Paris, November 8, 2018
3Q18 and 9M18 resultsRelevance of our
strategic choices amidst volatile marketReported net income
up +10% at €422m in 3Q18 and up +15% at €1,324m in
9M18
SOLid growth and improved profitability
across our business lines
underlying net revenues[1]: €2.3bn in 3Q18, €7.3bn in 9M18 (+3%
and +6% at constant FX)
Businesses' underlying roe1 REACHED 15.4% in 9M18
AWM - Positive net inflows, fee rate and
performance fees improving thanks to our active positioning
Positive momentum for net inflows and the fee
rate: 8th consecutive quarter of positive net inflows (+€5bn),
together with a fee rate increase >31bps in 3Q18 (+1.4bps vs.
3Q17)
Performance fees up ~+30% YoY in 9M18, and
slightly higher in 3Q18 than in 3Q17
Significant growth in underlying gross operating
income1: +26% YoY at constant FX in 9M18
Acquisition of Massena Partners in order to
reinforce Natixis Wealth Management's positioning across
UHNWI[2]
CIB - Underlying RoE1 at 14.4% in 9M18
thanks to our diversified and differentiating expertise
Underlying net revenues1 excl. CVA/DVA desk flat
in 3Q18 and in 9M18 at constant exchange rate. Pro forma for the
disposal of cash equity activities, increase over these two
periods
Global markets: Equity net revenues (excl. cash)
up +3% YoY in 3Q18 together with stable FICT net revenues
Global finance: Underlying net revenues1 up +13%
YoY at constant FX in 9M18 thanks to our sectorial approach
Insurance - Solid growth momentum
Underlying net revenues1 up +8% YoY in 9M18 (+9%
in 3Q18)
Life insurance[3]: €7.5bn premiums in 9M18 (+4%
YoY) of which 34% in unit-linked products
SFS - Strong growth dynamic, especially in
Payments
Underlying net revenues1 from SFS up +6% YoY in
9M18 (+7% in 3Q18 of which +16% in Payments)
Payments: Increase in business volumes from
PayPlug and Dalenys, up +33% YoY in 9M18
sustainable value creation and financial
strength
9M18 underlying net income1 up +8% YoY
at €1,345m and up +7% YoY in 3Q18 at €438m
Underlying RoTE1 improvement to 14.1%
in 9M18 (+190bps vs. 9M17)
Basel 3 FL CET1 ratio[4] at 10.9% as
at September 30, 2018, including the financing of MV Credit
acquisition for 12bps
9M18: A Promising start to New
Dimension
François Riahi, Natixis Chief Executive
Officer, said: "Natixis delivered strong results in the first
nine months of 2018 with solid growth and profitability improving
across all business lines, illustrating the relevance of our
strategic choices. Such results are perfectly in line with our New
Dimension strategic ambitions. All our teams are and will remain
committed to deliver this plan."
3Q18 rEsults
The Board of Directors approved Natixis'
accounts for the third quarter of 2018 on November 8, 2018.
€m |
|
3Q18 reported |
3Q17 reported |
|
3Q18 o/w underlying |
3Q18 o/w exceptionals |
|
3Q18 vs. 3Q17 reported |
3Q18 vs. 3Q17 reported constant FX |
|
3Q18 vs. 3Q17 underlying |
3Q18 vs. 3Q17 underlying constant FX |
Net
revenues |
|
2,376 |
2,205 |
|
2,302 |
74 |
|
8% |
7% |
|
3% |
3% |
o/w
businesses |
|
2,197 |
2,059 |
|
2,128 |
68 |
|
7% |
6% |
|
3% |
3% |
Expenses |
|
(1,615) |
(1,530) |
|
(1,586) |
(28) |
|
5% |
5% |
|
5% |
4% |
Gross operating income |
|
761 |
674 |
|
716 |
45 |
|
13% |
12% |
|
0% |
0% |
Provision for credit
losses |
|
(102) |
(55) |
|
(30) |
(71) |
|
|
|
|
|
|
Net operating income |
|
659 |
619 |
|
685 |
(26) |
|
7% |
|
|
4% |
|
Associates and other
items |
|
5 |
4 |
|
5 |
|
|
|
|
|
|
|
Pre-tax profit |
|
665 |
623 |
|
691 |
(26) |
|
7% |
|
|
4% |
|
Income tax |
|
(184) |
(181) |
|
(193) |
9 |
|
|
|
|
|
|
Minority
interests |
|
(59) |
(59) |
|
(60) |
0 |
|
|
|
|
|
|
Net
income - group share |
|
422 |
383 |
|
438 |
(17) |
|
10% |
|
|
7% |
|
Natixis' underlying net revenues are up +3%
YoY driven by a continued strong momentum in AWM (+7%
YoY), Insurance (+9% YoY), Payments (+16% YoY) and
Coface (+8% YoY). CIB revenues are up YoY at constant
scope (excl. CVA/DVA).
Underlying expenses are up, partly due to
FTE increase and continued investments in digital and
transformation projects foreseen in the New Dimension plan
trajectory. Reported expenses include a ~€10m one-off charge from
Ostrum operational efficiency plan while ~€20m of annualized
costs from the cash equity are still being borne (until 1H19) with
no revenue contribution. The underlying cost/income
ratio[5] is up 1.3pp vs. 3Q17 at 71.3%.
The underlying pre-tax profit rose +4%
YoY in 3Q18, including a significant reduction in loan loss
provisioning, almost halved YoY. Expressed in basis points of loans
outstanding (excluding credit institutions), the businesses'
underlying cost of risk worked out to 18bps in 3Q18.
The tax rate reached ~28% in 3Q18, down
vs. 3Q17. Minority interests are flat YoY.
Net income (group share), adjusted for IFRIC
21 and excluding exceptional items, came out at €388m in 3Q18, up
+5% YoY. Accounting for exceptional items (-€17m net of tax in
3Q18) and IFRIC 21 impact (+€50m in 3Q18), the reported net
income (group share) increased +10% YoY in 3Q18 at €422m.
Natixis delivered an 11.6% underlying
RoTE1 excluding IFRIC 21 impact and the businesses'
underlying RoE1 reached 12.6%, up +130bps and +20bps
respectively vs. 3Q17. Natixis' earnings per share1 are up
+11% YoY in 3Q18.
Natixis reiterates its strategic and
financial ambitions communicated to the market on September 12,
2018. In order to accelerate growth and value creation towards
and beyond its New Dimension ambitions, Natixis could deploy up
to €2.5bn towards investments over 2018-2020 (~€0.4bn already
invested). Such investments would primarily be in Asset &
Wealth Management (e.g. affiliates to complement the existing
offering, expansion in Asia and in alternatives, life insurance
assets) and secondarily in Payments, to take part in the
consolidation of the industry (e.g. acquisitions, asset
combination), and in CIB (e.g. M&A boutiques). On the Insurance
side, as stated in the November 2017 New Dimension strategic plan,
Natixis would contemplate the takeover of the Non-life new business
for Banques Populaires' private customers. Besides, subject to the
completion of the project to sell Natixis' retail banking
activities to BPCE SA, the payment of a special dividend up to
€1.5bn remains Natixis' base case since no material strategic
opportunity has been identified to date. Natixis also reiterates
what it said in a press release dated October 11, 2018 and confirms
that it has no plan for a takeover bid on Ingénico.
9M18 rEsults
€m |
|
9M18 reported |
9M17 reported |
|
9M18o/w underlying |
9M18o/w exceptionals |
|
9M18 vs. 9M17 reported |
9M18 vs. 9M17 reported constant FX |
|
9M18 vs. 9M17 underlying |
9M18 vs. 9M17 underlying constant FX |
Net
revenues |
|
7,365 |
6,961 |
|
7,265 |
100 |
|
6% |
8% |
|
3% |
6% |
o/w businesses |
|
6,826 |
6,555 |
|
6,757 |
68 |
|
4% |
7% |
|
3% |
6% |
Expenses |
|
(5,050) |
(4,895) |
|
(4,989) |
(61) |
|
3% |
5% |
|
3% |
5% |
o/w
expenses excluding SRF |
|
(4,886) |
(4,773) |
|
(4,825) |
(61) |
|
2% |
5% |
|
2% |
4% |
Gross operating
income |
|
2,315 |
2,066 |
|
2,276 |
39 |
|
12% |
16% |
|
3% |
6% |
Provision
for credit losses |
|
(185) |
(193) |
|
(114) |
(71) |
|
|
|
|
|
|
Net operating
income |
|
2,130 |
1,873 |
|
2,162 |
(32) |
|
14% |
|
|
7% |
|
Associates and other items |
|
25 |
45 |
|
25 |
|
|
|
|
|
|
|
Pre-tax
profit |
|
2,155 |
1,917 |
|
2,187 |
(32) |
|
12% |
|
|
6% |
|
Income tax |
|
(654) |
(650) |
|
(665) |
11 |
|
|
|
|
|
|
Minority
interests |
|
(177) |
(116) |
|
(177) |
0 |
|
|
|
|
|
|
Net
income - group share |
|
1,324 |
1,151 |
|
1,345 |
(21) |
|
15% |
|
|
8% |
|
Natixis' underlying net revenues are up +6%
YoY (at constant exchange rate) across businesses, driven by a
strong momentum in AWM (+14% YoY), Insurance (+8%
YoY), Payments (+15% YoY) and Coface. CIB revenues
are up YoY at constant exchange rate (excl. cash equity and
CVA/DVA) on a high 9M17.
