Natixis: Third Quarter 2019 Results
Paris, November 7, 2019
3Q19 resultsDelivering
growth across the board, robustness reinforcedReported net
revenues up +6% YoY in 3Q19 and +7% underlying1Reported net income
at €415m in 3Q19 vs. €358m in 3Q18, +16% YoYLow sensitivity to the
rate environment with only 8% of revenues coming from Net Interest
Income in 9M19
BUSINESSES WELL DIVERSIFIED AND ALL
GROWING IN THE THIRD QUARTER3Q19 UNDERLYING NET REVENUES1
AT €2.2BN, UP +7% YOY
AWM: Strong
growth in net revenues
Strength of our active
asset management model focused on alpha generation with underlying
net revenues1 up +12%YoY in 3Q19 (+7% in 9M19) in part driven by
high levels of performance fees that reached €192m this quarter
(€362m in 9M19). Revenue growth in line with cost growth at
constant exchange rate in both 3Q19 and 9M19
Average fee rate in
line with New Dimension target at ~30bps in 9M19 despite a negative
mix effect in 3Q19
Strong AuM growth of
+3% over the quarter to reach €921bn despite modest outflows on LT
products (~€4bn), notably in North America, in part offset by
positive net inflows in Europe and the success of affiliates such
as Mirova on ESG
CIB: Strong
positive jaws effect thanks to growing revenues and cost
control
Underlying net
revenues1 up +3% YoY in 3Q19 primarily driven by Global finance
(+8% YoY). Growth of Global markets activities (+3% YoY) and of our
Green & Sustainable Hub. Leading innovation in sustainable
finance with the roll-out of Natixis’ Green Weighting Factor
initiative
Costs under control,
down at constant exchange rate by -2% YoY in 3Q19 and -3% in
9M19
Cost of risk
increasing vs. 3Q18 (decreasing vs. 2Q19)
Insurance:
Continued growth momentum
Underlying net
revenues1 up +7% YoY with a positive jaws effect both in 3Q19 and
9M19
Underlying RoE1 ~30%
in 9M19, largely in line with the target set for New Dimension by
2020
Payments:
Continued growth with positive jaws
Underlying net
revenues1 up +9% YoY in 9M19 with a positive jaws effect both in
3Q19 and 9M19
Increase in business
volumes from Dalenys & PayPlug, up more than +20%
SUSTAINABLE VALUE CREATION AND FINANCIAL
STRENGTH
Organic
capital creation of ~30bps in 3Q19 and ~100bps in 9M19.
Basel 3 FL CET1 ratio2 at 11.5%
as at September 30, 2019, well above our 2020 target
Underlying net
income1 at €400m in 3Q19 and €955m in 9M19
Underlying
RoTE1 at 9.5% in 3Q19 and 10.2% in 9M19 considering a normalized
cost of risk of ~30bps
REINFORCING ROBUSTNESS THROUGH SEVERAL
MEASURES
Focus on the
development and the reinforcement of existing expertise
rather than on potential acquisitions while maintaining Natixis’
dividend policy. This translates into the reinforcement of the 2020
Basel 3 FL CET1 ratio target2 from 11% to 11.2% (see page
3)
Reinforcement
of Natixis Investment Managers’ multi-boutique model with
various initiatives aimed at strengthening governance and risk
controls (see page 3)
Evolution to
Natixis’ governing bodies (see ad hoc press release) and
implementation of transversal organizational projects
Figures restated as communicated on April 11, 2019 following the
disposal of the retail banking activities. See page 14 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
“In the third quarter of 2019
our revenues grew in line with or faster than our costs in each of
our businesses demonstrating our agility and the flexibility of our
cost base as well as the relevance of our business model. Natixis
is only lightly exposed to the low interest rate environment - net
interest income represented only 8% of our revenues in the first
nine months of 2019 - result of our asset light strategy and a
major advantage in the current context. Having profoundly
transformed our businesses, and facing a fast evolution in the
environment, we have chosen to further strengthen our robustness,
having notably announced today a series of measures to support this
objective. We meanwhile remain focused on implementing our
strategic plan New Dimension, which is proving itself to be highly
suited to the current
environment”.François Riahi, Natixis Chief
Executive Officer 3Q19
RESULTS
On November 7, 2019, the Board of
Directors examined Natixis’ third quarter 2019
results.
€m |
|
3Q19 reported |
3Q18 restated |
|
3Q19 o/w underlying |
3Q18 o/w underlying |
|
3Q19 vs. 3Q18 restated |
|
3Q19 vs. 3Q18 underlying |
Net revenues |
|
2,280 |
2,156 |
|
2,234 |
2,083 |
|
6% |
|
7% |
o/w businesses |
|
2,037 |
1,956 |
|
2,037 |
1,887 |
|
4% |
|
8% |
Expenses |
|
(1,590) |
(1,499) |
|
(1,568) |
(1,473) |
|
6% |
|
6% |
Gross operating income |
|
689 |
658 |
|
666 |
610 |
|
5% |
|
9% |
Provision for credit losses |
|
(71) |
(93) |
|
(71) |
(22) |
|
|
|
|
Net
operating income |
|
618 |
565 |
|
595 |
588 |
|
9% |
|
1% |
Associates and other items |
|
12 |
6 |
|
12 |
6 |
|
|
|
|
Pre-tax profit |
|
630 |
570 |
|
607 |
594 |
|
10% |
|
2% |
Income tax |
|
(126) |
(154) |
|
(119) |
(162) |
|
|
|
|
Minority interests |
|
(88) |
(59) |
|
(89) |
(59) |
|
|
|
|
Net income - group share |
|
415 |
358 |
|
400 |
373 |
|
16% |
|
7% |
Natixis’ underlying net
revenues are up +8% YoY across the businesses with AWM up
+12% YoY (mainly driven by performance fees), Payments up +8% YoY,
Insurance up +7% YoY and CIB up +3% YoY.
Underlying expenses are up +6%
YoY reflecting solid revenue growth across the businesses, mainly
in Asset management due to the flexible structure of the cost base.
Investments (e.g. strategic projects, support functions) keep on
being made while maintaining a tight cost control (e.g. CIB
expenses down YoY despite top-line growth). Positive or
neutral jaw effect across all business lines at constant
exchange rate and cost/income ratio improvement. The
underlying cost/income ratio1 is at 72.6%, down -70bps vs.
3Q18.
The underlying loan loss
provisioning decreased QoQ although up YoY on a very low
basis, above its normalized level. Expressed in basis points of
loans outstanding (excluding credit institutions), the
businesses’ underlying cost of risk worked out to 41bps in
3Q19 (32bps on a 12-month rolling basis) vs. ~30bps normalized.
Net income (group share), adjusted for IFRIC 21
and excluding exceptional items reached €353m in 3Q19. Accounting
for exceptional items (+€15m net of tax in 3Q19), and IFRIC 21
impact (+€47m in 3Q19) the reported net income (group share) in
3Q19 is at €415m.
Businesses’ underlying
RoE1 reached 11.6% in 3Q19.
Natixis’ underlying
RoTE1 reached 9.5% in 3Q19 excl. IFRIC
21.
