3Q19 results: Delivering growth across the board, robustness reinforced
Reported net revenues up +6% YoY in 3Q19 and +7% underlying1
Reported net income at €415m in 3Q19 vs. €358m in 3Q18, +16% YoY
Low sensitivity to the rate environment with only 8% of revenues coming from Net Interest Income in 9M19
BUSINESSES WELL DIVERSIFIED AND ALL GROWING IN THE THIRD QUARTER
3Q19 underlying net revenues1 at €2.2Bn, up +7% YoY
AWM: Strong growth in net revenues
Strength of our active asset management model focused on alpha generation with underlying net revenues1 up +12%
YoY in 3Q19 (+7% in 9M19) in part driven by high levels of performance fees that reached €192m this quarter (€362m in 9M19). Revenue growth in line with cost growth at constant exchange rate in both 3Q19 and 9M19
Average fee rate in line with New Dimension target at ~30bps in 9M19 despite a negative mix effect in 3Q19
Strong AuM growth of +3% over the quarter to reach €921bn despite modest outflows on LT products (~€4bn), notably in North America, in part offset by positive net inflows in Europe and the success of affiliates such as Mirova on ESG
CIB: Strong positive jaws effect thanks to growing revenues and cost control
Underlying net revenues1 up +3% YoY in 3Q19 primarily driven by Global finance (+8% YoY). Growth of Global markets activities (+3% YoY) and of our Green & Sustainable Hub. Leading innovation in sustainable finance with the roll-out of Natixis’ Green Weighting Factor initiative
Costs under control, down at constant exchange rate by -2% YoY in 3Q19 and -3% in 9M19
Cost of risk increasing vs. 3Q18 (decreasing vs. 2Q19)
Insurance: Continued growth momentum
Underlying net revenues1 up +7% YoY with a positive jaws effect both in 3Q19 and 9M19
Underlying RoE1 ~30% in 9M19, largely in line with the target set for New Dimension by 2020
Payments: Continued growth with positive jaws
Underlying net revenues1 up +9% YoY in 9M19 with a positive jaws effect both in 3Q19 and 9M19
Increase in business volumes from Dalenys & PayPlug, up more than +20%
SUSTAINABLE VALUE CREATION AND FINANCIAL STRENGTH
Organic capital creation of ~30bps in 3Q19 and ~100bps in 9M19. Basel 3 FL CET1 ratio2 at 11.5% as at September 30, 2019, well above our 2020 target
Underlying net income1 at €400m in 3Q19 and €955m in 9M19
Underlying RoTE1 at 9.5% in 3Q19 and 10.2% in 9M19 considering a normalized cost of risk of ~30bps
REINFORCING ROBUSTNESS THROUGH SEVERAL MEASURES
Focus on the development and the reinforcement of existing expertise rather than on potential acquisitions while maintaining Natixis’ dividend policy. This translates into the reinforcement of the 2020 Basel 3 FL CET1 ratio target2 from 11% to 11.2% (see page 3)
Reinforcement of Natixis Investment Managers’ multi-boutique model with various initiatives aimed at strengthening governance and risk controls (see page 3)
Evolution to Natixis’ governing bodies (see ad hoc press release) and implementation of transversal organizational projects
“In the third quarter of 2019 our revenues grew in line with or faster than our costs in each of our businesses demonstrating our agility and the flexibility of our cost base as well as the relevance of our business model. Natixis is only lightly exposed to the low interest rate environment - net interest income represented only 8% of our revenues in the first nine months of 2019 - result of our asset light strategy and a major advantage in the current context. Having profoundly transformed our businesses, and facing a fast evolution in the environment, we have chosen to further strengthen our robustness, having notably announced today a series of measures to support this objective. We meanwhile remain focused on implementing our strategic plan New Dimension, which is proving itself to be highly suited to the current environment”.
François Riahi, Natixis Chief Executive Officer
Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view 1Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE (see note on methodology) 2 See note on methodology
Linked topic
Appointments within Natixis’ senior management committee and executive committee
Paris, France, November 4, 2020
Olivier Vigneron joins Natixis as Chief Risk Officer and a member of the senior management committee. In addition, the roles of two other senior management committee members have been expanded:[...]
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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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