Natixis — Groupe BPCE — Q1 2014 Earnings Presentation
58 slides from Natixis's earnings presentation, May 6, 2014
Slide 1: Results for the 1st quarter of 2014
Results for the May 6, 2014 1st quarter of 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: Q1-14 key messages
Q1-14 key messages Revenues generated by the core business lines1: Robust financial €5.5bn, +3.7% vs. Q1-13 performance Net income attributable to equity holders of the parent2: €866m, +16.1% vs. Q1-13 Moderate cost of risk at 29 bp in Q1-14 vs. 33 bp in Q1-13 Continued low risk profile and 38 bp in
Slide 4: Contents: Results of Groupe BPCE
Contents 1 2 3 4 Results Capital Results Conclusion of Groupe adequacy of the BPCE and liquidity business lines May 6, 2014 Results for the 1st quarter of 2014 4
Slide 5: Q1-14 results of Groupe BPCE
Q1-14 results of Groupe BPCE Good performance: core business lines up 3.7% and net income attributable to equity holders of the parent1 up +16.1% Core business Pro forma results Q1-14 /Q1-13 2 Q1-14 /Q1-13 Q1-14 lines In millions of euros % change % change Q1-14 1 Net banking income 5,853 2.9% 5,522
Slide 6: Moderate cost of risk in Q1-14
Results of Groupe BPCE Moderate cost of risk in Q1-14 Cost of risk in bp1 46 41 48 39 38 38 37 Banque Populaire banks 25 27 28 29 27 25 27 Caisses d’Epargne Commercial Banking and Insurance 29 36 37 31 32 27 28 Cost of risk of the 2 two retail networks kept stable at 32 bp since Q3-13 Normalization
Slide 7: GAPC: closing process begun in Q1-14
Results of Groupe BPCE GAPC: closing process begun in Q1-14 Asset disposal program: €0.5bn realized in Q1-14 GAPC: contribution to the Group’s At March 31, 2014, the stock of risk-weighted assets attributable net income (in €m) managed on a run-off basis transferred to the Wholesale 34 Banking divis
Slide 8: Contents: Capital adequacy and liquidity
Contents 1 2 3 4 Results Capital Results Conclusion of Groupe adequacy of the BPCE and liquidity business lines May 6, 2014 Results for the 1st quarter of 2014 8
Slide 9: Significant increase in capital adequacy in Q1-14
Capital adequacy and liquidity Significant increase in capital adequacy in Q1-14 +10 bp +15 bp +15 bp 10.8% 10.4% Common Equity Tier 1 ratio Retained earnings Issue of cooperative shares Other changes Common Equity Tier 1 ratio under Basel 3 under Basel 3 31/12/2013 31/03/2014 Common Equity Tier 1 r
Slide 10: Loan-to-deposit ratio and liquidity reserves
Capital adequacy and liquidity Group’s customer loan-to-deposit ratio1 Change in method2 Group’s customer loan-to-deposit ratio1: 138% 147% 125% as at March 31, 2014, -4 pts vs. March 31, 2013 132% 129% 124% 125% 128% Dec. 2010 Dec. 2011 Dec. 2012 March 2013 Dec. 2013 March 2014 Liquidity reserves a
Slide 11: 58% of the MLT funding plan already completed
Capital adequacy and liquidity 58% of the MLT funding plan already completed Increased diversification of the investor base 58% of the 2014 MLT plan completed MLT funding plan completed at April 29, 2014 at April 29, 2014 €17.3bn raised out of the €30bn plan Average maturity at issue: 6.5 years 73%
Slide 12: Contents: Results of the business lines
Contents 1 2 3 4 Results Capital Results Conclusion of Groupe adequacy of the BPCE and liquidity business lines May 6, 2014 Results for the 1st quarter of 2014 12
Slide 13: Commercial Banking & Insurance
Results of the business lines Commercial Banking & Insurance 1 Pro forma results Q1-14 /Q1-13 Q1-14 In millions of euros % change Net banking income Excluding changes in provisions 3,835 4.9% for home purchase savings schemes Banque Populaire banks Excluding changes in provisions 1,618 6.0% for home