Reinforcement of the 2020 Basel 3 CET1
FL ratio target (see note on methodology) to 11.2% i.e. a
+20bps increase vs. previous target of 11.0%:
- decrease in Natixis’ 2018-2020 M&A budget from ~€1bn to
~€0.8bn (of which ~€0.5bn already invested) with a focus on
existing perimeter in the current environment;
- dividend policy unchanged with a minimum 60% pay-out ratio and
distribution of excess capital;
- increased robustness in the context of regulatory changes to
materialize over the years to come, allowing Natixis to ensure
sustainable value creation
Enhanced
governance and control framework at Natixis Investment
managers: In addition to previously announced appointment
of newly-created position of COO, internal review leading
to a number of initiatives including:
- split of Natixis IM risk and compliance functions;
- creation of NIM Head of Risk role separate from NIM Head of
Compliance and with all affiliates to have a named CRO in addition
to a named CCO;
- risk monitoring framework to evolve for a more comprehensive
view into current/evolving risks at the level of each
affiliate
1 See note on methodology. Excluding exceptional items and
excluding IFRIC 21 9M19
RESULTS1
€m |
|
9M19 restated |
9M18 restated |
|
9M19 o/w underlying |
9M18 o/w underlying |
|
9M19 vs. 9M18 restated |
|
9M19 vs. 9M18 underlying |
Net revenues |
|
6,693 |
6,709 |
|
6,644 |
6,608 |
|
(0)% |
|
1% |
o/w businesses |
|
6,030 |
6,102 |
|
6,030 |
6,034 |
|
(1)% |
|
(0)% |
Expenses |
|
(4,887) |
(4,701) |
|
(4,837) |
(4,646) |
|
4% |
|
4% |
Gross operating income |
|
1,806 |
2,008 |
|
1,807 |
1,962 |
|
(10)% |
|
(8)% |
Provision for credit losses |
|
(213) |
(170) |
|
(213) |
(99) |
|
|
|
|
Net
operating income |
|
1,594 |
1,838 |
|
1,594 |
1,864 |
|
(13)% |
|
(14)% |
Associates and other items |
|
704 |
25 |
|
22 |
25 |
|
|
|
|
Pre-tax profit |
|
2,298 |
1,863 |
|
1,616 |
1,889 |
|
23% |
|
(14)% |
Income tax |
|
(505) |
(562) |
|
(427) |
(571) |
|
|
|
|
Minority interests |
|
(267) |
(176) |
|
(234) |
(176) |
|
|
|
|
Net income - group share |
|
1,526 |
1,125 |
|
955 |
1,141 |
|
36% |
|
(16)% |
Natixis’ underlying net
revenues are higher vs. 9M18 for the vast majority of the
businesses with Payments up +9% YoY, AWM up +7% YoY, Insurance up
+7% YoY and IB/M&A up +2% YoY. 9M19 revenue evolution to be put
in the context of a historically high 1H18, particularly 1Q18 for
Global markets and 2Q18 for Global finance; these two activities
featuring growth in 3Q19.
Underlying expenses are well
under control and up +2% 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
72.0%, up +250bps vs. 9M18.
The underlying loan loss
provisioning increased vs. a low 9M18 due to a large
single file impact in 2Q19. Expressed in basis points of loans
outstanding (excluding credit institutions), the
businesses’ underlying cost of risk worked out to 43bps in
9M19.
Underlying tax rate at ~27% in
9M19. YoY increase in minority interests mainly due to a higher
performance from some European AM affiliates.
Net income (group share), adjusted for IFRIC 21
and excluding exceptional items reached €1,002m in 9M19. Accounting
for exceptional items (+€571m net of tax in 9M19) and IFRIC 21
impact (-€47m in 9M19), the reported net income (group share) in
9M19 is at €1,526m.
Businesses’ underlying
RoE2 reached 12.2% in 9M19.
Natixis’ underlying
RoTE2 reached 9.8% in 9M19 excl. IFRIC 21
and 10.2% with a normalized cost of risk3.
1 Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 14 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 9M19 cost of risk at 30bps
3Q19 & 9M19
RESULTSExceptional items
€m |
|
3Q19 |
3Q18 |
|
9M19 |
9M18 |
Exchange rate fluctuations on DSN in currencies (Net revenues) |
Corporate center |
46 |
5 |
|
50 |
32 |
SWL provision reversal (Net revenues) |
CIB |
0 |
68 |
|
(0) |
68 |
Transformation & Business Efficiency Investment costs
(Expenses) |
Business lines &Corporate center |
(22) |
(25) |
|
(48) |
(55) |
Fit to Win investments & restructuring expenses (Expenses) |
Corporate center |
(1) |
(1) |
|
(2) |
0 |
Legal provision (Provision for credit losses) |
CIB |
0 |
(71) |
|
0 |
(71) |
Disposal of subsidiary in Brazil (Gain or loss on other
assets) |
CIB |
0 |
0 |
|
(15) |
0 |
Capital gain - Disposal retail banking activities (Gain/loss on
other assets) |
Corporate center |
0 |
0 |
|
697 |
0 |
Total impact on income tax |
|
(8) |
8 |
|
(78) |
9 |
Total impact on minority interests |
|
0 |
0 |
|
(33) |
(0) |
Total impact on net income (gs) |
|
15 |
(15) |
|
571 |
(17) |
€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 |
3Q19 |
3Q18 |
|
9M19 |
9M18 |
AWM |
(2) |
(11) |
|
(7) |
(12) |
CIB |
(9) |
(4) |
|
(15) |
(9) |
Insurance |
(2) |
1 |
|
(4) |
(0) |
Payments |
(2) |
1 |
|
(2) |
(0) |
Financial Investments |
0 |
0 |
|
0 |
0 |
Corporate center |
(7) |
(11) |
|
(20) |
(34) |
Impact on expenses |
(22) |
(25) |
|
(48) |
(55) |
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p5)
Asset & Wealth
Management
€m |
|
3Q19 |
3Q18 |
3Q19 vs. 3Q18 |
|
9M19 |
9M18 |
9M19 vs. 9M18 |
9M19 vs. 9M18 constant FX |
Net
revenues |
|
945 |
841 |
12% |
|
2,651 |
2,482 |
7% |
3% |
o/w Asset Management1 |
|
908 |
805 |
13% |
|
2,550 |
2,372 |
8% |
4% |
o/w Wealth management |
|
37 |
36 |
3% |
|
100 |
110 |
(9)% |
(9)% |
Expenses |
|
(646) |
(573) |
13% |
|
(1,804) |
(1,688) |
7% |
3% |
Gross operating
income |
|
299 |
268 |
12% |
|
846 |
793 |
7% |
3% |
Provision for credit losses |
|
(8) |
(1) |
|
|
(10) |
(2) |
|
|
Associates and other items |
|
8 |
(1) |
|
|
4 |
(4) |
|
|
Pre-tax profit |
|
298 |
266 |
12% |
|
840 |
787 |
7% |
|
Cost/income ratio2 |
|
68.5% |
68.3% |
+0.2pp |
|
68.0% |
68.0% |
-0.0pp |
|
RoE after tax2 |
|
13.4% |
14.6% |
-1.2pp |
|
13.5% |
14.6% |
-1.1pp |
|
Underlying net revenues from
Asset & Wealth Management (AWM) are up +12% YoY in 3Q19 (+10%
at constant exchange rate), illustrating the resilience of our
multi-boutique model focused on alpha generation. Asset
management (excl. Employee savings plan) underlying net
revenues, including performance fees, are up +9% YoY in North
America (€450m) and up +26% in Europe (€303m) in 3Q19 (+1% at
€1,222m and +20% at €837m in 9M19 for North America and Europe
respectively). Wealth management net revenues are
up +3% YoY in 3Q19.
The Asset management overall fee rate
excluding performance fees is at ~30bps in 9M19, in line
with 1H19 levels and with New Dimension target (slightly down QoQ
due to mix effect). For European affiliates, it is at ~16bps in
9M19 and ~28bps excl. Life Insurance General Accounts. For North
American affiliates, it is at ~38bps vs. ~40bps in 9M18 mainly due
to a lower share of average AuM from Harris following the 4Q18
market effect. Performance fees reached €192m in
3Q19 and €362m in 9M19 (~15% of AM revenues vs. ~13% in FY18)
mainly driven by H2O and AEW.