Underlying expenses are well under
control, translating into a 2pp positive jaws effect at
constant exchange rate excluding SRF contribution and despite 9M18
being a period of investments. The underlying cost/income
ratio[6] is down 0.2pp vs. 9M17 at 67.9%. The underlying
gross operating income is up +6% YoY at constant exchange rate vs.
9M17.
The underlying pre-tax profit is up +6%
YoY including a significant improvement in loan loss
provisioning, down ~€80m vs. 9M17, reflecting our model. Expressed
in basis points of loans outstanding (excluding credit
institutions), the businesses' underlying cost of risk worked
out to 19bps in 9M18.
The tax rate reached ~30% in 9M18, in line
with full-year 2018 guidance and down from ~34% in 9M17.
Minority interests are up YoY due to a higher contribution
from Coface and some European AM affiliates.
Net income (group share), adjusted for IFRIC
21 and excluding exceptional items, came out at €1.4bn in 9M18, up
+8% YoY and equivalent to ~160bps of annual capital generation.
Accounting for exceptional items (-€21m net of tax in 9M18) and
IFRIC 21 impact (-€50m in 9M18), the reported net income (group
share) increased +15% YoY at €1.3bn in 9M18.
Natixis delivered a 14.1% underlying
RoTE1 excluding IFRIC 21 impact and the businesses'
underlying RoE1 reached 15.4%, up +190bps and +120bps
respectively vs. 9M17. The profitability is improving across all
business lines.
3q18 & 9M18 rEsultsExceptional
items
€m |
|
3Q18 |
3Q17 |
|
9M18 |
9M17 |
|
SWL
provision reversal (Net revenues) |
CIB |
68 |
|
|
68 |
|
Exchange
rate fluctuations on DSN in currencies (Net revenues) |
Corporate
center |
5 |
(26) |
|
32 |
(86) |
Transformation & Business Efficiency investment costs
(Expenses) |
Business
lines &Corporate center |
(27) |
(15) |
|
(61) |
(35) |
Fit to
Win investments & restructuring expenses (Expenses) |
Corporate
center |
(1) |
|
|
0 |
|
Legal
provision (Provision for credit losses) |
CIB |
(71) |
|
|
(71) |
|
Non-recurring additional Corporate Social Solidarity Contribution
resulting from agreement with CNP (Expenses) |
Insurance |
|
|
|
|
(19) |
Total impact on income
tax |
|
9 |
13 |
|
11 |
45 |
Total
Impact on minority interests |
|
0 |
|
|
0 |
|
Total
impact on net income (gs) |
|
(17) |
(28) |
|
(21) |
(94) |
transformation & business efficiencyInvestment costs
by reporting line
€m |
3Q18 |
3Q17 |
|
9M18 |
9M17 |
AWM |
(11) |
|
|
(12) |
|
CIB |
(4) |
(3) |
|
(9) |
(3) |
Insurance |
1 |
(3) |
|
0 |
(5) |
SFS |
(2) |
(1) |
|
(7) |
(1) |
Corporate center |
(11) |
(9) |
|
(34) |
(25) |
Impact on expenses |
(27) |
(15) |
|
(61) |
(35) |
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p4)
Asset & Wealth Management
€m |
|
3Q18 |
3Q17 |
3Q18 vs. 3Q17 |
|
9M18 |
9M17 |
9M18 vs. 9M17 |
9M18 vs. 9M17 constant FX |
Net
revenues |
|
818 |
766 |
7% |
|
2,413 |
2,214 |
9% |
14% |
o/w Asset
management |
|
782 |
730 |
7% |
|
2,303 |
2,114 |
9% |
14% |
o/w Wealth
management |
|
36 |
36 |
0% |
|
110 |
100 |
11% |
11% |
Expenses |
|
(554) |
(527) |
5% |
|
(1,631) |
(1,567) |
4% |
8% |
Gross operating
income |
|
264 |
239 |
11% |
|
782 |
647 |
21% |
26% |
Provision for credit
losses |
|
(1) |
0 |
|
|
(2) |
0 |
|
|
Associates and other items |
|
(1) |
0 |
|
|
(4) |
8 |
|
|
Pre-tax
profit |
|
262 |
239 |
10% |
|
777 |
656 |
18% |
|
Cost/income
ratio[7] |
|
67.9% |
69.0% |
(1.1)pp |
|
67.5% |
70.7% |
(3.2)pp |
|
RoE after tax1 |
|
14.6% |
13.4% |
+1.2pp |
|
14.6% |
12.4% |
+2.2pp |
|
Underlying net revenues from Asset &
Wealth Management (AWM) are up a significant +14% YoY at constant
exchange rate in 9M18, well above the New Dimension target.
Asset management underlying revenues increase by +10% YoY at
constant exchange rate in North America (€1.2bn) and +22% in Europe
(€747m) over 9M18. Wealth management underlying revenues are
up +11% YoY in 9M18.
The Asset management fee rate excluding
performance fees (€58m in 3Q18 and €177m in 9M18, ~8% of 9M18
AM revenues) stood above 31bps in 3Q18 (+1.4bps YoY and flat QoQ)
and rose both in Europe to 16bps (+1.5bps vs. 3Q17 and +0.9bps
excl. Life insurance) and North America to 40bps (+0.4bps YoY).
Asset management net inflows reached
+€5bn in 3Q18, the 8th consecutive quarter of positive net inflows.
Continuation of the 1H18 trend with a positive mix shift and an
average fee rate for gross inflows on LT products more than
offsetting lower-margin equivalent gross outflows. Diversification,
especially towards Alternatives, remains a key asset to navigate
market volatility. Success of high-margin strategies at H2O, DNCA
(Alpha Bonds) and Loomis (Credit). Net inflows of +€20bn in 9M18,
mainly on LT products with notably: Equity strategies: +€9bn,
driven by North America (at Harris) ; Fixed Income strategies:
+€2bn, driven by Europe (H2O) ; Balanced strategies: +€4bn,
driven by Europe (H2O, Ostrum, Seeyond, Dorval).
Asset management AuM reached €861bn as at
September 30, 2018 of which €420bn in Europe and €425bn in North
America. Over the quarter, AuM progressed through net inflows, a
positive market effect of +€6bn, a positive FX impact of +€2bn and
a positive scope effect of +€2bn (acquisition of MV Credit in the
UK finalized during 3Q18). In 3Q18, average AuM at constant
exchange rate increased by +11% YoY in Europe (excl. Life
insurance) and by +5% in North America. Wealth management
AuM reached €33.8bn[8] with €2.1bn of positive net inflows over
9M18.
The underlying RoE1 of AWM reached 14.6%
in 9M18, up +220bps YoY, with a positive jaws effect of 5pp and
an underlying gross operating income up +26% YoY at constant
exchange rate.
The Ostrum Asset Management operational
efficiency plan is expected to generate ~€20m of annual cost
saves, to be fully captured at end-2019. 3Q18 reported figures
include a ~€10m restructuring charge (no further charge to
expect).
Natixis announces the acquisition of Massena
Partners, key player across the UHNW space in France. Massena
is active across a wide range of asset classes, including
alternatives (real estate, private equity, etc.) and features
€2.3bn of assets under management. The impact on Natixis' CET1
ratio is estimated at around 5bps and such an acquisition
reinforces Natixis Wealth Management's ambitions to refocus on HNW
and UHNW clients after the announced disposal of Selection
1818.
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p4)
Corporate & Investment Banking
€m |
|
3Q18 |
3Q17 |
3Q18 vs. 3Q17 |
|
9M18 |
9M17 |
9M18 vs. 9M17 |
9M18 vs. 9M17 constant FX |
Net
revenues |
|
753 |
775 |
(3)% |
|
2,657 |
2,765 |
(4)% |
(1)% |
Net revenues excl.
