Natixis — Groupe BPCE — 9M 2015 Earnings Presentation
66 slides from Natixis's earnings presentation, Nov 4, 2015
Slide 1: Results for the 3rd quarter and first 9 months of 2015
Results for the 3rd quarter November 4, 2015 and first 9 months of 2015
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, recurring results: 9M-15 net income +4.5%, to €2.7bn
Robust, recurring results: 9M-15 net income1 +4.5%, to €2.7bn Capital adequacy enhanced by 30bps in Q3-15 to 12.7%3 CET1 ratio thanks to significant organic capital generation capacity Banque Populaire and Caisse d'Epargne retail banking networks > Deposits & savings, rising +4.8% year-on-year to
Slide 4: Contents
Contents 1 2 3 Results of Capital Results of the Groupe BPCE adequacy and business lines liquidity November 4, 2015 Results for the 3rd quarter and first 9 months of 2015 4
Slide 5: Marginal impact in Q3-15 of non-economic and exceptional items
Marginal impact in Q3-15 of non-economic and exceptional items 9M-15 9M-14 pf Q3-15 Q3-14 pf Non-economic items Net income Net income Net income Net income In millions of euros attributable attributable attributable attributable Income Income Income Income to equity to equity to equity to equity bef
Slide 6: 9M-15 results of Groupe BPCE
9M-15 results of Groupe BPCE Robust, recurring results: €2.7bn in net income attributable to equity holders of the parent1,2, +4.5% vs. 9M-14pf Core business Core business Results 9M-15 9M-14 pf 9M-15/9M-14 pf lines3 lines3 9M-15/9M-14 pf In millions of euros % change 9M-15 9M-14 pf % change 1 Net b
Slide 7: Q3-15 results of Groupe BPCE
Q3-15 results of Groupe BPCE Net income2 of the core businesses: €1bn, +5% vs. Q3-14pf Core business Core business 3 3 Results Q3-15 Q3-14 pf Q3-15/Q3-14 pf lines lines Q3-15/Q3-14 pf In millions of euros % change Q3-15 Q3-14 pf % change 1 Net banking income 5,731 5,715 0.3% 5,680 5,486 3.5% Operati
Slide 8: Cost of risk kept at a low level: 23bps in Q3-15
Results of Groupe BPCE Cost of risk kept at a low level: 23bps in Q3-15 Cost of risk in bps1 50 Banque Populaire banks 38 34 34 40 38 25 Cost of risk: 25bps, -9bps vs. Q3-14, decline in individual provisions Caisses d’Epargne 27 25 29 29 32 24 19 Cost of risk: 19bps, -10bps vs. Q3-14, decline in
Slide 9: Contents
Contents 1 2 3 Results of Capital Results of the Groupe adequacy business lines BPCE and liquidity November 4, 2015 Results for the 3rd quarter and first 9 months of 2015 9
Slide 10: Capital adequacy: steady improvement in the CET1 ratio
Capital adequacy Steady improvement in the CET1 ratio: +30bps in Q3-15 to 12.7%1,2 Change in Q3-15 Change in 9M-15 + 16 pb + 13 pb +13bps + 58 pb +20bps - 20 bp -30 pb -30bps 12,7% 1,2 12,7 %1,2 12,4 %2 12,4%2 12.4%1 12.7 %1,2 12.4%2 12,0%1 CET1 ratio at Retained Change CET1 ratio Impact of CET1 rat
Slide 11: Total capital ratio target revised upward to 18%
Capital adequacy Total capital ratio target revised upward to 18% for early 2019, in anticipation of the implementation of TLAC Total capital ratios6 (as a %) 15.6% 16.1% Strong momentum in the generation of 13.1% 3.0 2.6 regulatory capital: +€1.7bn in 9M-15 1.5 1.0 0.4 1.2 CET1: +€2.3bn, thanks n
Slide 12: Liquidity reserves
Liquidity Liquidity reserves account for 152% of short-term funding plus MLT and subordinated debt ≤ 1 year Liquidity reserves (in €bn) and Group customer loan/deposit ratio2 short-term funding 147% Liquidity reserves: €171bn at Sept. 30, 2015 138% 3 128% €50bn in cash placed with central banks 12
Slide 13: 94% of 2015 medium-/long-term funding plan completed
Liquidity 94% of the 2015 medium-/long-term funding plan already completed at October 21, 2015 94% of the 2015 MLT funding plan completed at October 21, 2015 €23.5bn raised out of a €25bn plan Average maturity at issue: 5 years Average rate: mid-swap +14bps 54% public issues and 46% private
Slide 14: Contents
Contents 1 2 3 Results of Capital Results of Groupe adequacy and the business BPCE liquidity lines November 4, 2015 Results for the 3rd quarter and first 9 months of 2015 14
Slide 15: Commercial Banking & Insurance results
Results of the business lines Commercial Banking & Insurance Results 9M-15 9M-14 pf 9M-15/9M-14 pf Q3-15 Q3-14 pf Q3-15/Q3-14 pf In millions of euros % change % change Net banking income 11,698 11,312 3.4% 3,859 3,809 1.3% 1 Net banking income 11,734 11,311 3.7% 3,868 3,808 1.6% 1 Banque Populaire b
Slide 16: Commercial Banking & Insurance: growth in contribution to income before tax
Results of the business lines Commercial Banking & Insurance: 12.8% growth in contribution to the Group’s income before tax3 vs. 9M-14, rising to €3.4bn Unless specified to the contrary, all changes are vs. Sept. 30, 2014 Deposits & savings and loan outstandings2 (in €bn) Commercial activities of th
Slide 17: Banque Populaire banks
Results of the business lines Banque Populaire banks: commercial momentum maintained, significant decline in the cost of risk Unless specified to the contrary, all changes are vs. Sept. 30, 2014 Customer base Principal active customers using banking services: +1.4% Deposits & savings and loan outs
Slide 18: Caisses d'Epargne
Results of the business lines Caisses d’Epargne: faster pace of new loan production and distribution of insurance products Unless specified to the contrary, all changes are vs. Sept. 30, 2014 Customer base Deposits & savings and loan outstandings3 Principal active customers using banking services:
Slide 19: Other networks / Real estate Financing
Results of the business lines Other networks / Real estate Financing1 Unless specified to the contrary, all changes are vs. Sept. 30, 2014 Loan outstandings2 (in €bn) – Core business lines Dynamic commercial activity 87 88 85 Aggregate new loan production of €7.5bn in 9M-15 driven 5 5 5 by the ind
Slide 20: Other networks / CNP, BPCE International and Banque Palatine
Results of the business lines Other networks / CNP and others, BPCE International and Banque Palatine Unless specified to the contrary, all changes are vs. Sept. 30, 2014 CNP and others1 Business activity indicators Life insurance: >Gross new inflows from the Caisses d’Epargne equal to €2.2bn in Q
Slide 21: Core business lines of Natixis
Results of the business lines Core business lines of Natixis: Wholesale Banking, Investment Solutions, and Specialized Financial Services 1 Results 9M-15 9M-14 pf 9M-15/9M-14 pf Q3-15 Q3-14 pf Q3-15/Q3-14 pf In millions of euros % change % change 1 Net banking income 5,797 5,200 11.5% 1,821 1,677 8.