Asset management net flows on
LT products reached ~ €(4)bn in 3Q19 more than offset by supportive
market and FX impacts. The trend improved throughout the quarter:
from >€(2)bn in July to ~€(0.5)bn in September. In Europe, ~€2bn
net inflows on LT products in 3Q19 mainly driven by Real asset
strategies and Mirova. In North America, a bit more than ~€(5)bn
net outflows in 3Q19 primarily driven by Harris and Loomis Fixed
income strategies. WCM equity strategies providing a growth relay
to Harris in the 3Q19 environment.
Asset management AuM reached
€921bn as at September 30, 2019 and are up +3% QoQ (+14% YTD),
above their 4Q18 average level both for Europe and North America.
On top of the net flows on LT products described above, 3Q19 was
also marked by ~(1)bn net outflows on low-margin money-market
products, a positive market effect of +€9bn and a positive
FX/perimeter effect of +€20bn. H2O AuM stand at ~€28bn vs. ~€26bn
at end-June driven by a strong market effect. Wealth
management AuM reached €30.3bn as at September 30,
2019 with €0.9bn positive net inflows this quarter.
Underlying expenses growing in line with
the revenues (+10% in 3Q19 and +3% in 9M19, both at
constant exchange rate) reflecting in part the variable structure
of the cost base in AM (higher performance fees) and investments
being made in new initiatives and digitalization/IT as well as
MIFID 2 impact.
The underlying cost of risk is
attributable to a wealth management file.
The underlying RoE2 reached
13.4% in 3Q19 and 13.5% in 9M19.
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 p5)
Corporate & Investment
Banking
€m |
|
3Q19 |
3Q18 |
3Q19 vs. 3Q18 |
|
9M19 |
9M18 |
9M19 vs. 9M18 |
9M19 vs. 9M18 constant FX |
Net
revenues |
|
784 |
759 |
3% |
|
2,438 |
2,679 |
(9)% |
(11)% |
Net revenues excl. CVA/DVA/Other |
|
794 |
768 |
3% |
|
2,437 |
2,640 |
(8)% |
(10)% |
Expenses |
|
(518) |
(521) |
(1)% |
|
(1,618) |
(1,634) |
(1)% |
(3)% |
Gross operating
income |
|
265 |
238 |
12% |
|
820 |
1,045 |
(22)% |
(24)% |
Provision for credit losses |
|
(59) |
(27) |
|
|
(193) |
(94) |
|
|
Associates and other items |
|
2 |
3 |
|
|
8 |
12 |
|
|
Pre-tax profit |
|
209 |
214 |
(2)% |
|
635 |
962 |
(34)% |
|
Cost/income ratio1 |
|
67.2% |
69.6% |
-2.4pp |
|
66.0% |
60.7% |
+5.3pp |
|
RoE after tax1 |
|
8.6% |
9.0% |
-0.4pp |
|
9.2% |
14.4% |
-5.2pp |
|
Underlying net revenues are up
+3% YoY in 3Q19. Revenue evolution largely driven primarily by
Global finance, up +8% YoY in 3Q19 and secondarily by Global
markets, up +3% YoY. Investment banking/M&A has been impacted
by some delay in fee recognition expected for 4Q19.
Global markets net revenues up
+3% YoY in 3Q19. 9M19 revenue evolution balanced between FICT and
Equity and reflecting a high base, especially in 1Q18.
FICT net revenues up +2% YoY in 3Q19 despite tough
market conditions and very volatile long-term interest rates.
Continued good performance in Credit especially in the US. Less
favorable environment for Rates given flat yield curve at
unprecedented levels with less jumbo transactions although client
activity remains stable. Good performance from FX with major
currencies regaining volatility. Equity net
revenues down a modest €3m YoY in 3Q19. Good performance from the
US and continued diversification with solid commercial successes,
especially in Convertibles and Green finance. Global
finance net revenues up +8% YoY and +11% QoQ with all Real
Assets business lines featuring YoY growth (Aviation, Real Estate
and Infrastructure) and slightly lower revenues from Energy &
Natural Resources. Focus on distribution after several quarters of
very strong loan origination. Distribution rate on Real Assets at
~64% in 3Q19, up +1pp YoY and significantly up QoQ.
Investment banking and M&A net revenues up +2%
YoY in 9M19 and down YoY in 3Q19. Good contributions from our APAC
M&A boutiques. Proportion of revenues generated from
service fees at ~38% in 3Q19 and ~40% in 9M192.
Underlying expenses are well
under control and down -2% YoY at constant exchange rate in 3Q19
(-3% YoY in 9M19). This reflects lower variable costs and ongoing
initiatives to improve efficiency despite investments being made to
develop our sectorial approach as well as control functions.
Underlying cost of risk is up
vs. a very low 3Q18 and is above its normalized level.
Underlying
RoE1 of 8.6% in 3Q19 and 9.2% in 9M19.
Normalizing for the cost of risk3, the 9M19 RoE would have reached
~10%. RWA are up +2% YoY in 3Q19, in line with New
Dimension guidance.
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 p5)
Insurance
€m |
|
3Q19 |
3Q18 |
3Q19 vs. 3Q18 |
|
9M19 |
9M18 |
9M19 vs. 9M18 |
Net
revenues |
|
205 |
192 |
7% |
|
630 |
589 |
7% |
Expenses |
|
(110) |
(104) |
6% |
|
(349) |
(329) |
6% |
Gross operating
income |
|
95 |
88 |
8% |
|
281 |
259 |
8% |
Provision for credit losses |
|
0 |
0 |
|
|
0 |
0 |
|
Associates and other items |
|
1 |
3 |
|
|
6 |
6 |
|
Pre-tax profit |
|
96 |
91 |
6% |
|
287 |
265 |
8% |
Cost/income ratio1 |
|
55.9% |
56.7% |
-0.8pp |
|
54.7% |
55.2% |
-0.5pp |
RoE after tax1 |
|
26.9% |
28.5% |
-1.6pp |
|
29.2% |
28.9% |
+0.3pp |
Banking view
Underlying net revenues up +7%
YoY both in 3Q19 and 9M19 with growth across the board.
Underlying expenses up +6% YoY
both in 3Q19 and 9M19, translating into a positive jaw effect and a
cost/income ratio improvement, broadly in line with the 2020 target
of ~54%.
Underlying gross operating
income up +8% YoY both in 3Q19 and 9M19.
Underlying RoE1 at 29.2% in
9M19 largely in line with the 30% target set for New Dimension by
2020.
Insurance view
Global turnover2 €2.9bn in
3Q19, up +5% YoY (+3% in 9M19 at €9.5bn).
Life and Personal protection:
€2.5bn earned premiums2 in 3Q19, up +4% YoY (+2% in 9M19).
- Total AuM2 at €66.5bn as at end-September
2019, up +2% QoQ and +11% YTD, driven by €1.2bn of net inflows2 in
3Q19 (€4.5bn YTD).
- Unit-linked AuM2 at €16.5bn as at
end-September 2019, up +4% QoQ and +17% YTD, driven by €0.4bn of
net inflows2 in 3Q19 (37% of total net inflows). UL products
accounted for 28% of gross inflows in 3Q19, above the French
market3.
- Personal protection: earned premiums up +8%
YoY in 3Q19 at €0.2bn (+11% in 9M19).
P&C: €0.4bn earned premiums
in 3Q19, up +9% YoY (+6% in 9M19). The combined
ratio reaches 92.3% in 9M19 (+0.4pp YoY).
