Fourth-Quarter 2016 and Full-Year 2016 Results
INCREASE OF CORE-BUSINESS NET REVENUES to more than €8.0bn
And REPORTED NET INCOME at €1.4bn in 2016
Cash dividend of €0.35(1) per share
strong momentum in CORE-BUSINESS: revenues at €2.1bn in 4Q16 (+3%/4Q15)
Investment Solutions: Growth of AuM and RAMP-UP OF Insurance BUSINESS
- Insurance: robust 32% growth in overall turnover to €8bn in 2016
- Asset Management: AuM up to €832bn at end-2016 and halt to outflow in 4Q16. Margins resisted well, declining slightly in the US and improving in Europe
CIB: Excellent MOMENTUM IN Global markets AND significaNT 260BP-INCREASE of ROE(2) In 2016
- Global Markets: 28% increase in 4Q16 NBI (ex. CVA/DVA desk) driven by Fixed Income and Equity (net revenues up 20% and 47%, respectively)
- Global Finance & IB: €34bn of new production and M&A revenues spurred by the successful integration of Natixis Partners and PJSC in 2016 (net revenues up by 33% vs. 3Q16)
- Strong momentum on international platforms in 4Q16: Americas (+14%/4Q15) and EMEA (+13%/4Q15)
SFS: ROE(2) 2016 >16%, IN LINE WITH THE 2017 TARGET IN THE New Frontier PLAN
strong growth in CORE-BUSINESS PROFITABILITY(2) OF 13.1% In 4Q16 (+150bps yoy)
- Sharp improvement in the core-business cost of risk to 18bps in 4Q16 (34bps in 2016)
- Reported net income (group share and excluding the IFRIC 21 impact) up 20% yoy to €345m in 4Q16
- Reported net income (group share) up 2% to close to €1.4bn in 2016, despite a much higher contribution to the SRF
- Natixis ROTE(2)of 9.9% in 4Q16 (up 160bps YoY) and in 2016 (up 60bps)
- Core business ROE of 13.1% in 2016 (up 100bps)
active capital MANAGEMENT gENEratING VALUE FOR SHAREHOLDERS
- 139bps of CET1 ratio(3) generated since the start of 2016, redistributed in the form of a €1.1bn cash dividend of €0.35(1) per share
- Phased-in CET1 ratio of 10.8% at end-December 2016, well above the ECB’s CET1 capital requirement for 2017 (7.75% phased in, excluding non-public P2G)
SUCCESSFUL transformation OF THE business model
- Accelerating expansion in 2017 particularly in low capital-intensive businesses (Asset Management, Investment banking and Payment solutions)
- Investor Day for 2018-2020 Strategic plan on November 20, 2017
(1) Proposal to be submitted to the Annual General Meeting of Shareholders on May 23, 2017 (2) See note on methodology and excluding the IFRIC 21 impact in 4Q16 (3) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise without phase-in except for DTAs on tax-loss carryforwards
The Board of Directors approved Natixis’ accounts for full-year 2016 on February 9, 2017.
For Natixis, the main features of 4Q16 were (1):
- 3% yoy growth in core-business net revenues to €2.141bn.
Within the Investment Solutions core business, Asset Management recorded €2.2bn of net inflow in Europe and a marked slowdown in outflow in the US. The ramp-up of Insurance business lifted Insurance net revenues 16% over the full year.
Strong performances in Global Markets and M&A fueled a 21% increase in net revenues from Corporate & Investment Banking.
In Specialized Financial Services, strong business momentum in Specialized Financing is notably linked to the extension of relations with the Groupe BPCE networks.
- a marked improvement in the provision for credit loss to €60m, which extended the decline observed since the start of the year,
- a 20% yoy advance in restated net income (group share and excluding the IFRIC 21 impact) to €345m,
- core-business ROE of 13.1%, up 150bps yoy,
- a CET1 ratio(2) of 11,0% at December 31, 2016, after factoring in the dividend(3),
- a leverage ratio of 4.2% at end-December 2016.
Natixis completed the third year of the New Frontier plan with net revenues at €8.7bn and reported net profit (group share) at €1.4bn. The cost of risk declined to 34bps in 2016 from 36bps in 2015 and 38bps in 2014, thereby underlining Natixis’ ability to absorb sectoral shocks.
2016 once again underscored Natixis’ ability to generate capital and create value for shareholders, as witnessed by a cash dividend(3) of €0.35 per share.
Laurent Mignon, Natixis Chief Executive Officer, said: “Despite demanding conditions in 2016, strong commercial dynamics fueled further growth in our core businesses revenues during the year as shown by high activity levels in 4Q16 and sharply improved profitability. In Corporate & Investment Banking, activity levels were robust on capital markets, but also in Investment Banking, thanks notably to the quick ramp-up of our M&A activities through Natixis Partners and PJ Solomon. In Asset Management, overall AuM made progress, despite a minor decline in the US, and margins resisted well. The extensive transformation of all our businesses is gaining pace with the execution of the Transformation and Business Efficiency program and is set to provide us with a stronger platform from which to attain our new strategic goals out to 2020.
- See note on methodology and excluding the IFRIC 21 impact in 4Q16 for the ROE calculation
- Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise without phase-in except for DTAs on tax-loss carryforwards
- Proposal to be submitted to the Annual General Meeting of Shareholders on May 23, 2017