1Q19 results Development and transformation at the core of New Dimension
Reported net income at €764m in 1Q19 vs. €260m in 1Q18 (restated), up +194%,
notably driven by the disposal of the retail banking activities
Financial strength with a Basel 3 fully-loaded CET1 ratio at 11.3% pro forma, well above our 2020 target (11%)
Resilience of the business model in a challenging environment for
global market revenues - Natixis’ 1Q19 underlying net revenues[1] at €2.1Bn
AWM: Strong AuM increase and flows back to positive territory
Strength of our active asset management model with underlyingnet revenues1 slightly down YoY, in part due to
the 4Q18 market effect. Excluding performance fees, underlying net revenues1 are up +1% YoY
Strong AuM growth of +6% over the quarter to reach €855bn
Flows turning positive again (+€1bn) driven by Europe. Positive net inflows, notably at Harris, in March
The average fee rate remains in line with the New Dimension target at ~30bps
Creation of Thematics Asset Management and partnership announced with Fiera Capital
CIB: Underlying RoE1~10% despite challenging market conditions, thanks to our diversified expertise
Underlying net revenues1 lower than 1Q18 amidst challenging market conditions and with a high base effect in Global markets, partially offset by the resilience of Global finance and the good performance of Investment banking/M&A
Underlying RoE1 ~10% in 1Q19 despite this context with sustained pipeline for Global finance and IB/M&A
Expansion of our M&A multi-boutiques model: acquisition of Azure Capital
Insurance: High profitability and with a key milestone towards New Dimension targets
Underlying net revenues1 up +7% YoY in 1Q19 with a positive jaw effect and an underlying RoE1 >30%
Gross inflows on unit-linked products remain above the French market, with the gap widening
Key step for Natixis Assurances towards becoming a fully-fledged insurer (see Groupe BPCE/Covéa announcement)
Payments: Continuous growth dynamic
Underlying net revenues1 up +11% YoY in 1Q19 with a positive jaw effect
Increase in business volumes from PayPlug & Dalenys, up +26% YoY in 1Q19. Historical processing activity +9% YoY
sustainable value creation and financial strength
Disposal of the retail banking activities (€586m capital gain) supplemented by +37bps of organic capital creation in 1Q19. Basel 3 FL CET1 ratio[2] at 11.3% pro forma as at March 31, 2019, well above our 2020 target (11%)
Transformation & Business Efficiency: ~€50m of annual additional costs savings identified by end-2020, raising the total to €300m over New Dimension
Underlying net income1 at €192m in 1Q19, impacted by IFRIC 21
Underlying RoTE1 at 10.2% in 1Q19 and 13.2% over New Dimension[3] as at March 31, 2019
Cash dividend of 0.78€ per share[4]: €0.30 ordinary, €0.48 special
focus on the implementation of our 2020 ambitions
François Riahi, Natixis Chief Executive Officer, said: “The first quarter of 2019 was marked by a number of important developments in the implementation of our New Dimension strategic plan. Our partnership with Covéa is perfectly aligned with the growth ambitions of our bancassurance model for Groupe BPCE, while the addition of a new M&A boutique in Australia is fully consistent with our CIB roadmap to expand in Investment banking with a sectorial approach. In a challenging environment, especially for market activities during the first two months of the year, and despite a high basis for comparison due to our very strong first quarter in 2018, the diversification and the uniqueness of our business model enabled us to further strengthen our capital position while confirming the payment of a €0.78 dividend per share following the disposal of our retail banking activities.”
Footnotes
Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 12 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)
- Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE (see note on methodology)
- See note on methodology
- Adjusting for the non-recurring impact on 4Q18 revenues from Asian equity derivatives, net of tax
- Proposal subject to the approval of the General Shareholders’ meeting on May 28, 2019
Related links
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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