m |
|
2Q19 |
2Q18 |
|
1H19 |
1H18 |
|
Exchange rate fluctuations on DSN in currencies (Net revenues) |
Corporate center |
(15) |
55 |
|
4 |
27 |
|
Transformation & Business Efficiency Investment costs
(Expenses) |
Business lines & Corporate center |
(10) |
(18) |
|
(26) |
(30) |
|
Fit to Win investments & restructuring expenses (Expenses) |
Corporate center |
(1) |
4 |
|
(1) |
1 |
|
Disposal of subsidiary in Brazil (Gain or loss on other
assets) |
CIB |
0 |
0 |
|
(15) |
0 |
|
Capital gain - Disposal of retail activities (Gain or loss on other
assets) |
Corporate center |
0 |
0 |
|
697 |
0 |
|
Total impact on income tax |
|
8 |
(14) |
|
(71) |
1 |
| Total impact
on minority interests |
|
0 |
(1) |
|
(33) |
(1) |
|
Total impact on net income (gs) |
|
(17) |
25 |
|
555 |
(2) |
€586m positive net impact from the disposal of
the retail banking activities in 1Q19: €697m capital gain minus
€78m income tax minus €33m minority interests
TRANSFORMATION & BUSINESS EFFICIENCY
Investment costs by reporting line
|
€m |
2Q19 |
2Q18 |
|
1H19 |
1H18 |
|
AWM |
(0) |
(1) |
|
(5) |
(1) |
|
CIB |
(3) |
(3) |
|
(6) |
(4) |
|
Insurance |
(2) |
(1) |
|
(2) |
(1) |
|
Payments |
(0) |
(1) |
|
(0) |
(1) |
|
Financial Investments |
0 |
0 |
|
0 |
0 |
|
Corporate center |
(5) |
(13) |
|
(13) |
(23) |
|
Impact on expenses |
(10) |
(18) |
|
(26) |
(30) |
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p4)
Asset & Wealth
Management
| €m |
|
2Q19 |
2Q18 |
2Q19 vs. 2Q18 |
|
1H19 |
1H18 |
1H19 vs. 1H18 |
1H19 vs. 1H18 constant FX |
| Net
revenues |
|
932 |
842 |
11% |
|
1,705 |
1,641 |
4% |
0% |
| o/w Asset Management1 |
|
900 |
805 |
12% |
|
1,642 |
1,567 |
5% |
1% |
| o/w Wealth management |
|
32 |
37 |
(12)% |
|
63 |
74 |
(14)% |
(14)% |
| Expenses |
|
(605) |
(568) |
7% |
|
(1,158) |
(1,116) |
4% |
0% |
| Gross operating income |
|
327 |
274 |
19% |
|
547 |
525 |
4% |
1% |
| Provision for credit losses |
|
(2) |
(1) |
|
|
(1) |
(1) |
|
|
| Associates and other items |
|
(2) |
(2) |
|
|
(4) |
(2) |
|
|
|
Pre-tax profit |
|
323 |
270 |
20% |
|
542 |
521 |
4% |
|
| Cost/income ratio2 |
|
65.1% |
67.7% |
-2.6pp |
|
67.8% |
67.8% |
-0.0pp |
|
| RoE after tax2 |
|
15.0% |
15.2% |
-0.2pp |
|
13.5% |
14.6% |
-1.1pp |
|
Underlying net revenues from
Asset & Wealth Management (AWM) are up +11% YoY in 2Q19 on a
high 2Q18. Net revenues growth even excluding performance fees,
illustrating the resilience of our active multi-boutique model.
Asset management (excl. Employee savings plan)
underlying net revenues excl. performance fees down -4% YoY in
North America (€384m) and up + 9% in Europe (€208m) in 2Q19 (-5% at
€756m and +11% at €378m in 1H19 for North America and Europe
respectively). Wealth management net revenues are
down -€5m YoY in 2Q19 mainly due to the perimeter effect from the
disposal of Selection 1818 finalized in 4Q18.
The Asset management overall fee rate
excluding performance fees is at 30bps in 2Q19, flat QoQ
and in line with the New Dimension target. In Europe, 16.5bps
(+0.5bps QoQ) and 28.6bps excl. Life Insurance General Accounts
(+1.1bps QoQ). In North America, 38bps (flat QoQ).
Performance fees reached €138m in 2Q19 and €171m
in 1H19 (~11% of AM revenues vs. ~13% FY18) mainly driven by H2O
and AEW.
Asset management net inflows on
LT products reached >€3bn in 2Q19 excluding H2O illustrating the
diversity of the multi-boutique model with, notably, a rebound in
the US. H2O AuM at €26bn as at end-June, above its end-June 2018
level. H2O fund flows have normalized quickly - positive net
inflows in July. In Europe, ~€1bn net inflows on LT products
(excl. H2O) in 2Q19 mainly driven by Fixed income, ESG and
Real asset strategies. Net outflows on money market funds (~€4bn)
in part driven by corporates’ semester-end. In North America, ~€2bn
net inflows on LT products in 2Q19 primarily driven by Fixed income
and growth Equity strategies. Good momentum for Loomis.
Asset management AuM reached
€898bn as at June 30, 2019 and are up +5% QoQ. Positive FX and
perimeter effect of €27bn (mainly driven by the acquisition of a
stake in WCM) and positive market effect of +€22bn in 2Q19.
Wealth management AuM reached €30.0bn as at
June 30, 2019 including Massena Partners (acquisition
finalized end of June) and with €0.3bn positive net inflows.
Underlying expenses up +3% YoY
at constant exchange rate in 2Q19 reflecting investments being made
in new initiatives and digitalization as well as MIFID 2
impact.
The underlying RoE2 reached
15.0% in 2Q19 and 13.5% in 1H19.
