NATIXIS : Strategic Plan 2018-2020
(Thomson Reuters ONE) -
Paris, 19 November 2017
"New Dimension" 2018-2020
"deepen, digitalize, differentiate"
2020 Main financial targets
revenues growth ~ 5% per annum
rote between 13% and 14.5%
shareholder-friendly distribution policy - Up to ?4BN Dividends,
with a minimum payout of 60% every year
AFTER "NEW DEAL", THE PLAN OF recovery and RENEWED CONFIDENCE AND "NEW FRONTIER"
FOCUSED ON BUSINESS TRANSFORMATION AND DEVELOPMENT, NATIXIS COMMITS TO "NEW
DIMENSION", A PLAN TO DELIVER SUSTAINABLE VALUE CREATION
Natixis successfully completes its "New Frontier" strategic plan with all key
targets set out 4 years ago being reached or overachieved, mainly: revenues
growth (+26%)(1), balance sheet and risk management (7% RWA drop of which 19% in
Corporate & Investment Banking)(1), and profitability (RoTE 12.5% vs. 9% in
2013)(1) thanks to the asset-light model implementation. Such a success has
allowed Natixis to distribute a significant part of its results via dividends
and to generate one of best Total Shareholder Return in the banking sector
globally, to the benefit of its shareholders. The success of "New Frontier"
provides solid foundations to the launch of the "New Dimension" plan, to which
Natixis commits today.
"New Dimension" gathers 3 strong initiatives, all contributing to the
development of high value-added solutions dedicated to our clients: Deepen
businesses' model transformation, successfully embarked on the "New Frontier"
plan, a significant allocation of existing investment budget towards digital
technologies and a strong drive to differentiate ourselves, becoming our
clients' key representative in areas where Natixis' teams have developed strong
and recognized expertise.
our ability to deliver sustainable value creation relies on 3 levers
* Differentiate ourselves in the long run via selected expertise within each
of our businesses to sustain their ambitions:
* Asset & Wealth Management - Assert our world-leading position in active
asset management, thanks to our size, profitability and innovation
capabilities
* Corporate & Investment Banking - Become the "go-to bank" in 4 selected
sectors and be recognized as a solution-oriented innovative house
* Insurance - Consolidate our leading position in the French insurance
landscape
* Specialized Financial Services - Become a pure player in Payments in
Europe and accelerate the digital transformation
* Accelerate synergies with Groupe BPCE networks in each of our businesses
* Digital projects dedicated to our clients and business efficiency,
financed via the reallocation of existing IT costs
1. Estimated FY 2017 based on 9M + [Q4=Q3], RoTE excluding SRF
* Increase the flexibility of our model to adapt quickly to fast-paced
environment:
* A diversified revenue mix for a greater resilience through-the-cycle: ~
50% of Natixis' 2020 revenues to come from non-banking activities
together with a balanced portfolio of businesses relying on client
assets (Asset management.) vs. businesses relying on client activity
(Corporate & Investment Banking)
* 30% of 2020 expenses to be variable hence capacity to adjust expense
trajectory, if necessary
* Fast balance sheet rotation thanks to the O2D model, allowing for a
smooth adaptation to regulatory changes
* Agile organization and collaborative ways of working
* Keep on with disciplined capital management together with a shareholder-
friendly dividend policy:
* Tight grip on RWA with a ~ 2% CAGR over 2018-2020
* High businesses' intrinsic profitability - RoTE target of 13%-14.5%
* Strong capital generation - ~ ?4bn of capital available for distribution
throughout the plan with a fully-loaded CET1 ratio target of 11%
* Shareholder-friendly dividend policy - Between ?3bn and ?4bn dividends
over 2018-2020 with a minimum payout ratio of 60% every year
Laurent Mignon, Natixis Chief Executive Officer, said: "I am particularly
pleased to unveil New Dimension today, Natixis' new strategic plan for the
coming three years. After the success of New Frontier, Natixis now is a solid
company, recognized for the quality of its expertise, and profitable. It is one
of the top value-creating banks in the world, which I am very proud of. I would
like to thank all our clients, who are at the heart of our commitment and also
all 17,000 Natixis' employees for their work and general dynamism.