CVA/DVA |
|
768 |
768 |
0% |
|
2,657 |
2,736 |
(3)% |
0% |
Expenses |
|
(519) |
(503) |
3% |
|
(1,627) |
(1,624) |
0% |
2% |
Gross operating
income |
|
235 |
272 |
(14)% |
|
1,031 |
1,141 |
(10)% |
(6)% |
Provision for credit
losses |
|
(24) |
(16) |
|
|
(92) |
(94) |
|
|
Associates and other items |
|
3 |
3 |
|
|
12 |
8 |
|
|
Pre-tax
profit |
|
213 |
258 |
(17)% |
|
950 |
1,054 |
(10)% |
|
Cost/income
ratio[9] |
|
69.8% |
66.1% |
+3.7pp |
|
60.9% |
58.4% |
+2.5pp |
|
RoE after tax1 |
|
9.1% |
10.3% |
(1.2)pp |
|
14.4% |
14.1% |
+0.3pp |
|
Underlying net revenues from Corporate & Investment
Banking (excl. CVA/DVA) are up YoY both in 3Q18 and 9M18 at
constant exchange rate excluding the cash equity (€26m contribution
in 9M17). Strong performance from Global finance, up +13% YoY at
constant exchange rate in 9M18, offsetting Global markets YoY
evolution on a high 9M17.
Global markets revenues are up +1% YoY in
3Q18 at constant scope (€9m cash equity contribution in 3Q17),
excluding CVA/DVA. FICT revenues are flat YoY in 3Q18 driven
by good activity levels across Credit and FX and resilient Rates
amidst unfavorable market conditions. Equity revenues are up
+3% YoY in 3Q18 at constant scope with cash equity no longer
contributing to revenues as of 3Q18 (closure of the US and UK desks
in 1Q18 though France still contributing up to July 1st, 2018).
3Q18 saw a strong momentum in equity derivatives, especially in
France, balancing challenging market conditions in Asia.
Global finance revenues are up +6% YoY in
3Q18 and +13% at constant exchange rate in 9M18, driven by our
sectorial approach. Strong performance across Energy & Natural
Resources (+13% YoY in 3Q18) and Real Assets (+11% YoY in 3Q18).
Continued dynamic new loan production (+33% YoY in 3Q18) driven by
ENR (~x2 YoY) and RA (+21% YoY).
Investment banking and M&A revenues
are down -7% YoY in 3Q18 given a soft French/European primary
market for ECM. 3Q18 saw a good performance from DCM and low
activity levels in M&A though there is a dynamic pipeline for
4Q18.
The proportion of revenues generated from
service fees is slightly up in 3Q18 vs. 3Q17[10].
Underlying expenses are well under
control and up <2% YoY in 9M18 at constant exchange rate (flat
at current exchange rate). Cash equity activities are no longer
contributing to the top-line in 3Q18 though ~€20m of annualized
costs are still being borne and set to disappear as of 3Q19.
The underlying gross operating income,
excluding CVA/DVA, is down mid-single digit in 3Q18 and in 9M18 at
constant exchange rate. The underlying cost of risk is
improving through our focus on O2D and our solid risk
management.
The underlying RoE1 of CIB improved
+30bps YoY in 9M18 to 14.4%. RWA are down -1% QoQ and flat
YoY. The Net revenues/RWA ratio at 9M18 is in line with the
New Dimension 2020 target despite 3Q seasonality.
Natixis reinforces its positioning on ESG
through its Green & Sustainable Hub, launched in 2017 which
generated €17m[11] revenues in 9M18. In 2018, Natixis has also been
named "The most innovative investment bank for climate changes and
sustainability" by The Banker and received the Euromoney "#1 Best
Credit Research Green Bonds/ESG" prize.
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p4)
Insurance
€m |
|
3Q18 |
3Q17 |
3Q18 vs. 3Q17 |
|
9M18 |
9M17 |
9M18vs. 9M17 |
Net
revenues |
|
192 |
176 |
9% |
|
589 |
544 |
8% |
Expenses |
|
(104) |
(96) |
8% |
|
(329) |
(306) |
8% |
Gross operating
income |
|
88 |
80 |
10% |
|
259 |
239 |
9% |
Provision for credit
losses |
|
0 |
0 |
|
|
0 |
0 |
|
Associates and other items |
|
3 |
2 |
|
|
6 |
9 |
|
Pre-tax
profit |
|
91 |
82 |
11% |
|
265 |
248 |
7% |
Cost/Income
ratio[12] |
|
56.7% |
56.7% |
0.0pp |
|
55.2% |
55.5% |
(0.3)pp |
RoE after tax1 |
|
28.5% |
22.0% |
+6.5pp |
|
28.9% |
23.4% |
+5.5pp |
Underlying net revenues from Insurance
are up +9% YoY in 3Q18 and +8% YoY in 9M18 driven by both Life and
P&C.
Underlying expenses are up +8% YoY both
in 3Q18 and 9M18, the latest including a ~€5m increase in the
Corporate Social Solidarity Contribution (C3S) which calculation is
based on previous year's activity levels (2017 benefiting in full,
from the take-over of the new life insurance business for the
Caisses d'Epargne network vs. 2016). Adjusting for this impact,
underlying expenses grew by +7% YoY in 9M18, translating into a
positive jaws effect.
The underlying gross operating income is
up +10% YoY in 3Q18 and +9% in 9M18.
The underlying RoE1 of Insurance improved
+650bps YoY to 28.5% in 3Q18 and +550bps in 9M18 to 28.9%, in part
driven by the buy-back of BPCE Assurances minorities.
The Global turnover[13] reached
€2.7bn in 3Q18, up +7% YoY (9M18 up +4% at €9.3m). Life
insurance net inflows2 reached €1.2bn in 3Q18 (+5% YoY) and
€4.7bn in 9M18, of which 44% in unit-linked products (34% of gross
inflows in 9M18). Life insurance AuM reached €59.9bn as at
September 30, 2018, of which 25% in unit-linked products. The
P&C combined ratio worked out to 91.6% in 3Q18 and 91.9% in
9M18, improving respectively by -0.7pp YoY and -0.4pp YoY.
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p4)
Specialized Financial Services
€m |
|
3Q18 |
3Q17 |
3Q18 vs. 3Q17 |
|
9M18 |
9M17 |
9M18 vs. 9M17 |
Net
revenues |
|
366 |
341 |
7% |
|
1,099 |
1,032 |
6% |
Specialized financing |
|
225 |
215 |
5% |
|
678 |
652 |
4% |
Payments |
|
96 |
83 |
16% |
|
284 |
247 |
15% |
Financial services |
|
45 |
43 |
4% |
|
136 |
133 |
3% |
Expenses |
|
(246) |
(228) |
8% |
|
(737) |
(688) |
7% |
Gross operating
income |
|
120 |
113 |
6% |
|
362 |
344 |
5% |
Provision for credit
losses |
|
(11) |
(13) |
|
|
(17) |
(49) |
|
Associates and other items |
|
0 |
0 |
|
|
0 |
0 |
|
Pre-tax
profit |
|
109 |
100 |
9% |
|
345 |
295 |
17% |
Cost/income
ratio[14] |
|
67.9% |
67.5% |
+0.4pp |
|
66.9% |
66.5% |
+0.4pp |
RoE after tax1 |
|
13.7% |
13.8% |
(0.1)pp |
|
14.4% |
14.0% |
+0.4pp |
Underlying net revenues from Specialized
Financial Services are up +7% YoY in 3Q18 and +6% YoY in 9M18.
Specialized financing revenues increased by +5% YoY in 3Q18,
driven by Leasing, Factoring and Film industry financing.
Payments revenues are up +15% YoY in 9M18 (~60% driven by
the acquisitions made since 2017, ~40% by Natixis' historical
payment activities) and +16% in 3Q18. Financial services
revenues are up +4% YoY in 3Q18 driven by Employee savings plans
(+9% YoY).
Within Payments, business volumes
generated by Natixis' recent acquisitions (Dalenys and PayPlug) in
Merchant Solutions increased by +25% YoY in 3Q18 and +33% in
9M18. In the meantime, Prepaid & Managed Solutions
revenues are up +49% YoY in 3Q18 (+21% at constant scope, i.e.
excluding Comitéo) and +36% in 9M18. The Chèque de table® market
share reached 18.1% as at end-September 2018 (+0.2pp YoY). The
number of card transactions processed in the Services &
Processing activity is up +11% YoY in 3Q18. Overall, 25% of
3Q18 Payments revenues have been realized outside Groupe BPCE
networks.
Underlying expenses from SFS are up +7%
YoY in 9M18 and +2% at constant scope. The underlying
cost/income ratio1 excluding Payments acquisitions stands at
66.2% in 3Q18 and 65.2% in 9M18.
The underlying cost of risk remains well
under control, down YoY both in 3Q18 and 9M18.
The underlying RoE1 of SFS improved
+40bps YoY to 14.4% in 9M18.
