Natixis — Groupe BPCE — 9M 2014 Earnings Presentation
56 slides from Natixis's earnings presentation, Nov 4, 2014
Slide 1: Results for the 3rd quarter and first 9 months of 2014
Results for the 3rd quarter and first 9 months of 2014 November 4, 2014
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements and comments relating to the objectives and strategy of Groupe BPCE. By their very nature, these forward-looking statements inherently depend on assumptions, project considerations, objectives and expectations linked to future event
Slide 3: Robust attributable net income of €2.5bn in 9M-14 and €810m in Q3-14
Robust attributable net income1 of €2.5bn in 9M-14 (+8.2%) and €810m in Q3-14 (+4.0%) leading to a Group CET1 ratio2 of 11.5% (up 110bp since end 2013) Banque Populaire and Caisse d’Epargne retail networks On-balance sheet deposits & savings3: +5.3% year-on-year Loan outstandings: +3.7% year-on-year
Slide 4: Contents: Results of Groupe BPCE
Contents 1 2 3 4 Results Capital Results of Conclusion of adequacy the Groupe and business BPCE liquidity lines November 4, 2014 Results for the 3rd quarter and first 9 months of 2014 4
Slide 5: Non-operating items
Non-operating items Revaluation of own debt Q3-14 Q3-13 9M-14 9M-13 In millions of euros Revaluation of own debt 1 -182 -72 -242 -120 Impact on income before tax -182 -72 -242 -120 Total impact on net income attributable to equity holders of -89 -32 -120 -58 the parent Other non-operating items In m
Slide 6: Q3-14 results of Groupe BPCE
Q3-14 results of Groupe BPCE Healthy 15.6% growth in the Group’s Q3-14 income before tax, driven by the core business lines Core Results Q3-14/Q3-13 pf Q3-14/Q3-13 pf business In millions of euros Q3-14 % change 2 % change lines Q3-14 1 Net banking income 5,839 3.2% 5,449 2.4% Operating expenses -3,
Slide 7: 9M-14 results of Groupe BPCE
9M-14 results of Groupe BPCE Net income attributable to equity holders of the parent1: +8.2% over the first 9 months of the year Core business Results 9M-14/9M-13 pf 2 9M-14/9M-13 pf 9M-14 lines In millions of euros % change % change 9M-14 1 Net banking income 17,707 3.5% 16,454 2.9% Operating expen
Slide 8: Sharp decline in the cost of risk in Q3-14, to 27bp
Results of Groupe BPCE Sharp decline in the cost of risk in Q3-14, to 27pb1 Cost of risk in bp1 42 42 Banque Populaire banks 38 38 39 37 34 Cost of risk down 34bp in Q3-14 Caisses d’Epargne 28 27 27 25 27 27 29 Cost of risk stands at 29bp in Q3-14 Commercial Banking and Insurance 31 28 27 37 28 30 2
Slide 9: Contents: Capital adequacy and liquidity
Contents 1 2 3 4 Results of Capital Results of Conclusion Groupe adequacy the core BPCE and business liquidity lines November 4, 2014 Results for the 3rd quarter and first 9 months of 2014 9
Slide 10: Sharp improvement in capital adequacy in 2014
Capital adequacy and liquidity Sharp improvement in capital adequacy in 2014: CET1 ratio1 +110bp and total capital adequacy ratio1 +190bp over the 9-month period +9pb +13bp +16bp +8bp -10bp 10,8 % 11.6% 11,48 11.5 % 11.1% 10.4% Common Equity Common Equity Retained Issue of Change in Other changes Co
Slide 11: Continuous strengthening of the balance sheet structure
Capital adequacy and liquidity Continuous strengthening of the balance sheet structure Group customer loan/deposit ratio1 147% 138% Group’s customer loan-to-deposit ratio1: 125% as at Sept. 30, 2014 2 3 128% 126% 125% Dec. 2010 Dec. 2011 Dec. 2012 Dec. 2013 Sept. 2014 Liquidity reserves and short-te
Slide 12: Medium/long-term resources
Capital adequacy and liquidity Medium/long-term resources MLT funding raised at Sept. 30, 2014 117% of the 2014 MLT funding plan raised as at Sept. 30, 2014 €35.1bn raised on a €30bn program Average maturity at issue: 6.8 years 74% Average rate: mid-swap +51bp Covered bond issues 52% in the form of