1 Asset management including Private equity and
Employee savings plan 2 See note on methodology. Excluding
exceptional items and excluding IFRIC 21 Unless specified
otherwise, the following comments and data refer to underlying
results, i.e. excluding exceptional items (see detail p4)
Corporate & Investment
Banking
| €m |
|
2Q19 |
2Q18 |
2Q19 vs. 2Q18 |
|
1H19 |
1H18 |
1H19 vs. 1H18 |
1H19 vs. 1H18 constant FX |
| Net
revenues |
|
847 |
976 |
(13)% |
|
1,654 |
1,920 |
(14)% |
(16)% |
| Net revenues excl. CVA/DVA/Other |
|
844 |
922 |
(9)% |
|
1,644 |
1,872 |
(12)% |
(15)% |
| Expenses |
|
(520) |
(548) |
(5)% |
|
(1,099) |
(1,113) |
(1)% |
(3)% |
| Gross operating income |
|
327 |
428 |
(24)% |
|
554 |
807 |
(31)% |
(34)% |
| Provision for credit losses |
|
(104) |
(37) |
|
|
(134) |
(68) |
|
|
| Associates and other items |
|
3 |
3 |
|
|
6 |
9 |
|
|
|
Pre-tax profit |
|
225 |
393 |
(43)% |
|
426 |
748 |
(43)% |
|
| Cost/income ratio1 |
|
62.4% |
56.9% |
+5.5pp |
|
65.5% |
57.2% |
+8.3pp |
|
| RoE after tax1 |
|
9.3% |
17.3% |
-8.0pp |
|
9.5% |
17.2% |
-7.7pp |
|
Underlying net revenues are
down high-single digit in 2Q19 excl. CVA/DVA and Other. Revenue
evolution largely driven by a high base effect for Global finance
activities with a historically high 2Q18. Continued growth in
Investment banking/M&A and resilient Global markets in 2Q19
with solid performances across the Americas and EMEA (excl. France)
platforms. Increased revenue diversification and robust pipeline
built up for 2H19 especially on our key sectors and Investment
banking/M&A.
Global markets net revenues
excl. CVA/DVA significantly up QoQ in 2Q19 and slightly down YoY.
1H19 revenue evolution reflecting a high base, especially in 1Q18.
FICT net revenues up +2% YoY in 2Q19 with
maintained high selectivity on profitable deals. Continued good
performance in Credit especially in the US and revenues picking up
in Rates, despite challenging market conditions and the lack of
jumbo transactions. Less favorable environment for FX, notably due
to the lack of volatility on major currencies.
Equity net revenues excluding cash equity down
-16% YoY in 2Q19 (high 2Q18) with a solid recovery post 4Q18 and
remaining close to 1Q19 levels. Increased diversification while
continuing to bring innovative solutions to address clients’ needs.
Global finance net revenues down YoY due to the
base effect from a historically high 2Q18, especially on Aviation
and US Real estate. Sustained 2Q19 activity in Energy & Natural
Resources as well as in Europe Real estate. Robust new loan
production, up +36% QoQ although down YoY (base effect).
Solid origination levels for Europe Real estate and ASF.
Distribution rate on Real Assets at ~62% in 1H19.
Investment banking and M&A net revenues up +5%
YoY in 2Q19 (+6% in 1H19), in part driven by Green &
Sustainable initiatives and including a good performance both in
ECM and DCM. Sustained M&A activity in 2Q19 with a good
contribution from PJ Solomon in the US. Proportion of
revenues generated from service fees at ~38% in 2Q19 and
~40% in 1H192.
Underlying expenses are well
under control and down -7% YoY at constant exchange rate in 2Q19
reflecting lower variable costs and ongoing efforts to improve
efficiency despite investments being made to develop our sectorial
approach as well as control functions.
Underlying cost of risk above
its normalized level of ~30bps due to a large single file in France
in 2Q19.
Underlying
RoE1 of 9.3% in 2Q19 and 9.5% in 1H19.
Normalizing for the cost of risk3, the 2Q19 RoE would have reached
11.7% (10.4% in 1H19). RWA are well under control,
down -1% QoQ. Acquisition of Azure Capital Limited
in Australia finalized in June to complement the international
network of M&A boutiques and already bringing new mandates.
1 See note on methodology. Excluding exceptional
items and excluding IFRIC 21 2 ENR, Real Assets, ASF 3 Normalizing
the cost of risk at 30bps Unless specified otherwise, the following
comments and data refer to underlying results, i.e. excluding
exceptional items (see detail p4)
Insurance
| €m |
|
2Q19 |
2Q18 |
2Q19 vs. 2Q18 |
|
1H19 |
1H18 |
1H19 vs. 1H18 |
| Net
revenues |
|
207 |
193 |
7% |
|
425 |
397 |
7% |
| Expenses |
|
(114) |
(107) |
6% |
|
(239) |
(225) |
6% |
| Gross operating income |
|
93 |
85 |
9% |
|
186 |
171 |
9% |
| Provision for credit losses |
|
0 |
0 |
|
|
0 |
0 |
|
| Associates and other items |
|
5 |
0 |
|
|
5 |
3 |
|
| Pre-tax
profit |
|
98 |
86 |
15% |
|
192 |
175 |
10% |
| Cost/income ratio1 |
|
56.9% |
58.1% |
-1.2pp |
|
54.2% |
54.4% |
-0.2pp |
| RoE after tax1 |
|
27.7% |
25.2% |
+2.5pp |
|
30.4% |
29.1% |
+1.3pp |
Banking view
Underlying net revenues up +7%
YoY both in 2Q19 and 1H19 with growth across the board.
Underlying expenses up +6% YoY
both in 2Q19 and 1H19, translating into a positive jaws effect and
an underlying cost/income ratio1 improvement, in
line with the 2020 target of ~54%.
Underlying gross operating
income up +9% YoY both in 2Q19 and 1H19.
Underlying RoE1 continued
progression, above 30% in 1H19 which is the target set for New
Dimension by 2020
Insurance view
Global turnover2 reached €3.3bn
in 2Q19, up +10% YoY (+2% in 1H19 at €6.7bn).
Life and Personal protection:
€2.9bn earned premiums2 in 2Q19, up +11% YoY.
- Total AuM2 at €65.0bn as at end-June 2019, up
+3% QoQ and +8% YTD, driven by €1.6bn of net inflows2 in 2Q19
(€3.4bn YTD).
- Unit-linked AuM2 at €15.9bn as at end-June
2019, up +5% QoQ and +13% YTD, driven by €0.6bn of net inflows2
both in 1Q19 and 2Q19 (36% of total net inflows). UL products
accounted for 29% of gross inflows in 2Q19, above the French
market3.
- Personal protection: earned premiums up +22%
YoY in 2Q19 at €0.3bn (+12% in 1H19 at €0.5bn).
P&C: €0.4bn earned premiums
in 2Q19, up +7% YoY (+5% in 1H19 at €0.8bn). The combined
ratio reaches 90.5% in 2Q19 (-1.5pp YoY) and 91.5% in 1H19
(-0.6pp YoY).
The non-life equipment rate at
the end of June is at 26.5% (+0.5pp QoQ) for Banques Populaires and
at 29.5% (+0.4pp QoQ) for Caisses d’Epargne.
