2Q19 results: A well-balanced business model to navigate the current environment

Paris, France, August 1, 2019

Reported net income at €346m in 2Q19 and €1.1bn in 1H19

Financial strength with a Basel 3 fully-loaded CET1 ratio1 at 11.5%, well above our 2020 target (11%)



AWM: Strong net revenue growth and positive net inflows in the US notably

Strength of our active asset management model with underlyingnet revenues2 up +11% YoY in 2Q19 (+4% in 1H19) in part driven by high levels of performance fees that reached €138m this quarter (€171m in 1H19)

Demonstration of the strength of the multiboutique model with €(2)bn net outflows on LT products despite €(6)bn net outflows at H2O. More than +€3bn net inflows on LT products across other affiliates, of which +€2bn in the US

The average fee rate remains in line with the New Dimension target at ~30bps

Strong AuM growth of +5% over the quarter to reach €898bn, including WCM

Projected partnership between Ostrum AM and LBP AM to create a key player in life insurance asset management

CIB: Revenue diversification and tight cost control to create value despite an elevated cost of risk due to a large single file

Underlying net revenues2 down YoY in 2Q19 with a high base effect in Global finance. Resilience of Global markets activities with revenues up QoQ and FIC-T also up YoY. Growth from IB/M&A and our Green & Sustainable Hub

Strict cost control, down -7% YoY at constant exchange rate in 2Q19

Cost of risk elevated this quarter driven by a large single file

Underlying RoE2 at 9.3% in 2Q19 and 11.7% with a normalized cost of risk of 30bps

Insurance: Sustained growth and profitability

Underlying net revenues2 up +7% YoY with a positive jaws effect both in 2Q19 and 1H19

Underlying RoE2 >30% in 1H19, in line with the New Dimension 2020 target

Payments: Continued growth dynamic

Underlying net revenues2 up +10% YoY with a positive jaws effect both in 2Q19 and 1H19

Increase in business volumes from Dalenys & PayPlug, up more than +20%


Organic capital creation of 38bps in 2Q19. Basel 3 FL CET1 ratio1 at 11.5% as at June 30, 2019, well above our 2020 target (11%)

Underlying net income2 at €363m in 2Q19 and €555m in 1H19, despite an elevated cost of risk (63bps in 2Q19 and 43bps in 1H19)

Underlying RoTE2 at 9.6% in 2Q19 and 10.8% with a normalized cost of risk of 30bps

Underlying RoTE2 adjusted3 at 12.8% over New Dimension as at June 30, 2019


François Riahi, Natixis Chief Executive Officer, said: “Natixis recorded solid results across all its businesses in the second quarter of 2019. Our diversified and balanced business model proves, once again, its worth in an uncertain economic environment. In Asset & Wealth Management our multi-boutique model demonstrated its robustness. Revenues and assets under management both continued to rise despite outflows at H2O and with net flows in the United States turning back positive. We also announced our ambition to create a 100% SRI-compliant European leader in insurance-related fixed income asset management with La Banque Postale. In Corporate & Investment Banking, we enjoyed sustained performances, including in our capital markets activities despite a less favorable environment than last year to which we notably adapt through tighter cost control. In Insurance and Payments, we continued to combine strong growth with a positive jaws effect. We further bolstered our capital position with our CET1 standing at 11.5%, above our 2020 objective.”

Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 13 for the reconciliation of the restated figures with the accounting view 1 See note on methodology 2 Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE (see note on methodology) 3 Adjusting for the non-recurring impact on 4Q18 revenues from Asian equity derivatives and a 30bps normalized cost of risk in 2Q19, net of tax