Slide 13: Contents: Results of the core business lines
Contents 1 2 3 4 Results of Capital Results Conclusion Groupe adequacy of the BPCE and business liquidity lines November 4, 2014 Results for the 3rd quarter and first 9 months of 2014 13
Slide 14: Commercial Banking & Insurance
Results of the business lines Commercial Banking & Insurance Results Q3-14 /Q3-13 pf 9M-14 /9M-13 pf Q3-14 9M-14 In millions of euros % change % change Net banking income 3,780 2.8% 11,312 2.1% 1 Net banking income 3,779 2.2% 11,310 2.2% 1 2 2 Banque Populaire banks 1,558 -0.5% 4,801 2.0% 1 Caisses
Slide 15: Commercial Banking & Insurance: good commercial performance
Results of the business lines Commercial Banking & Insurance: good commercial performance Unless specified to the contrary, all changes are vs. Sept. 30. 2013 Commercial activities of the BP and CE retail Deposits & savings and loan outstandings2(in €bn) networks Deposits & savings: continued strong
Slide 16: Banque Populaire banks: good contribution from insurance to commercial dynamism
Results of the business lines Banque Populaire banks: good contribution from insurance to commercial dynamism Unless specified to the contrary, all changes are vs. Sept. 30. 2013 Customer base Deposits & savings and loan outstandings (in €bn) +6.2% of active individual customers using banking servic
Slide 17: Caisses d'Epargne: strong momentum in specialized markets
Results of the business lines Caisses d’Epargne: strong momentum in specialized markets Unless specified to the contrary, all changes are vs. Sept. 30. 2013 Customer base Deposits & savings and loan outstandings (in €bn) Individual customers using banking services: +3.0% Active prof. (+5.2%) and cor
Slide 18: Insurance and Other networks: Real estate Financing
Results of the business lines Insurance and Other networks: Real estate Financing1 Buoyant activity in the individual customer Loan outstandings4 (in €bn) – Core businesses segment Individual customers: new loan production stable at €1.9bn vs. Q3-13 in an unsettled economic environment and a slightl
Slide 19: Insurance and Other networks: Insurance, BPCE IOM and Banque Palatine
Results of the business lines Insurance and Other networks: Insurance, BPCE IOM and Banque Palatine Unless specified to the contrary, all changes are vs. Sept. 30. 2013 Insurance1 Life insurance: Business activity indicators › Gross new inflows of Caisses d’Epargne of €2.2bn in Q3-14 (+50.1%) and of
Slide 20: Core business lines of Natixis: Wholesale Banking, Investment Solutions and SFS
Results of the business lines Core business lines of Natixis: Wholesale Banking, Investment Solutions and Specialized Financial Services 1 Results Q3-14 /Q3-13 pf 9M-14 /9M-13 pf Q3-14 9M-14 In millions of euros % change % change Net banking income 1,669 1.7% 5,179 7.0% Wholesale Banking 674 -8.8% 2
Slide 21: Core business lines of Natixis: growth in business activity and profitability
Results of the business lines Core business lines of Natixis: growth in business activity and profitability in 9M-14 Growth in net revenues and income before tax of the core business lines (in €m)1 Wholesale Banking: gross operating income +7.0% +4.9%1 vs. 9M-13 2.4% growth in net revenues in 9M-14
Slide 22: Wholesale Banking: good performance in Financing and Equity businesses
Results of the business lines Wholesale Banking: good performance in the Financing and Equity businesses in 9M-14 Figures excluding non-recurring items Financing activities Structured financing Change in net revenues (in €m) >New loan production: €8.1bn in Q3-14 or €20bn in 9M-14 Financing activitie
Slide 23: Investment Solutions: record-breaking net inflows of €24bn in 9M-14
