Paris, April, 16th 2015
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Preparation of Q1-15 financial
disclosures: new quarterly series
Following the evolution in standards adopted for the 1Q15 financial disclosure and some change in organization since January 1st, 2015, the 2014 quarterly series have been restated:
Evolution of the standards applied:
(1) In accordance with our Common Equity Tier 1 target, as of the 1st quarter of 2015, the capital allocated to our businesses will be at 10% of the average Basel 3 risk weighted assets versus 9% previously. 2014 quarterly series have been restated on this new basis;
(2) As of January 1st, 2015, application of the IFRIC 21 interpretation «Levies» regarding the accounting for tax except the income tax. This implementation leads to register taxes concerned at the date of their event and not necessarily throughout the year. This new standard implies an increase in expenses level for the 1st quarter 2015 and a decrease for the same amount spread out to the three other quarters. These taxes are charged to our businesses. 2014 quarterly series have been restated with this new accounting rule;
(3) In accordance with the application of the IFRIC 21 interpretation, the accounting of the estimated contribution to the Single Resolution Fund will be registered in the first quarter of 2015 in the expenses of the Corporate Center. This item will not be charged to the business lines and will be treated as an exceptional item in the financial communication disclosure;
Evolution in the Wholesale Banking organization:
The new disclosure within the wholesale Banking division is mainly related to the creation of a new joint-venture, called SET (Strategic Equity Transaction), compound by some activities previously exercised by the Financing or the Equity businesses. SET develops solutions in equity positions management for clients. The net revenues of this joint-venture are split 50/50 between Structured financing and Equity business lines. 2014 quarterly series has been restated with this new agreement.
Appendices (non audited)
Appendix 1: Impact of the application of IFRIC 21 interpretation in expenses and net revenues
Appendix 2: 2014 quarterly series pro forma of the changes in standards and organization specified above
Appendix 1: Impact of the application of IFRIC 21 interpretation in expenses and net revenues
Impact in expenses | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Wholesale Banking | (34.4) | 11.2 | 11.6 | 8.6 | (3.0) | |
Investment Solutions | (10.5) | 3.5 | 3.1 | 3.5 | (0.4) | |
Specialized Financial Services | (7.4) | 2.3 | 2.6 | 2.7 | 0.1 | |
Financial Investments | (3.0) | 0.9 | 0.8 | 1.0 | (0.2) | |
Corporate center | (5.8) | 2.0 | 1.6 | 2.2 | (0.1) | |
Total Natixis | (61.2) | 20.0 | 19.7 | 18.0 | (3.5)(1): #_ftn1 | |
Impact in net revenues | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Specialized Financial Services (Leasing) | (2.0) | 0.0 | 0.0 | 2.0 | 0.0 | |
Total Natixis | (2.0) | 0.0 | 0.0 | 2.0 | 0.0 |
Appendix 2: 2014 quarterly series pro forma of the changes in standards and organization specified above
Natixis Consolidated pro forma | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Net revenues | 1,879 | 2,032 | 1,715 | 1,886 | 7,512 | |
Expenses | (1,386) | (1,352) | (1,283) | (1,422) | (5,442) | |
Gross operating income | 492 | 681 | 433 | 464 | 2,069 | |
Provision for credit losses | (78) | (85) | (61) | (78) | (302) | |