1 See note on methodology. Excluding exceptional
items and excluding IFRIC 21 2 Excluding reinsurance agreement with
CNP 3 Source: FFA Unless specified otherwise, the following
comments and data refer to underlying results, i.e. excluding
exceptional items (see detail p4)
Payments
| €m |
|
2Q19 |
2Q18 |
2Q19 vs. 2Q18 |
|
1H19 |
1H18 |
1H19 vs. 1H18 |
| Net
revenues |
|
105 |
95 |
10% |
|
208 |
188 |
10% |
| Expenses |
|
(94) |
(87) |
8% |
|
(181) |
(166) |
9% |
| Gross operating income |
|
11 |
8 |
33% |
|
27 |
22 |
21% |
| Provision for credit losses |
|
(1) |
(0) |
|
|
(1) |
(0) |
|
| Associates and other items |
|
0 |
1 |
|
|
0 |
1 |
|
| Pre-tax
profit |
|
10 |
9 |
17% |
|
26 |
23 |
15% |
| Cost/income ratio1 |
|
89.8% |
91.6% |
-1.8pp |
|
87.0% |
88.1% |
-1.1pp |
| RoE after tax1 |
|
7.2% |
7.9% |
-0.7pp |
|
9.8% |
10.6% |
-0.8pp |
Underlying net revenues are up
+10% YoY both in 2Q19 and 1H19. 40% of 1H19 revenues realized with
direct clients (+3pp vs. 1H18).
- Payment Processing & Services: Steady +4%
YoY revenue growth in Natixis Payments’ historical activities in
2Q19 (+5% in 1H19). Number of card transactions processed up +9%
YoY in 2Q19.
- Merchant Solutions: Solid business volumes
generated by Dalenys (medium/large corp.) and PayPlug (SME), up
+22% YoY in 2Q19 (+24% in 1H19). Successful delivery of a
fully-integrated “mobility as a service” (MAAS) solution for the
SNCF Group simplifying payment services associated with all types
of travel.
- Prepaid & Issuing Solutions: Robust growth
in 2Q19 driven by meal vouchers (+7% YoY) and the contribution of
our Benefits & Rewards activity (Titres Cadeaux and Comitéo).
Number of mobile payments more than x2.6 vs. 2Q18. Launch of
Xpollens in partnership with Visa, the first end-to-end “Payments
in a box” offer integrating a full range of innovative payment
solutions, from payment cards to instant payments through account
management.
1 See note on methodology. Excluding exceptional items and
excluding IFRIC 21Unless specified otherwise, the following
comments and data refer to underlying results, i.e. excluding
exceptional items (see detail p4)
Financial Investments
| €m |
|
2Q19 |
2Q18 |
2Q19 vs. 2Q18 |
|
1H19 |
1H18 |
1H19 vs. 1H18 |
| Net
revenues |
|
196 |
174 |
13% |
|
389 |
364 |
7% |
|
Coface |
|
181 |
156 |
16% |
|
356 |
333 |
7% |
|
Other |
|
15 |
18 |
(18)% |
|
33 |
31 |
6% |
| Expenses |
|
(140) |
(129) |
9% |
|
(273) |
(257) |
6% |
| Gross operating income |
|
56 |
45 |
23% |
|
116 |
107 |
8% |
| Provision for credit losses |
|
(4) |
1 |
|
|
(6) |
(5) |
|
| Associates and other items |
|
5 |
3 |
|
|
5 |
6 |
(5)% |
|
Pre-tax profit |
|
57 |
50 |
15% |
|
115 |
108 |
6% |
The net combined ratio of
Coface1 reached 77.5% in 2Q19 vs. 81.5% in 2Q18 (76.0%
1H19 vs. 77.0% 1H18) with a cost ratio moving from 35.0% to 32.2%
(from 33.8% 1H18 to 32.0% 1H19) and a loss ratio moving from 46.6%
to 45.3% (from 43.2% 1H18 to 44.0% 1H19).
Corporate Center
| €m |
|
2Q19 |
2Q18 |
2Q19 vs. 2Q18 |
|
1H19 |
1H18 |
1H19 vs. 1H18 |
| Net
revenues |
|
9 |
25 |
|
|
28 |
16 |
|
| Expenses |
|
(93) |
(74) |
25% |
|
(318) |
(296) |
7% |
|
SRF |
|
0 |
(0) |
|
|
(170) |
(160) |
6% |
|
Other |
|
(93) |
(74) |
26% |
|
(148) |
(136) |
9% |
| Gross operating income |
|
(83) |
(49) |
69% |
|
(290) |
(280) |
3% |
| Provision for credit losses |
|
1 |
(4) |
|
|
1 |
(3) |
|
| Associates and other items |
|
(5) |
2 |
|
|
(3) |
4 |
|
|
Pre-tax profit |
|
(87) |
(51) |
72% |
|
(292) |
(280) |
4% |
Underlying net revenues from
the Corporate Center of €9m in 2Q19 vs. €25m in 2Q18 (various
positive elements impacting 2Q18).
Underlying expenses excluding
SRF contribution up +€19m YoY in 2Q19 mainly due to severances and
real estate management.
Underlying pre-tax profit
contribution broadly unchanged YoY in 1H19 excl. SRF.
1 Reported ratios, net of reinsurance
FINANCIAL STRUCTURE
Basel 3 fully-loaded
ratios1Natixis’ Basel 3 fully-loaded CET1
ratio worked out to 11.5% as at June 30, 2019.
- Basel 3 fully-loaded CET1 capital amounted to
€11.1bn
- Basel 3 fully-loaded RWA amounted to
€96.9bn
Based on a Basel 3 fully-loaded CET1 ratio of
11.6% as at March 31, 2019, the respective 2Q19 impacts were as
follows:
- Irrevocable Payment Commitment deduction from capital (IPC):
-12bps
- 2Q19 strategic operations (WCM, IM, Fiera Capital, Massena
Partners, Azure Capital): -16bps
- 2Q19 results: +36bps
- 2Q19 ordinary dividends: -20bps
- 2Q19 RWA and other effects: +2bps
Basel 3 regulatory ratios1 As
at June 30, 2019, Natixis’ Basel 3 regulatory capital
ratios stood at 10.6% for the CET1, 12.8% for the Tier 1 and 15.2%
for the total capital ratio.
- Core Tier 1 capital stood at €10.3bn and
Tier 1 capital at €12.4bn
- Natixis’ RWA totaled €96.9bn, breakdown as
follows:
- Credit risk: €65.6bn
- Counterparty risk: €6.6bn
- CVA risk: €1.8bn
- Market risk: €9.6bn
- Operational risk: €13.3bn
Book value per shareEquity
capital (group share) totaled €18.6bn as at June 30, 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
€5.24 as at June 30, 2019 based on 3,150,059,450
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 €3.96.
Leverage ratio1
The leverage ratio worked out to
4.35% as at June 30, 2019.
