Paris, July 28, 2016
Second-Quarter 2016 and First-Half 2016 Results
REVENUES UP 2% IN 2Q16 DRIVEN BY GOOD CORE-BUSINESS MOMENTUM
Reported NET INCOME of €381m in 2Q16
CORE-BUSINESSES : STRONg MOMENTUM IN CORPORATE & INVESTMENT BANKING in 2Q16
· Investment Solutions: resilience of Asset Management and continued rollout of Insurance offering in the Caisses d'Epargne network
Asset Management: €787bn of assets under management at June 30, 2016, €10bn higher than at end-March 2016 with limited outflow of €2bn in 2Q16
Insurance: momentum from all segments lifted overall turnover to €1.7bn in 2Q16, up 12% yoy, excluding reinsurance agreement with CNP
- Corporate & Investment Banking: marked rebound in Capital Markets activities
Capital Markets: FIC-T posted excellent performances in 2Q16, soaring 35% vs. 2Q15, while Equities continued to grow (up 4% vs. 2Q15 in revenues)
Structured Financing: increased contribution of fees in revenues to 39% in 2Q16 vs. 37% in 2015
- Specialized Financial Services: robust performances in Specialized Financing
Brisk production in the Leasing segment (+7% vs. 2Q15), and 22% yoy growth in factored turnover
Sharp improvement in ROTE(1,2) to 11.7% in 2Q16 (+70bps yoy)
· Natixis' revenues over €2.2bn in 2Q16, up 2% yoy and up 7% qoq. Expense growth (excluding IFRIC 21) restricted to 3% vs. 1Q16
· Core-business revenues of nearly €2.1bn in 2Q16, up 2% yoy and 6% qoq
· Restated net income (group share and excluding the IFRIC 21 impact) up 5% to €400m. Reported net income (group share) of €381m in 2Q16, including a €31m negative impact from a goodwill writedown on Coface
· Restated net income (group share and excluding the IFRIC 21 impact) almost stable to €711m in 1H16, showing the strong resilience of the business model in a difficult environment
REINFORCED SOLVENCY and DIVIDEND POLICY CONFIRMED
· CET1 ratio of 11.3%(3) at end-June 2016, before factoring in the dividend
· Leverage ratio(1) kept above 4% at end-June 2016
· 65bps of CET1 ratio generated so far in 2016, equivalent to €730m (€0.24 per share), of which €440m above the minimum payout of 50%, distributable in the absence of acquisitions
(1) See note on methodology (2) Excluding IFRIC 21 (3) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in except for DTAs on tax-loss carryforwards and pro forma of additional phase-in of DTAs following ECB regulation 2016/445
The Board of Directors examined Natixis' second-quarter 2016 accounts.
For Natixis, the main features of 2Q16 were (1):
- 2% increase in Natixis' net revenues and core-business revenues to €2.224bn and €2.060bn, respectively, relative to 2Q15.
Within the Investment Solutions core business, Asset Management recorded limited outflow of €2bn and €10bn growth in AuM relative to end-March 2016, thanks notably to a positive exchange-rate effect.
Insurance continued to enjoy sustained momentum in all segments and the life insurance offering was rolled out in half of Caisses d'Epargne network at end-June 2016. Overall Insurance turnover (excluding the reinsurance treaty with CNP) climbed 12% vs. 2Q15.
In Corporate & Investment Banking, new Structured Financing production amounted to €7.5bn, largely thanks to Real Estate Finance Europe, Acquisitions & Strategic Finance and GEC Trade (Global Energy & Commodities). In the Capital Markets segment, the quarter featured significant year-on-year growth in Rates & Forex and further development in M&A.
In Specialized Financial Services, solid performances in Leasing and Factoring showed up in a 4% rise in net revenues from Specialized Financing.
- a 4% increase in expenses relative to a year earlier, excluding the €35m additional contribution to the Single Resolution Fund during the quarter,
- an €88m provision for credit loss reflecting the end of provisioning efforts in the Oil and Gas sector,
- restated net income (group share) and excluding the IFRIC 21 impact of €400m, up 5% relative to 2Q15,
- reported net income (group share) of €381m, including a goodwill impairment on Coface, with a negative impact of €31m,
- a leverage ratio(1) of 4.1% at end-June 2016,
- a CET1 ratio(2) of 11.0% at end-June 2016.
Laurent Mignon, Natixis Chief Executive Officer, said: "Thanks to our balanced business model and the unrelenting efforts of our teams, our three core businesses continue to expand in a manner perfectly consistent with our strategic objectives. This enables us to confirm our ability to attain the profitability targets enshrined in the New Frontier strategic plan. To accelerate the transformation of Natixis' business, we intend to continue to develop the business of Investment Solutions, to deepen revenue synergies with Group BPCE retail networks and to adapt our asset-light model in Corporate & Investment Banking by adopting a more cross-cutting organization geared to expanding our origination capacity. In addition, in recognition of the structural changes being driven by new technologies in all of our business lines and processes, we are currently working on a transformation and operational excellence project due to be presented this November."
- See note on methodology
- Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in except for DTAs on tax-loss carryforwards and pro forma of additional phase-in of DTAs following ECB regulation 2016/445
1 - Natixis 2Q16 and 1H16 results
1.1 exceptional items(1)
In €m | 2Q16 | 2Q15 | 1H16 | 1H15 | ||
FV adjustment on own senior debt Corporate Center (Net revenues) | (20) | 125 | (26) | 130 | ||
Restatement for exchange rate fluctuations on DSN in currencies Corporate Center (Net revenues) | 8 | (11) | (7) | 24 | ||
Goodwill impairment on Coface Financial Investments (Change in value of goodwill) | (75) | (75) | ||||
Disposal of Corporate Data Solutions entity (Kompass International) Financial Investments (Gain or loss on other assets) | (30) | (30) | ||||
Tax impact | 4 | (39) | 11 | (53) | ||
Minority interest impact | 44 | 44 | ||||
Impact in net income | (39) | 45 | (53) | 72 |
- See note on methodology
1.2 2Q16 results
Pro forma(1) and excluding exceptional items in €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | |||||
Net revenues | 2,224 | 2,187 | 2% | |||||
of which core businesses | 2,060 | 2,023 | 2% | |||||
Expenses | (1,522) | (1,431) | 6% | |||||
Gross operating income | 702 | 756 | (7)% | |||||
Provision for credit losses | (88) | (64) | 38% | |||||
Pre-tax profit | 651 | 705 | (8)% | |||||
Income tax | (215) | (273) | (21)% | |||||
Minority interest | (16) | (27) | (41)% | |||||
Restated net income (gs) | 420 | 405 | 4% | |||||
In €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | |||||
Restatement of IFRIC 21 impact | (20) | (26) | ||||||
Restated net income (gs) - excl. IFRIC 21 impact | 400 | 379 | 5% | |||||
ROTE excluding IFRIC 21 impact | 11.7% | 11.0% | ||||||
In €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | |||||
Exceptional items | (39) | 45 | ||||||
Reinstatement of IFRIC 21 impact | 20 | 26 | ||||||
Net income (gs) - reported | 381 | 450 | (15)% |
- See note on methodology
Unless stated otherwise, the commentary that follows refers to pro forma results excluding exceptional items (see detail p3).
