11/04/2019 16:35:00

Preparation of the 1Q19 Financial Communication

Paris, April 11, 2019

Preparation of the 1Q19 Financial Communication:

The 2018 quarterly series have been restated following the disposal of the retail banking activities (Factoring, Sureties & Financial guarantees, Leasing, Consumer finance and Securities services) to BPCE S.A. finalized on March 31, 2019. The loss of control over these entities being anterior to the transfer date of the securities, Natixis’ published financial statements will not be impacted by the 1Q19 contribution of such subsidiaries as a consequence.

In order to ensure comparability with the published financial statements, the 2018 quarterly series disclosed hereafter have been restated for the contribution of such entities. Over previous periods, such a contribution was supplemented by expenses related to the SFS business line (e.g. Corporate Secretary) that will still impact Natixis’ published financial statements in 1Q19. For the purpose of comparability, such expenses have been restated in the quarterly series disclosed hereafter and will thus be isolated from the net income for the financial communication (a table bridging the gap with the accounting figures will be disclosed).

                  Besides, 1Q19 results will be positively impacted by the disposal of the retail banking activities to BPCE S.A. due to the realization of a capital gain (Gain or loss on other assets - Corporate Center) and tax adjustments (Income tax). These impacts will be booked as exceptional items for financial communication purposes.

Changes in Natixis’ account presentation following the disposal of the retail banking activities to BPCE S.A.

  • Employee savings plan is reallocated to Asset & Wealth Management
  • Film industry financing is reallocated to Corporate & Investment Banking
  • Insurance is not impacted

  • Payments becomes a standalone business line

  • Financial Investments are isolated and include Coface, Natixis Algeria and the private equity run-off activities. The Corporate Center is refocused on Natixis’ holding and ALM functions and carries the Single Resolution Fund contribution within its expenses

Additional impacts on the quarterly series from the disposal of the retail banking activities to BPCE S.A.

  • New support function services provided by Natixis to the activities sold (TSA / SLA), as well as the cancellation of services or analytical items that have been made obsolete following such a disposal are factored in
  • The reclassification as Net revenues of the residual IT and logistic services that continue to be provided to the activities sold. Such services now being provided to entities that do not fall under Natixis’ scope of consolidation anymore, they have been reclassified as Net revenues instead of expense deductions
  • The implementation of introductory fees between the Natixis CIB Coverage and the entities sold

                         

                        In order to ensure comparability between the 2018 and 2019 quarterly series, these impacts have been simulated retroactively as of January 1st, 2018, even though they only impact the published financial statements as of their implementation date in 2019. These items essentially impact the Corporate Center and more marginally the CIB. The others business lines are unimpacted.

                         

                  

Appendix (non-audited):

Update of the 2018 quarterly series following the disposal of the retail banking activities to BPCE S.A

                   

                   

Natixis excl. perimeter sold

       
        

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

2,193

2,360

2,156

2,040

 

8,749

Expenses(1,675)(1,528)(1,499)(1,656) (6,357)

Gross operating income

518

832

658

383

 

2,391

Provision for credit losses(36)(41)(93)(23) (193)

Net operating income

482

791

565

361

 

2,199

Associates73613 29
Gain or loss on other assets64044 54

Pre-tax profit

495

798

570

418

 

2,281

Tax(175)(234)(154)(110) (673)
Minority interests(60)(57)(59)(127) (303)

Net income (group share)

260

507

358

181

 

1,306

RWA (Basel 3 - in €bn)94.196.696.095.2 95.2

AWM

       
        

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

799

842

841

1,032

 

3,513

Asset Management(1)

762

805

805

998

 

3,369

Wealth management

37

37

36

34

 

144

Expenses(548)(569)(584)(642) (2,343)

Gross operating income

251

273

257

389

 

1,170

Provision for credit losses0(1)(1)0 (2)

Net operating income

251

272

256

390

 

1,169

Associates0002 3
Other items0(3)(2)41 37

Pre-tax profit

251

269

255

433

 

1,208

Cost/Income ratio68.6%67.6%69.4%62.3% 66.7%
Cost/Income ratio excl. IFRIC2168.1%67.7%69.6%62.4% 66.7%
RWA (Basel 3 - in €bn)11.711.812.512.3 12.3
Normative capital allocation (Basel 3)4,1434,0654,1504,363 4,180
RoE after tax (Basel 3)(2)13.7%15.2%13.9%19.6% 15.7%
RoE after tax (Basel 3) excl. IFRIC 21(2)14.0%15.1%13.8%19.5% 15.7%
        

(1) Asset management including Private equity and Employee savings plan

(2) Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

 

CIB

       
        

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

944

976

828

518

 

3,266

Global markets

527

457

334

14

 

1,332

  FIC-T

378299252231 1,159

  Equity

14814597(219) 171

  CVA/DVA desk

113(15)2 2

Global finance(1)

341

394

341

362

 

1,438

Investment banking(2)

82

85

78

126

 

372

Other

(7)

41

74

16

 

123

Expenses(566)(551)(525)(559) (2,202)

Gross operating income

378

425

302

(41)

 

1,064

Provision for credit losses(31)(37)(98)(9) (174)

Net operating income

347

388

204

(50)

 