Slide 14: Commercial Banking & Insurance: confirmed commercial dynamism
Results of the business lines Commercial Banking & Insurance: confirmed commercial dynamism Unless specified to the contrary, all changes are vs. Q1-13 On-balance sheet deposits & savings1 and loans outstanding (in €bn) Commercial activities of the BP and CE retail networks Active contribution in fi
Slide 15: Banques Populaires banks: qualitative growth in the customer base
Results of the business lines Banques Populaires banks: qualitative growth in the customer base Unless specified to the contrary, all changes are vs. Q1-13 Deposits & savings1 and loan outstandings (in €bn) Customer base +5.5% of active customers using banking services 194 200 201 166 167 and insura
Slide 16: Caisses d'Epargne: sustained growth in financing and deposits
Results of the business lines Caisses d’Epargne: sustained growth in financing business and in new deposit inflows Unless specified to the contrary, all changes are vs. Q1-13 Deposits & savings1 and loan outstandings (in €bn) Customer base 281 300 304 Individual customers using banking services: +3.
Slide 17: Real estate Financing: continued implementation of the strategic plan
Results of the business lines Real estate Financing1: continued implementation of the strategic plan Unless specified to the contrary, all changes are vs. Q1-13 Loan outstandings2 – Core businesses (in €bn) 80.7 82.7 82.8 32.4 32.5 32.4 Activity in Q1-14: aggregate new loan production of €2bn, down
Slide 18: Insurance, International and Other networks
Results of the business lines Insurance, International and Other networks Unless specified to the contrary, all changes are vs. Q1-13 Insurance1 Business activity indicators Life insurance: gross new inflows of €2.7bn, +49.7% Life insurance: portfolio of contracts +0.9% Q1-14/Q1-13 Q1-14 Internation
Slide 19: Core business lines of Natixis
Results of the business lines Core business lines of Natixis: Wholesale Banking, Investment Solutions, SFS 1 Pro forma results Q1-14/Q1-13 Q1-14 In millions of euros % change Net banking income 1,688 6.7% Wholesale Banking 727 0.1% Investments solutions 647 18.3% Specialized Financial Services 314 1
Slide 20: Core business lines of Natixis: Wholesale Banking, Investment Solutions, SFS
Results of the business lines Core business lines of Natixis: Wholesale Banking, Investment Solutions, SFS Unless specified to the contrary, all changes are vs. Q1-13 Wholesale Banking: net revenues stable1 Change in net revenues of the core business Good performance in a more difficult environment
Slide 21: Wholesale Banking: strong growth of Financing activities and Equity
Results of the business lines Wholesale Banking: strong growth dynamics of the Financing activities and Equity businesses Unless specified to the contrary, all changes are vs. Q1-13 Change in revenues (in €m) Financing activities Financing activities Capital markets Structured finance 475 › New loan
Slide 22: Investment Solutions: strong growth in activities and profitability
Results of the business lines Investment Solutions: strong growth in activities and profitability in all business lines in Q1-14 Unless specified to the contrary, all changes are vs. Q1-13 Asset management Asset management: AuM (in €bn) Net inflows of €9.6bn in Q1-14, excluding money market funds (-
Slide 23: SFS: continued roll-out of product range
Results of the business lines SFS: continued roll-out of product range and enhanced profitability in Q1-14 Unless specified to the contrary, all changes are vs. Q1-13 Business activity indicators Q1-14/Q1-13 Q1-14 % change Specialized financing Consumer finance Outstanding in €bn (end of period) 15.
