Hold the Presses is your online newsportal en brings press releases from around the world. Journalists can use it for free, although it is their responsibilty to check the news. Hold the Presses is in no way responsible for the content of the press releases, the Sender is. We hope you enjoy reading the news we bring you on this website. If a message is published that is not acceptable, we apologize. Please contact us and we will remove the message as soon as possible.

Tuesday, 13 February 2018

NATIXIS :4Q17 AND 2017 RESULTS

NATIXIS    

Published: 17:35 CET 13-02-2018 /GlobeNewswire /Source: NATIXIS / : KN /ISIN: FR0000120685


Paris, February 13, 2018

4Q17 and 2017 results

 

Reported Net income up +21% at €1,669m in 2017 and +5% at €518m in 4Q17

€0.37(1) cash dividend per share

 

 
  

 


SOLid growth and improved profitability across our business lines

net revenues(2) +9% in 2017 At €9.5bn, GOI(2) +19% at €3bn and businesses' roe(2) At 13.8%

AWM: Net revenue and fee rate increases thanks to our resolutely active positioning

Significant increase in net revenues, above €3.1bn (+22% in 4Q17 and +15% in 2017)

Fee rate increase in both Europe and North America: 31.5bps overall in 4Q17 (+3.4bps YoY)

Positive net inflows momentum for long-term products: +€10bn in 4Q17 (+€27bn in 2017)

      $1trn assets under management as at December 31, 2017 (€831bn)

CIB: Strong momentum across all activities, market share gains

Net revenues (ex CVA/DVA desk) up +9% in 2017, of which +11% in Global markets

Strong momentum in IB and M&A: Net revenues up +27% in 2017, of which +47% in M&A

Global finance: Net revenues increased +12% in 4Q17, notably driven by a dynamic new loan production

RWA decreased -11% in 2017 and profitability increased significantly (+250bps)

Insurance: A sustainable growth driver for Natixis

Net revenues up +12% in 2017 and +11% in 4Q17

Life Insurance: ~€10bn premiums in 2017 (+53%), AuM at €54.7bn of which €12.6bn in unit-linked products

SFS: The Payments hub keeps building up

Net revenues from SFS up +3% in 4Q17 and +2% in 2017

Successful mandatory takeover bid on Dalenys and exclusivity agreement for the acquisition of Comitéo

€446m revenue synergies with Groupe BPCE networks as at end 2017, beyond the €400m initial target

sustainable value creation (rote: 12.3%), financial strength and dividend increase

FY17 net income excluding exceptionals at €1.7bn up +25% and €470m in 4Q17 (+22%)

RoTE improvement at 12.3% in 2017 (+240bps vs. 2016) and 12.6% in 4Q17

Basel 3 FL CET1 ratio(3) at 10.65% as at December 31, 2017. ~160bps of organic capital generation in 2017

Ordinary cash dividend of €0.37(1) per share (payout ratio of 74%)

NEW DIMENSION off to a good start

Laurent Mignon, Natixis Chief Executive Officer, said: "Natixis delivered good performances in all business lines in 2017, amongst the best in the industry, while successfully completing the New Frontier strategic plan. We strengthened our major lines of expertise around the world, thanks to a strong commercial momentum and a proactive acquisition strategy in asset management, insurance, M&A and payments. We are committed to deliver on our New Dimension plan, that we enter with confidence. New Dimension seeks to sustainably anchor our development and our value creation through time by deepening our expertise, leveraging growth through digital and especially continuing to differentiate ourselves via chosen businesses and the way in which we deliver solutions to our clients."

 

 

(1) Subject to the approval of the General Shareholders' Meeting on May 23, 2018 (2) Excluding exceptional items and the IFRIC 21 impact for cost/income ratio, RoE, and RoTE (2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in

 


4Q17 rEsults

 

The Board of Directors approved Natixis' accounts for the fourth quarter of 2017 on February 13, 2018.

 

€m

 

4Q17

o/w

o/w

4Q17

4Q17

reported

recurring

exceptionals

vs. 4Q16

vs. 4Q16

 

 

 

reported

recurring

Net revenues

 

2,506

2,450

56

(1)%

7%

o/w businesses

 

2,255

2,255

 

6%

6%

Expenses

 

(1,737)

(1,698)

(39)

4%

4%

Gross operating income

 

769

753

17

(10)%

15%

Provision for credit losses

 

(65)

(65)

 

8%

8%

Net operating income

 

704

687

17

(12)%

16%

Associates and other items

 

29

11

18

 

 

Pre-tax profit

 

733

699

35

(8)%

17%

Income tax

 

(139)

(153)

14

 

 

Minority interests

 

(76)

(76)

 

 

 

Net income - group share

 

518

470

48

5%

22%

 

 

 

Excluding exceptional items

 

4Q17

4Q16

 

4Q17

€m

vs. 4Q16

Net income - (gs) - restated

 

470

384

 

22%

Restatement of IFRIC 21 impact

 

(42)

(39)

  

Net income - (gs) - restated excl. IFRIC impact

 

428

346

 

24%

 

    

EXCEPTIONALS (€m)

4Q17

4Q16

Capital gain on the sale of 15% stake in CACEIS (Net revenues)

Corporate center

74

 

Exchange rate fluctuations on DSN in currencies (Net revenues)

Corporate center

(18)

20

Transformation & Business Efficiency Investment costs (Expenses)

Business lines & Corporate center

(39)(1)

(9)

Capital gain on the liquidation of a holding structure (Gain or loss on other assets)

CIB

18

 

 
    

 

 

 

 

FV adjustment on own senior debt (Net revenues)

Corporate center

 

136

Coface: "Fit to win" restructuring costs (-€39m) & other gains (+€19m) (Expenses)

Corporate center

 

(19)

Coface: gain on State guarantees transfer to BpiFrance (Gross operating income)

Corporate center

 

75

Total impact on income tax

 

14

(70)

Total impact on minority interests

 

 

(21)

Total impact on net income (gs)

 

48

111

  1. o/w €32m in the Corporate center

 

 

Unless stated otherwise, the commentary that follows refers to results excluding exceptional items (see detail p2).

 

Natixis

 

Natixis posted €2.5bn in net revenues in 4Q17, up +7% YoY and +10% at constant exchange rate. Net revenues generated by the businesses improved +6% YoY to €2.3bn, including significant rises from Asset & Wealth Management (+28% at constant exchange rate), Insurance (+11%) and Coface (+33%).

 

Expenses came out at €1.7bn in 4Q17, up +4% YoY, translating into a 3pp positive jaws effect and a 220bps YoY improvement in the cost/income ratio at 71.2%, excluding IFRIC 21. Gross operating income of €753m progressed +15% in 4Q17 vs. 4Q16.