The non-life equipment rate at
the end of September is at 26.8% (+0.3pp QoQ) for Banques
Populaires and at 29.8% (+0.3pp 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 p5)
Payments
€m |
|
3Q19 |
3Q18 |
3Q19 vs. 3Q18 |
|
9M19 |
9M18 |
9M19 vs. 9M18 |
Net
revenues |
|
103 |
96 |
8% |
|
311 |
284 |
9% |
Expenses |
|
(91) |
(85) |
7% |
|
(272) |
(251) |
8% |
Gross operating
income |
|
13 |
11 |
14% |
|
39 |
33 |
19% |
Provision for credit losses |
|
(1) |
0 |
|
|
(2) |
(0) |
|
Associates and other items |
|
0 |
0 |
|
|
0 |
1 |
|
Pre-tax profit |
|
12 |
11 |
3% |
|
38 |
34 |
11% |
Cost/income ratio1 |
|
87.9% |
88.6% |
-0.7pp |
|
87.3% |
88.3% |
-1.0pp |
RoE after tax1 |
|
8.0% |
8.9% |
-0.9pp |
|
9.2% |
10.0% |
-0.8pp |
Underlying net revenues up +9%
YoY in 9M19 and +8% in 3Q19 (residual perimeter effects left). ~40%
of 9M19 revenues realized with direct clients (+2pp vs. 9M18).
- Payment Processing & Services: Steady +4%
YoY revenue growth in Natixis Payments’ historical activities in
3Q19 (+5% in 9M19). Number of card transactions processed up +13%
YoY in 3Q19 (+10% in 9M19). Pioneer in the implementation of SWIFT
gpi for instant cross-border payments, a key solution for CIB Trade
& Treasury Solutions clients.
- Merchant Solutions: Solid business volumes
generated by Dalenys and PayPlug, up +20% YoY in 3Q19 (+23% in
9M19). Partnership between PayPlug and Shopify to foster business
growth with French and Italian SMEs.
- Prepaid & Issuing Solutions: Robust growth
in 3Q19 driven by meal vouchers (+8% YoY) and the contribution of
our Benefits & Rewards activity (Titres Cadeaux and Comitéo).
Number of mobile payments more than x2.6 vs. 3Q18.
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 p5)
Financial Investments
€m |
|
3Q19 |
3Q18 |
3Q19 vs. 3Q18 |
|
9M19 |
9M18 |
9M19 vs. 9M18 |
Net
revenues |
|
195 |
197 |
(1)% |
|
584 |
561 |
4% |
Coface |
|
178 |
180 |
(1)% |
|
534 |
513 |
4% |
Other |
|
17 |
17 |
0% |
|
50 |
48 |
4% |
Expenses |
|
(132) |
(130) |
2% |
|
(406) |
(387) |
5% |
Gross operating
income |
|
63 |
67 |
(6)% |
|
178 |
174 |
3% |
Provision for credit losses |
|
(3) |
1 |
|
|
(9) |
(4) |
|
Associates and other items |
|
(0) |
0 |
|
|
5 |
6 |
|
Pre-tax profit |
|
60 |
68 |
(12)% |
|
175 |
176 |
(1)% |
The net combined ratio of
Coface1 reached 78.1% in 3Q19 vs. 82.8% in 3Q18 (76.8%
9M19 vs. 79.0% 9M18) with a cost ratio moving from 34.4% to 31.0%
(from 34.0% 9M18 to 31.7% 9M19) and a loss ratio moving from 48.5%
to 47.1% (from 45.0% 9M18 to 45.1% 9M19).
Corporate Center
€m |
|
3Q19 |
3Q18 |
3Q19 vs. 3Q18 |
|
9M19 |
9M18 |
9M19 vs. 9M18 |
Net
revenues |
|
2 |
(2) |
|
|
30 |
14 |
|
Expenses |
|
(70) |
(60) |
17% |
|
(388) |
(356) |
9% |
SRF |
|
0 |
(0) |
|
|
(170) |
(160) |
6% |
Other |
|
(70) |
(60) |
17% |
|
(218) |
(196) |
12% |
Gross operating
income |
|
(68) |
(62) |
10% |
|
(358) |
(342) |
5% |
Provision for credit losses |
|
0 |
4 |
|
|
1 |
1 |
|
Associates and other items |
|
1 |
2 |
|
|
(2) |
5 |
|
Pre-tax profit |
|
(67) |
(56) |
20% |
|
(359) |
(336) |
7% |
Underlying net revenues from
the Corporate Center of €2m in 3Q19.
Underlying expenses excluding
SRF contribution up +€10m YoY in 3Q19 mainly due to various
positive elements impacting 3Q18.
Underlying pre-tax profit
contribution broadly unchanged YoY in 9M19 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 September 30, 2019.
- Basel 3 fully-loaded CET1 capital amounted to
€11.4bn
- Basel 3 fully-loaded RWA amounted to
€98.8bn
Based on a Basel 3 fully-loaded CET1 ratio of
11.5% as at June 30, 2019, the respective 3Q19 impacts were as
follows:
- 3Q19 results: +43bps
- 3Q19 ordinary dividends: -22bps
- 3Q19 RWA and other effects: -13bps
Basel 3 regulatory ratios1 As
at September 30, 2019, Natixis’ Basel 3 regulatory capital
ratios stood at 10.5% for the CET1, 12.7% for the Tier 1 and 15.0%
for the total capital ratio.
- Core Tier 1 capital stood at €10.4bn and
Tier 1 capital at €12.5bn
- Natixis’ RWA totaled €98.8bn, breakdown as
follows:
- Credit risk: €66.2bn
- Counterparty risk: €7.0bn
- CVA risk: €1.6bn
- Market risk: €10.7bn
- Operational risk: €13.3bn
Book value per shareEquity
capital (group share) totaled €19.3bn as at September 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
€5.44 as at September 30, 2019 based on
3,150,728,343 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) is
€4.14.
Leverage ratio1
The leverage ratio worked out to
4.2% as at September 30, 2019.
Overall capital adequacy
ratioAs at September 30, 2019, the financial
conglomerate’s excess capital was estimated at around €3.3bn (based
on own funds including current financial year’s earnings).
1 See note on
methodology APPENDICES
Note on methodology:
The results at 30/09/2019 were examined
by the board of directors at their meeting on
07/11/2019.Figures at 30/09/2019 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
(the associated tax benefit being already accounted for in the net
income following the adoption of IAS 12 amendment). 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 (the
associated tax benefit being already accounted for in the net
income following the adoption of IAS 12 amendment). 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. Adoption of IAS 12
amendment effective as of 3Q19 (see below for additional comments),
with no impact on the RoE/RoTE
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 |
30/09/2019 |
Goodwill |
3,932 |
Restatement for Coface minority
interests |
(162) |
Restatement for AWM deferred tax liability & others |
(351) |
Restated goodwill |
3,420 |
€m |
30/09/2019 |
Intangible assets |
711 |
Restatement for Coface minority interest & others |
(49) |
Restated intangible assets |
663 |
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 9M19
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 in 9M19 takes into account ¾ 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
IAS 12: As of 3Q19, according to the adoption
of IAS 12 (income taxes) amendment, the tax benefit on DSN interest
expenses previously recorded in the consolidated reserves is now
being accounted for in the income statement (income tax line).