Natixis' net revenues amounted to €2.224bn in 2Q16, up 2% vs. 2Q15. Core-business revenues also progressed by 2% during the same period.
Net revenues from Investment Solutions amounted to €832m, including a modest 2% decline in Asset Management revenues and stable Insurance revenues compared to 2Q15. Fueled by excellent momentum in Capital Markets, Corporate & Investment Banking grew revenues 5% year-on-year to €887m (+1% excluding the CVA/DVA desk).
Revenues from Specialized Financial Services progressed by 2%, driven by good performances in Specialized Financing, which increased net revenues by 4% during the period.
Revenues from Financial Investments were down 21% vs. 2Q15, with net revenues contracting 17% for Coface and 54% for the non-core Corporate Data Solutions activity.
Operating expenses rose 6% year-on-year to reach €1.522bn in 2Q16. After adjusting for the €35m additional contribution to the Single Resolution Fund during 2Q16, operating expenses were up 4% compared to a year earlier.
Gross operating income came out at €702m vs. €756m in 2Q15.
The provision for credit loss rose 38% year-on-year to €88m.
Pre-tax profit of €651m was 8% lower than a year earlier, primarily due to the deterioration in Coface's accounts (booked under Financial Investments), which were affected by rising losses in emerging markets, and also to the additional contribution to the Single Resolution Fund booked under the Corporate Center.
Core-business pre-tax profit rose 2% during the same period.
Restated net income excluding exceptional items and IFRIC 21 amounted to €400m in 2Q16, up 5% on a year earlier.
Including exceptional items (-€39m net of tax in 2Q16 vs. +€45m in 2Q15) and IFRIC 21 (+€20m in 2Q16 vs. +€26m in 2Q15), reported net income (group share) worked out to €381m vs. €450m in 2Q15.
1.3 1H16 results
Pro forma(1)and excluding exceptional items In €m | 1H16 | 1H15 | 1H16 vs. 1H15 | |||||
Net revenues | 4,307 | 4,336 | (1)% | |||||
of which core businesses | 4,009 | 3,976 | 1% | |||||
Expenses | (3,127) | (2,984) | 5% | |||||
Gross operating income | 1,180 | 1,352 | (13)% | |||||
Provision for credit losses | (176) | (141) | 25% | |||||
Pre-tax profit | 1,078 | 1,232 | (13)% | |||||
Income tax | (395) | (498) | (21)% | |||||
Minority interest | (50) | (69) | (27)% | |||||
Restated net income (gs) | 633 | 665 | (5)% | |||||
In €m | 1H16 | 1H15 | 1H16 vs. 1H15 | |||||
Restatement of IFRIC 21 impact | 78 | 52 | 51% | |||||
Restated net income (gs) - excl. IFRIC 21 impact | 711 | 717 | (1)% | |||||
ROTE excluding IFRIC 21 impact | 10.4% | 10.4% | ||||||
In €m | 1H16 | 1S15 | 1S16 vs. 1H15 | |||||
Exceptional items | (53) | 72 | ||||||
Reinstatement of IFRIC 21 impact | (78) | (52) | 51% | |||||
Net income (gs) - reported | 581 | 737 | (21)% |
- See note on methodology
Unless stated otherwise, the commentary that follows refers to pro forma results excluding exceptional items (see detail p3).
During 1H16 and despite a difficult start to 2016, core-business revenues progressed 1% year-on-year to €4.009bn, fueled primarily by Capital Markets, Insurance and Specialized Financing.
Natixis' revenues amounted to €4.307bn, down slightly vs. 1H15.
The Investment Solutions core business posted €1.656bn in revenues, including a moderate 2% decrease in Asset Management and 9% growth in Insurance.
Net revenues from Corporate & Investment Banking totaled €1.668bn and were fueled by strong levels of Fixed Income business and a widely-diversified portfolio of activities.
Specialized Financial Services grew revenues 4% to €684m, buoyed by an 8% expansion in Specialized Financing revenues during the same period.
Revenues from Financial Investments worked out to €338m and included year-on-year contractions of 17% for Coface and 40% for the non-core Corporate Data Solutions activity.
Operating expenses totaled €3.127bn vs. €2.984bn in 1H15. After adjusting for the contribution to the Single Resolution Fund (€114m in 1H16 vs. €48m in 1H15), operating expenses increased by 3% compared to a year earlier. Gross operating income contracted 13% year-on-year to €1.180bn.
The provision for credit loss rose to €176m, primarily due to €72m provisioning in Oil & Gas sector.
Pre-tax profit declined 13% on a year earlier to €1.078bn. Core-business pre-tax profit was €1.308bn, virtually unchanged from 1H15.
Restated net income excluding exceptional items and IFRIC 21 impact amounted to €711m in 1H16, almost stable on a year earlier despite strong increase of Single Resolution Fund contribution.
Including exceptional items (-€53m net of tax in 1H16 vs. +€72m in 1H15) and IFRIC 21 (-€78m in 1H16 vs. -€52m in 1H15), reported net income (group share) worked out to €581m vs. €737m in 1H15.
2 - Financial structure
Natixis' Basel 3 CET1 ratio (1) worked out to 11.0% at June 30, 2016.
Based on a Basel 3 CET1 ratio (1) of 10.8% at March 31, 2016, the respective impacts in the second quarter of 2016 were as follows:
- effect of allocating net income (group share) to retained earnings in 2Q16, excluding the dividend: +34bps,
- ordinary dividend planned for 2Q16: -17bps,
- RWA, FX and other effects: +2bps.
Basel 3 capital and risk-weighted assets (1) amounted to €12.4bn and €112.9bn, respectively, at June 30, 2016.
EQUITY CAPITAL - TIER ONE CAPITAL - BOOK VALUE PER SHARE
Equity capital (group share) totaled €18.8bn at June 30, 2016, of which €1.68bn was in the form of hybrid securities (DSNs) recognized in equity capital at fair value.