 

The cost of risk amounted to €65m in 4Q17, slightly up YoY. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses' cost of risk worked out to 22bps in 4Q17. Pre-tax profit rose +17% to €699m in 4Q17 vs. 4Q16.

 

The 4Q17 tax rate notably benefited from a ~€100m positive impact from the US tax reforms (write-down of deferred tax liabilities). The marked YoY increase in minority interests reflected solid growth in Coface's contribution and a high level of performance fees generated by some European Asset Management affiliates.

 

Net income (group share), adjusted for IFRIC 21 and excluding exceptional items, came out at €428m in 4Q17, a +24% YoY increase. Accounting for exceptional items (+€48m impact net of tax in 4Q17) and IFRIC 21 (+€42m impact in 4Q17), the reported net income (group share) increased +5% YoY to €518m in 4Q17.

 

Excluding IFRIC 21, Natixis' RoTE(1) equated to 12.6% and the businesses' RoE(1) reached 12.5%, up +270bps and +20bps respectively vs. 4Q16.

 

Asset & Wealth Management

 

€m

4Q17

4Q16

4Q17 vs. 4Q16

Net revenues

899 

735

22% 

  o/w Asset management

857 

700

23% 

  o/w Wealth management

42 

35

20% 

Expenses

(609) 

(523)

16% 

Gross operating income

290 

211

37% 

Provision for credit losses

0

 

Associates and other items

(10)

 

Pre-tax profit

293 

202

45% 

 

 

 

 

Cost/income ratio(1)

67.8%

71.4%

(3.6)pp

RoE after tax(1)

14.0%

10.2%

+3.8pp

 

 

Revenues from Asset & Wealth Management (AWM) were up a significant +22% YoY in 4Q17 (+28% at constant exchange rate), notably fueled by improved margins and higher AuM. Net revenues from Asset management amounted to €857m in 4Q17, up +23% vs. 4Q16 and including rises of +37% to €334m in Europe and +8% to €408m in North America. Net revenues from Wealth management increased +20% YoY.

 

In Asset management in 4Q17, margins excluding performance fees (€149m in 4Q17) improved +3.4bps to 31.5bps overall and rose +2.8bps to 16.7bps in Europe and +1.5bps to 39.5bps in North America. Margin growth resulted from an improved product mix and the integration of Investors Mutual Limited (IML) in Australia.

Asset management attracted +€8bn of net inflows overall during the quarter, including +€2.6bn in Europe (driven notably by H2O and DNCA) and +€5.0bn in North America (Harris Associates: +$1.4bn, Loomis Sayles: +$3.4bn). AuM reached €831bn at year-end 2017, of which €406bn in Europe and €410bn in North America. AuM growth this quarter was driven by a combination of net inflows, the integration of IML (+€6bn of AuM) and a +€10bn positive market effect, which outweighed a -€6bn negative FX impact. Wealth management had €31.6bn(2) of AuM at end-December 2017.

 

AWM lifted RoE after tax and excluding IFRIC 21 by +380bps to 14.0% in 4Q17.

 

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost/income ratio and RoE on 4Q16 and 4Q17
  2. Including Vega IM, 60% owned by Natixis Wealth Management

 Corporate & Investment Banking

 

€m

4Q17

4Q16

4Q17 vs. 4Q16

 

Net revenues

817

883

(8)%

Net revenues excl. CVA/DVA

840

873

(4)%

   o/w Global markets

432

462

(7)%

  o/w Global finance

358

320

12%

 o/w IB et M&A

74

85

(12)%

Expenses

(567)

(573)

(1)%

Gross operating income

249

310

(20)%

Provision for credit losses

(21)

(21)

2%

Associates and other items

2

3

 

Pre-tax profit

231

293

(21)%

 

 

  

Cost/income ratio(1)

70.6%

66.0%

+4.6pp

RoE after tax(1)

10.3%

11.9%

(1.6)pp

 

 

Net revenues from Corporate & Investment Banking excluding the CVA/DVA desk were down a limited -1% in 4Q17 at constant exchange rate (-4% on a reported basis at €840m).

 

Net revenues from Global markets were adversely affected by lower client activity in Rates and Equity Derivatives as well as lower volatility in the latter business and in FX. This translated into YoY revenues declines of -8% in FICT to €288m and -4% in Equity to €144m. Within Global finance, robust new loan production in structured financing (+51% YoY) particularly in US Real Estate, drove a +12% YoY rise in revenues to €358m. Revenues generated by Investment banking and M&A amounted to €74m in 4Q17, down on the year-earlier level, due notably to less transactions closed in ECM.

 

CIB posted RoE after tax and excluding IFRIC 21 of 10.3% in 4Q17.

 

 

 

Insurance

 

€m

4Q17

4Q16

4Q17 vs. 4Q16

Net revenues

190 

171

11% 

Expenses

(110) 

(102)

8% 

Gross operating income

80 

69

15% 

Provision for credit losses

0

 

Associates and other items

 

Pre-tax profit

84 

71

17% 

 

 

 

 

Cost/income ratio(1)

60.0%

60.9%

(0.9)pp

RoE after tax(1)

25.3%

19.3%

+6.0pp

 

Net revenues from Insurance increased +11% YoY to reach €190m in 4Q17, driven by both Life/Personal protection and P&C. Expenses rose +8% to €110m, resulting in a positive jaws effect, a cost/income ratio improvement to 60.0% and a gross operating income at €80m, up +15% YoY.

 

Insurance lifted RoE after tax and excluding IFRIC 21 by +600bps to 25.3% in 4Q17.

 

Global turnover excluding the reinsurance agreement with CNP amounted to €2.8bn in 4Q17. It included rises of +9% in Life/Personal protection and of +6% in Property & Casualty.

 

Life Insurance AuM reached €54.7bn at end-December 2017, of which 23% in the form of unit-linked products. The combined ratio for P&C activities worked out to 91.5% in 4Q17, down -1.5pp vs. 4Q16.

 

 

 

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost/income ratio and RoE on 4Q16 and 4Q17

Specialized Financial Services

 

€m

4Q17

4Q16

4Q17

vs. 4Q16

Net revenues

350

341

3%

  Specialized financing

210

210

0%

  Payments

89

85

4%

  Financial services

51

45

12%

Expenses

(242)

(221)

10%

Gross operating income

108

120

(11)%

Provision for credit losses

(24)

(16)

53%

Associates and other items

0

0

 

Pre-tax profit

83

105

(20)%

 

 

  

Cost/income ratio(1)

69.9%

65.5%

+4.4pp

RoE after tax(1)

11.2%

15.0%

(3.8)pp

 

 

Net revenues from Specialized Financial Services grew +3% YoY in 4Q17. This overall growth included stable revenues from Specialized financing, and increases of +4% for Payments and +12% for Financial services (of which +25% for Employee savings plans).