Overall capital adequacy
ratioAs at June 30, 2019, the financial conglomerate’s
excess capital was estimated at around €3.5bn (based on own funds
including current financial year’s earnings).
1 See note on
methodology APPENDICES
Note on methodology:
The results at 30/06/2019 were examined
by the board of directors at their meeting on
01/08/2019.Figures at 30/06/2019 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: Calculations based on quarter-end balance sheet in
1Q19 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 |
30/06/2019 |
| Goodwill |
3,863 |
| Restatement for Coface minority interests |
(162) |
| Restatement for AWM
deferred tax liability & others |
(334) |
| Restated
goodwill |
3,367 |
|
€m |
30/06/2019 |
| Intangible assets |
697 |
| Restatement for Coface
minority interest & others |
(48) |
| Restated
intangible assets |
649 |
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.
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-out1)
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 1H19
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 4. 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 in 1H19 takes into account ½ of the annual duties and
levies concerned by this accounting rule. The impact for the
quarter is calculated by difference with the former quarter
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
1 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 Natixis - Consolidated P&L
(restated)
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
2,193 |
2,360 |
2,156 |
2,040 |
2,132 |
2,282 |
|
(3)% |
|
4,553 |
4,414 |
|
(3)% |
| Expenses |
(1,675) |
(1,528) |
(1,499) |
(1,656) |
(1,720) |
(1,577) |
|
3% |
|
(3,202) |
(3,297) |
|
3% |
| Gross operating income |
518 |
832 |
658 |
383 |
412 |
705 |
|
(15)% |
|
1,350 |
1,117 |
|
(17)% |
| Provision for credit losses |
(36) |
(41) |
(93) |
(23) |
(31) |
(110) |
|
|
|
(77) |
(141) |
|
|
| Associates |
7 |
3 |
6 |
13 |
3 |
8 |
|
|
|
10 |
11 |
|
|
| Gain or loss on other assets |
6 |
4 |
(0) |
44 |
682 |
(2) |
|
|
|
10 |
681 |
|
|
| Change in value of goodwill |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
| Pre-tax
profit |
495 |
798 |
570 |
418 |
1,066 |
602 |
|
(25)% |
|
1,293 |
1,668 |
|
29% |
| Tax |
(175) |
(234) |
(154) |
(110) |
(215) |
(164) |
|
|
|
(409) |
(379) |
|
|
| Minority interests |
(60) |
(57) |
(59) |
(127) |
(86) |
(92) |
|
|
|
(117) |
(178) |
|
|
|
Net income (group share) |
260 |
507 |
358 |
181 |
764 |
346 |
|
(32)% |
|
767 |
1,110 |
|
45% |
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
1H18
|
€m |
1H18 underlying |
|
Exceptional items |
|
1H18 restated |
Contribution from perimeter sold |
|
1H18 reported |
| Net revenues |
4,526 |
|
27 |
|
4,553 |
437 |
|
4,989 |
| Expenses |
(3,173) |
|
(29) |
|
(3,202) |
(233) |
|
(3,435) |
| Gross operating income |
1,353 |
|
(2) |
|
1,350 |
204 |
|
1,554 |
| Provision for credit losses |
(77) |
|
|
|
(77) |
(7) |
|
(84) |
| Associates |
10 |
|
|
|
10 |
0 |
|
10 |
| Gain or loss on other
assets |
10 |
|
|
|
10 |
0 |
|
10 |
| Pre-tax profit |
1,295 |
|
(2) |
|
1,293 |
197 |
|
1,490 |
| Tax |
(410) |
|
1 |
|
(409) |
(61) |
|
(470) |
| Minority
interests |
(117) |
|
(1) |
|
(117) |
0 |
|
(118) |
| Net income
(group share) |
769 |
|
(2) |
|
767 |
136 |
|
903 |
|
€m |
1H19 underlying |
|
Exceptional items |
|
1H19 restated |
Residual contribution from perimeter
sold |
|
1H19 reported |
| Net revenues |
4,410 |
|
4 |
|
4,414 |
22 |
|
4,436 |
| Expenses |
(3,269) |
|
(28) |
|
(3,297) |
(22) |
|
(3,319) |
| Gross operating income |
1,141 |
|
(24) |
|
1,117 |
0 |
|
1,117 |
| Provision for credit losses |
(141) |
|
|
|
(141) |
0 |
|
(141) |
| Associates |
11 |
|
|
|
11 |
0 |
|
11 |
| Gain or loss on other
assets |
2 |
|
682 |
|
681 |
0 |
|
681 |
| Pre-tax profit |
1,009 |
|
659 |
|
1,668 |
0 |
|
1,668 |
| Tax |
(308) |
|
(71) |
|
(379) |
0 |
|
(379) |
| Minority
interests |
(145) |
|
(33) |
|
(178) |
0 |
|
(78) |
| Net income
(group share) |
555 |
|
555 |
|
1,110 |
0 |
|
1,110 |
1H19
Natixis - IFRS 9 Balance sheet
|
Assets (€bn) |
30/06/2019 |
31/03/2019 |
| Cash and balances with central banks |
17.8 |
20.3 |
| Financial assets at fair value through profit and loss1 |
218.1 |
219.3 |
| Financial assets at fair value through Equity |
11.5 |
11.1 |
| Loans and receivables1 |
124.9 |
119.2 |
| Debt instruments at amortized cost |
1.8 |
1.5 |
| Insurance assets |
106.9 |
104.3 |
| Non-current assets held for sale |
0.0 |
0.0 |
| Accruals and other assets |
16.4 |
15.9 |
| Investments in associates |
0.7 |
0.7 |
| Tangible and intangible assets |
2.2 |
2.3 |
| Goodwill |
3.9 |
3.8 |
|
Total |
504.3 |
498.4 |
|
Liabilities and equity (€bn) |
30/06/2019 |
31/03/2019 |
| Due to central banks |
0.0 |
0.0 |
| Financial liabilities at fair value through profit and
loss1 |
217.8 |
211.9 |
| Customer deposits and deposits from financial
institutions1 |
97.5 |
101.8 |
| Debt securities |
48.5 |