Core tier 1 capital (Basel 3 - phase-in) stood at €12.5bn, and tier 1 capital (Basel 3 - phase-in) at €14.3bn.
Natixis' risk-weighted assets totaled €112.9bn at June 30, 2016 (Basel 3 - phase-in), breakdown as following:
- Credit risk: €75.8bn
- Counterparty risk: €8.7bn
- CVA risk: €3.7bn
- Market risk: €12.0bn
- Operational risk: €12.7bn
Under Basel 3 (phase-in), the CET1 ratio amounted to 11.1%, the Tier 1 ratio to 12.6% and the total ratio to 15.0% at June 30, 2016.
Book value per share was €5.40 at June 30, 2016 based on 3,126,429,212 shares excluding treasury stock (the total number of shares stands at 3,129,085,133). Net tangible book value per share (after deducting goodwill and intangible fixed assets) was €4.25.
LEVERAGE RATIO(2)
The leverage ratio worked out to 4.1% at June 30, 2016.
OVERALL CAPITAL ADEQUACY RATIO
As at June 30, 2016, the financial conglomerate's capital excess was estimated at around €6bn.
- Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in except for DTAs on tax-loss carryforwards and pro forma of additional phase-in of DTAs following ECB regulation 2016/445
- See note on methodology
3 - results by Business line
Investment Solutions
In €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | 1H16 | 1H16 vs. 1H15 | 1H16 vs. 1H15 constant exchange rates | ||
Net revenues | 832 | 846 | (2)% | 1,656 | (1)% | (1)% | ||
o/w Asset management | 623 | 633 | (2)% | 1,249 | (2)% | (2)% | ||
o/w Insurance | 156 | 156 | stable | 322 | 9% | |||
o/w Private banking | 33 | 36 | (8)% | 67 | (3)% | |||
Expenses | (579) | (576) | 1% | (1,169) | 1% | 1% | ||
Gross operating income | 253 | 270 | (6)% | 487 | (4)% | (5)% | ||
Provision for credit losses | 0 | 0 | 0 | |||||
Gain or loss on other assets | (1) | 0 | 19 | |||||
Pre-tax profit | 253 | 275 | (8)% | 509 | (2)% | (2)% | ||
Cost/Income ratio(1) | 70.0% | 68.5% | +1.5pp | 70.1% | +1.1pp | |||
ROE after tax(1) | 13.8% | 17.0% | (3.2)pp | 14.2% | (2.2)pp |
- See note on methodology and excluding IFRIC 21 impact
Investment Solutions recorded revenues of €832m in 2Q16 and €1.656bn in 1H16, down by 2% and 1%, respectively. In Asset Management, robust 15% revenue growth in Europe in 1H16 virtually offset the slowdown in the US, where net revenues fell 8% in the same period. Insurance enjoyed healthy momentum in all segments and continued to roll out its solutions to the Caisses d'Epargne, with 2,300 branches equipped by end-June 2016.
Operating expenses were virtually unchanged in both 2Q16 and 1H16, at €579m and €1.169bn, respectively. The cost-income ratio excluding the IFRIC 21 impact worked out to 70.0% in 2Q16, up 1.5pps on a year earlier.
Gross operating income came to €253m, down 6% vs. 2Q15.
Pre-tax profit also totaled €253m vs. €275m in 2Q15.
ROE after tax and before the IFRIC 21 impact was 13.8% in 2Q16 and 14.2% in 1H16, down 3.2pps and 2.2pps on a year earlier.
Asset Management registered in 2Q16 a small net inflow in Europe (excluding money-market funds) and a €1.6bn outflow in the US which was primarily concentrated on Harris's equity products. Loomis Sayles recorded inflow in fixed-income (+€3.1bn) and kept a good momentum in equity (+€1.3bn net inflow) in 2Q16.
Assets under management expanded €10bn in 2Q16 to reach €787bn at end-June 2016. This growth reflected positive market and currency effects (€5bn and €10bn, respectively), a €3bn negative consolidation-structure effect linked to the shutdown of Aurora and €2bn overall net outflow.
Net revenues decreased 2% year-on-year to €623m in 2Q16, primarily due to a 10% year-on-year decline in assets under management in the US.
Overall Insurance turnover (excluding the reinsurance treaty with CNP), advanced 16% year-on-year to reach €3.5bn in 1H16.
In the life insurance segment, again excluding the reinsurance treaty with CNP, net inflow exceeded €1bn in 1H16 vs. €0.7bn in 1H15, Unit-linked policies accounted for 37% of net inflows during the quarter. Assets under management rose 5% year-on-year to €45.5bn end of June 2016.
Turnover advanced 8% in P&C segment and by 9% in Personal Protection and Borrower's insurance segments in 1H16/1H15. 2/2
Corporate & Investment Banking
In €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | 1H16 | 1H16 vs. 1H15 | ||
Net revenues | 887 | 842 | 5% | 1,668 | 1% | ||
Net revenues excl. CVA/DVA desk | 854 | 845 | 1% | 1,642 | stable | ||
o/w Commercial banking | 82 | 100 | (18)% | 163 | (14)% | ||
o/w Structured financing | 293 | 305 | (4)% | 551 | (6)% | ||
o/w Capital markets | 539 | 410 | 31% | 969 | 10% | ||
Expenses | (482) | (459) | 5% | (994) | 4% | ||
Gross operating income | 405 | 383 | 6% | 675 | (3)% | ||
Provision for credit losses | (53) | (40) | 32% | (124) | 18% | ||
Pre-tax profit | 356 | 348 | 2% | 558 | (7)% | ||
Cost/Income ratio(1) | 55.5% | 55.8% | (0.3)pp | 58.3% | +1.9pp | ||
ROE after tax(1) | 13.8% | 11.6% | +2.2pp | 11.4% | +0.4pp |
- See note on methodology and excluding IFRIC 21 impact
Corporate & Investment Banking revenues rose 5% in 2Q16 and 1% in 1H16 compared to the respective year-earlier periods.
Thanks to strong recoveries in Capital Markets & Structured Financing in 2Q16 vs. 1Q16, Corporate & Investment Banking grew net revenues 8% between the two periods, excluding the CVA/DVA desk.
The increases in operating expenses of 5% in 2Q16 and 4% in 1H16, stemmed from the model transformation and the continued ramp-up of international platforms.
Gross operating income advanced 6% to €405m in 2Q16.
The provision for credit loss amounted to €53m in 2Q16, including the end of provisioning effort in Oil & Gas sector amounting at €26m.
In 2Q16, pre-tax profit grew 2% to €356m over one year.
