NATIXIS:2017 FIRST QUARTER RESULTS
(Thomson Reuters ONE) -
Paris, May 9, 2017
1Q17 RESULTS
STRONG GROWTH IN REVENUES TO OVER ?2.3bn (+14%)
and 40% ADVANCE IN REPORTED NET INCOME TO ?280m
FINE MOMENTUM IN CORE BUSINESSES IN 1Q17
INVESTMENT SOLUTIONS: BRISK activitY IN INsurance AND REBOUND IN asset
management inflow
* Insurance: Overall turnover of ?3.3bn in 1Q17 (+84% vs. 1Q16 excluding
reinsurance agreement with CNP), fueled notably by the rollout of life
insurance products in the Caisses d'Epargne network
* Asset management: AuM up to ?837bn at end-March 2017, with net inflow
amounting to ?5bn
CIB: STRONGER MOMENTUM IN GLOBAL MARKETS, INCREASED CONTRIBUTION FROM
INTERNATIONAL PLATFORMS
* Global markets: Net revenues (excluding the CVA/DVA desk) up 38% vs. 1Q16,
including increases of 36% for FICT and 42% for Equity, reflecting our
market share gains
* Global finance & Investment banking: Net revenues up 11% vs. 1Q16
* International platform revenues up 32% yoy in 1Q17
SFS: Net revenues stable over one year to ?344m
* Activity buoyed by Specialized financing (net revenues up 2% vs. 1Q16)
SHARP IMPROVEMeNT IN PROFITABILITY IN 1Q17((1))
* Core-business net revenues up 14% yoy to ?2.2bn, including a 26% increase
for CIB
* Tight grip on expenses: up 6% yoy in 1Q17, excluding the estimated
contribution to the SRF
* Marked reduction in the core-business provision for credit loss to 24bps in
1Q17 (vs. 45bps in 1Q16)
* Earnings capacity to ?436m (+40% yoy). Reported net income (group share) to
?280m, up 40% yoy despite a sharp increase in estimated contribution to the
SRF
* Core-business ROE of 15.9% (+380bps vs. 1Q16)
* Natixis ROTE of 12.5% in 1Q17 (+340bps vs. 1Q16), at the top end of the New
Frontier target range
Slight drop OF RWA & reInforcement OF CET1 RATIO
* Basel III RWA down 1% for Natixis and 3% for CIB since end-2016
* CET1 ratio((2) )of 11.0% at end-March 2017 after factoring in a minimum pay-
out ratio of 50% (vs. 10.8% at end-2016 pro forma)
(1) Excluding exceptional items and the IFRIC 21 impact for ROE, ROTE and
earnings capacity calculations
(2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish
compromise - no phase-in except for DTAs on loss carry-forwards. End-2016 ratio,
pro forma of 20% additional phase-in of DTAs scheduled for January 1, 2017
The Board of Directors approved Natixis' accounts for first-quarter 2017 on May
9, 2017.
For Natixis, the main features of 1Q17 were((1)):
* revenue growth of 14% yoy to ?2.219bn for core businesses and 13% yoy to
?2.358bn for Natixis.
The marked rebound in net revenues in the Investment Solutions (+8% relative to
1Q16) was fueled by Asset Management in Europe and solid growth momentum in
Insurance.
The robust growth in net revenues from Corporate & Investment Banking (+26%
relative to 1Q16) was mainly driven by fine performances by international
platforms in Global markets.
Within Specialized Financial Services, Consumer Credit and Factoring both made
further progress, underpinned by the Groupe BPCE networks.
* a marked improvement in the core-business provision for credit loss to ?49m,
down 42% relative to 1Q16,
* a 40% advance in reported net income (group share) to ?280m,
* core-business ROE of 15.9%,
* a CET1 ratio((2)) of 11.0% at end-March 2017,
* a leverage ratio of 4.2% at end-March 2017.
Laurent Mignon, Natixis Chief Executive Officer, said: "Natixis enjoyed a very
good first quarter, fueled by strong momentum in our core businesses -
particularly in Corporate & Investment Banking and Investment Solutions - tight
control over expenses and lower provisions. Activity levels in Global markets
were especially high and our Asset Management business also attracted renewed
net inflow in the USA. The first quarter 2017 was perfectly consistent with the
objectives of our New Frontier plan, namely improved profitability in core
businesses, tight control of risk-weighted assets, a strong contribution from
international platforms and sustained growth in Insurance".