With New Dimension, we are going to anchor our success through time by deepening
the transformation of our business model, investing in digital and by a strong
will to differentiate ourselves via Natixis teams' widely-recognized expertise."
main 2018-2020 financial targets - Natixis
| Operating | | | Capital
Net revenues | expenses | CET1 FL | ROTE | available for
| | | | distribution
| | | |
~ 5% | < 3% | 11% | 13-14.5% | ~ ?4bn
| | | |
2017-2020 | 2017-2020 | 2020 Target | 2020 | 2018-2020
| | | |
CAGR | CAGR | after | Target |
| | distribution | |
| | | |
| | | |
| | | |
> ?10bn Net | Positive jaws | No lower than |Cost of risk / | > ?3bn
revenues in | effect in all |10.5% at the end| Net revenues | cash dividend
2020 | businesses | of each year | < 3% over the | payment
| | | plan |
| | | |
~ ?400m | Capacity to | | Assuming no | Up to ~ ?1bn
revenue |adjust expense | Total capital | change in US | for potential
synergies |trajectory, if | ratio: 14% | corporate tax | acquisitions
with Groupe | necessary | | rate | and/or cash
BPCE networks| | | | dividend
| | | |
~ 2% RWA CAGR| |Leverage ratio(1| ROTE target |Minimum annual
with an | |) equal to/above| sustainable | payout
accretive | | 4% | under 'Basel |increased from
impact on ROE| | | 4'(2) | 50% to > 60%
1. 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
2. Based on our current interpretation of Basel 4 impacts
main 2018-2020 financial targets - business lines
Asset | Corporate | | Specialized
2020 TARGETS & Wealth | & Investment | Insurance | Financial
Management | Banking | | Services
| | |
| | |
| | |
Net revenues ~ 6% | ~ 3% | ~ 7% | ~ 6%
CAGR | | |
-----------------------------+-----------------+--------------+----------------
Cost/Income ~ 68% | ~ 60% | ~ 54% | ~ 67%
ratio | | |
-----------------------------+-----------------+--------------+----------------
Return on Equity ~ 16% | ~ 14% | ~ 30% | ~ 16%
-----------------------------+-----------------+--------------+----------------
> ?100bn | ~ 2% | > ?90bn(1 ) | X 1.5
NET INFLOWS| RWA CAGR |LIFE INSURANCE|PAYMENT REVENUES
| | AuM |
------------+-----------------+--------------+----------------
| | | ?150m
> 30bps | ~ 6% | < 94%(2) | ADDITIONAL
FEE RATE |NET REVENUES/ RWA|COMBINED RATIO| REVENUES WITH
| | | GROUPE BPCE
1. ?77bn excluding reinsurance agreement with CNP
2. P&C Insurance, including BPCE IARD
ASSet & wealth management (AWM)
ASSert our world-leading position in active asset management,
thanks to our size, profitability and innovation capabilities
* A performance-focused multi-affiliate model
* Natixis ranks 15(th) based on AuM globally(1) and 10(th) both in terms
of revenues and Operating Profit(2). Natixis is a truly global and
diversified asset manager
* A portfolio of autonomous asset managers providing a diversified suite
of distinctive active investment strategies. Affiliates benefiting from
a centralized and global distribution platform as well as support for
internal development (e.g. seed money)
* Consistently delivering alpha across the affiliate range with 42%(3) of
mutual funds being ranked top decile when looking at 5-year cumulative
returns, far above direct peers
* A very resilient and stable fee structure due to a strong track record
and active strategies demonstrating to be more resilient to fee pressure
than passive strategies
* A high value-added growth strategy
* Opportunity to capture assets on the move from "chronic underperformers"
and/or "low value added" strategies
* Extend distribution reach, notably in Europe ex-France
* Leverage on BPCE networks in France and capitalize on Natixis' ambitions
for CIB and Insurance via increased collaboration
* Expand in growing asset classes, mainly Alternatives and Solutions
* Further develop the APAC platform - Recent acquisition of IML in
Australia
* Actively participate in industry consolidation trends in a disciplined
manner
* Develop Responsible Investing
* Digitalization, innovation, and operational efficiency at the core of
Natixis' strategy (blockchain, robo-advice, CRM, etc.)