Unless specified otherwise, the following comments and data
refer to underlying results, i.e. excluding exceptional items (see
detail p4)
Corporate Center
€m |
|
3Q18 |
3Q17 |
3Q18 vs. 3Q17 |
|
9M18 |
9M17 |
9M18vs. 9M17 |
Net
revenues |
|
173 |
172 |
1% |
|
507 |
492 |
3% |
Coface |
|
180 |
167 |
8% |
|
513 |
457 |
12% |
Others |
|
(7) |
5 |
|
|
(6) |
35 |
|
Expenses |
|
(164) |
(161) |
2% |
|
(665) |
(657) |
1% |
Coface |
|
(121) |
(119) |
2% |
|
(361) |
(370) |
(2)% |
SRF |
|
0 |
0 |
|
|
(164) |
(122) |
|
Others |
|
(42) |
(41) |
3% |
|
(141) |
(165) |
(15)% |
Gross operating
income |
|
9 |
11 |
|
|
(158) |
(165) |
|
Provision for credit
losses |
|
5 |
(26) |
|
|
(3) |
(51) |
|
Associates and other items |
|
2 |
0 |
|
|
11 |
20 |
|
Pre-tax
profit |
|
16 |
(14) |
|
|
(150) |
(196) |
(24)% |
Underlying net revenues from the
Corporate Center are up +3% YoY in 9M18 and +1% in 3Q18 driven by
Coface (+12% YoY in 9M18 and +8% in 3Q18).
Underlying expenses, excluding Coface and
the SRF contribution are down -15% YoY in 9M18, in line with the
New Dimension guidance.
The underlying pre-tax profit is €16m in
3Q18. The P&L drag at the pre-tax profit level has been reduced
by -24% YoY in 9M18.
COFACE
The turnover reached €1.0bn in 9M18, up
+4% YoY[15], driven by record client activity and retention.
The cost ratio at 34.0% in 9M18 is down
-1.4pp YoY. Investments are being fully financed by cost
savings.
The loss ratio at 45.0% in 9M18 is down
-9.4pp YoY. The loss ratio is under control in a normalizing risk
environment through strong underwriting.
The net combined ratio[16] at 79.0% in
9M18 is down -10.8pp YoY and is below the "through the cycle
target" (~83%).
Financial structure
Basel 3 fully-loaded[17]Natixis' Basel
3 fully-loaded CET1 ratio worked out to 10.9% as at
September 30, 2018.
- Basel 3 fully-loaded CET1 capital amounted to
€12.0bn
- Basel 3 fully-loaded RWA amounted to €109.6bn
Based on a Basel 3 fully-loaded CET1 ratio of
10.8% as at June 30, 2018, the respective impacts of 3Q18 were as
follows:
- Effect of allocating net income (group share) to retained
earnings in 3Q18: +38bps
- Accrued dividend for 3Q18: -22bps
- RWA and other effects: +6bps
- Impacts of the MV Credit acquisition: -12bps
Pro-forma for acquisitions in AWM[18] (WCM,
Massena Partners) and disposals in AWM (Selection 1818, Axeltis)
already announced, as well as the irrevocable payment commitments
deduction from capital (IPC), Natixis' Basel 3 fully-loaded CET1
ratio stands at 10.7% as at September 30, 2018.
Basel 3 phased-in, regulatory ratios1 As
at September 30, 2018, Natixis' Basel 3 regulatory (phased-in)
capital ratios stood at 10.4% for the CET1, 12.4% for the Tier 1
and 14.3% for the total solvency ratio.
- Core Tier 1 capital stood at €11.5bn and Tier 1
capital at €13.6bn.
- Natixis' RWA totaled €109.6bn, breakdown as follows:
- Credit risk: €77.2bn
- Counterparty risk: €6.6bn
- CVA risk: €1.9bn
- Market risk: €9.1bn
- Operational risk: €14.8bn
Book value per shareEquity capital (group
share) totaled €19.6bn as at September 30, 2018, of which €2.0bn in
the form of hybrid securities (DSNs) recognized in equity capital
at fair value (excluding capital gain following reclassification of
hybrids).
Natixis' book value per share stood at
€5.56 as at September 30, 2018 based on 3,148,010,757 shares
excluding treasury shares (the total number of shares being
3,150,288,592). The tangible book value per share (after deducting
goodwill and intangible assets) was €4.26.
Leverage ratio1
The leverage ratio worked out to 4.1% as
at September 30, 2018.
Overall capital adequacy ratioAs at
September 30, 2018, the financial conglomerate's excess capital was
estimated at around €2.9bn. Before consideration of current
financial year's earnings and dividend accrual (based on a 60%
payout ratio), the excess capital was estimated at around
€2.3bn.
Appendices
Note on methodology:
The results at 30/09/2018 were examined by
the board of directors at their meeting on 08/11/2018.Figures
at 30/09/2018 are presented in accordance with IAS/IFRS accounting
standards and IFRS Interpretation Committee (IFRIC) rulings as
adopted in the European Union and applicable at this date.
In view of the new strategic plan New dimension,
the 2017 quarterly series have been restated for the following
changes in business lines organization and in standards for
implementation in 4Q17 as if these changes had occurred on 1st
January 2017.
The new businesses organization mainly
considers:
- The split of Investment Solutions into two new divisions:
Insurance and Asset & Wealth Management[19]
- Within CIB:
- Global finance and Investment banking[20] are now two separate
business lines
- Creation of Global Securities & Financing (GSF), a
joint-venture between FIC and Equity derivatives. The joint-venture
includes Securities Financing Group (SFG, previously in FIC) and
Equity Finance (previously in Equity). Revenues of GSF are equally
split between Equity & FIC
- Transfer of short term treasury activities run by Treasury
& collateral management department from FIC-T in CIB to
Financial Management Division in 04/01/2017 in accordance with the
French banking law. To ensure comparability, in this presentation
CIB refers to CIB including Treasury & collateral
management
- Within SFS, the Payments division is split out of Financial
services and reported separately within the SFS business line
- The removal of the Financial investments division and its
inclusion within the Corporate center
The following changes in standards have been
included:
- Increase in capital allocation to our business lines from 10%
to 10.5% of the average Basel 3 risk weighted assets
- Reduction in normative capital remuneration rate to 2%
(compared to 3% previously)
Business line performances using Basel 3
standards:
- The performances of Natixis business lines are presented using
Basel 3 standards. Basel 3 risk-weighted assets are based on
CRR-CRD4 rules as published on June 26th, 2013 (including the
Danish compromise treatment for qualified entities).
- Natixis' RoTE is calculated by taking as the numerator
net income (group share) excluding DSN interest expenses on
preferred shares after tax. Equity capital is average shareholders'
equity group share as defined by IFRS, after payout of dividends,
excluding average hybrid debt, average intangible assets and
average goodwill.
-
Natixis' RoE: Results used for calculations are net income
(group share), deducting DSN interest expenses on preferred shares
after tax. Equity capital is average shareholders' equity group
share as defined by IFRS, after payout of dividends, excluding
average hybrid debt, and excluding unrealized or deferred gains and
losses recognized in equity
(OCI).-
RoE for business lines is calculated based on normative
capital to which are added goodwill and intangible assets for the
business line. Normative capital allocation to Natixis' business
lines is carried out based on 10.5% of their average Basel 3
risk-weighted assets. Business lines benefit from remuneration of
normative capital allocated to them. By convention, the
remuneration rate on normative capital is maintained at 2%.
Net book value: calculated by taking
shareholders' equity group share (minus dividend declared but not
paid yet), restated for hybrids and capital gains on
reclassification of hybrids as equity instruments. Net tangible
book value is adjusted for goodwill relating to equity affiliates,
restated goodwill and intangible assets as follows:
In
€m |
30/09/2018 |
Goodwill |
3,804 |
Restatement for Coface
minority interests |
(162) |
Restatement for AWM deferred tax liability & others |
(290) |
Restated goodwill |
3,352 |
In
€m |
30/09/2018 |
Intangible assets |
773 |
Restatement for Coface minority interest & others |
(44) |
Restated intangible assets |
729 |
Own senior debt fair-value adjustment:
calculated using a discounted cash-flow model, contract by
contract, including parameters such as swap curves and revaluation
spread (based on the BPCE reoffer curve). Adoption of IFRS 9
standards, on November 22, 2016, authorizing the early application
of provisions relating to own credit risk as of FY2016 closing. All
impacts since the beginning of the financial year 2016 are
recognized in equity, even those that had impacted the income
statement in the interim financial statements for March, June and
September 2016
Regulatory (phased-in) CET1 capital and
ratio: based on CRR-CRD4 rules as reported on June 26, 2013,
including the Danish compromise - phased in. Presentation
excluding current financial year's earnings and accrued dividend
(based on a 60% payout ratio) as of 2Q18, as well as July 2018
employee increase.