1. See note on methodology and excluding the IFRIC 21 impact for the ROE
calculation
2. Based on CRR-CRD4 rules published on June 26, 2013, including the Danish
compromise without phase-in except for DTAs on tax-loss carryforwards
1 - Natixis 1Q17 results
--------------------- ----------- ------------
1Q17 1Q17 o/w o/w
?m recurring exceptional
reported vs. 1Q16
----------------------------- ---------- ---------- ----------- ------------
Net revenues 2,347 14% 2,358 (11)
o/w core businesses 2,219 14% 2,219 -
Expenses (1,771) 10% (1,743) (28)
----------------------------- ---------- ---------- ----------- ------------
Gross operating income 576 26% 615 (38)
Provision for credit losses (70) (20)% (70) -
----------------------------- ---------- ---------- ----------- ------------
Pre-tax profit 523 29% 561 (38)
Income tax (214) 24% (227) 12
Minority interests (28) (18)% (28) -
----------------------------- ---------- ---------- ----------- ------------
Net income - group share 280 40% 306 (26)
1.1 exceptional items
?m 1Q17 1Q16
----------------------------------------------------------------------------
Exchange rate fluctuations on DSN in Corporate center (11) (15)
currencies (Net revenues)
-------------------------------------------------------------------------------
Transformation & Business Efficiency Business lines & (9)
Investment costs (Expenses) Corporate center ((1))
-------------------------------------------------------------------------------
Non-recurring additional Corporate Social
Solidarity Contribution resulting from Insurance (19)
agreement with CNP (Expenses)
-------------------------------------------------------------------------------
FV adjustment on own senior debt (Net Corporate center (6)
revenues)
-------------------------------------------------------------------------------
Impact in income tax 12 7
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Total impact in net income (gs) (26) (13)
-------------------------------------------------------------------------------
1. o/w ?7m in Corporate Center
1.2 1Q17 results
Excluding exceptional items((1)) 1Q17
1Q17 1Q16
?m vs. 1Q16
-------------------------------------- --------------------- -----------
Net revenues 2,358 2,083 13%
o/w core businesses 2,219 1,949 14%
Expenses (1,743) (1,605) 9%
-------------------------------------- --------------------- -----------
Gross operating income 615 478 29%
Provision for credit losses (70) (88) (20)%
-------------------------------------- --------------------- -----------
Pre-tax profit 561 427 31%
Income tax (227) (179) 26%
Minority interest (28) (34) (18)%
-------------------------------------- --------------------- -----------
Net income - (gs) - restated 306 213 44%
1Q17
?m 1Q17 1Q16
vs. 1Q16
-------------------------------------- --------------------- -----------
Restatement of IFRIC 21 impact 130 98
Net income - (gs) - restated excl.
436 311 40%
IFRIC impact
-------------------------------------- --------------------- -----------
ROTE excl. IFRIC 21 impact 12.5% 9.1%
1. See page 3
Unless stated otherwise, the commentary that follows refers to results excluding
exceptional items (see detail p3).
Natixis' net revenues climbed 13% yoy to ?2.358bn in 1Q17.
Core businesses lifted net revenues by 14% yoy to ?2.219bn. This total was
buoyed by a 26% advance in net revenues from Corporate & Investment Banking and
a marked upturn in revenues (+8% yoy) from Investment Solutions. Specialized
Financial Services resisted well overall and posted stable net revenues compared
to 1Q16.
Net revenues from Financial Investments amounted to ?153m and reflected declines
of 16% from Coface and 30% from Corporate Data Solutions (the withdrawal
strategy continues on the latter).
Operating expenses rose 9% yoy to ?1.743bn in 1Q17, affected by an increase in
the estimated contribution to the Single Resolution Fund (SRF) to ?128m in 1Q17
from ?79m in 1Q16. After restating for the impact of the SRF, expenses rose by
only 6%.
The cost-income ratio excluding IFRIC 21 worked out to 67.9% in 1Q17, down
4.0pps yoy.
With revenues rising faster than expenses, gross operating income climbed 29% to
?615m in 1Q17.
The provision for credit loss declined 20% yoy to ?70m for Natixis in 1Q17 and
59% for CIB during the same period.
In terms of basis points of the loan book, the core-business provision for
credit loss worked out to 24bps in 1Q17, markedly lower than the 1Q16 level
which was affected by provisioning efforts on the energy and commodities
sectors.
The 18% decline in minority interests relative to 1Q16 was primarily due to
Coface's lower contribution.
Restated net income (group share), excluding IFRIC 21 and exceptional items,
amounted to ?436m in 1Q17, up 40% yoy.
Including exceptional items (-?26m net of tax in 1Q17 vs. -?13m in 1Q16) and the
IFRIC 21 impact (+?130m in 1Q17 vs. +?98m in 1Q16), net income (group share)
worked out to ?280m in 1Q17, a 40% improvement on a year earlier.
Excluding IFRIC 21, Natixis' ROTE equated to 12.5% and core-business ROE
amounted to 15.9%, up 340bps and 380bps, respectively, relative to 1Q16.
2 - Financial structure
Natixis' Basel 3 CET1 ratio((1) )worked out to 11.0% at March 31, 2017.
Based on a pro forma((2)) Basel 3 CET1 ratio of 10.8% at December 31, 2016, the
respective impacts in the first quarter of 2017 were as follows:
* effect of allocating net income (group share) to retained earnings in
1Q17: +24bps,
* planned dividend for 1Q17: -12bps,
* RWA, FX and other effects: +4bps.
Basel 3 capital and risk-weighted assets((1)) amounted to ?12.6bn and ?114.1bn,
respectively, at March 31, 2017.
EQUITY CAPITAL - TIER ONE CAPITAL - BOOK VALUE PER SHARE
Equity capital (group share) totalled ?20.5bn at March 31, 2017, of which ?2.2bn
was in the form of hybrid securities (DSNs) recognized in equity capital at fair
value (excluding capital gain following reclassification of hybrids).
Core Tier 1 capital (Basel 3 - phased-in) stood at ?12.4bn and Tier 1 capital
(Basel 3 - phased-in) at ?14.6bn.