 

SFS' expenses increased +10% YoY in 4Q17, though rose only +2% at constant scope. The cost/income ratio excluding IFRIC 21 and Payments acquisitions worked out to 67.3% in 4Q17.

 

The cost of risk stood at €24m and was adversely impacted during the quarter by model updates.

 

SFS posted RoE after tax and excluding IFRIC 21 of 11.2% in 4Q17.

 

 

Within Payments, the mandatory takeover bid on Dalenys was successfully completed on January 26, 2018. January 16, 2018 also saw Groupe BPCE become the first payment services provider (PSP) in France to join the SEPA Instant Credit Transfer (SCT Inst) scheme. Most BPCE banks will be ready to propose SCT Inst-based services in April 2018.

 

 

 

Corporate Center

 

€m

4Q17

4Q16

4Q17

vs. 4Q16

Net revenues

195

156

25%

  Coface

167

126

33%

  Others

28

30

(8)%

Expenses

(169)

(214)

(21)%

  Coface

(114)

(126)

(10)%

  SRF

0

0

 

  Others

(56)

(88)

(37)%

Gross operating income

26

(58)

 

Provision for credit losses

(20)

(24)

 

Associates and other items

2

10

 

Pre-tax profit

8

(72)

 

 

 

Activities housed in the Corporate Center generated €195m of net revenues in 4Q17, a +25% YoY increase, of which €167m came from Coface (+33% YoY).

 

Coface's turnover reached €340m in 4Q17, up +2% at constant scope and exchange rate. The combined ratio net of reinsurance improved markedly to 76.1%, on the back of reduced claims (loss ratio of 41.8% vs. 68.0% in 4Q16) and a tight grip on expenses (cost ratio of 34.3% vs. 32.0% in 4Q16).

 

Corporate Center expenses excluding Coface and the SRF dropped -37% YoY. Coface's expenses were down -10% during the same period.

 

Pre-tax profit came out at €8m vs. -€72m in 4Q16.

 

During 4Q17, Natixis sold its 15% stake in CACEIS, thereby generating a €74m capital gain. The deal lowered RWA by -€0.8bn and will have no impact on Natixis' P&L going forward.

 

 

 

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost/income ratio and RoE on 4Q16 and 4Q17

2017 rEsults

 

 

 

€m

 

2017

o/w

o/w

2017

2017

reported

recurring

exceptionals

vs. 2016

vs. 2016

 

 

 

reported

recurring

Net revenues

 

9,467

9,497

(30)

9%

9%

o/w businesses

 

8,810

8,810

 

10%

9%

Expenses

 

(6,632)

(6,540)

(93)

6%

5%

Gross operating income

 

2,835

2,957

(123)

14%

19%

Provision for credit losses

 

(258)

(258)

 

(15)%

(15)%

Net operating income

 

2,577

2,699

(123)

19%

23%

Associates and other items

 

74

56

18

 

 

Pre-tax profit

 

2,651

2,755

(105)

16%

21%

Income tax

 

(789)

(848)

59

  

Minority interests

 

(192)

(192)

 

 

 

Net income - group share

 

1,669

1,715

(46)

21%

25%

 

 

 

EXCEPTIONALS (€m)

2017

2016

Capital gain on the sale of 15% stake in CACEIS (Net revenues)

Corporate center

74

 

Exchange rate fluctuations on DSN in currencies (Net revenues)

Corporate center

(104)

9

Transformation & Business Efficiency Investment costs (Expenses)

Business lines & Corporate center

(74) (1)

(9)

Capital gain on the liquidation of a holding structure (Gain or loss on other assets)

CIB

18

 

 

 

 

 

SWL litigation (Net revenues)

CIB

 

(69)

FV adjustment on own senior debt (Net revenues)

Corporate center

 

0

Non-recurring additional Corporate Social Solidarity Contribution

Insurance

(19)

 

 

resulting from agreement with CNP (Expenses)

Coface: "Fit to win" restructuring costs (-€39m) & other gains (+€19m) (Expenses)

Corporate center

 

(19)

Coface: gain on State guarantees transfer to BpiFrance (Gross operating income)

Corporate center

 

75

Gain from disposal of operating property assets (Gain or loss on other assets)

Corporate center

 

97

Goodwill impairment on Coface (Change in value of goodwill)

Corporate center

 

(75)

Total impact on income tax

 

59

(29)

Total impact on minority interests

 

 

23

Total impact on net income (gs)

 

(46)

3

  1. o/w €57m in the Corporate center

 


Unless stated otherwise, the commentary that follows refers to results excluding exceptional items (see detail p6).

 

Natixis

 

Natixis posted €9.5bn in net revenues in 2017, up +9% YoY. Net revenues generated by the businesses improved +9% YoY as well to €8.8bn, including significant rises from Asset & Wealth Management (+15% in 2017), Insurance (+12%) and Corporate & Investment Banking (+7%).

 

Expenses came out at €6.5bn in 2017, up +5% YoY, translating into a 4pp positive jaws effect and a 250bps YoY improvement in the cost/income ratio at 68.9%. Gross operating income of €3.0bn progressed +19% in 2017 vs. 2016.

 

The cost of risk amounted to €258m in 2017, down -15% YoY despite a €60m reinforcement of the general reserve, booked in the corporate center. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses' cost of risk worked out to 23bps in 2017 vs. 34bps in 2016. The cost of risk/net revenues ratio decreased from 3.5% in 2016 to 2.7% this year. Pre-tax profit rose +21% YoY to €2.8bn.

 

The 2017 tax rate notably benefited from a positive impact from the US tax reforms recognized in 4Q17. The marked YoY increase in minority interests reflected solid growth in Coface's contribution and a high level of performance fees generated by some European Asset Management affiliates.

 

Net income (group share), excluding exceptional items, came out at €1.7bn in 2017, a +25% YoY increase. Accounting for exceptional items (-€46m impact net of tax in 2017), the reported net income (group share) increased +21% YoY to €1.7bn in 2017.

 

Natixis' RoTE(1) equated to 12.3% and the businesses' RoE(1) reached 13.8%, up +240bps and +160bps  respectively vs. 2016.

 

 

Asset & Wealth Management

 

€m

2017

2016

2017 vs. 2016

Net revenues

3,113

2,718

15%

  o/w Asset management

2,972

2,582

15%

  o/w Wealth management

142

136

4%

Expenses

(2,175)

(1,981)

10%

Gross operating income

938

737

27%

Provision for credit losses

0

1

 

Associates and other items

11

8

 

Pre-tax profit

949

746

27%

 

 

 

 

Cost/income ratio(1)

69.9%

72.9%

(3.0)pp

RoE after tax(1)

12.8%

11.5%

+1.3pp

 

 

Revenues from Asset & Wealth Management (AWM) were up a significant +15% YoY in 2017 (+16% at constant exchange rate), notably fueled by improved margins and higher AuM. Net revenues from Asset management amounted to €3.0bn in 2017, up +15% vs. 2016. Net revenues from Wealth management increased +4% YoY.