Previous periods have not been restated with a positive impact of
€35.9m in 3Q19, of which €23.8m related to 1H19
1 Pay-out ratio based on reported net income group share minus
DSN interest expenses (the associated tax benefit being already
accounted for in the net income following the adoption of IAS 12
amendment) 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 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
2,193 |
2,360 |
2,156 |
2,040 |
2,132 |
2,282 |
2,280 |
|
6% |
|
6,709 |
6,693 |
|
(0)% |
Expenses |
(1,675) |
(1,528) |
(1,499) |
(1,656) |
(1,720) |
(1,577) |
(1,590) |
|
6% |
|
(4,701) |
(4,887) |
|
4% |
Gross operating
income |
518 |
832 |
658 |
383 |
412 |
705 |
689 |
|
5% |
|
2,008 |
1,806 |
|
(10)% |
Provision for credit losses |
(36) |
(41) |
(93) |
(23) |
(31) |
(110) |
(71) |
|
|
|
(170) |
(213) |
|
|
Associates |
7 |
3 |
6 |
13 |
3 |
8 |
3 |
|
|
|
16 |
15 |
|
|
Gain or loss on other assets |
6 |
4 |
(0) |
44 |
682 |
(2) |
9 |
|
|
|
10 |
689 |
|
|
Change in value of goodwill |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Pre-tax profit |
495 |
798 |
570 |
418 |
1,066 |
602 |
630 |
|
10% |
|
1,863 |
2,298 |
|
23% |
Tax |
(175) |
(234) |
(154) |
(110) |
(215) |
(164) |
(126) |
|
|
|
(562) |
(505) |
|
|
Minority interests |
(60) |
(57) |
(59) |
(127) |
(86) |
(92) |
(88) |
|
|
|
(176) |
(267) |
|
|
Net income (group share) |
260 |
507 |
358 |
181 |
764 |
346 |
415 |
|
16% |
|
1,125 |
1,526 |
|
36% |
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
9M18
€m |
9M18 underlying |
|
Exceptional items |
|
9M18 restated |
Contribution from perimeter sold |
|
9M18 reported |
Net
revenues |
6,608 |
|
100 |
|
6,709 |
656 |
|
7,365 |
Expenses |
(4,646) |
|
(55) |
|
(4,701) |
(349) |
|
(5,050) |
Gross operating
income |
1,962 |
|
46 |
|
2,008 |
307 |
|
2,315 |
Provision for credit losses |
(99) |
|
(71) |
|
(170) |
(15) |
|
(185) |
Associates |
16 |
|
0 |
|
16 |
0 |
|
16 |
Gain or
loss on other assets |
10 |
|
0 |
|
10 |
(0) |
|
9 |
Pre-tax profit |
1,889 |
|
(26) |
|
1,863 |
291 |
|
2,154 |
Tax |
(571) |
|
9 |
|
(562) |
(91) |
|
(653) |
Minority
interests |
(176) |
|
(0) |
|
(176) |
(1) |
|
(177) |
Net income (group share) |
1,141 |
|
(17) |
|
1,125 |
200 |
|
1,324 |
9M19
€m |
9M19 underlying |
|
Exceptional items |
|
9M19 restated |
Residual contribution from perimeter
sold |
|
9M19 reported |
Net
revenues |
6,644 |
|
50 |
|
6,693 |
22 |
|
6,716 |
Expenses |
(4,837) |
|
(50) |
|
(4,887) |
(22) |
|
(4,909) |
Gross operating
income |
1,807 |
|
(1) |
|
1,806 |
(0) |
|
1,806 |
Provision for credit losses |
(213) |
|
0 |
|
(213) |
0 |
|
(213) |
Associates |
15 |
|
0 |
|
15 |
0 |
|
15 |
Gain or
loss on other assets |
7 |
|
682 |
|
689 |
(0) |
|
689 |
Pre-tax profit |
1,616 |
|
682 |
|
2,298 |
(0) |
|
2,298 |
Tax |
(427) |
|
(78) |
|
(505) |
0 |
|
(505) |
Minority
interests |
(234) |
|
(33) |
|
(267) |
0 |
|
(267) |
Net income (group share) |
955 |
|
571 |
|
1,526 |
(0) |
|
1,526 |
Natixis - IFRS 9 Balance sheet
Assets (€bn) |
30/09/2019 |
30/06/2019 |
Cash and balances with central
banks |
21.4 |
17.8 |
Financial assets at fair value through
profit and loss1 |
243.9 |
218.1 |
Financial assets at fair value through
Equity |
11.4 |
11.5 |
Loans and receivables1 |
127.5 |
124.9 |
Debt instruments at amortized cost |
1.6 |
1.8 |
Insurance assets |
108.9 |
106.9 |
Non-current assets held for sale |
0.0 |
0.0 |
Accruals and other assets |
16.8 |
16.4 |
Investments in associates |
0.7 |
0.7 |
Tangible and intangible assets |
2.2 |
2.2 |
Goodwill |
3.9 |
3.9 |
Total |
538.3 |
504.3 |
Liabilities and equity (€bn) |
30/09/2019 |
30/06/2019 |
Due to central banks |
0.0 |
0.0 |
Financial liabilities at fair value
through profit and loss1 |
243.4 |
217.8 |
Customer deposits and deposits from
financial institutions1 |
101.1 |
97.5 |
Debt securities |
49.1 |
48.5 |
Liabilities associated with non-current
assets held for sale |
0.0 |
0.0 |
Accruals and other liabilities |
19.5 |
18.5 |
Insurance liabilities |
98.8 |
96.5 |
Contingency reserves |
1.8 |
1.7 |
Subordinated debt |
4.0 |
4.0 |
Equity attributable to equity holders
of the parent |
19.3 |
18.6 |
Minority interests |
1.3 |
1.2 |
Total |
538.3 |
504.3 |
1 Including deposit and margin
call
Natixis - 3Q19 P&L by business
line
€m |
AWM |
CIB |
Insurance |
Payments |
Financial investments |
Corporate Center |
|
3Q19 reported |
Net revenues |
945 |
784 |
205 |
103 |
195 |
47 |
|
2,280 |
Expenses |
(648) |
(527) |
(112) |
(93) |
(133) |
(77) |
|
(1,590) |
Gross operating
income |
297 |
256 |
93 |
10 |
62 |
(29) |
|
689 |
Provision for credit losses |
(8) |
(59) |
0 |
(1) |
(3) |
0 |
|
(71) |
Net operating
income |
289 |
197 |
93 |
9 |
59 |
(29) |
|
618 |
Associates and other items |
8 |
2 |
1 |
0 |
(0) |
1 |
|
12 |
Pre-tax profit |
297 |
200 |
94 |
9 |
59 |
(28) |
|
630 |
|
|
|
|
|
|
Tax |
|
(126) |
|
|
|
|
|
|
Minority interests |
|
(88) |
|
|
|
|
|
|
Net income (gs) |
|
415 |
Asset & Wealth
Management
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
799 |
842 |
841 |
1,032 |
773 |
932 |
945 |
|
12% |
|
2,482 |
2,651 |
|
7% |
Asset Management1 |
762 |
805 |
805 |
998 |
742 |
900 |
908 |
|
13% |
|
2,372 |
2,550 |
|
8% |
Wealth management |
37 |
37 |
36 |
34 |
31 |
32 |
37 |
|
3% |
|
110 |
100 |
|
(9)% |
Expenses |
(548) |
(569) |
(584) |
(642) |
(558) |
(605) |
(648) |
|
11% |
|
(1,701) |
(1,811) |
|
6% |
Gross operating
income |
251 |
273 |
257 |
389 |
216 |
327 |
297 |
|
16% |
|
781 |
840 |
|
8% |
