Third-Quarter and Nine-Month 2015 Results

Paris, France, November 4, 2015

REVENUES up 10% to €6,316m and

NET INCOME up 13% to €1,028m in 9M15

IMPROVEMENTS IN CORE-BUSINESS PROFITABILITY and

 DIVIDEND-PAYING CAPACITY

further upward momentum in investment solutions and good resistance in cib

  • Corporate & Investment Banking: Good resilience despite difficult environment in 3Q15. High activity in Structured Financing (new loan production reaching €6.1bn in 3Q15 and €20bn in 9M15) and further strong growth in Equity Derivatives. Fixed Income activities adversely affected by seasonal factors and tough market conditions in 3Q15
  • Asset Management: positive net inflow in 3Q15 thanks to the geographic/products range diversification of our model. €30bn of overall net inflow since the start of the year and €776bn of AuM at 30 September 2015
  • Good progress in Insurance businesses: 14% advance in non-life turnover in 9M15 and an increased weighting for unit-linked products in the life segment
  • Specialized Financial Services: continued rollout of solutions within the Groupe BPCE networks and robust momentum in all Specialized Financing businesses  

revenue growth(1) and reduced provision for credit loss over 9m15

  • Core-business net revenues up 9% in 3Q15 vs. 3Q14 (+11% in 9M15), primarily fueled by Investment Solutions businesses
  • Continuous improvement in the core business provision for credit loss since the start of 2015 (24bps in 3Q15 and 34bps in 9M15)
  • Pre-tax profit of €1.8bn in 9M15, up 15% year-on-year
  • Reported net income (group share) of €1.0bn in 9M15 (+13% year-on-year) and of €291m in 3Q15, stable year-on-year
  • Core-business ROE of 12.3% in 9M15, up 80bps year-on-year
  • 11% rise in EPS to €0.32 in 9M15 vs. 9M14

strengthening of our capital generation capacity

  • Strict control of RWA in CIB, down 5% YoY (-8% on constant exchange rate)  
  • Balance sheet under control (total assets down by 13% vs. end-December 2014) and leverage ratio(1) of 3.9% at end-September 2015 (+60bps vs. end-December 2014)
  • CET1 ratio(2) up 100bps since the start of the year of which 40bps in 3Q15 at 11.6%, without factoring in distribution
  • Confirmation of a payout ratio of at least 50% and a CET1(2) target at 10.5%  

(1) See note on methodology

(2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on loss carry-forwards

The Board of Directors examined Natixis’s third-quarter 2015 accounts on November 4, 2015.

For Natixis, the main features of 3Q15 were (1):

  • 5% growth in revenues to €1,956m, buoyed by strong momentum in core businesses where revenues advanced 9% during the period. 

In Corporate & Investment Banking, the Structured Financing segment maintained new loan production at a high level, while Equity Derivatives again grew strongly and Fixed Income was adversely affected by tough market conditions.

In Asset Management, a broad product range and geographic diversification combined to sustain high revenue growth and kept net new money positive during the quarter.

Insurance businesses continued to expand, with non-life revenues making progress and weight of unit-linked life insurance policies increasing.  

In Specialized Financial Services, the rollout of solutions in the networks is benefiting all Specialized Financing businesses, particularly the Leasing and Consumer Finance segments which posted strong growth in new loan production,

  • a 9% year-on-year rise in operating costs to €1,393m. This increase primarily stemmed mainly from Asset Management (profit sharing and currency effects) and from CIB’s international platforms investments, 
  • a marked reduction in the provision for credit loss to €54m, down 11% vs. 3Q14,
  • net income (group share) of €291m, stable vs. 3Q14,
  • leverage ratio(1)of 3.9% at end-September 2015, chiefly thanks to the tight gripe exerted on the balance sheet,
  • CET1 ratio(2)of 11.6% at end-September 2015 without factoring in distribution (11.2% including distribution).

 

Laurent Mignon, Natixis Chief Executive Officer, said: « Despite difficult conditions during the summer, our core businesses increased revenues and profitability in line with our strategic plan, thanks to the efforts of our various teams and strong commercial momentum. We continue to develop our businesses by serving our clients in France and abroad and particularly by reaping the benefits of diversification, both in terms of products and distribution in Asset Management, and by furthering the rollout of our large franchises within CIB. The combination of earnings growth, the implementation of our Asset-Light model and tight control of our RWA has driven a 100bps-improvement in our CET1 ratio since the start of the year to 11.6%, before distribution ».

 

  1. See note on methodology
  2. Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on loss carry-forwards

 

 

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 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. The figures in this media release are unaudited.

 

The conference call to discuss the results, scheduled for Thursday November 5th, 2015 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the “Investor Relations” page).

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