Second Quarter and First Half 2013 Results
Solid results in difficult conditions in Europe, thanks to the commercial dynamism of core businesses, tight cost control and stabilized cost of risk.
Sale of CCIs to the Banques Populaires and Caisses d’Epargne in line with the schedule presented on February 17, 2013
Sale of all the CCIs to the Banques Populaires and Caisses d’Epargne banks completed on August 6, 2013
The AGM approved an exceptional distribution of €0.65 per share payable on
August 19, 2013
Net income (group share) rose by 4% in 2Q12, to €267m, and by 13% in 1H13, to €604m
Pro forma(1) and excluding FV adjustment on own debt
Net revenues of €1.8bn in 2Q13, up 2% vs. 2Q12
1H13 net revenues of €3.6bn, up 3% vs. 1H12 9.3% ROTE(2) for first-half 2013
Good performances in core businesses
Wholesale Banking: robust new production of €8.1bn in Structured financing in 1H13
Investment Solutions: €6.8bn net inflow in 1H13, notably in the US and
Asia, and 12% increase in net revenues in 2Q13 in Asset management
Specialized financing revenues up 6% in 2Q13 vs. 2Q12, fueled by increased business with the Groupe BPCE networks
Satisfactory roll-out of the Operational Efficiency Program
€159m cumulative reduction in expenses at June 30, 2013
Acceleration of GAPC asset disposal program
Divestment of GAPC assets: €2.6bn in 2Q13, making a total of €3.6bn for first-half 2013
On track to close GAPC by mid-2014
Further improvement in financial structure
Basel 3 CET1 Ratio(1,3) of 9.7% at June 30, 2013, up 30bps vs. March 31, 2013
2014-2017 strategic plan: investor day on November 14, 2013
The Board of Directors examined Natixis’s second-quarter 2013 accounts on August 6, 2013.
Economic conditions remained difficult in France and the euro zone during the period, and stock-market indices proved volatile. The Euro Stoxx 50 and the Euro Stoxx Banks declined 0.8% and 1%, respectively, during the second quarter.
The main points of note for Natixis during the second quarter were as follows:
- Dynamic commercial activity for core businesses, as witnessed by a 4% increase in net revenues vs. 2Q12. In Wholesale Banking, Structured financing new production amounted to a robust €3.6bn during the period. In Investment Solutions, Asset management recorded a €2.4bn net inflow excluding money-market products, buoyed by the US and Asia. In Specialized Financial Services, the various business lines continued to roll out solutions to the Groupe BPCE networks, with the result that Specialized financing revenues advanced 6% vs. 2Q12 without perimeter effect.
- GAPC’s asset disposal program has gained pace since the start of 2013, and recorded €3.6bn of asset sales in 1H13, including €2.6bn in 2Q13, with limited haircuts.
- The provision for credit loss (excluding GAPC) stabilized relative to first-quarter 2013.
- Net income of €267m rose 4% vs. 2Q12, pro forma of the sale of CCIs and the fair-value (FV) adjustment on own senior debt.
- The Basel 3 CET1 Ratio(1) amounted to 9.7% at June 30, 2013, reflecting continued improvement in financial structure.
Laurent Mignon, Natixis Chief Executive Officer, said: “The sale of the CCIs to the Banques Populaires and Caisses d’Epargne was completed in line with the schedule presented on February 17, 2013 and the ensuing value-creation for Natixis shareholders has been confirmed via the payment of an exceptional distribution of around €2bn on August 19, 2013. During the second quarter, Natixis’s core businesses managed to grow revenues despite tough conditions in France and the euro zone. Natixis also continued to gain market share, particularly so in international markets which represent a source of sizeable leverage in the future.”
- Pro forma of the sale of CCIs / (2) Annualized ROTE: net income (group share) – DSN net interest / average net assets after dividend – hybrid notes – intangible – average goodwill (3) Basel 3 impact will depend on final rules – Fully-loaded except on DTAs
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 conference call to discuss the results, scheduled for Wenesday August 7, 2013 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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