Associates | 11 | 9 | 11 | 9 | 40 | |
Gain or loss on other assets | 0 | (23) | 88 | 13 | 78 | |
Change in value of goodwill | 0 | (38) | 0 | (12) | (51) | |
Pre-tax profit | 425 | 543 | 471 | 396 | 1,834 | |
Tax | (148) | (183) | (151) | (140) | (623) | |
Minority interest | (7) | (14) | (27) | (28) | (76) | |
Net income (group share) | 270 | 345 | 293 | 228 | 1,136 |
2014 Natixis pro forma results - breakdown by business division | |||||||||||||
in €m | Wholesale Banking | Invest. Solutions | SFS | Fin. Invests. | Corp. Center | Natixis excl. GAPC | GAPC | Natixis reported pro forma | |||||
Net revenues | 2,804 | 2,822 | 1,266 | 830 | (218) | 7,505 | 7 | 7,512 | |||||
Expenses | (1,715) | (2,004) | (832) | (693) | (151) | (5,395) | (48) | (5,442) | |||||
Gross operating income | 1,089 | 818 | 434 | 138 | (368) | 2,110 | (41) | 2,069 | |||||
Provision for credit losses | (186) | 5 | (76) | (10) | (33) | (300) | (2) | (302) | |||||
Net operating income | 903 | 823 | 359 | 127 | (402) | 1,810 | (43) | 1,767 | |||||
Associates | 21 | 17 | 0 | 2 | 0 | 40 | 0 | 40 | |||||
Other items | 0 | (20) | 15 | (51) | 82 | 27 | 0 | 27 | |||||
Pre-tax profit | 924 | 820 | 374 | 78 | (319) | 1,877 | (43) | 1,834 | |||||
Tax | (638) | 15 | (623) | ||||||||||
Minority interest | (76) | 0 | (76) | ||||||||||
Net income (gs) excl. GAPC | 1,164 | Net income (gs) | (28) | 1,136 | |||||||||
GAPC net of tax | (28) | ||||||||||||
Net income (gs) | 1,136 |
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Wholesale Banking | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Net revenues | 732 | 763 | 680 | 629 | 2,804 | |
Commercial Banking | 102 | 100 | 101 | 114 | 416 | |
Structured Financing | 290 | 262 | 271 | 273 | 1,095 | |
Capital Markets | 349 | 384 | 314 | 249 | 1,296 | |
Fixed Income & Treasury | 233 | 249 | 224 | 164 | 871 | |
Equity | 116 | 135 | 89 | 85 | 425 | |
Other | (8) | 16 | (6) | (7) | (4) | |
Expenses | (455) | (422) | (403) | (435) | (1,715) | |
Gross operating income | 277 | 340 | 277 | 194 | 1,089 | |
Provision for credit losses | (52) | (61) | (24) | (48) | (186) | |
Net operating income | 225 | 279 | 253 | 146 | 903 | |
Associates | 6 | 4 | 6 | 5 | 21 | |
Other items | 0 | 0 | 0 | 0 | 0 | |
Pre-tax profit | 231 | 283 | 260 | 151 | 924 | |
Cost/Income ratio | 62.1 % | 55.4 % | 59.2 % | 69.1 % | 61.2 % | |
Cost/Income ratio excluding IFRIC 21 effect | 57.4 % | 56.8 % | 61.0 % | 70.5 % | 61.1 % | |
RWA (Basel 3 - in €bn) | 76.0 | 77.8 | 74.7 | 72.2 | 72.2 | |
Normative capital allocation (Basel 3) | 7,549 | 7,704 | 7,879 | 7,568 | 7,675 | |
ROE after tax (Basel 3) | 8.1 % | 9.6 % | 8.7 % | 5.3 % | 7.9 % | |
ROE after tax (Basel 3) excluding IFRIC 21 effect | 9.3 % | 9.2 % | 8.3 % | 5.0 % | 7.9 % |
Investment Solutions | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Net revenues | 648 | 711 | 690 | 773 | 2,822 | |
Asset Management | 489 | 527 | 523 | 599 | 2,137 | |
Private Banking | 31 | 33 | 31 | 33 | 128 | |
Insurance | 126 | 139 | 130 | 134 | 529 | |
Expenses | (486) | (489) | (480) | (549) | (2,004) | |
Gross operating income | 163 | 222 | 210 | 223 | 818 | |
Provision for credit losses | 2 | 0 | 0 | 2 | 5 | |
Net operating income | 165 | 222 | 211 | 225 | 823 | |
Associates | 4 | 5 | 4 | 4 | 17 | |
Other items | (2) | (10) | (6) | (3) | (20) | |
Pre-tax profit | 167 | 217 | 209 | 227 | 820 | |
Cost/Income ratio | 74.9 % | 68.8 % | 69.5 % | 71.1 % | 71.0 % | |