 

In Asset management, margins excluding performance fees (€287m in 4Q17) improved +1.3bps to average 29.5bps for the year.

 

Asset management attracted +€24bn of net inflows during the year and +€72bn for the 2014-2017 period. AuM reached €831bn at year-end 2017, or $1trn. At constant exchange-rate, average AuM for the year rose +10.5% in Europe (excluding Life Insurance) and +8.4% in North America.

 

Expenses increased +10% during the year, translating into a 5pp positive jaws effect and a cost/income ratio improvement, below 70% for 2017 (72.9% in 2016). Both gross operating income and pre-tax profit rose +27% YoY.

 

AWM lifted RoE after tax by +130bps to 12.8% in 2017.

 

  1. See note on methodology

Corporate & Investment Banking

 

€m

2017

2016

2017

vs. 2016

Net revenues

3,581

3,339

7%

Net revenues excl. CVA/DVA

3,576

3,290

9%

  o/w Global markets

1,916

1,731

11%

  o/w Global finance

1,328

1,281

4%

 o/w IB et M&A

362

285

27%

Expenses

(2,191)

(2,046)

7%

Gross operating income

1,390

1,293

8%

Provision for credit losses

(115)

(195)

(41)%

Associates and other items

10

14

 

Pre-tax profit

1,285

1,111

16%

 

 

  

Cost/income ratio(1)

61.2%

61.3%

(0.1)pp

RoE after tax(1)

13.2%

10.7%

+2.5pp

 

 

Net revenues from Corporate & Investment Banking excluding the CVA/DVA desk rose +9% YoY in 2017, fueled by solid performances from Global markets (+11% vs. 2016) and from Investment banking and M&A (+27%, including +47% growth in M&A). Over the same period, CIB RWA declined -11%, testifying to the success of the O2D model. Net revenues equated to 5.7% of average RWA over the year (excluding the CVA/DVA desk).

 

Within Global markets, FICT revenues rose +6% in 2017, notably buoyed by the US and APAC platforms (+20% in 2017), whilst Equity revenues grew +21%. The US and APAC platforms lifted their contribution to CIB overall revenues from 35% in 2016 to 38%.

 

Fixed costs excluding regulatory projects increased +3% during the year, while the cost/income ratio improved slightly relative to 2016.

 

The cost of risk fell -41% versus the 2016 figure and pre-tax profit increased +16% YoY.

 

CIB lifted RoE after tax by +250bps to 13.2% in 2017.

 

 

 

Insurance

 

€m

 

2017

 

2016

2017

vs. 2016

Net revenues

734 

655

12% 

Expenses

(416) 

(378)

10% 

Gross operating income

318 

277

15% 

Provision for credit losses

0

 

Associates and other items

13 

9

 

Pre-tax profit

331 

287

15% 

 

 

 

 

Cost/income ratio(1)

56.6%

57.6%

(1.0)pp

RoE after tax(1)

23.9%

20.8%

+3.1pp

 

Net revenues from Insurance increased +12% YoY to reach €734m in 2017 driven by both Life/Personal protection and P&C. Expenses rose +10% to €416m, resulting in a positive jaws effect, a cost/income ratio improvement to 56.6% and a gross operating income at €318m, up +15% YoY.

 

Insurance lifted RoE after tax by +310bps to 23.9% in 2017.

 

Global turnover excluding the reinsurance agreement with CNP increased +46% YoY in 2017 to €11.7bn, of which €10.3bn for Life/Personal protection and €1.4bn for Property & Casualty.

 

Life Insurance net inflows in unit-linked products almost tripled in 2017 at +€2.9bn and accounted for half of total 2017 net inflows and 35% of gross inflows. The combined ratio for P&C activities worked out to 92.1% in 2017, down - 0.4pp vs. 2016.

 

 

 

  1. See note on methodology

Specialized Financial Services

 

€m

2017

2016

2017

vs. 2016

Net revenues

1,382

1,352

2%

  Specialized financing

862

840

3%

  Payments

336

329

2%

  Financial services

184

183

1%

Expenses

(930)

(885)

5%

Gross operating income

451

466

(3)%

Provision for credit losses

(73)

(57)

27%

Associates and other items

0

31

 

Pre-tax profit

379

440

(14)%

 

 

  

Cost/income ratio(1)

67.3%

65.5%

+1.8pp

RoE after tax(1)(2)

13.3%

15.4%

(2.1)pp

 

 

Net revenues from Specialized Financial Services grew +2% in 2017 and included increases of +3% for Specialized financing (+5% for Sureties & guarantees), +2% for Payments and +1% for Financial services.

 

Expansion in the Payments area was reflected in the +64% increase in recently acquired Payplug and Dalenys' combined turnover in 2017, as well as in the +10% YoY revenue growth in prepaid (at constant scope) and the +10% increase in the volume of card transactions processed. 79% of Payments revenues were generated with the Groupe BPCE networks in 2017.

 

SFS posted RoE after tax of 13.3% in 2017.

 

 

 

Corporate Center

 

€m

2017

2016

2017

vs. 2016

Net revenues

687

636

8%

  Coface

624

552

13%

  Others

63

85

(26)%

Expenses

(827)

(918)

(10)%

  Coface

(484)

(508)

(5)%

  SRF

(122)

(114)

7%

  Others

(221)

(296)

(25)%

Gross operating income

(140)

(281)

(50)%

Provision for credit losses

(71)

(54)

 

Associates and other items

22

29

 

Pre-tax profit

(189)

(306)

(38)%

 

 

Activities housed in the Corporate Center generated €687m of net revenues, an increase of +8% YoY, of which €624m came from Coface (+13% YoY).

 

Coface's combined ratio net of reinsurance improved sharply to 86.6% from 97.4% in 2016, on the back of reduced claims (loss ratio of 51.4% vs. 65.5%), while the cost ratio remained fairly stable at 35.2% (excluding the State Export Guarantees Management business in 2016).

 

Corporate Center expenses excluding Coface and the SRF dropped -25% YoY.

 

The pre-tax profit reached -€189m from -€306m in 2016.

 

 

 

(1)  See note on methodology (2) Excluding real estate capital gains for CEGC in 2Q16


Financial structure

 

Basel 3 fully-loaded

Natixis' Basel 3 fully-loaded CET1 ratio(1) worked out to 10.65% at December 31, 2017.

  • Basel 3 fully-loaded CET1 capital amounted to €11.8bn
  • Basel 3 fully-loaded RWA amounted to €110.7bn.