Fully-loaded CET1 capital and ratio:
based on CRR-CRD4 rules as reported on June 26, 2013, including the
Danish compromise - without phase-in. Presentation including
current financial year's earnings and accrued dividend (based on a
60% payout ratio) as well as July 2018 employee increase.
Leverage ratio: based on delegated act
rules, without phase-in (presentation including current financial
year's earnings and accrued dividend based on a 60% payout ratio)
and with the hypothesis of a roll-out for non-eligible subordinated
notes under Basel 3 by eligible notes. Repo transactions with
central counterparties are offset in accordance with IAS 32 rules
without maturity or currency criteria. Leverage ratio disclosed
including the effect of intragroup cancelation - pending ECB
authorization
Exceptional items: figures and comments on
this press release are based on Natixis and its businesses' income
statements excluding non-operating and/or exceptional items
detailed page 2. Figures and comments that are referred to as
'underlying' exclude such exceptional items. Natixis and its
businesses' income statements including these items are available
in the appendix of this press release
Restatement for IFRIC 21 impact: the
cost/income ratio, the RoE and the RoTE excluding IFRIC 21 impact
calculation in 9M18 take into account tree quarters of the annual
duties and levies concerned by this accounting rule. The impact for
the quarter is calculated by difference with the former
quarter.
Earnings capacity: net income (group
share) restated for exceptional items and the IFRIC 21 impact
Expenses: sum of operating expenses and
depreciation, amortization and impairment on property, plant and
equipment and intangible assets
Natixis - Consolidated P&L
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
|
3Q18 vs. 3Q17 |
|
9M17 |
9M18 |
|
9M18 vs. 9M17 |
Net
revenues |
2,347 |
2,410 |
2,205 |
2,506 |
2,412 |
2,577 |
2,376 |
|
|
8% |
|
6,961 |
7,365 |
|
6% |
Expenses |
(1,771) |
(1,594) |
(1,530) |
(1,737) |
(1,795) |
(1,640) |
(1,615) |
|
|
5% |
|
(4,895) |
(5,050) |
|
3% |
Gross operating
income |
576 |
815 |
674 |
769 |
618 |
936 |
761 |
|
|
13% |
|
2,066 |
2,315 |
|
12% |
Provision for credit
losses |
(70) |
(67) |
(55) |
(65) |
(43) |
(40) |
(102) |
|
|
|
|
(193) |
(185) |
|
|
Associates |
7 |
6 |
5 |
8 |
7 |
3 |
6 |
|
|
|
|
18 |
16 |
|
|
Gain or loss on other
assets |
9 |
18 |
(1) |
22 |
6 |
4 |
(1) |
|
|
|
|
27 |
9 |
|
|
Change in
value of goodwill |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
0 |
0 |
|
|
Pre-tax
profit |
523 |
772 |
623 |
733 |
587 |
903 |
665 |
|
|
7% |
|
1,917 |
2,155 |
|
12% |
Tax |
(214) |
(255) |
(181) |
(139) |
(204) |
(266) |
(184) |
|
|
|
|
(650) |
(654) |
|
|
Minority
interests |
(28) |
(29) |
(59) |
(76) |
(60) |
(57) |
(59) |
|
|
|
|
(116) |
(177) |
|
|
Net
income (group share) |
280 |
487 |
383 |
518 |
323 |
580 |
422 |
|
|
10% |
|
1,151 |
1,324 |
|
15% |
Natixis - IFRS 9 Balance sheet
Assets (in €bn) |
30/09/2018 |
01/01/2018 |
Cash and balances with central banks |
22.9 |
36.9 |
Financial assets at fair value through profit and loss[21] |
213.3 |
225.7 |
Financial assets at fair value through Equity |
10.4 |
10.0 |
Loans and receivables1 |
127.2 |
125.1 |
Debt instruments at amortized cost |
1.3 |
1.0 |
Insurance assets |
103.3 |
96.9 |
Accruals and other assets |
17.6 |
18.5 |
Investments in associates |
0.7 |
0.7 |
Tangible and intangible assets |
1.7 |
1.6 |
Goodwill |
3.8 |
3.6 |
Total |
502.2 |
520.0 |
Liabilities and equity (in €bn) |
30/09/2018 |
01/01/2018 |
Due
to central banks |
0.0 |
0.0 |
Financial liabilities at fair value through profit and loss1 |
208.3 |
221.3 |
Customer deposits and deposits from financial institutions1 |
115.7 |
135.3 |
Debt securities |
41.7 |
32.6 |
Accruals and other liabilities |
18.7 |
17.8 |
Insurance liabilities |
91.5 |
86.5 |
Contingency reserves |
1.8 |
1.9 |
Subordinated debt |
3.7 |
3.7 |
Equity attributable to equity holders of the parent |
19.6 |
19.7 |
Minority interests |
1.2 |
1.2 |
Total |
502.2 |
520.0 |
Natixis - 3Q18 P&L by business line
€m |
AWM |
CIB |
Insurance |
SFS |
Corporate |
|
3Q18 |
Center |
reported |
Net
revenues |
818 |
822 |
192 |
366 |
179 |
|
2,376 |
Expenses |
(564) |
(523) |
(103) |
(248) |
(176) |
|
(1,615) |
Gross operating
income |
253 |
299 |
89 |
117 |
3 |
|
761 |
Provision
for credit losses |
(1) |
(96) |
0 |
(11) |
5 |
|
(102) |
Net operating
income |
253 |
203 |
89 |
107 |
8 |
|
659 |
Associates and other items |
(1) |
3 |
3 |
0 |
2 |
|
5 |
Pre-tax profit |
251 |
206 |
92 |
106 |
10 |
|
665 |
|
|
|
|
Tax |
|
(184) |
|
|
|
|
Minority interests |
|
(59) |
|
|
|
|
Net income (gs) |
|
422 |
Asset & Wealth Management
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
3Q18 vs. 3Q17 |
|
9M17 |
9M18 |
|
9M18 vs. 9M17 |
Net
revenues |
704 |
743 |
766 |
899 |
777 |
819 |
818 |
|
7% |
|
2,214 |
2,413 |
|
9% |
Asset Management[22] |
671 |
713 |
730 |
857 |
739 |
782 |
782 |
|
7% |
|
2,114 |
2,303 |
|
9% |
Wealth management |
33 |
30 |
36 |
42 |
37 |
37 |
36 |
|
0% |
|
100 |
110 |
|
11% |
Expenses |
(519) |
(521) |
(528) |
(610) |
(529) |
(549) |
(564) |
|
7% |
|
(1,567) |
(1,643) |
|
5% |
Gross operating
income |
186 |
222 |
239 |
289 |
248 |
269 |
253 |
|
6% |
|
647 |
771 |
|
19% |
Provision
for credit losses |
0 |
0 |
0 |
0 |
0 |
(1) |
(1) |
|
|
|
0 |
(2) |
|
|
Net operating
income |
186 |
223 |
239 |
289 |
248 |
268 |
253 |
|
6% |
|
647 |
769 |
|
19% |
Associates |
0 |
0 |
0 |
1 |
0 |
0 |
0 |
|
|
|
0 |
1 |
|
|
Other
items |
9 |
0 |
(1) |
2 |
0 |
(3) |
(2) |
|
|
|
8 |
(5) |
|
|
Pre-tax profit |
195 |
222 |
238 |
291 |
248 |
266 |
251 |
|
5% |
|
656 |
765 |
|
17% |
Cost/Income ratio |
73.6% |
70.1% |
68.8% |
67.9% |
68.1% |
67.1% |
69.0% |
|
|
|
70.8% |
68.1% |
|
|
Cost/Income ratio
excluding IFRIC 21 effect |
73.2% |
70.2% |
69.0% |
68.0% |
67.5% |
67.3% |
69.2% |
|
|
|
70.7% |
68.0% |
|
|
RWA (Basel 3 - in
€bn) |
10.6 |
10.2 |
10.2 |
11.7 |
11.5 |
11.6 |
12.3 |
|
20% |
|
10.2 |
12.3 |
|
20% |
Normative capital
allocation (Basel 3) |
3,874 |
3,828 |
3,715 |
3,676 |
4,077 |
3,997 |
4,087 |
|
10% |
|
3,806 |
4,054 |
|
7% |
RoE after tax (Basel
3)[23] |
11.3% |
12.5% |
13.5% |
14.0% |
13.7% |
15.2% |
13.9% |
|
|
|