Cost/Income ratio excluding IFRIC 21 effect | 73.3 % | 69.3 % | 70.0 % | 71.5 % | 71.0 % | |
RWA (Basel 3 - in €bn) | 12.8 | 13.0 | 13.0 | 13.8 | 13.8 | |
Normative capital allocation (Basel 3) | 3,578 | 3,616 | 3,647 | 3,762 | 3,650 | |
ROE after tax (Basel 3) | 12.7 % | 15.6 % | 15.7 % | 15.9 % | 15.0 % | |
ROE after tax (Basel 3) excluding IFRIC 21 effect | 13.5 % | 15.3 % | 15.4 % | 15.7 % | 15.0 % |
Specialized Financial Services | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Net revenues | 313 | 320 | 307 | 327 | 1,266 | |
Specialized Financing | 179 | 186 | 183 | 195 | 743 | |
Factoring | 37 | 36 | 23 | 37 | 133 | |
Sureties & Financial Guarantees | 32 | 37 | 31 | 34 | 133 | |
Leasing | 43 | 44 | 60 | 54 | 200 | |
Consumer Financing | 63 | 65 | 65 | 66 | 259 | |
Film Industry Financing | 4 | 5 | 4 | 4 | 18 | |
Financial Services | 133 | 133 | 124 | 132 | 524 | |
Employee Savings Scheme | 30 | 34 | 27 | 33 | 123 | |
Payments | 77 | 74 | 74 | 73 | 298 | |
Securities Services | 27 | 26 | 24 | 26 | 103 | |
Expenses | (214) | (206) | (200) | (212) | (832) | |
Gross operating income | 99 | 113 | 107 | 115 | 434 | |
Provision for credit losses | (19) | (16) | (20) | (22) | (76) | |
Net operating income | 80 | 98 | 88 | 94 | 359 | |
Associates | 0 | 0 | 0 | 0 | 0 | |
Other items | 0 | 0 | 17 | (2) | 15 | |
Pre-tax profit | 80 | 98 | 105 | 92 | 374 | |
Cost/Income ratio | 68.4 % | 64.5 % | 65.1 % | 64.8 % | 65.7 % | |
Cost/Income ratio excluding IFRIC 21 effect | 65.6 % | 65.2 % | 65.9 % | 66.1 % | 65.7 % | |
RWA (Basel 3 - in €bn) | 13.9 | 14.1 | 13.5 | 14.4 | 14.4 | |
Normative capital allocation (Basel 3) | 1,698 | 1,639 | 1,661 | 1,600 | 1,650 | |
ROE after tax (Basel 3) | 12.0 % | 15.3 % | 16.2 % | 14.5 % | 14.5 % | |
ROE after tax (Basel 3) excluding IFRIC 21 effect | 13.4 % | 14.9 % | 15.8 % | 13.8 % | 14.5 % |
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Financial Investments | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Net revenues | 213 | 212 | 209 | 196 | 830 | |
Coface | 178 | 171 | 171 | 168 | 689 | |
Corporate data solutions | 21 | 21 | 20 | 21 | 83 | |
Others | 14 | 20 | 18 | 6 | 58 | |
Expenses | (176) | (170) | (167) | (180) | (693) | |
Gross operating income | 37 | 42 | 43 | 16 | 138 | |
Provision for credit losses | (2) | (3) | (2) | (4) | (10) | |
Net operating income | 36 | 38 | 41 | 12 | 127 | |
Associates | 0 | 1 | 1 | 0 | 2 | |
Other items | 0 | (38) | 0 | (12) | (51) | |
Pre-tax profit | 36 | 1 | 41 | 0 | 78 |
Corporate Center | ||||||
in €m | 1Q14 | 2Q14 | 3Q14 | 4Q14 | 2014 | |
Net revenues | (42) | 35 | (171) | (39) | (218) | |
Expenses | (40) | (32) | (33) | (46) | (151) | |
Gross operating income | (82) | 3 | (204) | (85) | (368) | |
Provision for credit losses | (8) | (3) | (16) | (7) | (33) | |
Net operating income | (90) | 0 | (220) | (92) | (402) | |
Associates | 0 | 0 | 0 | 0 | 0 | |
Other items | 1 | (14) | 77 | 17 | 82 | |
Pre-tax profit | (89) | (13) | (143) | (74) | (319) |
Contacts:
Investor Relations: | investorelations@natixis.com | |
Pierre-Alexandre Pechmeze | T + 33 1 58 19 57 36 | |
François Courtois | T + 33 1 58 19 36 06 | |
Souad Ed Diaz Brigitte Poussard | T + 33 1 58 32 68 11 T + 33 1 58 55 59 21 |
(1):
#_ftnref1 Effect in the accounting of the social solidarity contribution (C3S tax) taken into account as of January 1st 2014
http://hugin.info/143507/R/1911931/682262.pdf
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NATIXIS via Globenewswire