45.7 |
| Liabilities associated with non-current assets held for
sale |
0.0 |
0.0 |
| Accruals and other liabilities |
18.5 |
17.8 |
| Insurance liabilities |
96.5 |
93.4 |
| Contingency reserves |
1.7 |
1.7 |
| Subordinated debt |
4.0 |
4.0 |
| Equity attributable to equity holders of the parent |
18.6 |
20.8 |
| Minority
interests |
1.2 |
1.4 |
|
Total |
504.3 |
498.4 |
1 Including deposit and margin
call
Natixis - 2Q19 P&L by business
line
|
€m |
AWM |
CIB |
Insurance |
Payments |
Financial investments |
Corporate Center |
|
2Q19 restated |
| Net revenues |
932 |
847 |
207 |
105 |
196 |
(5) |
|
2,282 |
| Expenses |
(605) |
(523) |
(116) |
(94) |
(141) |
(98) |
|
(1,577) |
| Gross operating income |
327 |
324 |
92 |
11 |
55 |
(103) |
|
705 |
| Provision for credit
losses |
(2) |
(104) |
0 |
(1) |
(4) |
1 |
|
(110) |
| Net operating income |
325 |
219 |
92 |
10 |
51 |
(102) |
|
595 |
| Associates and other
items |
(2) |
3 |
5 |
0 |
5 |
(5) |
|
7 |
| Pre-tax
profit |
323 |
223 |
96 |
10 |
56 |
(107) |
|
602 |
| |
|
|
|
|
|
Tax |
|
(164) |
| |
|
|
|
|
|
Minority interests |
|
(92) |
| |
|
|
|
|
|
Net income (gs) |
|
346 |
Asset & Wealth
Management
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
799 |
842 |
841 |
1,032 |
773 |
932 |
|
11% |
|
1,641 |
1,705 |
|
4% |
|
Asset Management1 |
762 |
805 |
805 |
998 |
742 |
900 |
|
12% |
|
1,567 |
1,642 |
|
5% |
|
Wealth management |
37 |
37 |
36 |
34 |
31 |
32 |
|
(12)% |
|
74 |
63 |
|
(14)% |
| Expenses |
(548) |
(569) |
(584) |
(642) |
(558) |
(605) |
|
6% |
|
(1,117) |
(1,163) |
|
4% |
| Gross operating income |
251 |
273 |
257 |
389 |
216 |
327 |
|
20% |
|
524 |
542 |
|
3% |
| Provision for credit
losses |
(0) |
(1) |
(1) |
0 |
1 |
(2) |
|
|
|
(1) |
(1) |
|
|
| Net operating income |
251 |
272 |
256 |
390 |
216 |
325 |
|
20% |
|
523 |
541 |
|
4% |
| Associates |
0 |
0 |
0 |
2 |
0 |
0 |
|
|
|
0 |
0 |
|
|
| Other items |
(0) |
(3) |
(2) |
41 |
(2) |
(2) |
|
|
|
(3) |
(4) |
|
|
| Pre-tax
profit |
251 |
269 |
255 |
433 |
214 |
323 |
|
20% |
|
520 |
537 |
|
3% |
| Cost/Income ratio |
68.6% |
67.6% |
69.4% |
62.3% |
72.1% |
64.9% |
|
|
|
68.1% |
68.2% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
68.1% |
67.7% |
69.6% |
62.4% |
71.6% |
65.1% |
|
|
|
67.9% |
68.0% |
|
|
| RWA (Basel 3 - in €bn) |
11.7 |
11.8 |
12.5 |
12.3 |
12.5 |
13.7 |
|
16% |
|
11.8 |
13.7 |
|
16% |
| Normative capital allocation (Basel 3) |
4,143 |
4,065 |
4,150 |
4,363 |
4,364 |
4,407 |
|
8% |
|
4,104 |
4,385 |
|
7% |
| RoE after tax (Basel 3)2 |
13.7% |
15.2% |
13.9% |
19.6% |
11.5% |
15.1% |
|
|
|
14.4% |
13.3% |
|
|
| RoE after tax (Basel
3) excl. IFRIC 212 |
14.0% |
15.1% |
13.8% |
19.5% |
11.8% |
15.0% |
|
|
|
14.5% |
13.4% |
|
|
[1] Asset management including Private equity
and Employee savings plan2 Normative capital allocation methodology
based on 10.5% of the average RWA-including goodwill and
intangibles Corporate & Investment Banking
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
944 |
976 |
828 |
518 |
807 |
847 |
|
(13)% |
|
1,920 |
1,654 |
|
(14)% |
|
Global markets |
527 |
457 |
334 |
14 |
366 |
419 |
|
(8)% |
|
984 |
785 |
|
(20)% |
|
FIC-T |
378 |
299 |
252 |
231 |
251 |
304 |
|
2% |
|
677 |
554 |
|
(18)% |
|
Equity |
148 |
145 |
97 |
(219) |
125 |
117 |
|
(19)% |
|
293 |
242 |
|
(17)% |
|
Equity excl. cash |
143 |
140 |
97 |
(219) |
125 |
117 |
|
(16)% |
|
283 |
242 |
|
(15)% |
|
Cash equity |
5 |
4 |
(0) |
(0) |
0 |
0 |
|
|
|
9 |
0 |
|
|
|
CVA/DVA desk |
1 |
13 |
(15) |
2 |
(9) |
(3) |
|
|
|
14 |
(12) |
|
|
|
Global finance1 |
341 |
394 |
341 |
362 |
337 |
333 |
|
(15)% |
|
735 |
670 |
|
(9)% |
|
Investment banking2 |
82 |
85 |
78 |
126 |
87 |
90 |
|
5% |
|
167 |
177 |
|
6% |
|
Other |
(7) |
41 |
74 |
16 |
16 |
6 |
|
|
|
34 |
22 |
|
|
| Expenses |
(566) |
(551) |
(525) |
(559) |
(582) |
(523) |
|
(5)% |
|
(1,117) |
(1,105) |
|
(1)% |
| Gross operating income |
378 |
425 |
302 |
(41) |
225 |
324 |
|
(24)% |
|
803 |
549 |
|
(32)% |
| Provision for credit
losses |
(31) |
(37) |
(98) |
(9) |
(30) |
(104) |
|
|
|
(68) |
(134) |
|
|
| Net operating income |
347 |
388 |
204 |
(50) |
195 |
219 |
|
(43)% |
|
735 |
414 |
|
(44)% |
| Associates |
4 |
3 |
3 |
3 |
2 |
3 |
|
|
|
6 |
6 |
|
|
| Other items |
3 |
0 |
(0) |
0 |
(15) |
0 |
|
|
|
3 |
(15) |
|
|
| Pre-tax
profit |
353 |
391 |
207 |
(47) |
183 |
222 |
|
(43)% |
|
744 |
405 |
|
(46)% |
| Cost/Income ratio |
60.0% |
56.4% |
63.5% |
107.9% |
72.2% |
61.8% |
|
|
|
58.2% |
66.8% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
57.7% |
57.2% |
64.4% |
109.4% |
69.1% |
62.7% |
|
|
|
57.4% |
65.9% |
|
|
| RWA (Basel 3 - in €bn) |
59.7 |
61.7 |
61.2 |
61.1 |
62.0 |
61.1 |
|
(1)% |
|
61.7 |
61.1 |
|
(1)% |
| Normative capital allocation (Basel 3) |
6,435 |
6,416 |
6,676 |
6,631 |
6,634 |
6,740 |
|
5% |
|
6,426 |
6,687 |
|
4% |
| RoE after tax (Basel 3)3 |
16.0% |
17.6% |
9.0% |
NR |
7.6% |
9.6% |
|
|
|
16.8% |
8.6% |
|
|
| RoE after tax (Basel
3) excl. IFRIC 213 |