Good performances in Capital Markets and the strict capital allocation induced by the Originate-to-Distribute model combined to drive a healthy 2.2pp-improvement in after-tax ROE to 13.8%, excluding the IFRIC 21 impact.
Financing revenues worked out to €375m in 2Q16 vs. €405m in 2Q15 and €339m in 1Q16.
Structured Financing generated €293m in revenues in 2Q16, down 4% vs. 2Q15, but up 13% vs. 1Q16. New loan production reached €7.5bn in 2Q16, well ahead of the €4.5bn in the first three months of 2016. The Acquisitions & Strategic Finance, Real Estate Finance Europe and GEC Trade Finance lines were the main contributors during the quarter.
In Commercial Banking, new loan production retreated 23% to €6.2bn in 1H16.
Capital Markets enjoyed strong revenue growth in 2Q16 (+31% vs. 2Q15), fueled by a 35% rise in FIC-T net revenues to €330m, excluding CVA/DVA desk. Revenues grew particularly strongly in Rate & Forex (+64% in 2Q16 vs. 2Q15) and GSCS (+14% in 2Q16 vs. 2Q15).
Equity divisions posted €176m in net revenues for 2Q16, a 4% year-on-year increase. Equity Derivatives continued to grow and M&A demonstrated strong momentum thanks to Natixis Partners.
Specialized Financial Services
In €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | 1H16 | 1H16 vs. 1H15 | ||
Net revenues | 341 | 335 | 2% | 684 | 4% | ||
Specialized financing | 211 | 203 | 4% | 425 | 8% | ||
Financial services | 130 | 133 | (2)% | 258 | (2)% | ||
Expenses | (220) | (211) | 5% | (446) | 4% | ||
Gross operating income | 121 | 125 | (3)% | 238 | 4% | ||
Provision for credit losses | (17) | (20) | (16)% | (29) | (13)% | ||
Gain or loss on other assets | 31 | 0 | 31 | ||||
Pre-tax profit | 135 | 105 | 29% | 240 | 22% | ||
Cost/Income ratio(1) | 65.4% | 63.7% | +1.7pp | 64.4% | +0.2pp | ||
ROE after tax(1)(2) | 16.3% | 15.4% | +0.9pp | 17.3% | +2.0pp |
- See note on methodology and excluding IFRIC 21 impact
- Excluding capital gain on real-estate asset in 2Q16
Revenues from Specialized Financial Services amounted to €341m in 2Q16, up 2% relative to 2Q15. The momentum came from solid performances in Specialized Financing, which grew revenues 4% during the period.
Expenses rose 5% year-on-year to €220m and the cost-income ratio excluding IFRIC 21 worked out to 65.4% in 2Q16. Gross operating income dipped 3% to €121m from €125m.
The provision for credit loss contracted 16% year-on-year to €17m in 2Q16 vs. €20m in 2Q15.
Pre-tax profit climbed 29% in 2Q16 vs. 2Q15, after recognition in gains/losses on other assets of a €31m capital gain on a real-estate asset.
After restating this capital gain, after-tax ROE excluding IFRIC 21 worked out to 16.3% in 2Q16 and 17.3% in 1H16.
Within Specialized Financing, new production in Leasing increased 7% year-on-year in 2Q16, thanks to strong momentum from the Groupe BPCE networks in the Equipment Leasing segment. In Factoring, the 22% rise in factored turnover in 2Q16 was notably buoyed by large accounts.
In Financial Services, Employee Savings Schemes recorded strong growth in Chèque de Table meal voucher issuance in both 2Q16 (+9%) and 1H16 (+7%), while Payments witnessed an 8% increase in the number of electronic banking transactions during the quarter.
Financial Investments
Data excludes exceptional items(1)
In €m | 2Q16 | 2Q15 | 2Q16 vs. 2Q15 | 1H16 | 1H16 vs. 1H15 | |||
Net Revenues | 155 | 197 | (21)% | 338 | (20)% | |||
Coface | 133 | 161 | (17)% | 289 | (17)% | |||
Corporate Data Solutions | 9 | 20 | (54)% | 24 | (40)% | |||
Other | 12 | 16 | (22)% | 25 | (32)% | |||
Expenses | (153) | (167) | (8)% | (315) | (9)% | |||
Gross Operating Income | 1 | 30 | (95)% | 23 | (71)% | |||
Provision for credit losses | (18) | (4) | (24) | |||||
Pre-tax profit | (16) | 26 | 10 | (86)% |
(1) See note on methodology
On a constant exchange-rate basis, Coface's turnover amounted to €362m in 2Q16, down 2% on 2Q15. In current exchange-rate terms, it fell 5% to €352m during the same period.
The combined ratio net of reinsurance worked out to 97.7% in 2Q16 vs. 86.4% in 2Q15, and comprised a cost ratio of 30.8% and a loss ratio of 66.9% compared to corresponding ratios of 32.1% and 54.3%, respectively, in 2Q15.
Revenues from Financial Investments were down 21% year-on-year in 2Q16 including the non-core Corporate Data Solutions activity.
Gross operating income came out at €1m in 2Q16, well down on the year-earlier level.
Appendices
Note on methodology:
The results at 06/30/2016 were examined by the board of directors at their meeting on 07/28/2016.
Figures at 06/30/2016 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.
2015 figures are presented pro forma:
- For the reclassification of the contribution to the Single Resolution Fund to current profit (previously booked under exceptional items). The contribution is registered under Corporate Center expenses. The 2015 quarterly series have been restated accordingly.
- For the transfer of some expenses from Corporate Center to SFS. The 2015 series have been restated accordingly.
Changes in rules as of January 1, 2016:
The cost of subordination of Tier 2 debt issued, previously allocated to Corporate Center, is now reallocated to the business lines based on their normative capital. Application of an accounting change in 2015 due to the recognition of tax amortization of goodwill under deferred tax liability in the Investment Solutions division leading to an increase of the normative tax rate, and conversely to a decrease of the normative capital allocation.
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% 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 3%.
- 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 intangible assets and goodwill restated as follows:
In €m | 06/30/2016 |
Intangible assets | 756 |
Restatement for Coface minority interest | (39) |
Restated intangible assets | 716 |
In €m | 06/30/2016 |
Goodwill | 3,524 |
Restatement for Coface minority interest | (165) |
Restatement for Investment Solutions deferred tax liability | (504) |
Restated goodwill | 2,855 |
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).
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.
Exceptional items: figures and comments on this presentation 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 presentation.
Restatement for IFRIC 21 impact: the cost/income ratio and the ROE excluding IFRIC 21 impact calculation take into account as of June 30th 2016, half of the annual duties and levies concerned by this new 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.
