Second-Quarter and First-Half 2015 Results
NET REVENUES UP 12% TO €4,360m AND NET INCOME UP 13% TO €729m IN 1H15
FINANCIAL STRUCTURE REINFORCEMENT AND STRICT MANAGEMENT OF THE BALANCE SHEET
STRONG DYNAMISM IN THE THREE CORE BUSINESSES IN 1H15
- Corporate & Investment Banking: strong client momentum
Buoyant new loan production in Structured financing (€14bn in 1H15) and strong performance in Equity derivatives business
Significant increase in international platforms activity, notably in APAC
- Asset management: AuM of €812bn at end June 2015 thanks to a record €29bn net new money in 1H15
- Insurance: 14% increase in the non-life segment turnover YoY and significant rise of the unit-linked business in life insurance
- Specialized Financial Services: strong dynamic in Specialized financing, notably in Consumer financing (outstanding +9 %), Sureties & guarantees (premium +22 %)
- €151m of revenue synergies generated with the Groupe BPCE networks at end-June 2015, in line with the Strategic plan
GROWTH IN EARNINGS(1) AND ROE ON CORE BUSINESSES
- 12% growth in net revenues in 1H15 to €4,360m and 7% in 2Q15 to €2,175m
- 1H15 pre-tax profit increased by 26% year-on-year
- Net income(gs) stands at €729m in 1H15 (+13% vs. 1H14)
- 2Q15 ROE of the core businesses up 140bps vs. 2Q14 to 13.8% and by 160bps in 1H15 to 13.3%
IMPROVED FINANCIAL STRUCTURE AND STRICT DISCIPLINE WITH SCARCE RESOURCES
- CET1(2) ratio at 11.0% as of end-June 2015 (+40bps vs. end-March 2015)
- Strict control of RWA in the CIB with a drop of 6% YoY and 1% decline YtD at constant exchange rates
- 3.9% leverage ratio(1) as of end-June 2015 (+30bps vs. end-March 2015) with a 11% total assets decline vs. end-March 2015
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- 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
The Board of Directors examined Natixis’s second-quarter 2015 accounts on July 30, 2015.
For Natixis, the main features of 2Q15 were(1):
11% revenue growth in core businesses vs. 2Q14 and 7% revenue growth for Natixis as a whole during the same period.
Within the CIB, new loan production in the Structured financing segment remained brisk, Equity Derivatives continued to fare well and the international platform, notably in Asia, increased activity significantly. Asset management again grew revenues strongly year-on-year and recorded further healthy net new money. The acquisition of DNCA was completed on June 30, 2015. In Insurance, non-life business made strong progress and share of unit-linked policies is still growing in life business.
Specialized Financial Services performed well, primarily driven by Consumer finance and Sureties & guarantees.
a 6% increase in gross operating income to €745m,
a marked reduction in the provision for credit loss to 32bps vs. 45bps on 2Q14,
an 11% advance in pre-tax profit vs. 2Q14,
a 5% improvement in net income (group share) to €398m, despite the impact of dividend taxation,
a 140bp-increase in core-business ROE to 13.8%,
a leverage ratio(1) of 3.9% at end-June 2015 (+30bps vs. end-March 2015) notably thanks to a 11% reduction in the balance sheet vs. end-March 2015,
a CET1 ratio(2) of 11.0% as at June 30, 2015.
Laurent Mignon, Natixis Chief Executive Officer, said: «We are continuing successfully our strategic plan. Revenues and profitability in our three core businesses are improving. The weight of our international operations is increasing, as shown by the marked rise in business, notably in Asia in the Corporate & Investment Banking. The acquisition of DNCA is now complete and further expands the weight of Investment Solutions in our overall business mix. The significant reductions in our risk-weighted assets and balance sheet reflect the success of our asset-light model, fully devoted to constructing client-centric financial solutions».
- 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 Friday July 31st, 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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