17.0% |
17.2% |
8.7% |
NR |
8.6% |
9.2% |
|
|
|
17.1% |
8.9% |
|
|
[1] Including Film industry
financing 2 Including M&A 3 Normative capital allocation
methodology based on 10.5% of the average RWA-including goodwill
and intangibles Insurance
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
204 |
193 |
192 |
201 |
218 |
207 |
|
7% |
|
397 |
425 |
|
7% |
| Expenses |
(118) |
(108) |
(103) |
(118) |
(125) |
(116) |
|
7% |
|
(226) |
(241) |
|
6% |
| Gross operating income |
86 |
85 |
89 |
83 |
93 |
92 |
|
8% |
|
170 |
184 |
|
8% |
| Provision for credit
losses |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
| Net operating income |
86 |
85 |
89 |
83 |
93 |
92 |
|
8% |
|
170 |
184 |
|
8% |
| Associates |
3 |
0 |
3 |
9 |
0 |
5 |
|
|
|
3 |
5 |
|
|
| Other items |
0 |
0 |
(0) |
0 |
0 |
(0) |
|
|
|
0 |
(0) |
|
|
| Pre-tax
profit |
89 |
85 |
92 |
91 |
93 |
96 |
|
14% |
|
173 |
189 |
|
9% |
| Cost/Income ratio |
58.0% |
56.1% |
53.8% |
58.9% |
57.5% |
55.8% |
|
|
|
57.1% |
56.7% |
|
|
| Cost/Income ratio excl. IFRIC 21 |
51.1% |
58.5% |
56.2% |
61.2% |
51.7% |
57.8% |
|
|
|
54.7% |
54.7% |
|
|
| RWA (Basel 3 - in €bn) |
7.3 |
7.0 |
7.1 |
7.3 |
8.0 |
7.9 |
|
13% |
|
7.0 |
7.9 |
|
13% |
| Normative capital allocation (Basel 3) |
853 |
868 |
828 |
841 |
858 |
942 |
|
8% |
|
861 |
900 |
|
5% |
| RoE after tax (Basel 3)1 |
28.6% |
26.4% |
30.3% |
30.7% |
29.4% |
28.4% |
|
|
|
27.5% |
28.8% |
|
|
| RoE after tax (Basel
3) excl. IFRIC 211 |
33.0% |
24.9% |
28.8% |
29.2% |
33.3% |
27.2% |
|
|
|
28.9% |
30.1% |
|
|
1 Normative capital allocation methodology based on 10.5% of the
average RWA-including goodwill and intangibles
Payments
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
93 |
95 |
96 |
105 |
103 |
105 |
|
10% |
|
188 |
208 |
|
10% |
| Expenses |
(79) |
(88) |
(84) |
(90) |
(88) |
(94) |
|
7% |
|
(167) |
(181) |
|
8% |
| Gross operating income |
14 |
7 |
12 |
15 |
16 |
11 |
|
46% |
|
21 |
27 |
|
25% |
| Provision for credit
losses |
(0) |
(0) |
0 |
(2) |
(0) |
(1) |
|
|
|
(0) |
(1) |
|
|
| Net operating income |
14 |
7 |
12 |
13 |
16 |
10 |
|
40% |
|
21 |
26 |
|
23% |
| Associates |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
| Other items |
0 |
1 |
0 |
0 |
0 |
0 |
|
|
|
1 |
0 |
|
|
| Pre-tax
profit |
14 |
8 |
12 |
13 |
16 |
10 |
|
28% |
|
22 |
26 |
|
19% |
| Cost/Income ratio |
85.2% |
92.2% |
87.6% |
85.7% |
84.8% |
89.6% |
|
|
|
88.7% |
87.2% |
|
|
| Cost/Income ratio excl. IFRIC21 |
84.5% |
92.4% |
87.9% |
85.9% |
84.1% |
89.8% |
|
|
|
88.5% |
87.0% |
|
|
| RWA (Basel 3 - in €bn) |
1.0 |
1.2 |
1.0 |
1.1 |
1.1 |
1.2 |
|
(1)% |
|
1.2 |
1.2 |
|
(1)% |
| Normative capital allocation (Basel 3) |
295 |
300 |
352 |
332 |
356 |
373 |
|
25% |
|
297 |
365 |
|
23% |
| RoE after tax (Basel 3)1 |
12.8% |
7.4% |
9.6% |
10.1% |
12.0% |
7.3% |
|
|
|
10.1% |
9.6% |
|
|
| RoE after tax (Basel
3) excl. IFRIC 211 |
13.4% |
7.2% |
9.4% |
9.9% |
12.5% |
7.1% |
|
|
|
10.3% |
9.7% |
|
|
Standalone EBITDA
calculationFigures excluding exceptional items
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
1H18 |
1H19 |
| Net revenues |
93 |
95 |
96 |
105 |
103 |
105 |
|
188 |
208 |
| Expenses |
(79) |
(87) |
(85) |
(90) |
(88) |
(94) |
|
(166) |
(181) |
| Gross operating income - Natixis
reportedexcl. exceptional items |
14 |
8 |
11 |
15 |
16 |
11 |
|
22 |
27 |
| Analytical adjustments to net revenues |
(1) |
(1) |
(2) |
(1) |
(1) |
(1) |
|
(3) |
(3) |
| Structure charge
adjustments to expenses |
5 |
5 |
5 |
5 |
6 |
5 |
|
10 |
11 |
| Gross operating income - standalone view |
18 |
12 |
14 |
19 |
20 |
15 |
|
29 |
35 |
| Depreciation,
amortization and impairment on property, plant and equipment and
intangible assets |
3 |
4 |
4 |
5 |
4 |
4 |
|
7 |
8 |
| EBITDA -
standalone view |
21 |
16 |
18 |
24 |
24 |
19 |
|
36 |
43 |
EBITDA = Net revenues (-) Operating expenses. Standalone view
excluding analytical items and structure charges
[1] Normative capital allocation methodology
based on 10.5% of the average RWA-including goodwill and
intangibles Financial investments
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
190 |
174 |
197 |
181 |
193 |
196 |
|
13% |
|
364 |
389 |
|
7% |
|
Coface |
177 |
156 |
180 |
165 |
175 |
181 |
|
16% |
|
333 |
356 |
|
7% |
|
Other |
13 |
18 |
17 |
16 |
18 |
15 |
|
(18)% |
|
31 |
33 |
|
6% |
| Expenses |
(130) |
(125) |
(131) |
(140) |
(133) |
(141) |
|
13% |
|
(255) |
(275) |
|
8% |
| Gross operating
income |
59 |
49 |
66 |
41 |
60 |
55 |
|
11% |
|
109 |
115 |
|
6% |
| Provision for credit
losses |
(6) |
1 |
1 |
3 |
(2) |
(4) |
|
|
|
(5) |
(6) |
|
|
| Net operating income |
54 |
50 |
67 |
44 |
58 |
51 |
|
1% |
|
104 |
108 |
|
4% |
| Associates |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
| Other items |
2 |
3 |
0 |
0 |
0 |
5 |
|
|
|
5 |
5 |
|
|
| Pre-tax
profit |
56 |
53 |
67 |
44 |
58 |
56 |
|
5% |
|
109 |
114 |
|
4% |
| RWA (Basel 3 - in
€bn) |
5.3 |
5.6 |
5.5 |
5.6 |
5.7 |
5.7 |
|
2% |
|
5.6 |
5.7 |