890

Associates4333 12
Other items3000 3

Pre-tax profit

353

391

207

(47)

 

904

Cost/Income ratio60.0%56.4%63.5%107.9% 67.4%
Cost/Income ratio excl. IFRIC2157.7%57.2%64.4%109.4% 67.4%
RWA (Basel 3 - in €bn)59.761.761.261.1 61.1
Normative capital allocation (Basel 3)6,4356,4166,6766,631 6,539
RoE after tax (Basel 3)(3)16.0%17.6%9.0%NR 10.0%
RoE after tax (Basel 3) excl. IFRIC 21(3)17.0%17.2%8.7%NR 10.0%

(1) Global finance includes Film industry financing

(2) Including M&A

(3) Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

Insurance

       
        

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

204

193

192

201

 

790

Expenses(118)(108)(103)(118) (448)

Gross operating income

86

85

89

83

 

342

Provision for credit losses0000 0

Net operating income

86

85

89

83

 

342

Associates3039 15
Other items0000 0

Pre-tax profit

89

85

92

91

 

356

Cost/Income ratio58.0%56.1%53.8%58.9% 56.7%
Cost/Income ratio excl. IFRIC2151.1%58.5%56.2%61.2% 56.7%
RWA (Basel 3 - in €bn)7.37.07.17.3 7.3
Normative capital allocation (Basel 3)853868828841 848
RoE after tax (Basel 3)(1)28.6%26.4%30.3%30.7% 29.0%
RoE after tax (Basel 3) excl. IFRIC 21(1)33.0%24.9%28.8%29.2% 29.0%
        

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

 

 

 

 

Payments

       

 

       

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

93

95

96

105

 

389

Expenses(79)(88)(84)(90) (341)

Gross operating income

14

7

12

15

 

48

Provision for credit losses000(2) (2)

Net operating income

14

7

12

13

 

46

Associates0000 0
Other items0100 1

Pre-tax profit

14

8

12

13

 

47

Cost/Income ratio85.2%92.2%87.6%85.7% 87.6%
Cost/Income ratio excl. IFRIC2184.5%92.4%87.9%85.9% 87.6%
RWA (Basel 3 - in €bn)1.01.21.01.1 1.1
Normative capital allocation (Basel 3)295300352332 320
RoE after tax (Basel 3)(1)12.8%7.4%9.6%10.1% 9.9%
RoE after tax (Basel 3) excl. IFRIC 21(1)13.4%7.2%9.4%9.9% 9.9%
        

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

 

 

  

Financial investments

       
        

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

 190

 174

 197

 181

 

 742

Coface

 177

 156

 180

 165

 

 678

Other

 13

 18

 17

 16

 

 64

Expenses(130)(125)(131)(140) (526)

Gross operating income

 59

 49

 66

 41

 

 215

Provision for credit losses(6)113 (1)

Net operating income

 54

 50

 67

 44

 

 214

Associates 0 0 0 0  0
Other items 2 3 0 0  5

Pre-tax profit

 56

 53

 67

 44

 

 220

RWA (Basel 3 - in €bn)5.35.65.55.6 5.6
        
     

Corporate center

       
        

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

(37)

 79

 3

 3

 

 49

Expenses(232)(87)(71)(107) (497)

SRF

(160)

0

0

0

 

(160)

Other

(73)

(86)

(71)

(107)

 

(337)

Gross operating income

(269)

(7)

(68)

(104)

 

(448)

Provision for credit losses1(4)4(15) (14)

Net operating income

(269)

(11)

(63)

(118)

 

(462)

Associates0000 0
Other items1223 8

Pre-tax profit

(267)

(9)

(62)

(115)

 

(453)

RWA (Basel 3 - in €bn)9.09.48.77.8 7.8

For information purposes, the P&L of the retail banking activities sold to BPCE S.A. over 2018 is as follows:

Perimeter sold

       

 

       

€m

1Q18

2Q18

3Q18

4Q18

 

2018

Net revenues

241

242

242

237

 

963

Expenses(141)(138)(139)(143) (561)

Gross operating income

100

104

103

94

 

401

Provision for credit losses(8)1(9)(6) (22)

Net operating income

92

105

95

88

 

380

Associates00 0
Other items00 0

Pre-tax profit

92

105

94

88

 

380

Tax(29)(32)(30)(17) (108)
Minority interests0000 (1)

Net income (group share)

 62

 73

 64

 71

 

 271

About Natixis

Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the 2nd-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne.

With more than 18,000 employees, Natixis has a number of areas of expertise that are organized into four main business lines: Asset & Wealth Management, Corporate & Investment Banking, Insurance and Payments.

A global player, Natixis has its own client base of companies, financial institutions and institutional investors as well as the client base of individuals, professionals and small and medium-size businesses of Groupe BPCE’s banking networks.

Listed on the Paris stock exchange, it has a solid financial base with a CET1 capital under Basel 3(1) of €12 billion, a Basel 3 CET1 Ratio (1) of 10.8 % and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).

(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in.

Figures as at December 31, 2018

     Contacts

Investor Relations:investorelations@natixis.com 
   
Damien SouchetT + 33 1 58 55 41 10 
Noémie LouvelT + 33 1 78 40 37 87

 

 

    www.natixis.com

Attachment

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