Results of the business lines Investment Solutions: record-breaking net inflows of €24bn in 9M-14 Asset management Net inflows: €27bn in 9M-14 (excluding money market Asset management: AuM (in €bn) funds) with a good product diversification +23.8 > €16bn in fixed income (mainly credit) +6.6 > €12bn
Slide 24: SFS: specialized financing activities hold up well
Results of the business lines SFS: specialized financing activities hold up well and increase in profitability Specialized financing Leasing >New production: +9% vs. Q3-13 Sureties & financial guarantees Contribution to Group results >Revenues: +3% vs. Q3-13 and +10% vs. 9M-13 Financial services Res
Slide 25: Equity interests
Equity interests1 Results Q3-14 /Q3-13 9M-14 /9M-13 Q3-14 9M-14 In millions of euros % change % change Net banking income 419 5.3% 1,242 -0.9% Operating expenses -347 2.6% -1,034 -0.8% Gross operating income 72 20.7% 208 -1.3% Cost of risk -2 -78.2% -7 -31.2% Income before tax 74 44.8% 212 2.4% 1 Th
Slide 26: Equity interests: Coface and Nexity
Equity interests Coface Dynamic commercial activity and significant Turnover (in €m) improvement in the combined ratio At constant exchange rates and perimeter Turnover1: +2% in Q3-14 and in 9M-14 in line +1.8% with predetermined targets +1.7% Efficient risk management Loss ratio2: 47.4% in Q3-14, d
Slide 27: Contents: Conclusion
Contents 1 2 3 4 Results of Capital Results of Conclusion Groupe adequacy the BPCE and business liquidity lines November 4, 2014 Results for the 3rd quarter and first 9 months of 2014 27
Slide 28: Conclusion
Conclusion A strong base of A robust balance An active role The ECB stress recurring sheet: played in tests confirm income: financing the the financial a CET1 ratio of French resilience of net income 11.5%2, economy: Groupe BPCE attributable to +110bp since equity holders of Dec. 31, 2013 3.7%4 Extr
Slide 29: Annexes
Results for the 3rd quarter and first 9 months of 2014 November 4, 2014 Annexes
Slide 30: Annexes contents
Annexes Groupe BPCE Wholesale Banking, Investment Solutions Organizational structure of Groupe BPCE and SFS Income statement Income statement Income statement per business line Consolidated balance sheet Equity interests Income statement Financial structure Statement of changes in shareholders' equi
Slide 31: Organizational structure of Groupe BPCE
Annex - Groupe BPCE Organizational structure of Groupe BPCE November 4, 2014 Results for the 3rd quarter and first 9 months of 2014 31
Slide 32: Quarterly income statement
Annex - Groupe BPCE Quarterly income statement Groupe BPCE In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 5,585 5,834 5,850 5,958 5,658 Operating expenses -3,912 -4,256 -3,977 -4,108 -3,921 Gross operating income 1,672 1,578 1,873 1,850 1,737 Cost / income ratio 70.1% 73.0% 68
Slide 33: Quarterly income statement per business line
Annex - Groupe BPCE Quarterly income statement per business line Wholesale Banking, Commercial Investment Corporate Banking & Solutions & Total core businesses Equity interests Groupe BPCE center Insurance Specialized Financial Services In millions of euros Q3-14 Q3-13 pf Q3-14 Q3-13 pf Q3-14 Q3-13
Slide 34: 9-month income statement per business line
Annex - Groupe BPCE 9-month income statement per business line Wholesale Banking, Commercial Investment Corporate Banking & Solutions & Total core businesses Equity interests Groupe BPCE center Insurance Specialized Financial Services In millions of euros 9M-14 9M-13 pf 9M-14 9M-13 pf 9M-14 9M-13 pf
Slide 35: Consolidated balance sheet
Annex - Groupe BPCE Consolidated balance sheet ASSETS in millions of euros 30/09/2014 31/12/2013 LIABILITIES in millions of euros 30/09/2014 31/12/2013 C ash and amounts due from central banks 67,196 60,410 Amounts due to central banks 0 0 Financial assets at fair value through profit or loss 1 197,