|
2% |
Corporate Center
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
2Q19 vs. 2Q18 |
|
1H18 |
1H19 |
|
1H19 vs. 1H18 |
| Net revenues |
(37) |
79 |
3 |
3 |
37 |
(5) |
|
|
|
42 |
32 |
|
|
| Expenses |
(232) |
(87) |
(71) |
(107) |
(234) |
(98) |
|
12% |
|
(319) |
(331) |
|
4% |
|
SRF |
(160) |
(0) |
(0) |
0 |
(170) |
0 |
|
|
|
(160) |
(170) |
|
6% |
|
Other |
(73) |
(86) |
(71) |
(107) |
(64) |
(98) |
|
13% |
|
(159) |
(162) |
|
2% |
| Gross operating
income |
(269) |
(7) |
(68) |
(104) |
(196) |
(103) |
|
|
|
(277) |
(299) |
|
|
| Provision for credit
losses |
1 |
(4) |
4 |
(15) |
0 |
1 |
|
|
|
(3) |
1 |
|
|
| Net operating income |
(269) |
(11) |
(63) |
(118) |
(196) |
(102) |
|
|
|
(280) |
(298) |
|
|
| Associates |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
| Other items |
1 |
2 |
2 |
3 |
699 |
(5) |
|
|
|
4 |
694 |
|
|
| Pre-tax
profit |
(268) |
(9) |
(62) |
(115) |
503 |
(107) |
|
|
|
(276) |
396 |
|
|
| RWA (Basel 3 - in
€bn) |
9.0 |
9.4 |
8.7 |
7.8 |
7.0 |
7.3 |
|
(22)% |
|
9.4 |
7.3 |
|
(22)% |
2Q19 results: from data excluding
non-operating items to reported data
| €m |
2Q19 underlying |
|
Exchange rate fluctuations on DSN in
currencies |
Transformation & Business Efficiency investment
costs |
Fit to Win investments & restructuring
expenses |
|
2Q19 reported |
| Net
revenues |
2,297 |
|
(15) |
|
|
|
2,282 |
| Expenses |
(1,566) |
|
|
(10) |
(1) |
|
(1,577) |
| Gross operating income |
730 |
|
(15) |
(10) |
(1) |
|
705 |
| Provision for credit losses |
(110) |
|
|
|
|
|
(110) |
| Associates |
8 |
|
|
|
|
|
8 |
| Gain or loss on other
assets |
(2) |
|
|
|
|
|
(2) |
| Pre-tax profit |
627 |
|
(15) |
(10) |
(1) |
|
602 |
| Tax |
(172) |
|
5 |
3 |
0 |
|
(164) |
| Minority
interests |
(93) |
|
|
|
0 |
|
(92) |
| Net income
(group share) |
363 |
|
(10) |
(7) |
(0) |
|
346 |
1H19 results: from data excluding
non-operating items to restated data
| €m |
1H19 underlying |
|
Exchange rate fluctuations on DSN in
currencies |
Transformation & Business Efficiency investment
costs |
Fit to Win investments & restructuring
expenses |
Liquidation of a holding structure |
Capital gain - Disposal of retail banking
activities |
|
1H19 restated |
| Net
revenues |
4,410 |
|
4 |
|
|
|
|
|
4,414 |
| Expenses |
(3,269) |
|
|
(26) |
(1) |
|
|
|
(3,297) |
| Gross operating income |
1,141 |
|
4 |
(26) |
(1) |
0 |
0 |
|
1,117 |
| Provision for credit losses |
(141) |
|
|
|
|
|
|
|
(141) |
| Associates |
11 |
|
|
|
|
|
|
|
11 |
| Gain or loss on other
assets |
(2) |
|
|
|
|
(15) |
697 |
|
681 |
| Pre-tax profit |
1,009 |
|
4 |
(26) |
(1) |
(15) |
697 |
|
1,668 |
| Tax |
(308) |
|
(1) |
8 |
0 |
|
(78) |
|
(379) |
| Minority
interests |
(145) |
|
|
|
0 |
|
(33) |
|
(178) |
| Net income
(group share) |
555 |
|
3 |
(18) |
(0) |
(15) |
586 |
|
1,110 |
Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 13 for the reconciliation of the restated figures with the
accounting view
Natixis - 2Q19 capital & Basel 3 financial
structureSee note on methodology - Irrevocable Payment
Commitment (IPC) deduction disclosed as part of the ratio as of
2Q19
Fully-loaded
|
€bn |
30/06/2019 |
| Shareholder’s Equity |
18.6 |
| Hybrid securities(2) |
(2.1) |
| Goodwill & intangibles |
(3.8) |
| Deferred tax assets |
(0.7) |
| Dividend provision |
(0.3) |
| Other deductions |
(0.5) |
| CET1
capital |
11.1 |
| CET1
ratio |
11.5% |
| Additional Tier 1 capital |
1.8 |
| Tier 1
capital |
12.9 |
| Tier 1
ratio |
13.3% |
| Tier 2 capital |
2.3 |
| Total
capital |
15.1 |
| Total capital
ratio |
15.6% |
| Risk-weighted
assets |
96.9 |
Regulatory
| |
|
|
€bn |
30/06/2019 |
| Fully-loaded CET1 capital |
11.1 |
| Current financial year’s earnings |
(1.1) |
| Current financial year’s accrued dividend |
0.3 |
| CET1
capital |
10.3 |
| CET1
ratio |
10.6% |
| Additional Tier 1 capital |
2.1 |
| Tier 1
capital |
12.4 |
| Tier 1
ratio |
12.8% |
| Tier 2 capital |
2.3 |
| Total
capital |
14.7 |
| Total capital
ratio |
15.2% |
| Risk-weighted
assets |
96.9 |
IFRIC 21 effects by business line
|
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
|
1H18 |
1H19 |
| AWM |
(4) |
1 |
1 |
1 |
(4) |
1 |
|
(3) |
(3) |
| CIB |
(22) |
7 |
7 |
7 |
(24) |
8 |
|
(15) |
(16) |
| Insurance |
(14) |
5 |
5 |
5 |
(13) |
4 |
|
(9) |
(8) |
| Payments |
(1) |
0 |
0 |
0 |
(1) |
0 |
|
0 |
0 |
| Financial investments |
0 |
0 |
0 |
0 |
0 |
0 |
|
0 |
0 |
| Corporate center |
(119) |
40 |
40 |
40 |
(119) |
40 |
|
(80) |
(79) |
| Total
Natixis |
(160) |
53 |
53 |
53 |
(161) |
54 |
|
(107) |
(107) |
Historical figures restated for the disposal of
the retail banking activities
Normative capital allocation and RWA
breakdown - 30/06/2019
| €bn |
RWA EoP |
% of total |
Goodwill & intangibles 1H19 |
Capital allocation 1H19 |
RoE after tax 1H19 |
| AWM |
13.7 |
16% |
3.1 |
4.4 |
13.3% |
| CIB |
61.1 |
73% |
0.2 |
6.7 |
8.6% |
| Insurance |
7.9 |
9% |
0.1 |
0.9 |
28.8% |
| Payments |
1.2 |
1% |
0.2 |
0.4 |
9.6% |
| Total (excl.