12.4% |
14.3% |
|
|
RoE after
tax (Basel 3) excluding IFRIC 21 effect2 |
11.5% |
12.4% |
13.4% |
13.9% |
14.0% |
15.1% |
13.8% |
|
|
|
12.4% |
14.3% |
|
|
Corporate & Investment Banking
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
3Q18 vs. 3Q17 |
|
9M17 |
9M18 |
|
9M18 vs. 9M17 |
Net
revenues |
971 |
1,019 |
775 |
817 |
938 |
965 |
822 |
|
6% |
|
2,765 |
2,725 |
|
(1)% |
Global
markets |
603 |
547 |
363 |
408 |
528 |
457 |
335 |
|
(8)% |
|
1,513 |
1,319 |
|
(13)% |
FIC-T |
388 |
389 |
253 |
288 |
378 |
299 |
252 |
|
0% |
|
1,029 |
930 |
|
(10)% |
Equity |
179 |
172 |
103 |
144 |
148 |
145 |
97 |
|
|
|
454 |
390 |
|
|
o/w
Equity excl. cash |
170 |
165 |
95 |
137 |
143 |
140 |
97 |
|
3% |
|
429 |
381 |
|
(11)% |
o/w
Cash equity |
10 |
7 |
9 |
7 |
5 |
4 |
0 |
|
|
|
26 |
9 |
|
|
CVA/DVA desk |
35 |
(13) |
7 |
(24) |
1 |
13 |
(15) |
|
|
|
29 |
0 |
|
|
Global
finance |
312 |
343 |
315 |
358 |
334 |
382 |
335 |
|
6% |
|
970 |
1,051 |
|
8% |
Investment
banking[24] |
81 |
122 |
85 |
75 |
83 |
85 |
79 |
|
(7)% |
|
288 |
247 |
|
(14)% |
Other |
(25) |
7 |
12 |
(24) |
(7) |
41 |
74 |
|
|
|
(6) |
108 |
|
|
Expenses |
(566) |
(555) |
(506) |
(567) |
(563) |
(549) |
(523) |
|
3% |
|
(1,627) |
(1,635) |
|
0% |
Gross operating
income |
404 |
464 |
269 |
249 |
375 |
417 |
299 |
|
11% |
|
1,138 |
1,090 |
|
(4)% |
Provision
for credit losses |
(29) |
(48) |
(16) |
(21) |
(29) |
(39) |
(96) |
|
|
|
(94) |
(163) |
|
|
Net operating
income |
375 |
416 |
253 |
228 |
346 |
378 |
203 |
|
(20)% |
|
1,044 |
927 |
|
(11)% |
Associates |
3 |
3 |
3 |
3 |
4 |
3 |
3 |
|
|
|
8 |
9 |
|
|
Other
items |
0 |
0 |
0 |
18 |
3 |
0 |
0 |
|
|
|
0 |
3 |
|
|
Pre-tax profit |
378 |
418 |
255 |
249 |
352 |
380 |
206 |
|
(19)% |
|
1,052 |
939 |
|
(11)% |
Cost/Income ratio |
58.3% |
54.4% |
65.3% |
69.5% |
60.1% |
56.8% |
63.6% |
|
|
|
58.8% |
60.0% |
|
|
Cost/Income ratio
excluding IFRIC 21 effect |
55.5% |
55.4% |
66.5% |
70.6% |
57.7% |
57.6% |
64.5% |
|
|
|
58.5% |
59.7% |
|
|
RWA (Basel 3 - in
€bn) |
64.4 |
61.3 |
60.4 |
59.0 |
58.9 |
60.8 |
60.4 |
|
0% |
|
60.4 |
60.4 |
|
0% |
Normative capital
allocation (Basel 3) |
7,136 |
6,963 |
6,623 |
6,519 |
6,365 |
6,346 |
6,601 |
|
0% |
|
6,907 |
6,437 |
|
(7)% |
RoE after tax (Basel
3)[25] |
14.7% |
16.5% |
10.5% |
11.8% |
16.1% |
17.3% |
9.1% |
|
|
|
14.0% |
14.1% |
|
|
RoE after
tax (Basel 3) excluding IFRIC 21 effect2 |
15.7% |
16.1% |
10.2% |
11.4% |
17.2% |
17.0% |
8.8% |
|
|
|
14.1% |
14.2% |
|
|
Insurance
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
3Q18 vs. 3Q17 |
|
9M17 |
9M18 |
|
9M18 vs. 9M17 |
Net
revenues |
189 |
179 |
176 |
190 |
204 |
193 |
192 |
|
9% |
|
544 |
589 |
|
8% |
Expenses |
(129) |
(102) |
(99) |
(109) |
(118) |
(108) |
(103) |
|
4% |
|
(330) |
(330) |
|
0% |
Gross operating
income |
60 |
77 |
77 |
80 |
86 |
85 |
89 |
|
15% |
|
215 |
259 |
|
21% |
Provision
for credit losses |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Net operating
income |
60 |
77 |
77 |
80 |
86 |
85 |
89 |
|
15% |
|
215 |
259 |
|
21% |
Associates |
4 |
3 |
2 |
4 |
3 |
0 |
3 |
|
|
|
9 |
6 |
|
|
Other
items |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Pre-tax profit |
65 |
80 |
79 |
85 |
89 |
85 |
92 |
|
16% |
|
224 |
265 |
|
19% |
Cost/Income ratio |
68.1% |
56.9% |
56.2% |
57.5% |
58.0% |
56.1% |
53.8% |
|
|
|
60.6% |
56.0% |
|
|
Cost/Income ratio
excluding IFRIC 21 effect |
54.9% |
61.5% |
60.9% |
61.9% |
51.1% |
58.5% |
56.2% |
|
|
|
59.0% |
55.2% |
|
|
RWA (Basel 3 - in
€bn) |
7.4 |
7.2 |
7.4 |
7.2 |
7.3 |
7.0 |
7.1 |
|
(4)% |
|
7.4 |
7.1 |
|
(4)% |
Normative capital
allocation (Basel 3) |
857 |
871 |
849 |
875 |
853 |
868 |
828 |
|
(2)% |
|
859 |
850 |
|
(1)% |
RoE after tax (Basel
3)[26] |
17.7% |
21.6% |
22.3% |
26.7% |
28.6% |
26.4% |
30.3% |
|
|
|
20.5% |
28.4% |
|
|
RoE after
tax (Basel 3) excluding IFRIC 21 effect1 |
25.6% |
19.0% |
19.6% |
24.2% |
33.0% |
24.9% |
28.8% |
|
|
|
21.4% |
28.9% |
|
|
Specialized Financial Services
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
3Q18 vs. 3Q17 |
|
9M17 |
9M18 |
|
9M18 vs. 9M17 |
Net
revenues |
344 |
347 |
341 |
350 |
362 |
371 |
366 |
|
7% |
|
1,032 |
1,099 |
|
6% |
Specialized
Financing |
219 |
218 |
215 |
210 |
223 |
230 |
225 |
|
5% |
|
652 |
678 |
|
4% |
Factoring |
39 |
39 |
38 |
42 |
40 |
40 |
39 |
|
2% |
|
116 |
119 |
|
2% |
Sureties & Financial Guarantees |
55 |
46 |
52 |
47 |
54 |
50 |
51 |
|
(3)% |
|
153 |
155 |
|
1% |
Leasing |
54 |
61 |
52 |
49 |
57 |
61 |
63 |
|
20% |
|
167 |
181 |
|
8% |
Consumer Financing |
66 |
65 |
67 |
67 |
67 |
67 |
67 |
|
0% |
|
198 |
201 |
|
1% |
Film Industry Financing |
5 |
6 |
5 |
6 |
6 |
11 |
6 |
|
8% |
|
17 |
22 |
|
30% |
Payments |
81 |
83 |
83 |
89 |
93 |
95 |
96 |
|
16% |
|
247 |
284 |
|
15% |
Financial
Services |
44 |
46 |
43 |
51 |
46 |
46 |
45 |
|
4% |
|
133 |
136 |
|
3% |
Employee savings plans |
21 |
22 |
21 |
26 |
23 |
23 |
23 |
|
9% |
|
65 |
68 |
|
6% |
Securities Services |
23 |
23 |
22 |
25 |
23 |
23 |
22 |
|
(1)% |
|
68 |
68 |
|
0% |
Expenses |
(233) |
(228) |
(229) |
(249) |
(245) |
(250) |
(248) |
|
9% |
|
(690) |
(744) |
|
8% |
Gross operating
income |
112 |
118 |
112 |
101 |
117 |
121 |
117 |
|
4% |
|
342 |
355 |
|
4% |
Provision
for credit losses |
(21) |
(14) |
(13) |
(24) |
(9) |
3 |
(11) |
|
(21)% |
|
(49) |
(17) |
|
(65)% |
Net operating
income |
90 |
104 |
99 |
77 |
108 |
123 |
107 |
|
8% |
|
294 |
338 |
|
15% |
Associates |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
0 |
0 |
|
|
Other
items |
0 |
0 |
0 |
0 |
0 |
1 |
0 |
|
|
|
0 |
0 |
|
|
Pre-tax profit |
90 |
104 |
99 |
77 |
108 |
124 |
106 |
|
7% |
|
294 |
338 |
|
15% |
Cost/Income ratio |
67.6% |
65.8% |
67.1% |
71.2% |
67.7% |
67.4% |
67.9% |
|
|
|
66.8% |
67.7% |
|
|
Cost/Income ratio
excluding IFRIC 21 effect |
65.6% |
66.5% |
67.7% |
71.8% |
65.9% |
68.0% |
68.5% |
|
|
|
66.6% |
67.5% |
|
|
RWA (Basel 3 - in
€bn) |
15.2 |
16.0 |
15.7 |
16.7 |
17.5 |
15.8 |
15.7 |
|
0% |
|
15.7 |
15.7 |
|
0% |
Normative capital
allocation (Basel 3) |
1,961 |
1,889 |
1,907 |
1,958 |
2,145 |
2,232 |
2,084 |
|
9% |
|
1,919 |
2,154 |
|
12% |
RoE after tax (Basel
3)[27] |
12.6% |
15.1% |
14.0% |
10.7% |
13.5% |
14.9% |
13.7% |
|
|
|
13.8% |
14.1% |
|
|
RoE after
tax (Basel 3) excluding IFRIC 21 effect1 |
13.6% |