Natixis' risk-weighted assets totalled ?114.1bn at March 31, 2017 (Basel 3 -
phased-in), breakdown as following:
* Credit risk: ?79.0bn
* Counterparty risk: ?7.3bn
* CVA risk: ?3.7bn
* Market risk: ?10.4bn
* Operational risk: ?13.7bn
Under Basel 3 (phased-in), the CET1 ratio amounted to 10.9%, the Tier 1 ratio to
12.8% and the total solvency ratio to 15.1% at March 31, 2017.
Book value per share, including planned dividend for 2016, was ?5.46 at
March 31, 2017 based on 3,135,684,763 shares excluding treasury stock (the total
number of shares stands at 3,137,360,238). Tangible book value per share (after
deducting goodwill and intangible fixed assets) was ?4.29.
LEVERAGE RATIO((3))
The leverage ratio worked out to 4.2% at March 31, 2017.
OVERALL CAPITAL ADEQUACY RATIO
As at March 31, 2017, the financial conglomerate's capital excess was estimated
at around ?2.5bn.
1. Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish
compromise - without phase-in except for DTAs on tax-loss carryforwards
2. After factoring in on 31/12/2016 the additional 20% phase-in of DTAs
scheduled for January 1, 2017
3. See note on methodology
4. - results by Business line
Investment Solutions
Data excludes exceptional items((1))
1Q17 Constant
?m 1Q17 1Q16 vs. 1Q16 exchange
rate
---------------------------------------------------------------------
Net revenues 891 825 8% 6%
o/w Asset management 667 626 7% 4%
o/w Insurance 187 167 12%
o/w Private Banking 34 34 (2)%
Expenses (625) (590) 6% 4%
---------------------------------------------------------------------
Gross operating income 266 234 14% 11%
Provision for credit losses 0 0
Gain or loss on other assets 9 20
---------------------------------------------------------------------
Pre-tax profit 279 256 9% 7%
---------------------------------------------------------------------
Cost/income ratio((1)) 68.6% 70.2% -1.6pp
ROE after tax((1)) 14.6% 14.5% +0.1pp
1. See note on methodology and excluding IFRIC 21 impact on the calculation of
the cost-income ratio and ROE
Net revenues from the Investment Solutions enjoyed a marked rebound in 1Q17. On
a current exchange-rate basis, they rose 8% yoy to reach ?891m, fueled by
increases of 7% in Asset Management and 12% in Insurance.
Operating expenses progressed 6% yoy to ?625m. The cost-income ratio, excluding
IFRIC 21, declined 1.6pps to 68.6%.
Gross operating income advanced 14% yoy on a current exchange-rate basis and
11% on constant exchange rate in 1Q17.
In 1Q16, the "Gain or loss on other assets" line included ?20m of proceeds from
the divestments of the Snyder and CGM entities, while in 1Q17 it incorporated
?9m of proceeds from the divestment of the Caspian private equity funds.
ROE after tax and excluding IFRIC 21, amounted to 14.6% in 1Q17, up slightly
compared to 1Q16, whereas the capital allocated to the Investment Solutions core
business rose 7% between the two periods to support the development of Insurance
businesses.
The improvement in Asset Management revenues in 1Q17 was primarily driven by
asset management firms in Europe (revenues rose 12% relative to 1Q16 to reach
?183m). Asset management firms in the US recorded a 3% increase in their
revenues during the same period to ?391m.
Margins excluding performance fees worked out to 28bps in 1Q17 and were
virtually unchanged on the full-year 2016 level.
First-quarter 2017 featured renewed net inflows of ?6bn in the US, with Harris
Associates and Loomis Sayles contributing ?2.2bn and ?3.6bn of this figure,
respectively.
In Europe, net inflow excluding Natixis AM, amounted to ?1.7bn, with a strong
momentum on alternative strategies (H2O, DNCA and AEW-Ciloger).
All in all, net inflow totaled ?5bn in 1Q17.
In addition to inflow, assets under management expanded to ?837bn in 1Q17. AuM
were impacted positively by a market effect (+?16bn) and negatively by a
currency effect (-?5bn) and a change in the scope of consolidation (-?9bn). The
latter effect stemmed from the disposal of IDFC AM, an India-based asset
manager, without impact on the income statement.
In Insurance, overall turnover (excluding the reinsurance treaty with CNP),
advanced to ?3.3bn in 1Q17 from ?1.8bn in 1Q16. This 84% advance was notably
fueled by the rollout of life insurance products in the Caisses d'Epargne
network since early 2016.
Overall turnover from life insurance climbed 113% yoy and net inflow more than
tripled to ?1.9bn in 1Q17 compared to a year earlier.
The proactive strategy of reorienting the offering towards unit-linked policies
drove an 11pp-rise yoy in the proportion of net inflow derived from unit-linked
policies to over 47%.
Assets under management expanded 12% over the year to reach ?50bn at end-March
2017.
During 1Q17, turnover rose 7% yoy in the personal protection & borrower's
insurance segment and by 9% in property & casualty insurance, thanks to brisk
growth in all lines (car assurance, home insurance, etc.).