* Re-branding for better visibility - Natixis Global Asset Management
becomes Natixis Investment Managers
* Main 2018-2020 targets
* Net inflows > ?100bn over the plan
* Fee rate > 30bps in 2020
* Assets under Management ~ ?1tn at end 2020
* Operating Income > ?1bn in 2020
1. Cerulli Associates: Global Markets 2017 report based on AuM as of December
2016
2. Based on ranking of publicly traded asset managers. Source: publicly
available information. Based on 2016 results
3. 217 funds representing $239bn as of September 2017, Source Morningstar /
Natixis analysis
Corporate & investment banking (CIB)
become the "go-to bank" in 4 selected sectors and
Be recognized as a solution-oriented innovative house
* Capitalize on "New Frontier" achievements to deepen relationships with
Corporates and Investors
* Coverage activities already repositioned - Strategic dialogue moved up
to the decision-makers allowing Natixis to increase client intimacy
leveraging on its Investment banking division
* Further develop the multi-boutique approach in M&A by investing in
selected geographies
* Step up the high value-added Solutions business - On the one hand, focus
on innovation to strengthen financial engineering teams, on the other
hand digitize flow products to reduce operating costs
* Keep up the growth momentum of equity derivatives and continue to
develop the recognized structured credit Solutions business franchise
* Foster international growth, especially in the Americas and APAC
* Strengthen the O2D model to generate more fees. Expand customer base and
focus on structuring/distribution
* Differentiate ourselves by developing additional expertise to enhance client
intimacy
* Become the "go-to" bank in 4 chosen sectors - Globally-recognized
franchises in structured finance and over 20 years' experience in Energy
& Natural Resources, Aviation, Infrastructure, Real Estate
& Hospitality. These 4 sectors constitute a large fee pool to be tapped
into for investment banks and estimated at $25bn at end 2016(1)
* Increase the footprint with Insurers and Financial Sponsors capitalizing
on Natixis' complete range of expertise across all businesses
* Become a reference bank in green business and a market pioneer in green
O2D
* Main 2018-2020 targets
* Revenues/RWA ~ 6% in 2020
* Generate > 40% of revenues in Americas and APAC in 2020
* Global Finance & Investment Banking - Revenues in Investment banking and
M&A to increase by > 7% per annum
* Global Finance & Investment Banking - Green business revenues multiplied
by x2 by 2020
1. Source Thomson Reuters. Fee pool on bonds, equity, loans, M&A
INsurance
consolidate our leading position in the french insurance landscape
* A strategy to support Groupe BPCE's ambitions in Insurance
* Natixis Assurances now is the single platform for Groupe BPCE, second
largest banking group in France. Full internalization of insurance
activities with the recent acquisition by Natixis Assurances of a 40%
stake in BPCE Assurances
* Strong growth potential across the range of Life and Non-life products
via increased financial savings and Groupe BPCE networks' strong
distribution capabilities
* Shared knowledge and expertise with Natixis' businesses (Asset & Wealth
Management, Corporate & Investment Banking) and Groupe BPCE
(infrastructure, digital)
* Further development of cutting-edge digital solutions to offer best-in-
class customer experience
* Main 2018-2020 targets
* Life Insurance - ?90bn Life insurance AuM and > 35% Unit-Linked products
in the mix by 2020
* Life Insurance - 12% AuM CAGR, mainly stemming from the Caisses
d'Epargne networks
* Life Insurance - 8% Premium income CAGR
* Non-life Insurance - Combined ratio < 94% in 2020
* Non-life Insurance - 8% Premium income CAGR
* Non-life Insurance - +1 million policies in portfolio by 2020
Specialized financial services (SFS)
Become a pure player in payments in europe and
accelerate the digital transformation
* Adopt a pure-player strategy in Payments
* ?150m investments 2018-2020 for organic development, included in the
?450m allocation to digital projects at the Natixis level
* Payment revenues multiplied by 1.5x by 2020
* Strong industrial backbone with state-of-the art processing platforms
and services across the value chain
* Ability to cope with regulatory changes, mainly PSD2 ("Payment Services
Directive 2") and Instant Payment
* Recent acquisition of Dalenys, a major e-commerce player with a European
footprint
* Accelerate digital transformation in other SFS businesses
* ?100m investments 2018-2020 in Financial services and Specialized
financing, included in the ?450m allocation to digital projects at the
Natixis level
* Development of fully digital customer journeys to enhance customer
experience
* > 15 new digital projects already developed in Natixis' digital
incubator
* Overhaul of the operating model to step up further efficiency gains via
automation and streamlining of processes
* Accelerate synergies
* > ?150m additional revenues to be generated with Groupe BPCE networks
over the next 3 years (2018-2020) vs. ~ ?140m estimated over the
2014-2017 "New Frontier" plan
* 3 levers to capture new synergies - Further deploy the SFS offering with
existing clients, broaden expertise via new products and services
dedicated to Groupe BPCE networks and extend scope to target Groupe BPCE
entities not yet covered by SFS
* Main 2018-2020 targets
* > ?150m additional synergies generated with Groupe BPCE networks i.e. a
~ 40% increase compared to "New Frontier"
* Payments - Revenues multiplied by 1.5x
* Payments - 50% of direct clients by 2020
* Consumer finance - New production up 24% between 2017 and 2020
* Leasing - New production up 67% between 2017 and 2020
* Factoring - Number of contracts up 57%
* Employee Savings Plans - Number of corporate clients up 28%
Investor Relations: investorelations(at)natixis.com
Pierre-Alexandre Pechmeze T + 33 1 58 19 57 36
Damien Souchet T + 33 1 58 55 41 10
Souad Ed Diaz T + 33 1 58 32 68 11
Brigitte Poussard T + 33 1 58 55 59 21
Press Relations: relationspresse(at)natixis.com
Sonia Dilouya T + 33 1 58 32 01 03
www.natixis.com
Investor Day:
http://hugin.info/143507/R/2150671/825556.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NATIXIS via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 19.11.2017 - 18:00 Uhr
Sprache: Deutsch
News-ID 568841
Anzahl Zeichen: 21199
contact information:
Town:
Paris
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 119 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"NATIXIS : Strategic Plan 2018-2020"
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).