Provision for credit losses |
(0) |
(1) |
(1) |
0 |
1 |
(2) |
(8) |
|
|
|
(2) |
(10) |
|
|
Net operating
income |
251 |
272 |
256 |
390 |
216 |
325 |
289 |
|
13% |
|
779 |
830 |
|
7% |
Associates |
0 |
0 |
0 |
2 |
0 |
0 |
0 |
|
|
|
1 |
0 |
|
|
Other
items |
(0) |
(3) |
(2) |
41 |
(2) |
(2) |
8 |
|
|
|
(5) |
3 |
|
|
Pre-tax profit |
251 |
269 |
255 |
433 |
214 |
323 |
297 |
|
16% |
|
775 |
834 |
|
8% |
Cost/Income ratio |
68.6% |
67.6% |
69.4% |
62.3% |
72.1% |
64.9% |
68.5% |
|
|
|
68.5% |
68.3% |
|
|
Cost/Income ratio excl. IFRIC 21 |
68.1% |
67.7% |
69.6% |
62.4% |
71.6% |
65.1% |
68.7% |
|
|
|
68.5% |
68.3% |
|
|
RWA (Basel 3 - in €bn) |
11.7 |
11.8 |
12.5 |
12.3 |
12.5 |
13.7 |
13.4 |
|
8% |
|
12.5 |
13.4 |
|
8% |
Normative capital allocation (Basel
3) |
4,143 |
4,065 |
4,150 |
4,363 |
4,364 |
4,407 |
4,555 |
|
10% |
|
4,119 |
4,442 |
|
8% |
RoE after tax (Basel 3)2 |
13.7% |
15.2% |
13.9% |
19.6% |
11.5% |
15.1% |
13.3% |
|
|
|
14.3% |
13.3% |
|
|
RoE
after tax (Basel 3) excl. IFRIC 212 |
14.0% |
15.1% |
13.8% |
19.5% |
11.8% |
15.0% |
13.3% |
|
|
|
14.3% |
13.3% |
|
|
[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 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
944 |
976 |
828 |
518 |
807 |
847 |
784 |
|
(5)% |
|
2,748 |
2,438 |
|
(11)% |
Global markets |
527 |
457 |
334 |
14 |
366 |
419 |
344 |
|
3% |
|
1,318 |
1,129 |
|
(14)% |
FIC-T |
378 |
299 |
252 |
231 |
251 |
304 |
258 |
|
2% |
|
929 |
812 |
|
(13)% |
Equity |
148 |
145 |
97 |
(219) |
125 |
117 |
94 |
|
(3)% |
|
390 |
336 |
|
(14)% |
Equity excl. cash |
143 |
140 |
97 |
(219) |
125 |
117 |
94 |
|
(3)% |
|
381 |
336 |
|
(12)% |
Cash equity |
5 |
4 |
(0) |
(0) |
0 |
0 |
0 |
|
|
|
9 |
0 |
|
|
CVA/DVA desk |
1 |
13 |
(15) |
2 |
(9) |
(3) |
(8) |
|
|
|
(0) |
(19) |
|
|
Global finance1 |
341 |
394 |
341 |
362 |
337 |
333 |
369 |
|
8% |
|
1,076 |
1,039 |
|
(3)% |
Investment banking2 |
82 |
85 |
78 |
126 |
87 |
90 |
73 |
|
(6)% |
|
246 |
250 |
|
2% |
Other |
(7) |
41 |
74 |
16 |
16 |
6 |
(2) |
|
|
|
108 |
20 |
|
|
Expenses |
(566) |
(551) |
(525) |
(559) |
(582) |
(523) |
(527) |
|
0% |
|
(1,643) |
(1,633) |
|
(1)% |
Gross operating
income |
378 |
425 |
302 |
(41) |
225 |
324 |
256 |
|
(15)% |
|
1,105 |
805 |
|
(27)% |
Provision
for credit losses |
(31) |
(37) |
(98) |
(9) |
(30) |
(104) |
(59) |
|
|
|
(165) |
(193) |
|
|
Net operating income |
347 |
388 |
204 |
(50) |
195 |
219 |
197 |
|
(3)% |
|
940 |
612 |
|
(35)% |
Associates |
4 |
3 |
3 |
3 |
2 |
3 |
2 |
|
|
|
9 |
8 |
|
|
Other
items |
3 |
0 |
(0) |
0 |
(15) |
0 |
(0) |
|
|
|
3 |
(15) |
|
|
Pre-tax profit |
353 |
391 |
207 |
(47) |
183 |
222 |
200 |
|
(4)% |
|
951 |
605 |
|
(36)% |
Cost/Income ratio |
60.0% |
56.4% |
63.5% |
107.9% |
72.2% |
61.8% |
67.3% |
|
|
|
59.8% |
67.0% |
|
|
Cost/Income ratio excl. IFRIC 21 |
57.7% |
57.2% |
64.4% |
109.4% |
69.1% |
62.7% |
68.3% |
|
|
|
59.5% |
66.7% |
|
|
RWA (Basel 3 - in €bn) |
59.7 |
61.7 |
61.2 |
61.1 |
62.0 |
61.1 |
62.3 |
|
2% |
|
61.2 |
62.3 |
|
2% |
Normative capital allocation (Basel
3) |
6,435 |
6,416 |
6,676 |
6,631 |
6,634 |
6,740 |
6,734 |
|
1% |
|
6,509 |
6,703 |
|
3% |
RoE after tax (Basel 3)3 |
16.0% |
17.6% |
9.0% |
NR |
7.6% |
9.6% |
8.5% |
|
|
|
14.1% |
8.6% |
|
|
RoE after
tax (Basel 3) excl. IFRIC 213 |
17.0% |
17.2% |
8.7% |
NR |
8.6% |
9.2% |
8.2% |
|
|
|
14.2% |
8.7% |
|
|
[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 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
204 |
193 |
192 |
201 |
218 |
207 |
205 |
|
7% |
|
589 |
630 |
|
7% |
Expenses |
(118) |
(108) |
(103) |
(118) |
(125) |
(116) |
(112) |
|
9% |
|
(330) |
(353) |
|
7% |
Gross operating
income |
86 |
85 |
89 |
83 |
93 |
92 |
93 |
|
5% |
|
259 |
277 |
|
7% |
Provision for credit losses |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Net operating
income |
86 |
85 |
89 |
83 |
93 |
92 |
93 |
|
5% |
|
259 |
277 |
|
7% |
Associates |
3 |
0 |
3 |
9 |
0 |
5 |
1 |
|
|
|
6 |
6 |
|
|
Other
items |
0 |
0 |
(0) |
0 |
0 |
(0) |
0 |
|
|
|
0 |
(0) |
|
|
Pre-tax profit |
89 |
85 |
92 |
91 |
93 |
96 |
94 |
|
3% |
|
265 |
284 |
|
7% |
Cost/Income ratio |
58.0% |
56.1% |
53.8% |
58.9% |
57.5% |
55.8% |
54.6% |
|
|
|
56.0% |
56.0% |
|
|
Cost/Income ratio excl. IFRIC 21 |
51.1% |
58.5% |
56.2% |
61.2% |
51.7% |
57.8% |
56.6% |
|
|
|
55.2% |
55.3% |
|
|
RWA (Basel 3 - in €bn) |
7.3 |
7.0 |
7.1 |
7.3 |
8.0 |
7.9 |
8.4 |
|
18% |
|
7.1 |
8.4 |
|
18% |
Normative capital allocation (Basel
3) |
853 |
868 |
828 |
841 |
858 |
942 |
926 |
|
12% |
|
850 |
909 |
|
7% |
RoE after tax (Basel 3)1 |
28.6% |
26.4% |
30.3% |
30.7% |
29.4% |
28.4% |
27.7% |
|
|
|
28.4% |
28.4% |
|
|
RoE
after tax (Basel 3) excl. IFRIC 211 |
33.0% |
24.9% |
28.8% |
29.2% |
33.3% |
27.2% |
26.4% |
|
|
|
28.9% |
28.9% |
|
|
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 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
93 |
95 |
96 |
105 |
103 |
105 |
103 |
|
8% |
|
284 |
311 |
|
9% |
Expenses |
(79) |
(88) |
(84) |
(90) |
(88) |
(94) |
(93) |
|
11% |
|
(251) |
(274) |
|
9% |
Gross operating
income |
14 |
7 |
12 |
15 |
16 |
11 |
10 |
|
(13)% |
|
33 |
37 |
|
11% |
Provision
for credit losses |
(0) |
(0) |
0 |
(2) |
(0) |
(1) |
(1) |
|
|
|
(0) |
(2) |
|
|
Net operating income |
14 |
7 |
12 |
13 |
16 |
10 |
9 |
|
(24)% |
|
33 |
35 |
|
6% |
Associates |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Other
items |
0 |
1 |
0 |
0 |
0 |
0 |
0 |
|
|
|
1 |
0 |
|
|
Pre-tax profit |
14 |
8 |
12 |
13 |
16 |
10 |
9 |
|
(24)% |
|
34 |
35 |
|
4% |
Cost/Income ratio |
