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”.
- See note on methodology and excluding the IFRIC 21 impact for the ROE calculation
- Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise without phase-in except for DTAs on tax-loss carryforwards
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 assurance can be given that such objectives will be realized. They are subject to inherent risks and uncertainties, and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those implied by such objectives.
Information in this media release relating to parties other than Natixis or taken from external sources has not been subject to independent verification, and Natixis makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions herein. Neither Natixis nor its representatives shall be liable for any errors or omissions, or for any prejudice resulting from the use of this media release, its contents or any document or information referred to herein.
Included data in this press release have not been audited.
NATIXIS financial disclosures for the first quarter 2017 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 Wednesday May 10th, 2017 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the “Investors & shareholders” page).
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About Groupe BPCE
Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A, stable outlook), Fitch (AA-, negative outlook) and R&I (A+, stable outlook).
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