 

Based on a Basel 3 fully-loaded CET1 ratio of 10.4% at December 31, 2016, the respective impacts of 2017 were as follows:

  • Effect of allocating net income (group share) to retained earnings in 2017: +139bps,
  • Planned dividend(2) for 2017: -101bps,
  • RWA and other effects: +21bps.
  • Acquisition/disposal effects: -36bps

 

 

Basel 3 phased-in, regulatory ratios

As at December 31, 2017, Natixis' Basel 3 regulatory (phased-in) capital ratios stood at 10.8% for the CET1, 12.9% for the Tier 1 and 14.9% for the total solvency ratio.

  • Core Tier 1 capital stood at €12.0bn and Tier 1 capital at €14.3bn.
  • Natixis' RWA totalled €110.7bn, breakdown as follows:
    • Credit risk: €78.3bn
    • Counterparty risk: €6.7bn
    • CVA risk: €1.2bn
    • Market risk: €9.7bn
    • Operational risk: €14.8bn

 

 

IFRS 9

The anticipated First Time Application impact of IFRS 9 is around 15bps on Natixis' Basel 3 fully-loaded CET1 ratio on January 1, 2018.

 

 

Book value per share

Equity capital (group share) totalled €19.8bn at December 31, 2017, of which €2.2bn was in the form of hybrid securities (DSNs) recognized in equity capital at fair value (excluding capital gain following reclassification of hybrids).

 

Book value per share was €5.18 at December 31, 2017(post dividends) based on 3,135,928,302 shares excluding treasury stock (the total number of shares stands at 3,137,360,238). Tangible book value per share (after deducting goodwill and intangible assets) was €3.96.

 

 

Leverage ratio

The leverage ratio(3) worked out to 4.1% at December 31, 2017.

 

Overall capital adequacy ratio

As at December 31, 2017, the financial conglomerate's capital excess was estimated at around €3.2bn.

 

 

 

  1. Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in
  2. Subject to approval of the General Shareholders' Meeting on May 23, 2018
  3. See note on methodology

Appendices

 

Note on methodology:

 

The results at 31/12/2017 were examined by the board of directors at their meeting on 13/02/2018.

Figures at 31/12/2017 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 2016 & 9M17 quarterly series have been restated for the following changes in business lines organization and in standards for implementation in Q4-2017 as if these changes had occurred on 1st January 2016.

 

The new businesses organization mainly takes into account:

  • The split of Investment Solutions into two new divisions: Insurance and Asset & Wealth Management(1)
  • Within CIB:
    • Global finance and Investment banking(2) 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
  • 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.

 

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 on the basis of 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 at 2%.

 

 

 

  1. Asset management includes Private equity (2) including M&A business

Net book value: calculated by taking shareholders' equity group share, 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

31/12/2017

Intangible assets

732

Restatement for Coface minority interest & others

(37)

Restated intangible assets

694

 

 

 

In €m

31/12/2017

Goodwill

3,601

Restatement for Coface minority interests

(165)

Restatement for AWM deferred tax liability & others

(311)

Restated goodwill

3,126

 

 

Own senior debt fair-value adjustment: calculated using a discounted cash-flow model, contract by contract, including parameters such as swaps curve, 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.

 

Leverage ratio: based on delegated act rules, without phase-in except for DTAs on tax-loss carryforwards 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 3. 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 and the RoE excluding IFRIC 21 impact calculation takes into by quarter one fourth of the annual duties and levies concerned by this new accounting rule.

 

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

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

4Q17

2016

2017

2017

vs. 4Q16

vs. 2016

Net revenues

2,063

2,211

1,924

2,520

2,347

2,410

2,205

2,506

(1)%

8,718

9,467

9%

Expenses

(1,605)

(1,522)

(1,447)

(1,664)

(1,771)

(1,594)

(1,530)

(1,737)

4%

(6,238)

(6,632)

6%

Gross operating income

458

689

477

856

576

815

674

769

(10)%

2,480

2,835

14%

Provision for credit losses

(88)

(88)

(69)

(60)

(70)

(67)

(55)

(65)

8%

(305)

(258)

(15)%

Associates

8

7

4

(6)

7

6

5

8

 

13

26

 

Gain or loss on other assets

29

31

104

12

9

18

(1)

22

 

175

48

 

Change in value of goodwill

0

(75)

0

0

0

0

0

0

 

(75)

0

 

Pre-tax profit

407

564

516

801

523

772

623

733

(8)%

2,287

2,651

16%

Tax

(172)

(211)

(184)

(255)

(214)

(255)

(181)

(139)

 

(822)

(789)

 

Minority interests

(34)

28

(34)

(50)

(28)

(29)

(59)

(76)

 

(90)

(192)

 

Net income (group share)

200

381

298

496

280

487

383

518

5%

1,374

1,669

21%

 

 

Natixis - Balance sheet

 

Assets (in €bn)

31/12/2017

31/12/2016

Cash and balances with central banks

36.9

26.7

Financial assets at fair value through profit and loss

184.5

187.6

Available-for-sale financial assets

57.9

55.0

Loans and receivables

182.1

199.1

Held-to-maturity financial assets

1.9

2.1

Accruals and other assets

49.8

50.5

Investments in associates

0.7

0.7

Tangible and intangible assets

2.6

2.5

Goodwill

3.6

3.6

Total

520.0

527.8

   

Liabilities and equity (in €bn)

31/12/2017

31/12/2016

Due to central banks

0.0

0.0

Financial liabilities at fair value through profit and loss

144.9

146.2

Customer deposits and deposits from financial institutions

198.9

187.9

Debt securities

32.6

48.9

Accruals and other liabilities

40.6

48.7

Insurance companies' technical reserves

76.6

68.8

Contingency reserves

1.7

2.0

Subordinated debt

3.7

4.2

Equity attributable to equity holders of the parent

19.8

19.8

Minority interests

1.2

1.3

Total

520.0

527.8

 

 

 

Natixis - 4Q17 P&L by business line

 

 

€m

AWM

CIB

Insurance

SFS

Corporate

 

4Q17

Center

reported

Net revenues

899

817

190

350

251

 

2,506

Expenses

(610)

(567)

(109)

(249)

(201)

 

(1,737)

Gross operating income

289

249

80

101

50

 

769

Provision for credit losses

0

(21)

0

(24)

(20)

 

(65)

Net operating income

289

228

80

77

30

 

704

Associates and other items

3

21

4

(0)

2

 

29

Pre-tax profit

291

249

85

77

32

 

733

 

 

 

 

Tax

 

(139)

    

Minority interests

 

(76)

    

Net income (gs)

 

518

 

 

Asset & Wealth Management

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

4Q17

2016

2017

2017

vs. 4Q16

vs. 2016

Net revenues

658

676

649

735

704

743

766

899

22%

2,718

3,113

15%

Asset management(1)

624

643

615

700

671

713

730

857

23%

2,582

2,972

15%

Wealth management

34

33

34

35

33

30

36

42

20%

136

142

4%

Expenses

(493)