14.7% |
13.6% |
10.3% |
14.4% |
14.6% |
13.4% |
|
|
|
14.0% |
14.2% |
|
|
Corporate Center
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
3Q18 vs. 3Q17 |
|
9M17 |
9M18 |
|
9M18 vs. 9M17 |
Net
revenues |
138 |
122 |
146 |
251 |
131 |
229 |
179 |
|
22% |
|
406 |
539 |
|
33% |
Coface |
137 |
152 |
167 |
167 |
177 |
156 |
180 |
|
8% |
|
457 |
513 |
|
12% |
Others |
1 |
(30) |
(21) |
84 |
(45) |
73 |
(1) |
|
|
|
(51) |
26 |
|
|
Expenses |
(324) |
(189) |
(169) |
(201) |
(339) |
(184) |
(176) |
|
4% |
|
(682) |
(699) |
|
2% |
Coface |
(122) |
(128) |
(119) |
(114) |
(122) |
(116) |
(122) |
|
3% |
|
(370) |
(360) |
|
(3)% |
SRF |
(128) |
6 |
0 |
1 |
(162) |
(1) |
0 |
|
|
|
(122) |
(164) |
|
34% |
Others |
(74) |
(66) |
(50) |
(88) |
(54) |
(67) |
(53) |
|
7% |
|
(190) |
(175) |
|
(8)% |
Gross operating
income |
(186) |
(67) |
(23) |
50 |
(208) |
45 |
3 |
|
|
|
(276) |
(160) |
|
(42)% |
Provision
for credit losses |
(20) |
(5) |
(26) |
(20) |
(5) |
(3) |
5 |
|
|
|
(51) |
(3) |
|
|
Net operating
income |
(206) |
(72) |
(49) |
30 |
(213) |
42 |
8 |
|
|
|
(327) |
(163) |
|
(50)% |
Associates |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
1 |
0 |
|
|
Other
items |
1 |
18 |
0 |
2 |
3 |
6 |
2 |
|
|
|
19 |
11 |
|
|
Pre-tax profit |
(205) |
(54) |
(49) |
32 |
(209) |
48 |
10 |
|
|
|
(307) |
(152) |
|
(51)% |
3Q18 results: from data excluding
non-operating items to reported data
|
|
|
|
|
|
|
|
|
|
|
|
€m |
3Q18 Underlying |
|
Exchange rate fluctuations on DSN in currencies |
Transformation & Business Efficiency investment
costs |
Fit to Win investments & restructuring
expenses |
SWLprovision reversal |
Legalprovision |
|
|
3Q18 Reported |
|
Net
revenues |
2,302 |
|
5 |
|
|
68 |
|
|
|
2,376 |
|
Expenses |
(1,586) |
|
|
(27) |
(1) |
|
|
|
|
(1,615) |
|
Gross operating
income |
716 |
|
5 |
(27) |
(1) |
68 |
|
|
|
761 |
|
Provision for credit
losses |
(30) |
|
|
|
|
|
(71) |
|
|
(102) |
|
Associates |
6 |
|
|
|
|
|
|
|
|
6 |
|
Gain or
loss on other assets |
(1) |
|
|
|
|
|
|
|
|
(1) |
|
Pre-tax
profit |
691 |
|
5 |
(27) |
(1) |
68 |
(71) |
|
|
665 |
|
Tax |
(193) |
|
(2) |
10 |
0 |
(19) |
20 |
|
|
(184) |
|
Minority
interests |
(60) |
|
|
|
0 |
|
|
|
|
(59) |
|
Net
income (group share) |
438 |
|
3 |
(18) |
0 |
50 |
(52) |
|
|
422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9M18 results: from data excluding
non-operating items to reported data
|
|
|
|
|
|
|
|
|
|
|
|
€m |
9M18 Underlying |
|
Exchange rate fluctuations on DSN in currencies |
Transformation & Business Efficiency investment
costs |
Fit to Win investments & restructuring
expenses |
SWLprovision reversal |
Legalprovision |
|
|
9M18 Reported |
|
Net
revenues |
7,265 |
|
32 |
|
|
68 |
|
|
|
7,365 |
|
Expenses |
(4,989) |
|
|
(61) |
0 |
|
|
|
|
(5,050) |
|
Gross operating
income |
2,276 |
|
32 |
(61) |
0 |
68 |
|
|
|
2,315 |
|
Provision for credit
losses |
(114) |
|
|
|
|
|
(71) |
|
|
(185) |
|
Associates |
16 |
|
|
|
|
|
|
|
|
16 |
|
Gain or
loss on other assets |
9 |
|
|
|
|
|
|
|
|
9 |
|
Pre-tax
profit |
2,187 |
|
32 |
(61) |
0 |
68 |
(71) |
|
|
2,155 |
|
Tax |
(665) |
|
(11) |
21 |
0 |
(19) |
20 |
|
|
(654) |
|
Minority
interests |
(177) |
|
|
|
0 |
|
|
|
|
(177) |
|
Net
income (group share) |
1,345 |
|
21 |
(40) |
0 |
50 |
(52) |
|
|
1,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory capital in 3Q18 & financial structure - Basel
3 phased-in[28], €bnAs of 2Q18, regulatory reporting
excluding current financial year's earnings and accrued dividend
(based on a 60% payout) - See note on methodology
Shareholder's equity group share |
19.6 |
Current financial year's earnings |
(1.3) |
Goodwill & intangibles |
(3.9) |
Other deductions |
(0.8) |
Hybrids restatement in Tier 1[29] |
(2.1) |
CET1 Capital |
11.5 |
Additional T1 |
2.1 |
Tier 1 Capital |
13.6 |
Tier 2 Capital |
2.1 |
Total prudential capital |
15.7 |
|
|
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
1Q18Pro forma |
2Q18 |
3Q18 |
CET1 ratio |
10.9% |
11.2% |
11.4% |
10.8% |
10.8% |
10.7% |
10.6% |
10.4% |
Tier 1 ratio |
12.8% |
13.1% |
13.1% |
12.9% |
12.7% |
12.5% |
12.5% |
12.4% |
Solvency ratio |
15.1% |
15.4% |
15.3% |
14.9% |
14.8% |
14.6% |
14.5% |
14.3% |
Tier 1 capital |
14.6 |
14.7 |
14.6 |
14.3 |
13.9 |
13.7 |
13.7 |
13.6 |
RWA
EoP |
114.1 |
112.6 |
111.7 |
110.7 |
109.5 |
109.5 |
110.1 |
109.6 |
IFRIC 21 effects by business line
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
9M17 |
9M18 |
|
AWM |
(3) |
1 |
1 |
1 |
(4) |
1 |
1 |
|
(1) |
(1) |
|
CIB |
(28) |
9 |
9 |
9 |
(22) |
7 |
7 |
|
(9) |
(7) |
|
Insurance |
(25)[30] |
8[31] |
84 |
84 |
(14) |
5 |
5 |
|
(8) |
(5) |
|
SFS |
(6) |
2 |
2 |
2 |
(6) |
2 |
2 |
|
(2) |
(2) |
|
Corporate
center |
(94) |
34 |
30 |
30 |
(119) |
40 |
40 |
|
(30) |
(40) |
|
Total
Natixis |
(156) |
55 |
50 |
50 |
(166) |
55 |
55 |
|
(50) |
(55) |
|
|
|
|
|
|
|
|
|
|
|
|
€m |
1Q17 |
2Q17 |
3Q17 |
4Q17 |
1Q18 |
2Q18 |
3Q18 |
|
9M17 |
9M18 |
|
SFS
(Leasing) |
(1) |
0 |
0 |
0 |
(1) |
0 |
0 |
|
0 |
0 |
|
Total
Natixis |
(1) |
0 |
0 |
0 |
(1) |
0 |
0 |
|
0 |
0 |
|
Normative capital allocation and RWA
breakdown - 30/09/2018
€bn |
RWA EoP |
% oftotal |
Goodwill & intangibles9M18 |
Capital allocation9M18 |
RoE after tax 9M18 |
AWM |
12.3 |
13% |
2.8 |
4.1 |
14.3% |
CIB |
60.4 |
63% |
0.2 |
6.4 |
14.1% |
Insurance |
7.1 |
7% |
0.1 |
0.8 |
28.4% |
SFS |
15.7 |
16% |
0.4 |
2.2 |
14.1% |
Total (excl. Corporate center) |
95.4 |
100% |
3.5 |
13.5 |
|
RWA
breakdown (€bn) |
30/09/2018 |
Credit risk |
77.2 |
Internal approach |
57.3 |
Standard approach |
19.9 |
Counterparty
risk |
6.6 |
Internal approach |
5.5 |
Standard approach |
1.1 |
Market risk |
9.1 |
Internal approach |
3.8 |
Standard approach |
5.3 |
CVA |
1.9 |
Operational risk - Standard approach |
14.8 |
Total
RWA |
109.6 |
Fully-loaded leverage ratio[32] According to the rules of
the Delegated Act published by the European Commission on October
10, 2014, including the effect of intragroup cancelation - pending
ECB authorization
€bn |
30/09/2018 |
Tier 1
capital1 |
14.1 |
Total prudential
balance sheet |
400.5 |
Adjustment on
derivatives |
(36.5) |
Adjustment on
repos[33] |
(30.1) |
Other exposures to
affiliates |
(28.4) |
Off balance sheet
commitments |
38.2 |
Regulatory
adjustments |
(4.9) |
Total