Corporate & Investment Banking
Data excludes exceptional items((1))
1Q17
?m 1Q17 1Q16
vs. 1Q16
---------------------------------------------------------
Net revenues 984 782 26%
Net revenues excl. CVA/DVA 948 789 20%
o/w Global Markets 573 415 38%
o/w Global Finance & IB 400 362 11%
Expenses (563) (512) 10%
---------------------------------------------------------
Gross operating income 421 270 56%
Provision for credit losses (29) (71) (59)%
---------------------------------------------------------
Pre-tax profit 394 202 95%
---------------------------------------------------------
Cost/income ratio((1)) 54.4% 61.5% -7.1pp
ROE after tax((1)) 17.2% 9.1% +8.1pp
1. See note on methodology and excluding IFRIC 21 impact on the calculation of
the cost-income ratio and ROE
Net revenues from Corporate & Investment Banking expanded 26% yoy in 1Q17 (+20%
excluding the CVA/DVA desk).
Within Global markets, business momentum accelerated in 1Q17, with net revenues
excluding the CVA/DVA desk climbing 38% relative to 1Q16.
The contribution to revenues from all international platforms rose from 55% in
1Q16 to 58% in 1Q17, reflecting significant growth in their revenues (+32% vs
1Q16).
Operating expenses increased 10% yoy in 1Q17, though with fixed costs rising by
only 4%.
Compared to the year-earlier period, the cost-income ratio excluding IFRIC 21
improved by 7.1pps to 54.4%, while gross operating income jumped 56% to ?421m in
1Q17.
First-quarter 2017 featured a sharp reduction in provisions relative to
1Q16, the year-earlier period having witnessed sizeable provisioning efforts on
the Oil and Gas sector. All in all, the provision for credit loss dropped 59% to
?29m on a yoy basis.
As a result, pre-tax profit virtually doubled yoy to ?394m in 1Q17.
ROE after tax and excluding IFRIC 21 exceeded 17%, a considerable 810bp-gain
relative to 1Q16.
Within Global markets, FICT reported a 36% increase in net revenues excluding
the CVA/DVA desk, with the momentum coming from Interest Rates & Forex (+56% vs.
1Q16) and the Securities Financing Group((1) )(+73% vs. 1Q16).
Fixed Income activities posted 45% yoy growth in revenues at international
platforms.
Net revenues from Equity Derivatives climbed 48% yoy in 1Q17, fueled by strong
growth in Solutions and robust momentum from international platforms.
Global Finance & Investment Banking net revenues advanced 11% in 1Q17 relative
to 1Q16.
Global Finance origination revenues expanded 16% yoy, thanks to the Real Estate
Finance and Global Energy & Commodities segments. During the same period, GEC
Trade revenues climbed 25%.
In Investment Banking, the Acquisition & Strategic Finance segment delivered
62% growth in revenues, buoyed by attractive conditions in 1Q17.
The 9% decline in new production during 1Q17 was primarily due to a marked
contraction in vanilla financings.
1. Merger of the Fixed Income and Treasury businesses' repo and collateral
management activities
Specialized Financial Services
Data excludes exceptional items((1))
1Q17
?m 1Q17 1Q16
vs. 1Q16
----------------------------------------------------------
Net revenues 344 343 stable
Specialized financing 219 214 2%
Financial services 125 129 (3)%
Expenses (231) (225) 3%
----------------------------------------------------------
Gross operating income 113 118 (4)%
Provision for credit losses (21) (13) 66%
----------------------------------------------------------
Pre-tax profit 92 105 (13)%
----------------------------------------------------------
Cost/income ratio((1)) 65.2% 63.4% +1.8pp
ROE after tax((1)) 14.3% 18.3% -4.0pp
1. See note on methodology and excluding IFRIC 21 impact on the calculation of
the cost-income ratio and ROE
Net revenues from Specialized Financial Services were stable in 1Q17 relative to
1Q16. They included increases of 4% for Factoring, 5% for Leasing and 2% for
Consumer Finance, which together drove a 2% rise for Specialized Financing as a
whole.
Specialized Financing activities continued to enjoy healthy momentum. Personal
loan issuance rose 25%, factored turnover with clients of the Groupe BPCE
network expanded 10% and new equipment leasing production in France climbed 18%.
Specialized Financial Services recorded a 3% yoy increase in operating expenses,
reflecting ongoing moves to integrate Groupe BPCE's payment structures into
Natixis.
The provision for credit loss worked out to ?21m. This figure reflected an
adverse basis of comparison with 1Q16 in the Leasing segment and a temporary
impact linked to the migration to a new recovery system in the Consumer Finance
business (the situation should return to normal in 2Q17).
This deterioration in the provision for credit loss led to a 13% decline in pre-
tax profit relative to 1Q16 and a decrease in ROE after tax, excluding IFRIC
21, to 14.3% (vs. 18.3% in 1Q16).
Financial Investments
1Q17
?m 1Q17 1Q16
vs. 1Q16
----------------------------------------------------------
Net revenues 153 183 (17)%
Coface 131 156 (16)%
Corporate Data Solutions 10 15 (30)%
Other 11 12 (8)%
Expenses (151) (162) (7)%
----------------------------------------------------------
Gross operating income 2 21 (91)%
Expenses (5) (6) (24)%
Gain or loss on other assets 0 11
----------------------------------------------------------
Pre-tax profit (2) 27
----------------------------------------------------------
Net revenues from Financial Investments contracted 17% in 1Q17 compared to a
year earlier. This contraction primarily reflected the ongoing withdrawal from
Corporate Data Solutions entities.