(493)

(471)

(523)

(519)

(521)

(528)

(610)

17%

(1,981)

(2,178)

10%

Gross operating income

165

183

177

211

186

222

239

289

37%

737

936

27%

Provision for credit losses

0

0

0

0

0

0

0

0

 

1

0

 

Net operating income

165

183

177

212

186

223

239

289

36%

738

936

27%

Associates

1

1

1

(12)

0

0

0

1

 

(9)

1

 

Other items

18

(2)

(2)

2

9

0

(1)

2

 

17

10

 

Pre-tax profit

185

182

177

202

195

222

238

291

44%

746

947

27%

Cost/Income ratio

74.9%

72.9%

72.7%

71.2%

73.6%

70.1%

68.8%

67.9%

 

72.9%

69.9%

 

Cost/Income ratio excluding IFRIC 21 effect

74.3%

73.1%

72.9%

71.4%

73.2%

70.2%

69.0%

68.0%

 

72.9%

69.9%

 

RWA (Basel 3 - in €bn)

9.3

10.1

10.2

10.8

10.6

10.2

10.2

11.7

8%

10.8

11.7

8%

Normative capital allocation (Basel 3)

3,703

3,627

3,728

3,727

3,874

3,828

3,715

3,676

(1)%

3,696

3,773

2%

RoE after tax (Basel 3)(2)

11.9%

12.4%

11.2%

10.3%

11.3%

12.5%

13.5%

14.0%

 

11.5%

12.8%

 

RoE after tax (Basel 3) excluding IFRIC 21 effect(2)

12.2%

12.3%

11.1%

10.2%

11.5%

12.4%

13.4%

13.9%

 

11.5%

12.8%

 

 

  1. Asset management including Private equity
  2. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

 

 

 

Corporate & Investment Banking

 

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

4Q17

2016

2017

2017

vs. 4Q16

vs. 2016

Net revenues

769

874

744

883

971

1,019

775

817

(8)%

3,270

3,581

 10%

  Global markets

402

501

405

472

603

547

363

408

(14)%

1,780

1,921

 8%

  FIC-T

287

345

293

312

388

389

253

288

(8)%

1,238

1,317

 6%

  Equity

121

123

99

150

179

172

103

144

(4)%

493

599

 21%

  CVA/DVA desk

(7)

33

13

10

35

(13)

7

(24)

 

49

5

 

  Global finance

301

330

330

320

312

343

315

358

 12%

1,281

1,328

 4%

  Investment banking (1)

54

71

75

85

81

122

85

74

(12)%

285

362

 27%

  Other

12

(28)

(66)

6

(25)

7

12

(24)

 

(75)

(30)

 

Expenses

(515)

(486)

(472)

(573)

(566)

(555)

(506)

(567)

(1)%

(2,046)

(2,194)

 7%

Gross operating income

253

389

272

310

404

464

269

249

(20)%

1,224

1,387

 13%

Provision for credit losses

(71)

(53)

(50)

(21)

(29)

(48)

(16)

(21)

 2%

(195)

(115)

(41)%

Net operating income

182

336

222

290

375

416

253

228

(21)%

1,029

1,272

 24%

Associates

3

4

3

3

3

3

3

3

 

14

10

 

Other items

0

0

0

0

0

0

0

18

 

0

18

 

Pre-tax profit

185

340

225

293

378

418

255

249

(15)%

1,043

1,300

 25%

Cost/Income ratio

67.1%

55.6%

63.4%

64.9%

58.3%

54.4%

65.3%

69.5%

 

62.6%

61.3%

 

Cost/Income ratio excluding IFRIC 21 effect

63.0%

56.7%

64.8%

66.0%

55.5%

55.4%

66.5%

70.6%

 

62.6%

61.3%

 

RWA (Basel 3 - in €bn)

67.0

68.8

64.9

66.1

64.4

61.3

60.4

59.0

(11)%

66.1

59.0

(11)%

Normative capital allocation (Basel 3)

7,276

7,106

7,408

6,997

7,136

6,963

6,623

6,519

(7)%

7,197

6,810

(5)%

RoE after tax (Basel 3)(2)

6.9%

12.9%

8.2%

12.3%

14.7%

16.5%

10.5%

11.8%

 

10.0%

13.5%

 

RoE after tax (Basel 3) excluding IFRIC 21 effect(2)

8.0%

12.5%

7.9%

11.9%

15.7%

16.1%

10.2%

11.4%

 

10.0%

13.5%

 

 

  1. Including M&A
  2. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

 

 


Insurance

 

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

4Q17

2016

2017

2017

vs. 4Q16

vs. 2016

Net revenues

169

158

157

171

189

179

176

190

11%

655

734

12%

Expenses

(99)

(88)

(89)

(102)

(129)

(102)

(99)

(109)

7%

(378)

(439)

16%

Gross operating income

69

70

69

69

60

77

77

80

16%

277

295

6%

Provision for credit losses

0

0

0

0

0

0

0

0

 

0

0

 

Net operating income

69

70

69

69

60

77

77

80

16%

277

295

6%

Associates

3

1

4

2

4

3

2

4

 

9

13

 

Other items

0

0

0

0

0

0

0

0

 

0

0

 

Pre-tax profit

72

71

72

71

65

80

79

85

18%

287

308

7%

Cost/Income ratio

59.0%

55.5%

56.3%

59.5%

68.1%

56.9%

56.2%

57.5%

 

57.6%

59.8%

 

Cost/Income ratio excluding IFRIC 21 effect

54.7%

57.0%

57.9%

60.9%

54.9%

61.5%

60.9%

61.9%

 

57.6%

59.8%

 

RWA (Basel 3 - in €bn)

7.1

6.9

7.2

7.2

7.4

7.2

7.4

7.2

0%

7.2

7.2

0%

Normative capital allocation (Basel 3)

724

836

823

850

857

871

849

875

3%

808

863

7%

RoE after tax (Basel 3)(1)

22.7%

19.9%

20.7%

20.0%

17.7%

21.6%

22.3%

26.7%

 

20.8%

22.1%

 

RoE after tax (Basel 3) excluding IFRIC 21 effect(1)

25.3%

19.1%

19.9%

19.3%

25.6%

19.0%

19.6%

24.2%

 

20.8%

22.1%

 

 

  1. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

 


Specialized Financial Services

 