Slide 24: Equity interests
Equity interests1 Results Q1-14/Q1-13 Q1-14 In millions of euros % change Net banking income 387 -2.5% Operating expenses -328 -4.2% Gross operating income 58 8.6% Cost of risk -1 72.1% Income before tax 56 -0.6% 1 The “Equity Interests” division includes investments in Coface, Nexity and Volksbank
Slide 25: Equity interests: Coface and Nexity
Equity interests Unless specified to the contrary, all changes are vs. Q1-13 Coface Insurance turnover: +2% vs. Q4-13 Coface – Insurance turnover (in €m) Stable vs. Q1-13 (+3% vs. Q1-13 on a pro-forma basis Pro forma to account for foreign exchange and perimeter effects) of exchange and Average quar
Slide 26: Contents: Conclusion
Contents 1 2 3 4 Results Capital Results Conclusion of Groupe adequacy of the BPCE and liquidity business lines May 6, 2014 Results for the 1st quarter of 2014 26
Slide 27: Conclusion
Conclusion Substantial New significant Groupe BPCE Strong growth in net reinforcement confirms its active commercial income of capital role in financing and financial attributable adequacy: the French performance, to equity Common Equity economy with, putting holders Tier 1 ratio2 in particular, the
Slide 28: Annexes
Results for the 1st May 6, 2014 quarter of 2014 Annexes
Slide 29: Annexes contents
Annexes Groupe BPCE Wholesale Banking, Investment Solutions Organizational structure of Groupe BPCE and SFS Income statement: reconciliation of pro-forma Income statement consolidated data to published consolidated data Income statement per business line Equity interests Income statement Income stat
Slide 30: Organizational structure of Groupe BPCE
Annex - Groupe BPCE Organizational structure of Groupe BPCE May 6, 2014 Results for the 1st quarter of 2014 30
Slide 31: Reconciliation of pro-forma to published consolidated data
Annex - Groupe BPCE Income statement: reconciliation of pro-forma consolidated data to published consolidated data Wholesale Banking, Investment Q1-13 Groupe BPCE Commercial Banking & Solutions & Specialized Equity Interests Workout portfolio management Other businesses Insurance Financial Services
Slide 32: Quarterly income statement per business line
Annex - Groupe BPCE Quarterly income statement per business line Wholesale Workout Banking, Commercial portfolio Investment Banking & Total core businesses Equity interests management & Groupe BPCE Solutions & Insurance Other Specialized businesses Financial Services In millions of euros Q1-14 Q1-13
Slide 33: Quarterly income statement
Annex - Groupe BPCE Quarterly income statement Groupe BPCE In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 5,679 5,728 5,585 5,834 5,850 Operating expenses -3,945 -4,022 -3,912 -4,256 -3,977 Gross operating income 1,735 1,706 1,672 1,578 1,873 Cost / income ratio 69.5% 70.2% 70
Slide 34: Consolidated balance sheet
Annex - Groupe BPCE Consolidated balance sheet ASSETS in millions of euros March 31, 2014 Dec. 31, 2013 LIABILITIES in millions of euros March 31, 2014 Dec. 31, 2013 C ash and amounts due from central banks 41,973 60,410 Amounts due to central banks 0 0 Financial assets at fair value through profit
Slide 35: Statement of changes in shareholders' equity
Annex - Financial structure Statement of changes in shareholders’ equity Equity attributable In millions of euros to equity holders of the parent December 31, 2013 51,339 Distributions - Capital increase (cooperative shares) 772 Income 863 Remuneration of deeply subordinated notes and related -68 cu
Slide 36: Prudential ratios and credit ratings
Annex - Financial structure Prudential ratios and credit ratings BASEL 31 BASEL 2.5 March 31, 20141 Dec. 31, 2013 Dec. 31, 2012 Total risk-weighted assets €408bn €369bn €381bn Core Tier-1 capital €44.4bn €42.0bn €40.9bn Tier-1 capital €48.6bn €47.3bn €46.5bn Core Tier-1 ratio 10.9% 11.4% 10.7% Tier-
