4Q19 & 2019 results: Delivering growth across the board, increased dividend with reinforced solvency
Increase in reported net income at €371m in 4Q19 and €1,897m in 2019 vs. €181m in 4Q18 and €1,306m in 2018
Cash dividend per share of 0.31€1, up +3% vs. 2018
Operating trends improving throughout the year with a strong 4Q19
BUSINESSES WELL DIVERSIFIED AND ALL GROWING IN 4Q19 AND 2019
UNDERLYING NET REVENUES2 AT €2.5Bn IN 4Q19 (+11%3 YOY) AND €9.2bn IN 2019 (+6% YoY)
AWM: 2019 net revenues at an all-time high, back to positive net inflows in 4Q19 and fee rate resilience
Strength of our active asset management model with underlying net revenues2 up +8% YoY in 4Q19 (+7% YoY in 2019), partly driven by high levels of performance fees that reached €265m in 4Q19 (€627m in 2019), coming from multiple affiliates. Revenue growth higher than cost growth both in 4Q19 and 2019 to reach a historically high level in 2019 (including and excluding performance fees)
Positive net inflows on LT products in 4Q19 (~€3bn) both in Europe and North America. Strong AuM growth, up +16% over the year at €934bn
Average fee rate in line with New Dimension target at ~30bps in 4Q19 and 2019
UnderlyingRoE2 at ~15% in 2019, close to the 2020 New Dimension target
CIB: Positive jaws effect both in 4Q19 and 2019 with activity levels picking up towards year-end
Underlying net revenues2 up +16%3 YoY in 4Q19 primarily driven by Global Markets (+40%3 YoY) and with a historically high quarter for Investment Banking/M&A. Success of the diversification strategy illustrated by net revenues up +4% in 2019 vs. 2018
Costs under control, down -1% YoY at constant exchange rate in 2019 despite revenue growth
Underlying RoE2 at ~9% in 2019 with a cost of risk above its through-the-cycle average
Insurance: Continued growth and profitability
Underlying net revenues2 up +7% YoY with a positive jaws effect both in 4Q19 and 2019
Underlying RoE2 ~30% in 2019, close to the target set for New Dimension by 2020
Life insurance4: AuM up +14% over 2019 including a +23% growth across unit-linked products
P&C insurance: combined ratio at 91.7% in 2019, better than 2020 guidance of < 94%
Payments: Continued growth with positive jaws, EBITDA5 up +13% YoY in 2019
Underlying net revenues2 up +9% YoY in 2019 with a positive jaws effect
Underlying RoE2 ~10% in 2019
Increase in business volumes from Dalenys & PayPlug, up around +25% vs. 2018
SUSTAINABLE VALUE CREATION AND FINANCIAL STRENGTH
ORDINARY DIVIDEND INCREASE WITH A PAY-OUT RATIO >80%1
Organic capital creation of ~120bps in 2019, of which ~24bps in 4Q19 (~28bps excluding exceptional items)
Basel 3 FL CET1 ratio6 at 11.3% as at December 31, 2019 (+50bps over the year), above our 2020 target of 11.2% and with a cash dividend per share1 of 0.31€ (83% pay-out ratio), up vs. 0.30€ in 2018 and after a 0.48€ special dividend paid in June 2019
Underlying net income2 at €415m in 4Q19 (x2.2 YoY) and €1,370m in 2019 (+3% YoY)
Underlying RoTE2 at 10.8% in 4Q19 and 10.0% in 2019
“In 2019, Natixis recorded very sound results with each of our four businesses growing revenues faster than costs. The fourth quarter of 2019 notably represented Natixis' best-ever quarter in terms of revenue and gross operating income generated. This momentum of successive quarter-on-quarter growth is the result of our unwavering implementation of our asset-light strategy and represents a solid base for us to complete our 2018-2020 strategic plan. 2019 was marked by key strategic milestones: the project to create a leader in the management of life insurance assets with LBPAM, the implementation of the Green Weighting Factor as well as projects being carried out to allow Natixis to reach its 2020 ambition of serving all the customers of Banques Populaires and Caisses d'Epargne on both Life and Non-life insurance. Together with a bolstered robustness and solidity, Natixis will pay a higher ordinary dividend per share of €0.31 to its shareholders, reflecting the strength of its business model.”
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 (1) Proposal of a 0.31€ ordinary dividend per share submitted to the approval of the Annual General Meeting on May 20, 2020 (2) Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE in 4Q19 (see note on methodology) (3) Excluding the €(259)m non-recurring revenue impact from Asian equity derivatives in 4Q18 (4) Excluding reinsurance agreement with CNP (5) Standalone view excluding exceptional items, analytical items and structure charges - see page 19 (6) See note on methodology
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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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