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

4Q17

2016

2017

2017

vs. 4Q16

vs. 2016

Net revenues

343

342

325

341

344

347

341

350

 3%

1,352

1,382

2%

Specialized financing

215

212

203

210

219

218

215

210

0%

840

862

3%

 Factoring

38

39

39

42

39

39

38

42

(1)%

158

158

0%

Sureties & financial guarantees 

56

43

47

45

55

46

52

47

 2%

191

200

5%

Leasing

52

59

49

54

54

61

52

49

(9)%

213

216

2%

Consumer financing

64

66

63

63

66

65

67

67

 6%

257

265

3%

Film industry financing

5

6

5

6

5

6

5

6

(1)%

21

23

6%

Payments

83

81

80

85

81

83

83

89

 4%

329

336

2%

Financial services

46

49

43

45

44

46

43

51

 12%

183

184

1%

Employee savings  plans

22

25

20

21

21

22

21

26

 25%

89

91

3%

Securities services

24

23

23

24

23

23

22

25

 1%

94

93

(1)%

Expenses

(226)

(222)

(216)

(221)

(233)

(228)

(229)

(249)

 13%

(885)

(939)

6%

Gross operating income

117

120

109

120

112

118

112

101

(16)%

466

443

(5)%

Provision for credit losses

(13)

(17)

(12)

(16)

(21)

(14)

(13)

(24)

 53%

(57)

(73)

27%

Net operating income

104

103

97

105

90

104

99

77

(27)%

409

371

(9)%

Associates

0

0

0

0

0

0

0

0

 

0

0

 

Other items

0

31

0

0

0

0

0

0

 

31

0

 

Pre-tax profit

104

135

97

105

90

104

99

77

(27)%

440

371

(16)%

Cost/Income ratio

65.9%

64.9%

66.5%

64.7%

67.6%

65.8%

67.1%

71.2%

 

65.5%

67.9%

 

Cost/Income ratio excluding IFRIC 21 effect

63.6%

65.7%

67.3%

65.5%

65.6%

66.5%

67.7%

71.8%

 

65.5%

67.9%

 

RWA (Basel 3 - in €bn)

13.7

14.8

14.6

15.4

15.2

16.0

15.7

16.7

 8%

15.4

16.7

8%

Normative capital allocation (Basel 3)

1,698

1,694

1,803

1,782

1,961

1,889

1,907

1,958

 10%

1,745

1,929

11%

RoE after tax (Basel 3)(1)

16.1%

20.8%

14.1%

15.4%

12.6%

15.1%

14.0%

10.7%

 

16.5%

13.0%

 

RoE after tax (Basel 3) excluding IFRIC 21 effect(1)

17.4%

20.4%

13.7%

15.0%

13.6%

14.7%

13.6%

10.3%

 

16.5%

13.0%

 

 

  1. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

 


Corporate Center

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

4Q17

2016

2017

2017

vs. 4Q16

vs. 2016

Net revenues

124

161

48

389

138

122

146

251

(36)%

723

657

(9)%

Coface

162

139

125

203

137

152

167

167

(18)%

629

624

(1)%

Others

(38)

22

(77)

186

1

(30)

(21)

84

(55)%

94

33

(65)%

Expenses

(271)

(234)

(199)

(245)

(324)

(189)

(169)

(201)

(18)%

(948)

(883)

(7)%

Coface

(130)

(127)

(125)

(148)

(122)

(128)

(119)

(114)

(23)%

(530)

(484)

(9)%

SRF

(79)

(35)

0

0

(128)

6

0

0

 

(114)

(122)

 7%

Others

(62)

(71)

(74)

(97)

(74)

(66)

(50)

(87)

(10)%

(305)

(277)

(9)%

Gross operating income

(147)

(72)

(150)

144

(186)

(67)

(23)

50

(65)%

(225)

(226)

0%

Provision for credit losses

(4)

(19)

(7)

(24)

(20)

(5)

(26)

(20)

 

(54)

(71)

 

Net operating income

(151)

(91)

(157)

120

(206)

(72)

(49)

30

(75)%

(279)

(297)

 6%

Associates

0

0

(3)

1

0

0

0

0

 

(2)

1

 

Other items

11

(73)

105

10

1

18

0

2

 

53

20

 

Pre-tax profit

(139)

(164)

(55)

130

(205)

(54)

(49)

32

(76)%

(228)

(275)

 21%

 


4Q17 results: from data excluding non-operating items to reported data

 

 

 

 

 

 

 

 

 

 

 

€m

4Q17 excl.
exceptional items

 

Capital gain

 on the sale

 of 15% stake

in CACEIS

Exchange rate fluctuations

 on DSN in  currencies

Transformation
 & Business Efficiency
investment
 costs

Capital gain on

 the liquidation

 of a holding structure

 

 

4Q17
reported

 

Net revenues

2,450

 

74

(18)

 

 

 

 

2,506

 

Expenses

(1,698)

 

 

 

(39)

 

 

 

(1,737)

 

Gross operating income

753

 

74

(18)

(39)

 

 

 

769

 

Provision for credit losses

(65)

 

 

 

 

 

 

 

(65)

 

Associates and other items

11

 

 

 

 

 18

 

 

29

 

Pre-tax profit

699

 

74

(18)

(39)

18

 

 

733

 

Tax

(153)

 

(9)

8

15

 

 

 

(139)

 

Minority interests

(76)

 

 

 

 

 

 

 

(76)

 

Net income (group share)

470

 

65

(10)

(25)

18

 

 

518

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017 results: from data excluding non-operating items to reported data

 

 

 

 

 

 

 

 

 

 

 

 

 

€m

2017 excl.
exceptional items

 

Capital gain
 on the sale of
15% stake in CACEIS

Exchange rate fluctuations
 on DSN in currencies

Transformation
 & Business Efficiency
investment
 costs

Capital gain on
the liquidation
 of a holding structure

Non-recurring additional C3S(1) resulting from agreement with CNP

 

 

2017  reported

 

 

Net revenues

9,497

 

74

(104)

 

 

 

 

 

9,467

 

 

Expenses

(6,540)

 

 

 

(74)

 

(19)

 

 

(6,632)

 

 

Gross operating income

2,957

 

74

(104)

(74)

 

(19)

 

 

2,835

 

 

Provision for credit losses

(258)

 

 

 

 

 

 

 

 

(258)

 

 

Associates and other items

56

 

 

 

 

18

 

 

 

74

 

 

Pre-tax profit

2,755

 

74

(104)

(74)

18

(19)

 

 

2,651

 

 

Tax

(848)

 

(9)

36

26

 

6

 

 

(789)

 

 

Minority interests

(192)

 

 

 

 

 

 

 

 

(192)

 

 

Net income (group share)

1,715

 

65

(68)

(48)

18

(13)

 

 

1,669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Corporate Social Solidarity Contribution

 

 


Regulatory capital in 4Q17 & financial structure Basel 3

 

Regulatory reporting, in €bn

 

 

Shareholder's equity group share

19.8

Goodwill & intangibles

(3.6)

Dividend

(1.2)

Other deductions

(0.6)

Hybrids restatement in Tier 1(1)

(2.4)