Corp. center and Financial invmts) |
83.9 |
100% |
3.6 |
12.3 |
|
| RWA breakdown
(€bn) |
30/06/2019 |
| Credit risk |
65.6 |
|
Internal approach |
54.5 |
|
Standard approach |
11.1 |
| Counterparty risk |
6.6 |
|
Internal approach |
5.7 |
|
Standard approach |
1.0 |
| Market risk |
9.6 |
|
Internal approach |
4.1 |
|
Standard approach |
5.4 |
| CVA |
1.8 |
| Operational
risk - Standard approach |
13.3 |
| Total
RWA |
96.9 |
Fully-loaded leverage ratio1 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 |
30/06/2019 |
| Tier 1 capital1 |
13.2 |
| Total prudential balance sheet |
399.0 |
| Adjustment on derivatives |
(48.4) |
| Adjustment on repos2 |
(29.8) |
| Other exposures to affiliates |
(47.7) |
| Off balance sheet commitments |
36.4 |
| Regulatory adjustments |
(5.2) |
| Total leverage
exposure |
304.4 |
| Leverage
ratio |
4.35% |
[1] See note on methodology.
Without phase-in - 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 Net book value as at June 30, 2019
|
€bn |
30/06/2019 |
| Shareholders’ equity (group share) |
18.6 |
| Deduction of hybrid capital instruments |
(2.0) |
| Deduction of gain on hybrid instruments |
(0.1) |
| Distribution |
|
| Net book value |
16.5 |
| Restated intangible assets1 |
(0.6) |
| Restated goodwill1 |
(3.4) |
| Net tangible
book value2 |
12.5 |
|
€ |
|
| Net book value per share |
5.24 |
| Net tangible
book value per share |
3.96 |
1H19 Earnings per share
|
€m |
30/06/2019 |
| Net income (gs) |
1,110 |
| DSN interest expenses on preferred shares after tax |
(45) |
| Net income
attributable to shareholders |
1,065 |
| Earnings per
share (€) |
0.34 |
Number of shares as at June 30, 2019
| |
30/06/2019 |
| Average number of
shares over the period, excluding treasury shares |
3,149,759,007 |
| Number of shares,
excluding treasury shares, EoP |
3,150,059,450 |
| Number of treasury
shares, EoP |
3,019,032 |
Net income attributable to shareholders
| €m |
2Q19 |
1H19 |
| Net income
(gs) |
346 |
1,110 |
| DSN interest
expenses on preferred shares after tax |
(22) |
(45) |
| RoE
& RoTE numerator |
324 |
1,065 |
[1] See note on methodology 2 Net tangible book
value = Book value – goodwill - intangible assets
|
RoTE1 |
|
|
€m |
30/06/2019 |
| Shareholders’ equity (group share) |
18,621 |
| DSN deduction |
(2,122) |
| Dividend provision |
(288) |
| Intangible assets |
(649) |
| Goodwill |
(3,367) |
| RoTE Equity end of
period |
12,195 |
| Average RoTE equity
(2Q19) |
12,202 |
| 2Q19 RoTE annualized with no IFRIC 21
adjustment |
10.6% |
| IFRIC 21 impact |
(47) |
|
2Q19 RoTE annualized excl. IFRIC 21 |
9.1% |
| Average RoTE equity
(1H19) |
12,205 |
| 1H19 RoTE
annualized excl. IFRIC 21 |
13.4% |
|
RoE1 |
|
|
€m |
30/06/2019 |
| Shareholders’ equity (group share) |
18,621 |
| DSN deduction |
(2,122) |
| Dividend provision |
(288) |
| Unrealized/deferred gains and losses in equity
(OCI) |
(513) |
|
|
|
| RoE Equity
end of period |
15,697 |
| Average
RoE equity (2Q19) |
15,722 |
| 2Q19 RoE annualized with no IFRIC 21
adjustment |
8.3% |
| IFRIC 21 impact |
(47) |
|
2Q19 RoE annualized excl. IFRIC 21 |
7.0% |
| Average
RoE equity (1H19) |
15,735 |
| 1H19 RoE
annualized excl. IFRIC 21 |
10.4% |
|
Doubtful loans2
|
€bn |
31/03/2019Under IFRS 9 |
30/06/2019Under IFRS 9 |
| Provisionable commitments3 |
1.7 |
1.7 |
| Provisionable commitments / Gross debt |
1.5% |
1.4% |
| Stock of provisions4 |
1.3 |
1.3 |
| Stock of provisions /
Provisionable commitments |
76% |
75% |
[1]See 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 2 On-balance sheet, excluding repos, net of collateral 3
Net commitments 4 Specific and portfolio-based provisions
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 second 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 August 2, 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 |
|
Vanessa Stephan |
T + 33 1 58 19 34 16 |
|
|
|
|
|
|
www.natixis.com