85.2% |
92.2% |
87.6% |
85.7% |
84.8% |
89.6% |
90.1% |
|
|
|
88.3% |
88.1% |
|
|
Cost/Income ratio excl. IFRIC21 |
84.5% |
92.4% |
87.9% |
85.9% |
84.1% |
89.8% |
90.3% |
|
|
|
88.3% |
88.1% |
|
|
RWA (Basel 3 - in €bn) |
1.0 |
1.2 |
1.0 |
1.1 |
1.1 |
1.2 |
1.1 |
|
12% |
|
1.0 |
1.1 |
|
12% |
Normative capital allocation (Basel
3) |
295 |
300 |
352 |
332 |
356 |
373 |
385 |
|
9% |
|
316 |
372 |
|
18% |
RoE after tax (Basel 3)1 |
12.8% |
7.4% |
9.6% |
10.1% |
12.0% |
7.3% |
6.5% |
|
|
|
9.9% |
8.5% |
|
|
RoE after
tax (Basel 3) excl. IFRIC 211 |
13.4% |
7.2% |
9.4% |
9.9% |
12.5% |
7.1% |
6.3% |
|
|
|
9.9% |
8.6% |
|
|
Standalone EBITDA
calculationFigures excluding exceptional items2
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 |
|
9M18 |
9M19 |
Net revenues |
93 |
95 |
96 |
105 |
103 |
105 |
103 |
|
284 |
311 |
Expenses |
(79) |
(87) |
(85) |
(90) |
(88) |
(94) |
(91) |
|
(251) |
(272) |
Gross operating income - Natixis
reportedexcl. exceptional items |
14 |
8 |
11 |
15 |
16 |
11 |
13 |
|
33 |
39 |
Analytical adjustments to net
revenues |
(1) |
(1) |
(2) |
(1) |
(1) |
(1) |
(1) |
|
(5) |
(4) |
Structure
charge adjustments to expenses |
5 |
5 |
5 |
5 |
6 |
5 |
5 |
|
15 |
16 |
Gross operating income -
standalone view |
18 |
12 |
14 |
19 |
20 |
15 |
17 |
|
44 |
52 |
Depreciation, amortization and impairment on property, plant and
equipment and intangible assets |
3 |
4 |
4 |
5 |
4 |
4 |
3 |
|
11 |
12 |
EBITDA - standalone view |
21 |
16 |
18 |
24 |
24 |
19 |
20 |
|
55 |
63 |
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 2 See page 5 Financial investments
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
190 |
174 |
197 |
181 |
193 |
196 |
195 |
|
(1)% |
|
561 |
584 |
|
4% |
Coface |
177 |
156 |
180 |
165 |
175 |
181 |
178 |
|
(1)% |
|
513 |
534 |
|
4% |
Other |
13 |
18 |
17 |
16 |
18 |
15 |
17 |
|
0% |
|
48 |
50 |
|
4% |
Expenses |
(130) |
(125) |
(131) |
(140) |
(133) |
(141) |
(133) |
|
2% |
|
(387) |
(408) |
|
5% |
Gross operating income |
59 |
49 |
66 |
41 |
60 |
55 |
62 |
|
(6)% |
|
174 |
176 |
|
1% |
Provision for credit losses |
(6) |
1 |
1 |
3 |
(2) |
(4) |
(3) |
|
|
|
(4) |
(9) |
|
|
Net operating
income |
54 |
50 |
67 |
44 |
58 |
51 |
59 |
|
(12)% |
|
171 |
167 |
|
(2)% |
Associates |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Other
items |
2 |
3 |
0 |
0 |
0 |
5 |
0 |
|
|
|
5 |
5 |
|
|
Pre-tax profit |
56 |
53 |
67 |
44 |
58 |
56 |
59 |
|
(12)% |
|
176 |
173 |
|
(2)% |
RWA
(Basel 3 - in €bn) |
5.3 |
5.6 |
5.5 |
5.6 |
5.7 |
5.7 |
5.6 |
|
1% |
|
5.5 |
5.6 |
|
1% |
Corporate Center
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 |
|
3Q19 vs. 3Q18 |
|
9M18 |
9M19 |
|
9M19 vs. 9M18 |
Net revenues |
(37) |
79 |
3 |
3 |
37 |
(5) |
47 |
|
|
|
45 |
79 |
|
|
Expenses |
(232) |
(87) |
(71) |
(107) |
(234) |
(98) |
(77) |
|
8% |
|
(390) |
(408) |
|
5% |
SRF |
(160) |
(0) |
(0) |
0 |
(170) |
0 |
0 |
|
|
|
(160) |
(170) |
|
6% |
Other |
(73) |
(86) |
(71) |
(107) |
(64) |
(98) |
(77) |
|
8% |
|
(230) |
(238) |
|
4% |
Gross operating income |
(269) |
(7) |
(68) |
(104) |
(196) |
(103) |
(29) |
|
|
|
(344) |
(329) |
|
|
Provision
for credit losses |
1 |
(4) |
4 |
(15) |
0 |
1 |
0 |
|
|
|
1 |
1 |
|
|
Net operating income |
(269) |
(11) |
(63) |
(118) |
(196) |
(102) |
(29) |
|
|
|
(343) |
(328) |
|
|
Associates |
0 |
0 |
0 |
0 |
0 |
0 |
(0) |
|
|
|
0 |
0 |
|
|
Other
items |
1 |
2 |
2 |
3 |
699 |
(5) |
1 |
|
|
|
5 |
695 |
|
|
Pre-tax profit |
(268) |
(9) |
(62) |
(115) |
503 |
(107) |
(28) |
|
|
|
(338) |
368 |
|
|
RWA
(Basel 3 - in €bn) |
9.0 |
9.4 |
8.7 |
7.8 |
7.0 |
7.3 |
8.0 |
|
(7)% |
|
8.7 |
8.0 |
|
(7)% |
€697m capital gain coming from the disposal of the retail
banking activities in 1Q19
3Q19 results: from data excluding
non-operating items to reported data
€m |
3Q19 underlying |
|
Exchange rate fluctuations on DSN in
currencies |
Transformation & Business Efficiency investment
costs |
Fit to Win investments & restructuring
expenses |
|
3Q19 reported |
Net
revenues |
2,234 |
|
46 |
|
|
|
2,280 |
Expenses |
(1,568) |
|
|
(22) |
(1) |
|
(1,590) |
Gross operating
income |
666 |
|
46 |
(22) |
(1) |
|
689 |
Provision for credit losses |
(71) |
|
|
|
|
|
(71) |
Associates |
3 |
|
|
|
|
|
3 |
Gain or
loss on other assets |
9 |
|
|
|
|
|
9 |
Pre-tax profit |
607 |
|
46 |
(22) |
(1) |
|
630 |
Tax |
(119) |
|
(15) |
7 |
0 |
|
(126) |
Minority
interests |
(89) |
|
|
|
0 |
|
(88) |
Net income (group share) |
400 |
|
31 |
(15) |
(0) |
|
415 |
9M19 results: from data excluding
non-operating items to restated data
€m |
9M19 underlying |
|
Exchange rate fluctuations on DSN in
currencies |
Transformation & Business Efficiency investment
costs |
Fit to Win investments & restructuring
expenses |
Disposal of subsidiary in Brazil |
Capital gain - Disposal of retail banking
activities |
|
9M19 restated |
Net
revenues |
6,644 |
|
50 |
|
|
|
|
|
6,693 |
Expenses |
(4,837) |
|
|
(48) |
(2) |
|
|
|
(4,887) |
Gross operating
income |
1,807 |
|
50 |
(48) |
(2) |
0 |
0 |
|
1,806 |
Provision for credit losses |
(213) |
|
|
|
|
|
|
|
(213) |
Associates |
15 |
|
|
|
|
|
|
|
15 |
Gain or
loss on other assets |
7 |
|
|
|
|
(15) |
697 |
|
689 |
Pre-tax profit |
1,616 |
|
50 |
(48) |
(2) |
(15) |
697 |
|
2,298 |
Tax |
(427) |
|
(16) |
15 |
1 |
|
(78) |
|
(505) |
Minority
interests |
(234) |
|
|
|
1 |
|
(33) |
|
(267) |
Net income (group share) |
955 |
|
34 |
(33) |
(1) |
(15) |
586 |
|
1,526 |
Figures restated as communicated on April 11,
2019 following the disposal of the retail banking activities. See