Turnover from Coface amounted to ?345m on a constant perimeter and exchange-rate
basis in 1Q17, down only 2% yoy. On a current basis, it totaled ?348m vs. ?365m
in 1Q16, a reduction of 5% that notably reflects the downsizing of Coface's risk
exposures on emerging markets and an adverse basis of comparison in North
America (large contracts in 1Q16).
In line with the Fit-to-Win plan, Coface maintained a tight grip on expenses:
excluding the public guarantee management business, the cost ratio improved
0.8pps yoy to 33.9% in 1Q17.
The loss picture is improving, with a loss ratio dropping to 58.2% in 1Q17
compared to 68.0% in 4Q16 and 72.4% in 3Q16. This significant decline lends
weight to the 61% target for full-year 2017.
The combined ratio net of reinsurance worked out to 92% in 1Q17.
Appendices
Note on methodology:
The results at 31/03/2017 were examined by the board of directors at their
meeting on 5/09/2017.
Figures at 31/03/2017 are presented in accordance with IAS/IFRS accounting
standards and IFRS Interpretation Committee (IFRIC) rulings as adopted in the
European Union and applicable at this date.
2016 figures are presented pro forma of new intra-pole organizations:
1. CIB: The 1H16 quarterly series have been restated for the change in CIB
organization announced on March 15 2016. The new presentation of businesses
within CIB mainly takes into account the creation of a new business line:
Global Finance & Investment banking housing all financing businesses
(structured & plain vanilla financing), as well as M&A, Equity Capital
Markets, and Debt Capital Markets.
2. SFS: Within Financial services, transfer of the Intertitres activity from
Employee savings scheme to the Payments business. Employee savings scheme
becomes Employee savings plans. The 2016 series have been restated
accordingly to this new organization.
Business line performances using Basel 3 standards:
* The performances of Natixis business lines are presented using Basel 3
standards. Basel 3 risk-weighted assets are based on CRR-CRD4 rules as
published on June 26th, 2013 (including the Danish compromise treatment for
qualified entities).
* Natixis' ROTE is calculated by taking as the numerator net income (group
share) excluding DSN interest expenses on preferred shares after tax. Equity
capital is average shareholders' equity group share as defined by IFRS,
after payout of dividends, excluding average hybrid debt, average intangible
assets and average goodwill.
* Natixis' ROE: results used for calculations are net income (group share),
deducting DSN interest expenses on preferred shares after tax. Equity
capital is average shareholders' equity group share as defined by IFRS,
after payout of dividends, excluding average hybrid debt, and excluding
unrealized or deferred gains and losses recognized in equity (OCI).
* ROE for business lines is calculated based on normative capital to which are
added goodwill and intangible assets for the business line. Normative
capital allocation to Natixis' business lines is carried out on the basis of
10% of their average Basel 3 risk-weighted assets. Business lines benefit
from remuneration of normative capital allocated to them. By convention, the
remuneration rate on normative capital is maintained at 3%.
Net book value: calculated by taking shareholders' equity group share, restated
for hybrids and capital gains on reclassification of hybrids as equity
instruments. Net tangible book value is adjusted for goodwill relating to equity
affiliates, restated goodwill and intangible assets as follows:
-------------
In ?m 03/31/2017
-----------------------------------------------------------------
Intangible assets 751
Restatement for Coface minority interest & others (39)
-----------------------------------------------------------------
Restated intangible assets 712
-----------------------------------------------------------------
-----------
In ?m 03/31/2017
-------------------------------------------------------------------------------
Goodwill 3,591
Restatement for Coface minority interest (166)
Restatement for Investment Solutions deferred tax liability & (493)
others
-------------------------------------------------------------------------------
Restated goodwill 2,932
-------------------------------------------------------------------------------
Own senior debt fair-value adjustment: calculated using a discounted cash-flow
model, contract by contract, including parameters such as swaps curve, and
revaluation spread (based on the BPCE reoffer curve). Adoption of IFRS 9
standards, on November 22, 2016, authorizing the early application of provisions
relating to own credit risk as of FY2016 closing. All impacts since the
beginning of the financial year 2016 are recognized in equity, even those that
had impacted the income statement in the interim financial statements for March,
June and September 2016.
Leverage ratio: based on delegated act rules, without phase-in except for DTAs
on tax-loss carryforwards and with the hypothesis of a roll-out for non-eligible
subordinated notes under Basel 3 by eligible notes. Repo transactions with
central counterparties are offset in accordance with IAS 32 rules without
maturity or currency criteria. Leverage ratio disclosed including the effect of
intragroup cancelation - pending ECB authorization.
Exceptional items: figures and comments on this press release are based on
Natixis and its businesses' income statements excluding non- operating and/or
exceptional items detailed page 3. Natixis and its businesses' income statements
including these items are available in the appendix of this press release.
Restatement for IFRIC 21 impact: The cost/income ratio and the ROE excluding
IFRIC 21 impact calculation takes into account by quarter one fourth of the
annual duties and levies concerned by this new accounting rule.
Earnings capacity: net income (group share) restated for exceptional items and
the IFRIC 21 impact.
Expenses: Sum of operating expenses and Depreciation, amortization and
impairment on property, plant and equipment and intangible assets.