2Q16 results: from data excluding exceptional items(1) to reported data
in €m | 2Q16 excl. exceptional items | FV Adjustment on own senior debt | Exchange rate fluctuations on DSN in currencies | Impairment in Coface goodwill | 2Q16 reported | ||||
Net revenues | 2,224 | (20) | 8 | 2,211 | |||||
Expenses | (1,522) | (1,522) | |||||||
Gross operating income | 702 | (20) | 8 | 689 | |||||
Provision for credit losses | (88) | (88) | |||||||
Associates | 7 | 7 | |||||||
Gain or loss on other assets | 31 | 31 | |||||||
Change in value of goodwill | 0 | (75) | (75) | ||||||
Pre-tax profit | 651 | (20) | 8 | (75) | 564 | ||||
Tax | (215) | 7 | (3) | (211) | |||||
Minority interest | (16) | 44 | 28 | ||||||
Net income (group share) | 420 | (13) | 5 | (31) | 381 | ||||
1H16 results: from data excluding exceptional items(1) to reported data
in €m | 1H16 excl. non exceptional items | FV Adjustment on own senior debt | Exchange rate fluctuations on DSN in currencies | Impairment in Coface goodwill | 1H16 reported | ||||
Net revenues | 4,307 | (26) | (7) | 4,274 | |||||
Expenses | (3,127) | (3,127) | |||||||
Gross operating income | 1,180 | (26) | (7) | 1,147 | |||||
Provision for credit losses | (176) | (176) | |||||||
Associates | 14 | 14 | |||||||
Gain or loss on other assets | 60 | 60 | |||||||
Change in value of goodwill | 0 | (75) | (75) | ||||||
Pre-tax profit | 1,078 | (26) | (7) | (75) | 970 | ||||
Tax | (395) | 9 | 2 | (383) | |||||
Minority interest | (50) | 44 | (6) | ||||||
Net income (group share) | 633 | (17) | (5) | (31) | 581 | ||||
- See note on methodology
Natixis - Consolidated
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 2Q16 vs. 2Q15 | 1H15 | 1H16 | 1H16 vs. 1H15 | |||
Net revenues | 2,190 | 2,301 | 1,969 | 2,244 | 2,063 | 2,211 | (4)% | 4,491 | 4,274 | (5)% | |||
Expenses | (1,553) | (1,431) | (1,393) | (1,578) | (1,605) | (1,522) | 6% | (2,984) | (3,127) | 5% | |||
Gross operating income | 637 | 870 | 576 | 666 | 458 | 689 | (21)% | 1,507 | 1,147 | (24)% | |||
Provision for credit losses | (78) | (64) | (83) | (66) | (88) | (88) | 38% | (141) | (176) | 25% | |||
Associates | 9 | 13 | 8 | 16 | 8 | 7 | (49)% | 22 | 14 | (36)% | |||
Gain or loss on other assets | 0 | (30) | 2 | (3) | 29 | 31 | (30) | 60 | |||||
Change in value of goodwill | 0 | 0 | 0 | 0 | 0 | (75) | 0 | (75) | |||||
Pre-tax profit | 568 | 789 | 502 | 614 | 407 | 564 | (29)% | 1,357 | 970 | (29)% | |||
Tax | (239) | (312) | (190) | (230) | (172) | (211) | (32)% | (551) | (383) | (30)% | |||
Minority interest | (42) | (27) | (20) | (68) | (34) | 28 | (69) | (6) | (91)% | ||||
Net income (group share) | 287 | 450 | 291 | 316 | 200 | 381 | (15)% | 737 | 581 | (21)% |
Natixis - Breakdown by Business division in 2Q16
in €m | Investment Solutions | CIB | SFS | Financial Investments | Corporate Center | Natixis reported | |
Net revenues | 832 | 887 | 341 | 155 | (3) | 2,211 | |
Expenses | (579) | (482) | (220) | (153) | (87) | (1,522) | |
Gross operating income | 253 | 405 | 121 | 1 | (91) | 689 | |
Provision for credit losses | 0 | (53) | (17) | (18) | 0 | (88) | |
Net operating income | 253 | 352 | 104 | (17) | (91) | 601 | |
Associates | 2 | 4 | 0 | 0 | 0 | 7 | |
Other items | (2) | 0 | 31 | (75) | 2 | (44) | |
Pre-tax profit | 253 | 356 | 135 | (91) | (89) | 564 | |
Tax | (211) | ||||||
Minority interest | 28 | ||||||
Net income (gs) | 381 |
IFRIC 21 effects by business line(1)
Effect in Expenses | |||||||||
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 1H15 | 1H16 | |
Investment Solutions | (10) | 3 | 3 | 3 | (11) | 4 | (7) | (8) | |
CIB | (33) | 11 | 11 | 11 | (31) | 10 | (22) | (21) | |
Specialized Financial Services | (7) | 2 | 2 | 2 | (7) | 2 | (5) | (5) | |
Financial Investments | (2) | 1 | 1 | 1 | (2) | 1 | (1) | (1) | |
Corporate center | (33) | 11 | 11 | 11 | (57) | 1 | (22) | (55) | |
Total Natixis | (86) | 29 | 29 | 29 | (107) | 18 | (57) | (89) | |
Effect in Net Revenues | |||||||||
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 1H15 | 1H16 | |
Specialized Financial Services (Leasing) | (2) | 1 | 1 | 1 | (2) | 1 | (1) | (1) | |
Total Natixis | (2) | 1 | 1 | 1 | (2) | 1 | (1) | (1) |
- See note on methodology
Investment Solutions
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 2Q16 vs. 2Q15 | 1H15 | 1H16 | 1H16 vs. 1H15 | |
Net revenues | 823 | 846 | 840 | 1,006 | 825 | 832 | (2)% | 1,669 | 1,656 | (1)% | |
Asset Management | 639 | 633 | 666 | 817 | 626 | 623 | (2)% | 1,272 | 1,249 | (2)% | |
Private Banking | 34 | 36 | 34 | 41 | 34 | 33 | (8)% | 70 | 67 | (3)% | |
Insurance | 140 | 156 | 141 | 146 | 167 | 156 | flat | 296 | 322 | 9% | |
Expenses | (583) | (576) | (569) | (648) | (590) | (579) | 1% | (1,159) | (1,169) | 1% | |
Gross operating income | 240 | 270 | 271 | 357 | 234 | 253 | (6)% | 510 | 487 | (4)% | |
Provision for credit losses | (1) | 0 | 3 | 1 | 0 | 0 | (1) | 0 | |||