Slide 37: Commercial Banking and Insurance: income statement per business line
Annex - Commercial Banking and Insurance Quarterly income statement per business line (*) Insurance, 1 Commercial Banking Banques Populaires Caisses d'Epargne Real Estate Financing International & Other & Insurance networks In millions of euros Q1-14 Q1-13 % Q1-14 Q1-13 % Q1-14 Q1-13 % Q1-14 Q1-13 %
Slide 38: Commercial Banking and Insurance: quarterly income statement
Annex - Commercial Banking and Insurance Quarterly income statement Commercial Banking & Insurance (*) In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 3,752 3,891 3,794 3,941 3,835 Operating expenses -2,483 -2,549 -2,493 -2,578 -2,488 Gross operating income 1,269 1,342 1,301 1,
Slide 39: 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 Banques Populaires In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 1,550 1,625 1,569 1,630 1,618 Operating expenses -1,038 -1,076 -1,040 -1,051 -1,058 Gross operatin
Slide 40: Banque Populaire network: customer deposits & savings
Annex - Commercial Banking and Insurance Banque Populaire network: customer deposits & savings (in €bn) 207.1 208.2 202.2 47.0 % change 45.4 52.8 Q1-14 / Q1-13 Demand deposits +3.6% 41.9 43.1 42.3 Passbook savings +2.8% accounts 14.9 15.4 15.2 Regulated home +3.4% 27.1 25.0 29.0 savings plans Term a
Slide 41: Banque Populaire network: customer loan outstandings
Annex - Commercial Banking and Insurance Banque Populaire network: customer loan outstandings (in €bn) 165,5 167,0 160,8 % change 82,0 87,4 88,0 Q1-14 / Q1-13 Real-estate loans +7.2% Consumer loans and short-term -0.2% 18,2 17,2 18,1 credit facilities Equipment loans +1.4% 53,5 54,2 54,2 Other ns To
Slide 42: Caisse d'Epargne network: customer deposits & savings
Annex - Commercial Banking and Insurance Caisse d’Epargne network: customer deposits & savings (in €bn) 370.5 375.1 362.7 40.7 40.8 35.0 % change Q1-14 / Q1-13 Demand deposits +16.4% 131.9 132.4 136.7 Passbook savings -3.2% accounts Regulated home 43.7 +9.1% 40.1 42.1 savings plans 13.4 16.8 18.4 Te
Slide 43: Caisse d'Epargne network: customer loan outstandings
Annex - Commercial Banking and Insurance Caisse d’Epargne network: customer loan outstandings (in €bn) 200.9 204.4 189.1 % change 122.6 Q1-14 / Q1-13 120.2 111.9 Real-estate loans +9.6% Consumer loans and short-term +2.8% credit facilities 19.3 19.5 19.0 Equipment loans +7.0% Other ns 55.0 57.8 58.8
Slide 44: Real estate Financing, Insurance, International quarterly income statement
Annex - Commercial Banking and Insurance Quarterly income statement Real estate Financing, Insurance, International and Other networks * 1 Real Estate Financing (*) In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 183 188 207 199 168 Operating expenses -136 -129 -134 -148 -130 G
Slide 45: Wholesale Banking, Investment Solutions and SFS income statement per business line
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement per business line Wholesale Banking, Specialized Financial Investment Solutions Wholesale Banking Investment Solutions Services & Specialized Financial Services In millions of euros Q1-14 Q1-13 % Q1-14 Q1-13 % Q1-14 Q
Slide 46: Wholesale Banking, Investment Solutions and SFS quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement per business line Wholesale Banking, Investment Solutions & Specialized Financial Services In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 1,620 1,548 1,596 1,615 1,688 Operating expenses -1,025
Slide 47: Wholesale Banking quarterly income statement
Annex - Wholesale Banking Quarterly income statement Wholesale Banking In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 798 678 739 652 727 Operating expenses -432 -414 -415 -396 -420 Gross operating income 367 265 324 256 306 Cost / income ratio 54.1% 61.0% 56.2% 60.8% 57.9% Co