Slide 36: Statement of changes in shareholders' equity
Annex – Financial structure Statement of changes in shareholders’ equity Equity attributable to In millions of euros equity holders of the parent December 31, 2013 51,339 Distributions - 430 Capital increase (cooperative shares) 1,221 Income 2,384 Remuneration of deeply subordinated notes - 670 Chan
Slide 37: Prudential ratios and credit ratings
Annex – Financial structure Prudential ratios and credit ratings BASEL 31 BASEL 2.5 Sept. 30, June 30, Dec. 31, Dec. 31, 20141 2014 2013 2012 Total risk-weighted assets €398bn €403bn €369bn €381bn Common Equity Tier-1 capital €45.9bn €45.0bn €42.0bn €40.9bn Tier-1 capital €49.3bn €49.1bn €47.3bn €46
Slide 38: Commercial Banking and Insurance: Quarterly income statement
Annex – Commercial Banking and Insurance Quarterly income statement Commercial Banking & Insurance In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 3,677 3,850 3,789 3,743 3,780 Operating expenses -2,434 -2,523 -2,471 -2,498 -2,399 Gross operating income 1,244 1,327 1,318 1,245
Slide 39: Commercial Banking and Insurance: Quarterly income statement per business line
Annex – Commercial Banking and Insurance Quarterly income statement per business line Insurance & Other Commercial Banking & Banque Populaire banks Caisses d'Epargne networks Insurance In millions of euros Q3-14 Q3-13 pf % Q3-14 Q3-13 pf % Q3-14 Q3-13 pf % Q3-14 Q3-13 pf % Net banking income 1,557 1
Slide 40: Commercial Banking and Insurance: 9-month income statement per business line
Annex – Commercial Banking and Insurance 9-month income statement per business line Insurance & Other Commercial Banking & Banque Populaire banks Caisses d'Epargne networks Insurance In millions of euros 9M-14 9M-13 pf % 9M-14 9M-13 pf % 9M-14 9M-13 pf % 9M-14 9M-13 pf % Net banking income 4,796 4,7
Slide 41: Banque Populaire banks and Caisses d'Epargne quarterly income statement
Annex – Commercial Banking and Insurance Quarterly income statement Banque Populaire banks and Caisses d’Epargne Banque Populaire banks In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 1,559 1,623 1,618 1,621 1,557 Operating expenses -1,040 -1,051 -1,058 -1,067 -1,028 Gross oper
Slide 42: Banque Populaire network: customer deposits & savings
Annex – Commercial Banking and Insurance Banque Populaire network: customer deposits & savings (in €bn) 213.0 203.6 207.1 50.3 % change 46.5 52.8 Q3-14/Q3-13 Demand deposits +8.3% 43.1 43.0 42.3 Passbook savings accounts +0.2% 15.9 Regulated home savings 15.1 15.2 +5.6% plans 27.5 29.7 25.0 Term acc
Slide 43: Banque Populaire network: customer loan outstandings
Annex – Commercial Banking and Insurance Banque Populaire network: customer loan outstandings (in €bn) 164.0 165.5 166.5 % change Q3-14/Q3-13 85.5 87.4 89.3 Home loans +4.4% Consumer loans and +1.6% short-term credit facilities 17.8 17.2 18.1 Equipment loans -0.1% Other ns 53.8 54.2 53.7 Total loans
Slide 44: Caisse d'Epargne network: customer deposits & savings
Annex – Commercial Banking and Insurance Caisse d’Epargne network: customer deposits & savings (in €bn) 378.8 370.2 370.5 % change 38.4 40.7 43.8 Q3-14 / Q3-13 Demand deposits +14.0% 130.2 Passbook savings accounts -4.7% 136.6 131.9 Regulated home savings +9.8% plans 41.7 42.1 45.8 Term accounts +34
Slide 45: Caisse d'Epargne network: customer loan outstandings
Annex – Commercial Banking and Insurance Caisse d’Epargne network: customer loan outstandings (in €bn) 207.7 200.9 196.9 % change Q3-14/Q3-13 120.2 125.9 117.6 Home loans +7.0% Consumer loans and +2.6% short-term facilities Equipment loans +0.7% 19.4 19.3 19.9 Other ns 57.8 56.9 Total loans +5.5% 56
Slide 46: Quarterly income statement – Insurance and Other networks