1Q17 results: from data excluding exceptional items to reported data
+------------+
| |
------------- ------------------------------------------ | ---------- |
Non- | |
recurring | |
additional | |
Exchange Transformation Corporate | |
1Q17 excl. rate & Business Social | 1Q17 |
in ?m exceptional fluctuations Efficiency Solidarity | reported |
items on DSN in Investment Contribution | |
currencies costs resulting | |
from | |
agreement | |
with CNP | |
------------------------ ------------------------------------------ | ---------- |
Net 2,358 (11) | 2,347 |
revenues | |
| |
Expenses (1,743) (9) (19) | (1,771) |
------------------------ ------------------------------------------ | ---------- |
Gross | |
operating 615 (11) (9) (19) | 576 |
income | |
| |
Provision | |
for credit (70) | (70) |
losses | |
| |
Associates 7 | 7 |
| |
Gain or | |
loss on 9 | 9 |
other | |
assets | |
| |
Change in | |
value of 0 | 0 |
goodwill | |
------------------------ ------------------------------------------ | ---------- |
Pre-tax 561 (11) (9) (19) | 523 |
profit | |
| |
Tax (227) 4 3 6 | (214) |
| |
Minority (28) | (28) |
interest | |
------------------------ ------------------------------------------ | ---------- |
Net income | |
(group 306 (7) (6) (13) | 280 |
share) | |
------------------------ ------------------------------------------ | ---------- |
| |
+------------+
Natixis - Consolidated
----------------------------------------- -----------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17 1Q17
vs. 1Q16
------------------------------------------------------------------ -----------
Net revenues 2,063 2,211 1,924 2,520 2,347 14%
Expenses (1,605) (1,522) (1,447) (1,664) (1,771) 10%
------------------------------------------------------------------ -----------
Gross operating income 458 689 477 856 576 26%
Provision for credit (88) (88) (69) (60) (70) (20)%
losses
Associates 8 7 4 (6) 7 (2)%
Gain or loss on other 29 31 104 12 9 (68)%
assets
Change in value of 0 (75) 0 0 0
goodwill
------------------------------------------------------------------ -----------
Pre-tax profit 407 564 516 801 523 29%
Tax (172) (211) (184) (255) (214) 24%
Minority interest (34) 28 (34) (50) (28) (18)%
------------------------------------------------------------------ -----------
Net income (group share) 200 381 298 496 280 40%
------------------------------------------------------------------ -----------
Natixis - Breakdown by Business division in 1Q17
---------------------------------------------- ---------
in ?m Investment CIB SFS Financial Corporate 1Q17
Solutions Investments Center reported
--------------------------------------------------------------------- ---------
Net revenues 891 984 344 153 (25) 2,347
Expenses (645) (563) (232) (151) (180) (1,771)
--------------------------------------------------------------------- ---------
Gross operating income 246 421 113 2 (205) 576
Provision for credit 0 (29) (21) (5) (15) (70)
losses
--------------------------------------------------------------------- ---------
Net operating income 246 392 92 (3) (220) 506
Associates 4 3 0 0 0 7
Other items 9 0 0 0 1 9
--------------------------------------------------------------------- ---------
Pre-tax profit 259 394 91 (2) (220) 523
--------------------------------------------------------------------- ---------
Tax (214)
Minority interest (28)
----------------------- ---------
Net income (gs) 280
----------------------- ---------
IFRIC 21 effects by business line
Effect in Expenses
-------------------------------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17
------------------------------------------------------------------------
Investment Solutions (11) 4 4 4 (28)((1))
CIB (31) 10 10 10 (28)
Specialized Financial Services (7) 2 2 2 (6)
Financial Investments (2) 1 1 1 (1)
Corporate center (57) 1 28 28 (92)
------------------------------------------------------------------------
Total Natixis (107) 18 45 45 (156)
------------------------------------------------------------------------
Effect in Net Revenues
-------------------------------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17
------------------------------------------------------------------------
Specialized Financial Services (Leasing) (2) 1 1 1 (1)
------------------------------------------------------------------------
Total Natixis (2) 1 1 1 (1)
------------------------------------------------------------------------
(1) -?14m in recurring expenses and -?14m in non-recurring expenses linked to
the additional Corporate Social Solidarity Contribution resulting from agreement
with CNP
Investment Solutions
------------------------------- ----------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17 1Q17
vs. 1Q16
-------------------------------------------------------------------- ----------
Net revenues 825 832 804 904 891 8%
Asset Management 626 623 609 689 667 7%
Private Banking 34 33 34 35 34 (2)%
Insurance 167 156 155 169 187 12%
Expenses (590) (579) (558) (623) (645) 9%
-------------------------------------------------------------------- ----------
Gross operating income 234 253 246 280 246 5%
Provision for credit losses 0 0 0 0 0
-------------------------------------------------------------------- ----------
Net operating income 234 253 246 281 246 5%
Associates 4 2 5 (10) 4 17%
Other items 18 (2) (2) 2 9 (52)%