page 14 for the reconciliation of the restated figures with the
accounting view
Natixis - 3Q19 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 |
30/09/2019 |
Shareholder’s
Equity |
19.3 |
Hybrid securities (incl. capital gain
following reclassification of hybrids) |
(2.2) |
Goodwill & intangibles |
(3.9) |
Deferred tax assets |
(0.7) |
Dividend provision |
(0.5) |
Other deductions |
(0.6) |
CET1 capital |
11.4 |
CET1 ratio |
11.5% |
Additional Tier 1 capital |
1.8 |
Tier 1 capital |
13.2 |
Tier 1 ratio |
13.3% |
Tier 2 capital |
2.3 |
Total capital |
15.4 |
Total capital ratio |
15.6% |
Risk-weighted assets |
98.8 |
Regulatory
€bn |
30/09/2019 |
Fully-loaded CET1
capital |
11.4 |
Current financial year’s earnings |
(1.5) |
Current financial year’s accrued
dividend |
0.5 |
CET1 capital |
10.4 |
CET1 ratio |
10.5% |
Additional Tier 1 capital |
2.2 |
Tier 1 capital |
12.5 |
Tier 1 ratio |
12.7% |
Tier 2 capital |
2.3 |
Total capital |
14.8 |
Total capital ratio |
15.0% |
Risk-weighted assets |
98.8 |
IFRIC 21 effects by business line
Effect in Expenses
€m |
1Q18 |
2Q18 |
3Q18 |
4Q18 |
1Q19 |
2Q19 |
3Q19 |
|
9M18 |
9M19 |
AWM |
(4) |
1 |
1 |
1 |
(4) |
1 |
1 |
|
(1) |
(1) |
CIB |
(22) |
7 |
7 |
7 |
(24) |
8 |
8 |
|
(7) |
(8) |
Insurance |
(14) |
5 |
5 |
5 |
(13) |
4 |
4 |
|
(5) |
(4) |
Payments |
(1) |
0 |
0 |
0 |
(1) |
0 |
0 |
|
(0) |
(0) |
Financial investments |
0 |
0 |
0 |
0 |
(0) |
0 |
0 |
|
0 |
(0) |
Corporate
center |
(119) |
40 |
40 |
40 |
(119) |
40 |
40 |
|
(40) |
(40) |
Total Natixis |
(160) |
53 |
53 |
53 |
(161) |
54 |
54 |
|
(53) |
(54) |
Historical figures restated for the disposal of
the retail banking activities
Normative capital allocation and RWA
breakdown - 30/09/2019
€bn |
RWA EoP |
% of total |
Goodwill & intangibles 9M19 |
Capital allocation 9M19 |
RoE after tax 9M19 |
AWM |
13.4 |
16% |
3.1 |
4.4 |
13.3% |
CIB |
62.3 |
73% |
0.2 |
6.7 |
8.6% |
Insurance |
8.4 |
10% |
0.1 |
0.9 |
28.4% |
Payments |
1.1 |
1% |
0.3 |
0.4 |
8.5% |
Total (excl. Corp. center and Financial
invmts) |
85.2 |
100% |
3.7 |
12.4 |
|
RWA breakdown (€bn) |
30/09/2019 |
Credit risk |
66.2 |
Internal approach |
54.8 |
Standard approach |
11.4 |
Counterparty risk |
7.0 |
Internal approach |
5.9 |
Standard approach |
1.1 |
Market risk |
10.7 |
Internal approach |
4.9 |
Standard approach |
5.8 |
CVA |
1.6 |
Operational risk - Standard approach |
13.3 |
Total RWA |
98.8 |
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 |
30/09/2019 |
Tier 1 capital1 |
13.6 |
Total prudential balance sheet |
431.1 |
Adjustment on derivatives |
(59.4) |
Adjustment on repos2 |
(30.0) |
Other exposures to affiliates |
(49.2) |
Off balance sheet commitments |
37.9 |
Regulatory adjustments |
(5.3) |
Total leverage exposure |
325.1 |
Leverage ratio |
4.2% |
[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 September 30,
2019
€bn |
30/09/2019 |
Shareholders’ equity (group
share) |
19.3 |
Deduction of hybrid capital
instruments |
(2.0) |
Deduction of gain on hybrid
instruments |
(0.1) |
Distribution |
|
Net book value |
17.1 |
Restated intangible assets1 |
(0.7) |
Restated goodwill1 |
(3.4) |
Net tangible book value2 |
13.1 |
€ |
|
Net book value per
share |
5.44 |
Net tangible book value per share |
4.14 |
9M19 Earnings per share
€m |
30/09/2019 |
Net income (gs) |
1,526 |
DSN interest expenses on preferred shares
adjustment |
(104) |
Net income attributable to shareholders |
1,421 |
Earnings per share (€) |
0.45 |
Number of shares as at September 30, 2019
|
30/09/2019 |
Average number of shares over the period, excluding treasury
shares |
3,149,951,603 |
Number
of shares, excluding treasury shares, EoP |
3,150,728,343 |
Number
of treasury shares, EoP |
2,350,139 |
Net income attributable to shareholders
€m |
3Q19 |
9M19 |
Net
income (gs) |
415 |
1,526 |
DSN interest expenses on preferred shares adjustment |
(59) |
(104) |
RoE & RoTE numerator |
356 |
1,421 |
[1] See note on methodology 2 Net tangible book
value = Book value – goodwill - intangible asset
RoTE1
€m |
30/09/2019 |
Shareholders’ equity (group share) |
19,260 |
DSN deduction |
(2,122) |
Dividend provision |
(501) |
Intangible assets |
(663) |
Goodwill |
(3,420) |
RoTE
Equity end of period |
12,554 |
Average RoTE equity (3Q19) |
12,374 |
3Q19 RoTE annualized with no
IFRIC 21 adjustment |
11.5% |
IFRIC 21 impact |
(47) |
3Q19 RoTE annualized excl. IFRIC 21 |
10.0% |
Average RoTE equity (9M19) |
12,261 |
9M19 RoTE annualized excl. IFRIC 21 |
14.2% |
RoE1
€m |
30/09/2019 |
Shareholders’ equity (group share) |
19,260 |
DSN deduction |
(2,122) |
Dividend provision |
(501) |
Unrealized/deferred gains and losses in
equity (OCI) |
(563) |
|
|
RoE
Equity end of period |
16,073 |
Average RoE equity (3Q19) |
15,885 |
3Q19 RoE annualized with no
IFRIC 21 adjustment |
9.0% |
IFRIC 21 impact |
(47) |
3Q19 RoE annualized excl. IFRIC 21 |
7.8% |
Average RoE equity (9M19) |
15,785 |
9M19 RoE annualized excl. IFRIC 21 |
11.1% |
Doubtful loans2
€bn |
30/06/2019UnderIFRS 9 |
30/09/2019Under IFRS 9 |
Provisionable commitments3 |
1.7 |
1.9 |
Provisionable commitments / Gross
debt |
1.4% |
1.5% |
Stock of provisions4 |
1.3 |
1.4 |
Stock
of provisions / Provisionable commitments |
75% |
72% |
[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 third 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 November 8, 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 |
Souad Ed Diaz |
T + 33 1 58 32 68 11 |
|
|
|
www.natixis.com