4Q20 & 2020 results
4Q20 underlying net income1 at its highest level in more than two years, despite a cost of risk that remains elevated
Positive net income in 2020 despite the COVID-19 context
2020 reported net income at +€101m and +€517m underlying1
4Q20 underlying net income1 at +€442m in 4Q20, 4Q20 underlying RoTE1 at 11.3%
Basel 3 FL CET1 ratio2 at 11.6% +330bps above regulatory requirements and including a cash dividend of 0.06€ per share3, in line with ECB recommendations
STRONG REBOUND IN BUSINESS ACTIVITY
BUSINESSES' UNDERLYING NET REVENUES 1 AT €2.2BN IN 4Q20 AND €7.4BN IN 2020
AWM: Strong revenue generation and flow dynamics thanks to diversified strategies
Underlying net revenues1 excl. H2O AM up +21% YoY at constant FX in 4Q20 and flat YoY in 2020. 4Q20 net revenues notably benefiting from €210m of asset management performance fees (mainly DNCA and Mirova), demonstrating the diversification of the model
Natixis Investment Managers’ AuM up +6% QoQ at constant perimeter. AuM at €1,117bn4 as at end-December 2020
Positive asset management net inflows of ~€11bn4 in 4Q20 with a positive momentum across North America, Europe and Private equity
Asset management fee rate at ~38bps in 4Q20 excl. Ostrum AM, up +0.7bps QoQ
CIB: Higher net revenues, strong cost discipline and cost of risk improvement in 4Q20
Underlying net revenues1 up +2% YoY at constant exchange rate in 4Q20, reaching their highest quarterly level of the year (-15% YoY decline in net revenues in 2020, notably impacted by the dividend mark-downs in 1H20). Significant QoQ increase in net revenues coming from the financing activity as well as Investment banking/M&A. M&A revenues at ~€210m in 2020 vs. ~€130m in 2017
Underlying expenses1 well under control, down -5% YoY at constant FX in both 4Q20 (positive jaws) and 2020
Cost of risk improving vs. 3Q20, although still at elevated levels at 94bps of outstandings in 4Q20 and 128bps over 2020
Insurance: 2020 financial targets exceeded
Underlying net revenues1 up +8% YoY in both 4Q20 and 2020, translating into a similar CAGR over 2017-2020
Underlying RoE1 at ~33% in both 4Q20 and 2020 vs. a target set at ~30%
Payments: Net revenue growth in both 4Q20 and 2020 despite the impact of lockdowns
Underlying net revenues1 up +3% YoY in 4Q20 and +2% YoY in 2020
Underlying RoE1 >10% in 4Q20 and ~9% in 2020 despite lower activity related to the COVID-19 context
FINANCIAL STRENGTH
Underlying net income1 at +€442m in 4Q20 (+€323m reported) and +€517m in 2020 (+€101m reported). Underlying RoTE1 at 11.3% in 4Q20 and 3.0% in 2020
Basel 3 FL CET1 ratio2 at 11.6% as at December 31, 2020 (+40bps vs. 3Q20 proforma) including a €0.06 cash dividend per share3, in line with ECB recommendations. Ratio standing +330bps above regulatory requirements and +140bps above current target of 10.2%
“Natixis recorded its best results in over two years in the fourth quarter of 2020, despite a cost of risk that remained elevated, as our business activity rebounded strongly enabling us to achieve positive net income over the full year.These good results demonstrate the agile nature of our business model and the unwavering commitment of our teams to serving our clients.
In Asset & Wealth Management core revenues grew strongly in the fourth quarter while assets under management reached a new high of over 1.1 trillion euros as our diversified model continued to perform. Our Corporate & Investment Banking business notched up its best quarter of the year with M&A revenues that are notably well ahead of our targets, a very tight management of costs and an improving cost of risk. Natixis Assurances, which in 2020 achieved its ambition of becoming a fully-fledged insurer at the service of the Banque Populaire and Caisse d’Epargne banks, grew revenues by 8% year-on-year both in the fourth quarter and over the full year. Our Payments business continued to expand its activities in the fourth quarter despite the lockdown measures in place in France.
Natixis has shown, through these results and its solid financial position, its capacity to create sustainable value for all its stakeholders and has furthermore proposed to restart dividend payments. With these solid foundations, Natixis is in a strong position to continue to support its clients and to launch, by the summer, an ambitious new strategic plan."
Nicolas Namias, Natixis Chief Executive Officer
Figures restated as communicated on April 20, 2020 following the announced sale of a 29.5% stake in Coface. See page 16 for the reconciliation of the restated figures with the accounting view1 Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 in 4Q for cost/income, RoE and RoTE 2 See note on methodology 3 Proposal of a 0.06€ ordinary dividend per share submitted to the approval of the Annual General Meeting on May 28, 2021 4 €1,135bn AuM including H2O AM. Net inflows excluding H2O AM
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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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