-------------------------------------------------------------------- ----------
Pre-tax profit 256 253 249 273 259 1%
-------------------------------------------------------------------- ----------
Cost/Income ratio 71.6% 69.6% 69.4% 69.0% 72.4%
Cost/Income ratio excluding IFRIC 70.2% 70.0% 69.8% 69.4% 69.3%
21 effect
RWA (Basel 3 - in ?bn) 16.4 17.0 17.3 18.1 18.0 10%
Normative capital allocation (Basel 4,350 4,381 4,467 4,491 4,641 7%
3)
ROE after tax (Basel 3)((1)) 13.9% 14.0% 13.1% 12.3% 12.6%
ROE after tax (Basel 3) excluding 14.5% 13.8% 12.9% 12.1% 14.3%
IFRIC 21 effect((1))
1. Normative capital allocation methodology based on 10% of the average RWA-
including goodwill and intangibles
Corporate & Investment Banking
------------------------------- ----------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17 1Q17
vs. 1Q16
-------------------------------------------------------------------- ----------
Net revenues 782 887 757 896 984 26%
Global markets 407 507 410 477 608 49%
FIC-T 291 319 291 317 397 36%
Equity 123 154 106 150 176 42%
CVA/DVA desk (7) 33 13 10 36
Global Finance & Investment Banking 362 407 412 412 400 11%
Other 12 (26) (65) 7 (25)
Expenses (512) (482) (468) (569) (563) 10%
-------------------------------------------------------------------- ----------
Gross operating income 270 405 289 327 421 56%
Provision for credit losses (71) (53) (50) (21) (29) (59)%
-------------------------------------------------------------------- ----------
Net operating income 198 352 239 306 392 98%
Associates 3 4 3 3 3 (25)%
Other items 0 0 0 0 0
-------------------------------------------------------------------- ----------
Pre-tax profit 202 356 242 309 394 95%
-------------------------------------------------------------------- ----------
Cost/Income ratio 65.5% 54.4% 61.8% 63.5% 57.2%
Cost/Income ratio excluding IFRIC 61.5% 55.5% 63.2% 64.7% 54.4%
21 effect
RWA (Basel 3 - in ?bn) 67.0 68.8 64.9 66.1 64.4 (4)%
Normative capital allocation (Basel 6,935 6,772 7,064 6,672 6,805 (2)%
3)
ROE after tax (Basel 3)((1)) 7.9% 14.2% 9.3% 13.6% 16.1%
ROE after tax (Basel 3) excluding 9.1% 13.8% 8.9% 13.2% 17.2%
IFRIC 21 effect((1))
1. Normative capital allocation methodology based on 10% of the average RWA-
including goodwill and intangibles
Specialized Financial Services
------------------------------- ----------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17 1Q17
vs. 1Q16
-------------------------------------------------------------------- ----------
Net revenues 343 341 325 341 344 Flat
Specialized Financing 214 211 203 210 219 2%
Factoring 38 39 40 43 40 4%
Sureties & Financial Guarantees 55 43 46 45 54 (2)%
Leasing 51 58 48 53 54 5%
Consumer Financing 65 66 64 64 66 2%
Film Industry Financing 5 6 5 6 5 8%
Financial Services 129 130 122 131 125 (3)%
Employee savings plans 22 25 20 21 21 (5)%
Payments 83 81 80 86 81 (2)%
Securities Services 24 23 23 24 23 (4)%
Expenses (225) (220) (215) (220) (232) 3%
-------------------------------------------------------------------- ----------
Gross operating income 118 121 110 122 113 (4)%
Provision for credit losses (13) (17) (12) (16) (21) 66%
-------------------------------------------------------------------- ----------
Net operating income 105 104 98 106 92 (13)%
Associates 0 0 0 0 0
Other items 0 31 0 0 0
-------------------------------------------------------------------- ----------
Pre-tax profit 105 135 98 106 91 (13)%
-------------------------------------------------------------------- ----------
Cost/Income ratio 65.7% 64.6% 66.2% 64.4% 67.3%
Cost/Income ratio excluding IFRIC 63.4% 65.4% 67.0% 65.1% 65.3%
21 effect
RWA (Basel 3 - in ?bn) 13.7 14.8 14.6 15.4 15.2 11%
Normative capital allocation (Basel 1,629 1,626 1,730 1,709 1,885 16%
3)
ROE after tax (Basel 3)((1)) 16.9% 21.8% 14.8% 16.2% 13.2%
ROE after tax (Basel 3) excluding 18.3% 21.3% 14.4% 15.8% 14.3%
IFRIC 21 effect((1))
1. Normative capital allocation methodology based on 10% of the average RWA-
including goodwill and intangibles
Financial Investments
------------------------------- ----------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17 1Q17
vs. 1Q16
----------------------------------------------------------- ----------
Net revenues 183 155 137 224 153 (17)%
Coface 156 133 119 197 131 (16)%
Corporate data solutions 15 9 8 10 10 (30)%
Others 12 12 10 18 11 (8)%
Expenses (162) (153) (151) (174) (151) (7)%
----------------------------------------------------------- ----------
Gross operating income 21 1 (14) 50 2 (91)%
Provision for credit losses (6) (18) (7) (6) (5) (24)%
----------------------------------------------------------- ----------
Net operating income 15 (17) (20) 44 (3)
Associates 0 0 (3) 1 0
Other items 11 (75) 7 0 0
----------------------------------------------------------- ----------
Pre-tax profit 27 (91) (17) 45 (2)
----------------------------------------------------------- ----------
Corporate center
--------------------------------------
in ?m 1Q16 2Q16 3Q16 4Q16 1Q17
--------------------------------------------------------------------
Net revenues (69) (3) (100) 155 (25)
Expenses (116) (87) (55) (78) (180)
--------------------------------------------------------------------
Gross operating income (185) (91) (155) 77 (205)
Provision for credit losses 2 0 0 (18) (15)
--------------------------------------------------------------------