leverage exposures |
338.9 |
Leverage ratio |
4.1% |
Net book value as at September 30,
2018
€bn |
30/09/2018 |
|
Shareholders' equity (group share) |
19.6 |
Deduction
of hybrid capital instruments |
(2.0) |
Deduction
of gain on hybrid instruments |
(0.1) |
Distribution |
|
Net book
value |
17.5 |
Restated
intangible assets[34] |
0.7 |
Restated
goodwill1 |
3.4 |
Net tangible book value[35] |
13.4 |
€ |
|
Net book
value per share |
5.56 |
Net tangible book value per share |
4.26 |
9M18 Earnings per share
€m |
30/09/2018 |
Net income (gs) |
1,324 |
DSN interest expenses
on preferred shares after tax |
(72) |
Net
income attributable to shareholders |
1,252 |
Earnings per share (€) |
0.40 |
Number of shares as at September 30, 2018
€m |
30/09/2018 |
Average
number of shares over the period, excluding treasury shares |
3,140,939,192 |
Number of
shares, excluding treasury shares, EoP |
3,148,010,757 |
Number of
treasury shares, EoP |
2,277,835 |
Net income attributable to shareholders |
|
|
|
€m |
3Q18 |
9M18 |
|
Net income
(gs) |
422 |
1,324 |
|
DSN
interest expenses on preferred shares after tax |
(23) |
(72) |
|
RoE & RoTE numerator |
399 |
1,252 |
|
Natixis RoTE[36] |
|
€m |
30/09/2018 |
Shareholders' equity
(group share) |
19,616 |
DSN deduction |
(2,122) |
Dividend provision |
(751) |
Intangible assets |
(729) |
Goodwill |
(3,352) |
RoTE
Equity end of period |
12,661 |
Average
RoTE equity (3Q18) |
12,636 |
3Q18
RoTE annualized |
12.6% |
Average
RoTE equity (9M18) |
12,519 |
9M18
RoTE annualized |
13.3% |
Natixis RoE1 |
|
|
€m |
30/09/2018 |
|
Shareholders' equity
(group share) |
19,616 |
|
DSN deduction |
(2,122) |
|
Dividend provision |
(751) |
|
Exclusion of unrealized or deferred gains and losses
recognized in equity (OCI) |
(346) |
|
|
RoE
Equity end of period |
16,396 |
|
Average
RoE equity (3Q18) |
16,294 |
|
3Q18
RoE annualized |
9.8% |
|
Average
RoE equity (9M18) |
16,026 |
|
9M18
RoE annualized |
10.4% |
|
Doubtful loans[37]
€bn |
31/12/2017Pro formaIFRS9 |
30/09/2018UnderIFRS9 |
Provisionable
commitments[38] |
2.7 |
2.3 |
Provisionable
commitments / Gross debt |
2.2% |
1.8% |
Stock of
provisions[39] |
2.0 |
1.8 |
Stock of
provisions / Provisionable commitments |
73% |
80% |
Disclaimer
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 Insurance 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.
Included data in this press release have not
been audited.
NATIXIS financial disclosures for the third
quarter 2018 are contained in this press release and in the
presentation attached herewith, available online at www.natixis.com
in the "Investors & shareholders" section.
The conference call to discuss the results,
scheduled for Friday November 9th, 2018 at 9:00 a.m. CET, will be
webcast live on www.natixis.com (on the "Investors &
shareholders" page).
Contacts:
Investor Relations: |
investorelations@natixis.com |
|
Press Relations: |
relationspresse@natixis.com |
|
|
|
|
|
|
Damien
Souchet |
T + 33
1 58 55 41 10 |
|
Benoit
Gausseron |
T + 33 1 58 19 28 09 |
Souad
Ed Diaz Noemie Louvel |
T + 33
1 58 32 68 11T + 33 1 78 40 37 87 |
|
Olivier DelahousseSonia Dilouya |
T + 33 1 58 55 04 47T + 33 1 58 32 01 03 |
|
|
|
|
|
www.natixis.com
[1] Excluding exceptional items. Excluding exceptional items and
the IFRIC 21 impact for cost/income ratio, RoE, and RoTE
[2] Ultra High Net Worth Individuals
3 Excluding reinsurance agreement with CNP
4 See note on methodology
[5] See note on methodology and excluding IFRIC 21 impact for
the calculation of the cost/income ratio and the RoE
[6] See note on methodology and excluding IFRIC 21 impact for
the calculation of the cost/income ratio and the RoE
[7] See note on methodology and excluding IFRIC 21 impact for
the calculation of the cost/income ratio and the RoE
[8] Including Vega IM, 60% owned by Natixis Wealth
Management
[9] See note on methodology and excluding IFRIC 21 impact for
the calculation of the cost/income ratio and the RoE
[10] ENR, Real Assets, ASF
[11] Business data
[12] See note on methodology and excluding IFRIC
21 impact for the calculation of the cost/income ratio and the
RoE
[13] Excluding the reinsurance agreement with
CNP
[14] See note on methodology and excluding IFRIC
21 impact for the calculation of the cost/income ratio and the
RoE
[15] At constant scope and exchange rate
[16] Reported ratios, net of reinsurance
[17] See note on methodology
[18] Subject to regulatory approvals
[19] Asset management includes Private equity
[20] including M&A business
[21] Including deposit and margin call
[22] Asset management including Private
equity
[23] Normative capital allocation methodology
based on 10.5% of the average RWA - including goodwill and
intangibles
[24] Including M&A
[25] Normative capital allocation methodology
based on 10.5% of the average RWA - including goodwill and
intangibles
[26] Normative capital allocation methodology
based on 10.5% of the average RWA - including goodwill and
intangibles
[27] Normative capital allocation methodology
based on 10.5% of the average RWA - including goodwill and
intangibles
[28] See note on methodology
[29] Including capital gain following
reclassification of hybrids as equity instruments
[30] -€10.9m in underlying expenses and -€14.1m
in exceptional expenses linked to the additional Corporate Social
Solidarity Contribution resulting from agreement with CNP
[31] €3.6m in underlying expenses and €4.7m in
exceptional expenses linked to the additional Corporate Social
Solidarity Contribution resulting from agreement with CNP
[32] See note on methodology. Without phase-in -
supposing replacement of existing subordinated issuances when they
become ineligible
[33] Repos with clearing houses cleared according to IAS32
standard, without maturity or currency criteria
[34]See note on methodology
[35] Net tangible book value = Book value - goodwill -
intangible assets
[36] See note on methodology
[37] On-balance sheet, excluding repos, net of
collateral
[38] Net commitments include properties that are
underlying leasing contracts and for which Natixis is the owner as
well as factored loans for which the chargeable counterparties are
not in default
[39] Specific and portfolio-based provisions
- 3Q18 and 9M18 Results.pdf