First-Quarter 2015 Results
GOOD PERFORMANCES FROM CORE BUSINESSES AND STRONG RISE IN NET INCOME: + 25% to €331m(1)
Core businesses: 15% growth in net revenues to €1.9bn and profitability increased, +170bps in ROE to 11.6%
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Wholesale Banking:
Record quarter for Asset Management: €820bn of assets under management, up €84bn since the start of the year, including €19bn of net inflows in 1Q15 Sustained growth in Insurance: revenues up 6% vs. 1Q14 Rollout of SFS solutions in the networks: further momentum in Consumer Finance (outstanding +9%), Employee Savings Schemes (AuM +13%) and Payments (electronic banking transactions +6%) |
Strong earnings growth(1)
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Core-business net revenues up 15% to €1.9bn vs. 1Q14 and Natixis net revenues up 18% in the same period (+10% at constant exchange rates) Gross operating income up 40% to €679m vs. 1Q14 (+25% at constant exchange rates) Net income (group share) up 25% to €331m vs. 1Q14, and 23% to €373m restated for the application of IFRIC 21 Core-business ROE up 170bps to 11.6% vs. 1Q14, with capital allocation based on 10% of RWA
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Financial structure
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CET1 ratio(2) of 10.6% at March 31, 2015 pro forma of the estimated impact of the DNCA acquisition and after DTA phase-in for 2015 22bps increase in CET1 ratio from 1Q15 results (29bps excluding IFRIC 21) 3,6% leverage ratio(1) as of end-March 2015 (+30bps vs. end-2014) notably with a 3% decrease in the total B-sheet vs. end-2014, despite the FX effect
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(1) See note on methodology
(2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on tax loss carry-forwards
The Board of Directors examined Natixis’s first-quarter 2015 accounts on May 6, 2015.
For Natixis, the main features of first-quarter 2015 were (1):
- strong revenue growth in core businesses and for Natixis as a whole, up 15% and 18%, respectively, relative to 1Q14. Wholesale Banking recorded fine performances on capital markets and in terms of new loan production in the Structured Financing segment. Asset Management enjoyed a record quarter for both inflow and assets under management, while Insurance reported solid revenue growth. In Specialized Financial Services, the continued rollout of solutions in the networks drove fine performances in several segments,
- a 4pp-improvement in the cost-income ratio to 66.6%, excluding the IFRIC 21 impact,
- recurring provision for credit loss generally improving in all our business, except for energy and commodities sector
- a strong improvement in net income to €373m (+23% vs. 1Q14), excluding the IFRIC 21 impact,
- a 170bp-advance in core-business ROE to 11.6% vs. 1Q14,
- 3,6% leverage ratio(1) as of end-March 2015 (+30bps vs. end-2014) notably with a 3% decrease in the total asset vs. end-2014, despite the FX effect,
- a CET1 ratio(2) of 10.6% at March 31, 2015.
Laurent Mignon, Natixis Chief Executive Officer, said: « Our three core businesses performed very solidly in first-quarter 2015, posting sharp increases in both revenues and profitability. Our key franchises continued to expand, driven particularly by record net inflow in Asset management and robust momentum in Capital markets within Wholesale Banking, and by the continued rollout of our insurance and SFS offerings to the Groupe BPCE networks. This progress was achieved without any let-up in our control on the consumption of scarce resources: with risk-weighted assets holding steady, our balance-sheet contracted markedly during the quarter. These performances confirmed Natixis’s solid financial structure and reasserted the Bank’s payout policy.»
- See note on methodology
- Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on loss carry-forwards
This media release may contain objectives and comments relating to the objectives and strategy of Natixis. Any such objectives inherently depend on assumptions, project considerations, objectives and expectations linked to future and uncertain events, transactions, products and services as well as suppositions regarding future performances and synergies.
No assurance can be given that such objectives will be realized. They are subject to inherent risks and uncertainties, and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those implied by such objectives.
Information in this media release relating to parties other than Natixis or taken from external sources has not been subject to independent verification, and Natixis makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions herein. Neither Natixis nor its representatives shall be liable for any errors or omissions, or for any prejudice resulting from the use of this media release, its contents or any document or information referred to herein. The figures in this media release are unaudited
The conference call to discuss the results, scheduled for Thursday May 7th, 2015 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the “Investor Relations” page).
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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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