Net operating income (183) (91) (155) 59 (220)
Associates 0 0 0 0 0
Other items 0 2 99 10 1
--------------------------------------------------------------------
Pre-tax profit (183) (89) (56) 68 (220)
--------------------------------------------------------------------
Regulatory capital in 1Q17 & financial structure Basel 3
-------------------------------------------------------------------------------
Regulatory reporting, in ?bn
Shareholder's equity group share 20.5
Goodwill & intangibles (3.5)
Dividend (1.3)
Other deductions (1.0)
Hybrids restatement in Tier 1((1)) (2.4)
CET1 Capital 12.4
Additional T1 2.1
Tier 1 Capital 14.6
Tier 2 Capital 2.6
Total prudential Capital 17.2
-------------------------------------------------------------------------------
(1) Including capital gain following reclassification of hybrids as equity
instruments
------------------------------------------------------------
In ?bn 1Q16 2Q16 3Q16 4Q16 1Q17
CRD4 phased CRD4 phased CRD4 phased CRD4 phased CRD4 phased
---------------------------------------------------------------------------
CET1 Ratio 11.1% 11.1% 11.3% 10.8% 10.9%
Tier 1 Ratio 12.6% 12.6% 12.8% 12.3% 12.8%
Solvency Ratio 15.1% 15.0% 15.1% 14.5% 15.1%
Tier 1 capital 14.1 14.3 14.5 14.2 14.6
RWA 111.4 112.9 113.1 115.5 114.1
---------------------------------------------------------------------------
-----------------------------------
In ?bn 1Q16 2Q16 3Q16 4Q16 1Q17
--------------------------------------------------------
Equity group share 19.5 18.8 19.1 19.8 20.5
Total assets((1) ) 514 535 522 528 509
--------------------------------------------------------
1. Statutory balance sheet
Breakdown of risk-weighted assets 03/31/2017
In ?bn
----------------------------------------------------
Credit risk 79.0
Internal approach 65.9
Standard approach 13.1
----------------------------------------------------
Counterparty risk 7.3
Internal approach 6.4
Standard approach 0.9
----------------------------------------------------
Market risk 10.4
Internal approach 4.9
Standard approach 5.5
----------------------------------------------------
CVA 3.7
----------------------------------------------------
Operational risk - Standard approach 13.7
----------------------------------------------------
Total RWA 114.1
----------------------------------------------------
Leverage ratio
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 03/31/2017
----------------------------------------------
Tier 1 capital( (1)) 14.8
Total prudential balance sheet 421.5
Adjustment on derivatives (45.1)
Adjustment on repos ((2)) (19.6)
Other exposures to affiliates (36.6)
Off balance sheet commitments 37.3
Regulatory adjustments (4.4)
Total leverage exposures 353.1
----------------------------------------------
Leverage ratio 4.2%
(1) Without phase-in except for DTAs on tax loss carryforwards - supposing
replacement of existing subordinated issuances when they become ineligible (2)
Repos with clearing houses cleared according to IAS32 standard, without maturity
or currency criteria
Normative capital allocation and RWA breakdown at end-March 2017 - under Basel 3
--------------------------------------------------------------
Average
RWA In % of Average capital ROE
in ?bn (end of the total Goodwill and allocation after tax
period) intangibles beginning of in 1Q17
period
-------------------------------------------------------------------------------
CIB 64.4 62% 0.2 6.8 16.1%
Investment 18.0 17% 2.8 4.6 12.6%
Solutions
SFS 15.2 15% 0.3 1.9 13.2%
Financial 6.2 6% 0.2 0.7
Investments
-------------------------------------------------------------------------------
TOTAL (excl.
Corporate 103.8 100% 3.5 14.1
Center)
-------------------------------------------------------------------------------
Net book value as of March 31, 2017 ((1))
in ?bn 03/31/2017
-------------------------------------------------------
Shareholders' equity (group share) 20.5
-------------------------------------------------------
Deduction of hybrid capital instruments (2.1)
Deduction of gain on hybrid instruments (0.3)
Distribution (1.1)
Net book value 17.1
-------------------------------------------------------
Restated intangible assets((2)) 0.7
Restated goodwill((2)) 2.9
-------------------------------------------------------
Net tangible book value((3)) 13.5
-------------------------------------------------------
in ?
-------------------------------------------------------
Net book value per share((4)) 5.46
Net tangible book value per share((4)) 4.29
-------------------------------------------------------
(1) Post distribution scheduled for 2016 (2) See note on methodology (3) Net
tangible book value = Book value - goodwill - intangible assets (4) Calculated
on the basis of 3,135,684,763 shares - end of period
Earnings per share (1Q17)
in ?m 03/31/2017
-------------------------------------------------------------------------------
Net income (gs) 280
DSN interest expenses on preferred shares after tax
Unternehmensinformation / Kurzprofil:
Datum: 09.05.2017 - 17:36 Uhr
Sprache: Deutsch
News-ID 541309
Anzahl Zeichen: 65553
contact information:
Town:
Paris
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 239 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"NATIXIS:2017 FIRST QUARTER RESULTS"
steht unter der journalistisch-redaktionellen Verantwortung von
NATIXIS (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