Net operating income | 239 | 270 | 274 | 358 | 234 | 253 | (6)% | 510 | 487 | (4)% | |
Associates | 5 | 7 | 4 | 6 | 4 | 2 | (69)% | 12 | 6 | (49)% | |
Other items | (2) | (2) | (2) | (2) | 18 | (2) | 23% | (4) | 16 | ||
Pre-tax profit | 242 | 275 | 276 | 362 | 256 | 253 | (8)% | 518 | 509 | (2)% | |
Cost/Income ratio | 70.8 % | 68.1 % | 67.7 % | 64.5 % | 71.6 % | 69.6 % | 69.4 % | 70.6 % | |||
Cost/Income ratio excluding IFRIC 21 effect | 69.6 % | 68.5 % | 68.1 % | 64.8 % | 70.2 % | 70.0 % | 69.0 % | 70.1 % | |||
RWA (Basel 3 - in €bn) | 14.7 | 14.3 | 14.4 | 15.3 | 16.4 | 17.0 | 19% | 14.3 | 17.0 | 19% | |
Normative capital allocation (Basel 3) | 3,899 | 4,170 | 4,666 | 4,672 | 4,350 | 4,381 | 5% | 4,034 | 4,366 | 8% | |
ROE after tax (Basel 3)(1) | 15.1 % | 17.2 % | 14.4 % | 16.6 % | 13.9 % | 14.0 % | 16.2 % | 13.9 % | |||
ROE after tax (Basel 3) excluding IFRIC 21 effect(1) | 15.8 % | 17.0 % | 14.2 % | 16.4 % | 14.5 % | 13.8 % | 16.4 % | 14.2 % |
- Normative capital allocation methodology based on 10% of the average RWA-including goodwill and intangibles
Corporate & Investment Banking
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 2Q16 vs. 2Q15 | 1H15 | 1H16 | 1H16 vs. 1H15 | |
Net revenues | 806 | 842 | 665 | 742 | 782 | 887 | 5% | 1,648 | 1,668 | 1% | |
Commercial Banking | 89 | 100 | 92 | 83 | 81 | 82 | (18)% | 189 | 163 | (14)% | |
Structured Financing | 284 | 305 | 277 | 282 | 258 | 293 | (4)% | 588 | 551 | (6)% | |
Capital Markets | 468 | 410 | 286 | 378 | 430 | 539 | 31% | 878 | 969 | 10% | |
FIC-T | 331 | 241 | 178 | 256 | 296 | 363 | 51% | 571 | 659 | 15% | |
Equity | 138 | 169 | 108 | 122 | 135 | 176 | 4% | 307 | 310 | 1% | |
Other | (35) | 27 | 11 | (1) | 12 | (26) | (7) | (14) | 90% | ||
Expenses | (492) | (459) | (416) | (494) | (512) | (482) | 5% | (951) | (994) | 4% | |
Gross operating income | 314 | 383 | 250 | 248 | 270 | 405 | 6% | 697 | 675 | (3)% | |
Provision for credit losses | (65) | (40) | (36) | (57) | (71) | (53) | 32% | (105) | (124) | 18% | |
Net operating income | 249 | 343 | 214 | 191 | 198 | 352 | 3% | 591 | 550 | (7)% | |
Associates | 4 | 5 | 3 | 14 | 3 | 4 | (24)% | 10 | 8 | (21)% | |
Other items | 0 | 0 | 0 | 0 | 0 | 0 | (98)% | 0 | 0 | (98)% | |
Pre-tax profit | 253 | 348 | 217 | 205 | 202 | 356 | 2% | 601 | 558 | (7)% | |
Cost/Income ratio | 61.0 % | 54.5 % | 62.5 % | 66.6 % | 65.5 % | 54.4 % | 57.7 % | 59.6 % | |||
Cost/Income ratio excluding IFRIC 21 effect | 57.0 % | 55.8 % | 64.1 % | 68.1 % | 61.5 % | 55.5 % | 56.4 % | 58.3 % | |||
RWA (Basel 3 - in €bn) | 76.1 | 73.2 | 70.9 | 69.4 | 67.0 | 68.8 | (6)% | 73.2 | 68.8 | (6)% | |
Normative capital allocation (Basel 3) | 7,318 | 7,712 | 7,426 | 7,195 | 6,935 | 6,772 | (12)% | 7,515 | 6,854 | (9)% | |
ROE after tax (Basel 3)(1) | 9.2 % | 12.0 % | 7.8 % | 7.8 % | 7.9 % | 14.2 % | 10.6 % | 11.0 % | |||
ROE after tax (Basel 3) excluding IFRIC 21 effect(1) | 10.4 % | 11.6 % | 7.4 % | 7.4 % | 9.1 % | 13.8 % | 11.0 % | 11.4 % |
- Normative capital allocation methodology based on 10% of the average RWA-including goodwill and intangibles
Specialized Financial Services
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 2Q16 vs. 2Q15 | 1H15 | 1H16 | 1H16 vs. 1H15 | |
Net revenues | 324 | 335 | 315 | 334 | 343 | 341 | 2% | 659 | 684 | 4% | |
Specialized Financing | 193 | 203 | 191 | 206 | 214 | 211 | 4% | 395 | 425 | 8% | |
Factoring | 35 | 35 | 35 | 38 | 38 | 39 | 9% | 70 | 77 | 10% | |
Sureties & Financial Guarantees | 40 | 47 | 35 | 37 | 55 | 43 | (9)% | 87 | 98 | 12% | |
Leasing | 48 | 49 | 51 | 60 | 51 | 58 | 18% | 97 | 109 | 12% | |
Consumer Financing | 65 | 66 | 65 | 65 | 65 | 66 | flat | 131 | 131 | flat | |
Film Industry Financing | 4 | 5 | 5 | 5 | 5 | 6 | 11% | 9 | 11 | 14% | |
Financial Services | 131 | 133 | 124 | 128 | 129 | 130 | (2)% | 264 | 258 | (2)% | |
Employee Savings Scheme | 32 | 35 | 28 | 33 | 33 | 35 | (2)% | 67 | 67 | flat | |
Payments | 72 | 72 | 72 | 71 | 72 | 72 | (1)% | 145 | 144 | flat | |
Securities Services | 27 | 25 | 24 | 25 | 24 | 23 | (6)% | 52 | 47 | (9)% | |
Expenses | (218) | (211) | (209) | (218) | (225) | (220) | 5% | (429) | (446) | 4% | |
Gross operating income | 105 | 125 | 107 | 116 | 118 | 121 | (3)% | 230 | 238 | 4% | |
Provision for credit losses | (14) | (20) | (15) | (10) | (13) | (17) | (16)% | (34) | (29) | (13)% | |
Net operating income | 91 | 105 | 92 | 106 | 105 | 104 | (1)% | 196 | 209 | 6% | |
Associates | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other items | 0 | 0 | 0 | 0 | 0 | 31 | 0 | 31 | |||
Pre-tax profit | 91 | 105 | 92 | 105 | 105 | 135 | 29% | 196 | 240 | 22% | |
Cost/Income ratio | 67.5 % | 62.8 % | 66.2 % | 65.4 % | 65.7 % | 64.6 % | 65.1 % | 65.2 % | |||
Cost/Income ratio excluding IFRIC 21 effect | 64.7 % | 63.7 % | 67.1 % | 66.3 % | 63.4 % | 65.4 % | 64.2 % | 64.4 % | |||