CET1 Capital

12.0

Additional T1

2.3

Tier 1 Capital

14.3

Tier 2 Capital

2.3

Total prudential Capital

16.5

(1) Including capital gain following reclassification of hybrids as equity instruments

 

 

€bn

4Q16
CRD4 phased

1Q17
CRD4 phased

2Q17
CRD4 phased

3Q17
CRD4 phased

4Q17
CRD4 phased

CET1 ratio

10.8%

10.9%

11.2%

11.4%

 10.8%

Tier 1 ratio

12.3%

12.8%

13.1%

13.1%

 12.9%

Solvency ratio

14.5%

15.1%

15.4%

15.3%

 14.9%

Tier 1 capital

14.2

14.6

14.7

14.6

 14.3

RWA  EoP

115.5

114.1

112.6

111.7

 110.7

 

 

 

IFRIC 21 effects by business line

 

Effect in Expenses

 

 

 

 

 

 

 

 

 

 

 

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

 

2016

2017

AWM

(4)

1

1

1

(3)

1

1

1

 

-

-

CIB

(31)

10

10

10

(28)

9

9

9

 

-

-

Insurance

(7)

2

2

2

  (25)(1)

  8(2)

  8(2)

  8(2)

 

-

-

SFS

(7)

2

2

2

(6)

2

2

2

 

-

-

Corporate center

(58)

2

28

28

(94)

34

30

30

 

-

-

Total Natixis

(107)

18

45

45

(156)

55

50

50

 

0

0

 

           

Effect in Net revenues

 

 

 

 

 

 

 

 

 

 

 

 

€m

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

 

2016

2017

SFS (Leasing)

(2)

1

1

1

(1)

0

0

0

 

-

-

Total Natixis

(2)

1

1

1

(1)

0

0

0

 

0

0

 

  1. -€10.9m in recurring expenses and -€14.1m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP
  2. €3.6m in recurring expenses and €4.7m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP

 


Normative capital allocation and RWA breakdown - 31/12/2017

 

€bn

RWA
EoP

in % of

 the total

Average goodwill & intangibles

Average capital allocation

RoE
 after tax
2017

AWM

11.7

12%

2.7

3.8

12.8%

CIB

59.0

62%

0.2

6.8

13.5%

Insurance

7.2

8%

0.1

0.9

22.1%

SFS

16.7

18%

0.3

1.9

13.0%

Total (excl. Corporat center)

94.5

100%

3.3

13.4

 

 

RWA breakdown (€bn)

31/12/2017

Credit risk

78.3

Internal approach

60.8

Standard approach

17.5

Counterparty risk

6.7

Internal approach

5.8

Standard approach

0.9

Market risk

9.7

Internal approach

4.2

Standard approach

5.5

CVA

1.2

Operational risk - Standard approach

14.8

Total RWA

110.7

 

 

Leverage ratio

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

31/12/2017

Tier 1 capital(1)

14.5

Total prudential balance sheet

425.0

Adjustment on derivatives

(41.1)

Adjustment on repos(2)

(31.5)

Other exposures to affiliates

(34.6)

Off balance sheet commitments

35.6

Regulatory adjustments

(4.2)

Total leverage exposures

349.2

Leverage ratio

4.1%

 

(1) Without phase-in except for DTAs on tax loss carryforwards - supposing replacement of existing subordinated issuances when they become ineligible (2) Repos with clearing houses cleared according to IAS32 standard, without maturity or currency criteria

 
Net book value as of December 31, 2017

 

€bn

31/12/2017

Shareholders' equity (group share)

19.8

Deduction of hybrid capital instruments

(2.2)

Deduction of gain on hybrid instruments

(0.2)

Distribution

(1.2)

Net book value

16.2

Restated intangible assets(1)

0.7

Restated goodwill(1)

3.1

Net tangible book value(2)

12.4

 

Net book value per share

5.18

Net tangible book value per share

3.96

 

(1) See note on methodology (2) Net tangible book value = Book value - goodwill - intangible assets

 

 

Earnings per share (2017)

 

€m

31/12/2017

Net income (gs)

1,669

DSN interest expenses on preferred shares after tax

(94)

Net income attributable to shareholders

1,575

 

 

Earnings per share (€)

0.50

 

 

 

Number of shares as of December 31, 2017

 

Average number of shares over the period, excluding treasury shares

3,135,991,405

Number of shares, excluding treasury shares, EoP

3,135,928,302

Number of treasury shares, EoP

1,431,936


Net income attributable to shareholders

 

€m

4Q17

2017

 Net income (gs)

518

1,669

 DSN interest expenses on preferred shares after tax

(22)

(94)

 RoE & RoTE numerator

496

1,575

 

 

Natixis RoTE(1)

 

€m

31/12/2017

Shareholders' equity (group share)

19,795

DSN deduction

(2,401)

Dividends provision

(1,160)

Intangible assets

(694)

Goodwill

(3,129)

RoTE Equity end of period

12,410

Average RoTE equity (4Q17)

12,889

4Q17 RoTE annualized

15.4%

Average RoTE equity (2017)

13,201

2017 RoTE

11.9%

 

 

 

Natixis RoE(1)

 

€m

31/12/2017

Shareholders' equity (group share)

19,795

DSN deduction

(2,401)

Dividends provision

(1,160)

Exclusion of unrealized or deferred gains and losses recognized in equity (OCI)

(489)

 

RoE Equity end of period

15,744

Average RoE equity (4Q17)

16,044

4Q17 RoE annualized

12.4%

Average RoE equity (2017)

16,352

2017 RoE

9.6%

 

 

 

  1. See note on methodology

Doubtful loans(1)

 

 

€bn

31/12/2016

31/12/2017

Provisionable commitments(2)

2.6

2.7 

Provisionable commitments / Gross debt

2.0%

2.3% 

Stock of provisions(3) 

2.1

2.1

Stock of provisions / Provisionable commitments

81%

76% 

 

(1)  On-balance sheet, excluding securities and repos, net of collateral (2) 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. (3) Specific and portfolio-based provisions

 

 

 


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 fourth quarter 2017 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 Wednesday February 14th, 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

 

 

 

 

 

 

Pierre-Alexandre Pechmeze

T + 33 1 58 19 57 36

 

Elisabeth de Gaulle

T + 33 1 58 19 28 09

Damien Souchet

T + 33 1 58 55 41 10

 

Olivier Delahousse

T + 33 1 58 55 04 47

Souad Ed Diaz

Brigitte Poussard

 

T + 33 1 58 32 68 11

T + 33 1 58 55 59 21

 

 

 

Sonia Dilouya

T + 33 1 58 32 01 03

 

www.natixis.com

 

 

 

  

 

 

 




4Q17 AND 2017 RESULTS



This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: NATIXIS, 30 avenue Pierre Mendès, Paris FR-75013, France
If you would like to unsubscribe and stop receiving these e-mails click here.