Annex – Commercial Banking and Insurance Quarterly income statement – Insurance and Other networks (*) Insurance and Other networks In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 379 419 365 394 427 Operating expenses -255 -286 -255 -267 -256 Gross operating income 124 133 111
Slide 47: Wholesale Banking, Investment Solutions and SFS: Quarterly income statement
Annex – Wholesale Banking, Investment Solutions and SFS: Quarterly income statement Wholesale Banking, Investment Solutions & Specialized Financial Services In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 1,642 1,657 1,688 1,785 1,669 Operating expenses -1,063 -1,097 -1,102 -1,
Slide 48: Wholesale Banking, Investment Solutions and SFS: Quarterly income statement per business line
Annex - Wholesale Banking, Investment Solutions and SFS: Quarterly income statement per business line Wholesale Banking, Specialized Financial Investment Solutions and Wholesale Banking Investment Solutions Services Specialized Financial Services In millions of euros Q3-14 Q3-13 pf % Q3-14 Q3-13 pf
Slide 49: Wholesale Banking, Investment Solutions and SFS: Quarterly income statement per business line
Annex - Wholesale Banking, Investment Solutions and SFS: Quarterly income statement per business line Wholesale Banking Investment Solutions In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 739 652 727 757 674 Net banking income
Slide 50: Wholesale Banking, Investment Solutions and SFS: 9-month income statement per business line
Annex - Wholesale Banking, Investment Solutions and SFS: 9-month income statement per business line Wholesale Banking, Specialized Financial Investment Solutions and Wholesale Banking Investment Solutions Services Specialized Financial Services In millions of euros 9M-14 9M-13 pf % 9M-14 9M-13 pf %
Slide 51: Equity interests: Quarterly income statement
Annex – Equity interests Quarterly income statement Equity interests In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income 398 466 403 420 419 Operating expenses -338 -386 -337 -350 -347 Gross operating income 60 80 66 70 72 Cost of risk -9 3 -2 -3 -2 Income before tax 51 50 64 74 74
Slide 52: Corporate center: Quarterly income statement
Annex – Corporate center Quarterly income statement Corporate center In millions of euros Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Net banking income -132 -139 -29 9 -210 Operating expenses -77 -250 -67 -125 -76 Gross operating income -209 -389 -97 -116 -286 Cost of risk -27 -21 -22 -34 -25 Income before tax -
Slide 53: Groupe BPCE: non-performing loans and impairment
Annex – Risks Groupe BPCE: non-performing loans and impairment In millions of euros Sept. 30, 2014 June 30, 2014 Dec. 31, 2013 Gross outstanding customer loans 616,642 619,580 590,704 O/w non-performing loans 23,173 23,227 23,330 Non-performing/gross outstanding loans 3.8% 3.7% 3.9% Impairment recog
Slide 54: Breakdown of commitments as at September 30, 2014
Annex – Risks Breakdown of commitments as at September 30, 2014 Breakdown of commitments Breakdown of commitments to Corporates by counterparty and Professionals by industrial sector 6% Real estate rental 16,3% Finance Insurance 12,6% 9% Real estate 7,6% 26% Energy 7,3% Services 5,9% Holding compani
Slide 55: Geographical breakdown of commitments as at September 30, 2014
Annex – Risks Geographical breakdown of commitments as at September 30, 2014 Institutions Sovereigns Corporates 5% 1% 1% 3% 4% 6% 20% 17% 10% 19% 15% 69% 40% 68% 22% France Centralized savings Europe excluding France North & South America Asia / Oceania Africa & the Middle East November 4, 2014 Resu
Slide 56: Results for the 3rd quarter and first 9 months of 2014
November 4, 2014 Results for the 3rd quarter and first 9 months of 2014 56