RWA (Basel 3 - in €bn) | 14.4 | 14.3 | 13.0 | 13.6 | 13.7 | 14.8 | 3% | 14.3 | 14.8 | 3% | |
Normative capital allocation (Basel 3) | 1,692 | 1,689 | 1,680 | 1,551 | 1,629 | 1,626 | (4)% | 1,691 | 1,628 | (4)% | |
ROE after tax (Basel 3)(1) | 13.8 % | 15.9 % | 14.0 % | 17.3 % | 16.9 % | 21.8 % | 14.9 % | 19.3 % | |||
ROE after tax (Basel 3) excluding IFRIC 21 effect(1) | 15.2 % | 15.4 % | 13.5 % | 16.7 % | 18.3 % | 21.3 % | 15.3 % | 19.8 % |
- Normative capital allocation methodology based on 10% of the average RWA-including goodwill and intangibles
Financial Investments
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 2Q16 vs. 2Q15 | 1H15 | 1H16 | 1H16 vs. 1H15 | |
Net revenues | 227 | 197 | 215 | 190 | 183 | 155 | (21)% | 423 | 338 | (20)% | |
Coface | 187 | 161 | 173 | 160 | 156 | 133 | (17)% | 347 | 289 | (17)% | |
Corporate data solutions | 20 | 20 | 23 | 19 | 15 | 9 | (54)% | 40 | 24 | (40)% | |
Others | 20 | 16 | 19 | 10 | 12 | 12 | (22)% | 36 | 25 | (32)% | |
Expenses | (178) | (167) | (171) | (165) | (162) | (153) | (8)% | (345) | (315) | (9)% | |
Gross operating income | 48 | 30 | 44 | 24 | 21 | 1 | (95)% | 78 | 23 | (71)% | |
Provision for credit losses | (3) | (4) | (6) | (5) | (6) | (18) | (7) | (24) | |||
Net operating income | 46 | 26 | 38 | 19 | 15 | (17) | 71 | (2) | |||
Associates | 0 | 1 | 0 | (4) | 0 | 0 | (35)% | 1 | 1 | (1)% | |
Other items | 0 | (30) | 2 | (1) | 11 | (75) | (30) | (64) | |||
Pre-tax profit | 46 | (3) | 40 | 15 | 27 | (91) | 43 | (65) |
Corporate center
in €m | 1Q15 | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 | 2Q16 vs. 2Q15 | 1H15 | 1H16 | 1H16 vs. 1H15 | |
Net revenues | 10 | 82 | (67) | (27) | (69) | (3) | 91 | (72) | |||
Expenses | (81) | (19) | (29) | (52) | (116) | (87) | (100) | (204) | |||
Gross operating income | (71) | 63 | (96) | (79) | (185) | (91) | (8) | (276) | |||
Provision for credit losses | 5 | 0 | (30) | 5 | 2 | 0 | (40)% | 5 | 2 | (65)% | |
Net operating income | (66) | 62 | (125) | (74) | (183) | (91) | (4) | (274) | |||
Associates | 0 | 0 | 0 | 0 | 0 | 0 | (34)% | 0 | 0 | (24)% | |
Other items | 2 | 2 | 2 | 1 | 0 | 2 | (19)% | 4 | 2 | (56)% | |
Pre-tax profit | (64) | 64 | (124) | (73) | (183) | (89) | 0 | (272) |
Regulatory capital in 2Q16 & financial structure Basel 3
Regulatory reporting, in €bn | |
Shareholder's equity group share | 18.8 |
Goodwill & intangibles | (3.4) |
Dividend | (0.3) |
Other deductions (o/w Financial investments) | (0.7) |
Hybrids restatement in Tier 1(1) | (1.9) |
CET1 Capital | 12.5 |
Additional T1 | 1.8 |
Tier 1 Capital | 14.3 |
Tier 2 Capital | 2.7 |
Total Net Capital | 16.9 |
(1) Including capital gain following reclassification of hybrids as equity instruments |
In €bn | 2Q15 CRD4 phased | 3Q15 CRD4 phased | 4Q15 CRD4 phased | 1Q16 CRD4 phased | 2Q16 CRD4 phased |
CET1 Ratio | 10.8% | 11.0% | 11.0% | 11.1% | 11.1% |
Solvency Ratio | 12.9% | 14.4% | 14.3% | 15.1% | 15.0% |
Tier 1 capital | 13.2 | 13.9 | 13.7 | 14.1 | 14.3 |
RWA | 115.1 | 114.4 | 113.3 | 111.4 | 112.9 |
In €bn | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 |
Equity group share | 18.3 | 18.6 | 19.2 | 19.5 | 18.8 |
Total assets(1) | 512 | 513 | 500 | 514 | 535 |
- Statutory balance sheet
Breakdown of risk-weighted assets - in €bn | 06/30/2016 |
Credit risk | 75.8 |
Internal approach | 64.8 |
Standard approach | 11.0 |
Counterparty risk | 8.7 |
Internal approach | 7.9 |
Standard approach | 0.8 |
Market risk | 12.0 |
Internal approach | 6.7 |
Standard approach | 5.3 |
CVA | 3.7 |
Operational risk - Standard approach | 12.7 |
Total RWA | 112.9 |
Leverage ratio
According to the rules of the Delegated Act published by the European Commission on October 10, 2014
€bn | 06/30/2016 |
Tier 1 capital (1) | 14.6 |
Total prudential balance sheet | 452.7 |
Adjustment on derivatives(2) | (62.5) |
Adjustment on repos (2)(3) | (25.7) |
Other exposures to affiliates | (42.0) |
Off balance sheet commitments(2) | 36.0 |
Regulatory adjustments | (3.9) |
Total leverage exposures | 354.6 |
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) Including the effect of intragroup cancelation (3) Repos with clearing houses cleared according to IAS32 standard, without maturity or currency criteria
Normative capital allocation
Normative capital allocation and RWA breakdown at end-June 2016 - under Basel 3
In €bn | RWA (end of period) | In % of the total | Average Goodwill and intangibles | Average capital allocation beginning of period | ROE after tax 1H16 |
CIB | 68.8 | 65% | 0.1 | 6.9 | 11.0% |
Investment Solutions | 17.0 | 16% | 2.8 | 4.4 | 13.9% |
SFS | 14.8 | 14% | 0.3 | 1.6 | 19.3% |
Financial Investments | 5.5 | 5% | 0.2 | 0.7 | |
TOTAL (excl. Corporate Center) | 106.0 | 100% | 3.4 | 13.6 |
Net book value as of June 30, 2016
in €bn | 06/30/2016 |
Shareholders' equity (group share) | 18.8 |