Slide 48: Investment Solutions quarterly income statement
Annex - Investment Solutions Quarterly income statement Investment Solutions In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 513 557 549 640 647 Operating expenses -388 -414 -403 -456 -475 Gross operating income 125 143 145 185 172 Cost / income ratio 75.7% 74.4% 73.5% 71.2% 73
Slide 49: Specialized Financial Services quarterly income statement
Annex - Specialized Financial Services Quarterly income statement Specialized Financial Services In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 309 313 308 323 314 Operating expenses -205 -206 -203 -219 -207 Gross operating income 104 107 105 104 107 Cost / income ratio 66.3%
Slide 50: Equity interests quarterly income statement
Annex - Equity interests Quarterly income statement Equity interests In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 396 425 382 450 387 Operating expenses -343 -345 -329 -377 -328 Gross operating income 53 79 53 73 58 Cost of risk -1 4 -4 3 -1 Income before tax 57 85 48 42 56
Slide 51: Workout portfolio management and Other businesses income statement
Annex - Workout portfolio management and “Other businesses” Quarterly income statement Workout Workout portfolio Other portfolio management & businesses management Other businesses In millions of euros Q1-14 Q1-13 Q1-14 Q1-13 Q1-14 Q1-13 Net banking income 37 60 -95 -149 -59 -88 Operating expenses -
Slide 52: Workout portfolio management and Other businesses quarterly income statement
Annex - Workout portfolio management and “Other businesses” Quarterly income statement Workout portfolio management & Other businesses In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income -88 -137 -187 -172 -59 Operating expenses -94 -93 -68 -231 -59 Gross operating income -183 -230
Slide 53: Workout portfolio management and Other businesses quarterly income statement
Annex - Workout portfolio management and “Other businesses” Quarterly income statement Workout portfolio management Other businesses In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 In millions of euros Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net banking income 60 23 29 76 37 Net banking income -149 -160 -2
Slide 54: Groupe BPCE: non-performing loans and impairment
Annex - Risks Groupe BPCE: non-performing loans and impairment In millions of euros March 31, 2014 Dec. 31, 2013 Dec. 31, 2012 Gross outstanding customer loans 603,388 590,704 586,479 O/w non-performing loans 23,253 23,330 21,921 Non-performing / gross outstanding loans 3.9% 3.9% 3.7% Impairment rec
Slide 55: Breakdown of commitments as at March 31, 2014
Annex - Risks Breakdown of commitments as at March 31, 2014 Breakdown of commitments Breakdown of commitments to Corporates by counterparty and Professionals by industrial sector Administration 0.3% 6% Technology 1.3% Financial institutions Services to local authorities 1.5% 26% 10% Communications 2
Slide 56: Geographical breakdown of commitments as at March 31, 2014
Annex - Risks Geographical breakdown of commitments as at March 31, 2014 Institutions Sovereigns Corporates 4% 3% 1% 1% 6% 3% 19% 9% 19% 21% 14% 18% 68% 71% 43% France Centralized savings Europe excluding France North & South America Asia / Oceania Africa & the Middle East May 6, 2014 Results for th
Slide 57: FSF report: summary of sensitive exposures
Annex - Groupe BPCE FSF report at March 31, 2014 Summary of sensitive exposures Groupe BPCE Total Total In billions of euros (excl. Natixis) Natixis March 31, 2014 Dec. 31, 2013 Net exposure CDOs of ABS (Asset-backed Securities) 0.0 0.1 0.1 0.1 US residential market Net exposure Other at-risk CDOs 1
Slide 58: May 6, 2014 Results for the 1 st quarter of 2014
May 6, 2014 Results for the 1st quarter of 2014 58