Deduction of hybrid capital instruments | (1.6) |
Deduction of gain on hybrid instruments | (0.3) |
Net book value | 16.9 |
Restated intangible assets(3) | 0.7 |
Restated goodwill(3) | 2.9 |
Net tangible book value(1) | 13.3 |
in € | |
Net book value per share(2) | 5.40 |
Net tangible book value per share(2) | 4.25 |
- Net tangible book value = Book value - goodwill - intangible assets
- Calculated on the basis of 3,126,429,212 shares - end of period
- See note on methodology
Earnings per share (1H16)
in €m | 06/30/2016 |
Net income (gs) | 581 |
DSN interest expenses on preferred shares after tax | (37) |
Net income attributable to shareholders | 544 |
Average number of shares over the period, excluding treasury shares | 3,126,170,760 |
Earnings per share (€) | 0.17 |
ROE & ROTE Natixis(1)
Net income attributable to shareholders | ||
en M€ | 2Q16 | 1H16 |
Net income (gs) | 381 | 581 |
DSN interest expenses on preferred shares after tax | (20) | (37) |
ROE & ROTE numerator | 361 | 544 |
ROTE | |
in €m | 06/30/2016 |
Shareholders' equity (group share) | 18,764 |
DSN deduction | (1,868) |
Dividends(2) provision | (280) |
Intangible assets | (716) |
Goodwill | (2,882) |
ROTE Equity end of period | 13,018 |
Average ROTE equity (2Q16) | 12,976 |
2Q16 ROTE annualized | 11.1% |
Average ROTE equity (1H16) | 12,962 |
1H16 ROTE annualized | 8.4% |
ROE | ||
in €m | 06/30/2016 | |
Shareholders' equity (group share) | 18,764 | |
DSN deduction | (1,868) | |
Dividends(2) provision | (280) | |
Exclusion of unrealized or deferred gains and losses recognized in equity (OCI) | (250) | |
ROE Equity end of period | 16,365 | |
Average ROE equity (2Q16) | 16,317 | |
2Q16 ROE annualized | 8.8% | |
Average ROE equity (1H16) | 16,332 | |
1H16 ROE annualized | 6.7% |
- See note on methodology
- Dividend based on 50% of the net income attributable to shareholders excluding FV adjustement on own debt
Balance sheet
Assets (in €bn) | 06/30/2016 | 12/31/2015 |
Cash and balances with central banks | 27.9 | 21.2 |
Financial assets at fair value through profit and loss | 192.1 | 191.6 |
Available-for-sale financial assets | 55.3 | 52.7 |
Loans and receivables | 198.4 | 178.7 |
Held-to-maturity financial assets | 2.2 | 2.3 |
Accruals and other assets | 52.2 | 46.7 |
Investments in associates | 0.7 | 0.7 |
Tangible and intangible assets | 2.6 | 2.8 |
Goodwill | 3.5 | 3.6 |
Total | 534.9 | 500.3 |
Liabilities and equity (in €bn) | 06/30/2016 | 12/31/2015 |
Due to central banks | 0.0 | 0.0 |
Financial liabilities at fair value through profit and loss | 164.8 | 159.0 |
Customer deposits and deposits from financial institutions | 191.2 | 177.8 |
Debt securities | 35.5 | 40.4 |
Accruals and other liabilities | 49.2 | 43.1 |
Insurance companies' technical reserves | 67.3 | 52.9 |
Contingency reserves | 1.7 | 1.7 |
Subordinated debt | 5.2 | 4.9 |
Equity attributable to equity holders of the parent | 18.8 | 19.2 |
Minority interests | 1.2 | 1.3 |
Total | 534.9 | 500.3 |
Doubtful loans (inc. financial institutions)
In €bn | 2Q15 | 3Q15 | 4Q15 | 1Q16 | 2Q16 |
Doubtful loans(1) | 4.2 | 4.1 | 4.0 | 3.8 | 4.1 |
Collateral relating to loans written-down(1) | (1.5) | (1.5) | (1.3) | (1.3) | (1.4) |
Provisionable commitments(1) | 2.7 | 2.7 | 2.7 | 2.6 | 2.6 |
Specific provisions(1) | (1.8) | (1.8) | (1.8) | (1.7) | (1.7) |
Portfolio-based provisions (1) | (0.4) | (0.4) | (0.4) | (0.4) | (0.4) |
Provisionable commitments(1)/ Gross debt | 2.1% | 2.2% | 1.9% | 1.9% | 2.0% |
Specific provisions/Provisionable commitments(1) | 67% | 67% | 65% | 64% | 64% |
Overall provisions/Provisionable commitments(1) | 81% | 82% | 79% | 79% | 80% |
(1) Excluding securities and repos |
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 assurance can be given that such objectives will be realized. They are subject to inherent risks and uncertainties, and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal localmarkets; 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. Figures in this press release are unaudited.
NATIXIS financial disclosures for the second quarter 2016 are contained in this press release and in the presentation attached herewith, available online at www.natixis.com in the "Investor Relations" section.
The conference call to discuss the results, scheduled for Friday July 29th, 2016 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the "Investor Relations" page).
Contacts :
Relations Investisseurs : | investorelations@natixis.com | Relations Presse : | relationspresse@natixis.com | ||
Pierre-Alexandre Pechmeze | T + 33 1 58 19 57 36 | Elisabeth de Gaulle | T + 33 1 58 19 28 09 | ||
Souad Ed Diaz | T + 33 1 58 32 68 11 | Olivier Delahousse | T + 33 1 58 55 04 47 | ||
Christophe Panhard Brigitte Poussard | T + 33 1 58 55 43 98 T + 33 1 58 55 59 21 | Sonia Dilouya | T + 33 1 58 32 01 03 |
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