Slide 22: Natixis core business lines: increased profitability
Results of the business lines Core business lines of Natixis: increased profitability in 9M-15, chiefly driven by Asset Management Wholesale Banking: income before tax +1%1,2 Change in the core business line net banking vs. 9M-14 income1 and income before tax1,2 Growth in net revenues: +5% vs. 9M-
Slide 23: Wholesale Banking
Results of the business lines Wholesale Banking: good resilience of key franchises in an adverse business environment in Q3-15 Financing activities Change in net revenues1 (in €m) Structured financing Financing activities Capital markets >New loan production: €6.1bn in Q3-15 and €20bn in 9M-15 1,1
Slide 24: Investment Solutions
Results of the business lines Investment Solutions: growth in revenues posted by all the business lines and enhanced profitability in 9M-15 Asset management Net new fund inflows: nearly €1bn in Q3-15 and €30bn in 9M-15 Positive new inflows in Europe in Q3-15 (+€3.4bn), more than Asset management
Slide 25: SFS: continued rollout of products and services
Results of the business lines SFS: continued rollout of products and services in the Groupe BPCE retail banking networks Specialized financing Leasing >New loan production: +22% vs. Q3-14 thanks, in particular, to real estate leasing Sureties & financial guarantees >Net revenues: +14% vs. Q3-14
Slide 26: Equity interests
Equity interests1 Results 9M-15/9M-14 pf Q3-15/Q3-14 pf 9M-15 9M-14 pf Q3-15 Q3-14 pf In millions of euros % change % change 2 Net banking income 637 635 0.4% 214 209 2.2% Operating expenses -518 -514 0.8% -172 -167 3.1% 2 Gross operating income 119 121 -1.4% 42 42 -1.6% Cost of risk -13 -7 93.3% -6
Slide 27: Annexes
Results for the 3rd quarter November 4, 2015 and first 9 months of 2015 Annexes
Slide 28: Annexes contents
Annexes Organizational structure of Groupe BPCE Commercial Banking and Insurance Income statement Consolidated results of Groupe BPCE Banque Populaire network Notes on methodology – Changes in savings and loan outstandings Income statement: reconciliation of consolidated data Caisse d’Epar
Slide 29: Organizational structure of Groupe BPCE
Annex - Groupe BPCE Organizational structure of Groupe BPCE November 4, 2015 Results for the 3rd quarter and first 9 months of 2015 29
Slide 30: Notes on methodology
Annex – Consolidated results of Groupe BPCE Notes on methodology Presentation of pro forma 2014 quarterly and 9M-14 results The segment information has been modified as of Q2-14. The Commercial Banking & Insurance division is now divided into 3 sub- divisions: the Banque Populaire banks, the Caiss
Slide 31: Notes on methodology – IFRIC 21
Annex – Consolidated results of Groupe BPCE Notes on methodology – IFRIC 21 First application of the IFRIC 21 interpretation Approval in June 2014 by the European Union of the IFRIC interpretation 21 relating to the recognition of levies charged by a public authority (other than income tax). App
Slide 32: 9-month income statement: reconciliation to published data
Annex - Groupe BPCE 9-month income statement: reconciliation of consolidated data excluding non-economic and exceptional items to published consolidated data Provision Disposal of booked on a Results Changes in Capital gains Disposal of 9M-15 Gain from securities / Contribution Provision company met
Slide 33: Quarterly income statement: reconciliation to published data
Annex - Groupe BPCE Quarterly income statement: reconciliation of consolidated data excluding non-economic and exceptional items to published consolidated data Provision Disposal of booked on a Results Changes in Disposal of Q3-15 Gain from securities / Contribution Provision company Capital gains m
Slide 34: Reconciliation of pro-forma to published data
Annex - Groupe BPCE Income statement: reconciliation of pro-forma consolidated data to published consolidated data Wholesale Banking, investment Solutions Groupe BPCE Commercial Banking and Insurance Equity interests Corporate center and SFS Changes in the Changes in Changes in Changes in the Pf C.C
Slide 35: Reconciliation of pro-forma to published data
Annex - Groupe BPCE Income statement: reconciliation of pro-forma consolidated data to published consolidated data Wholesale Banking, investment Solutions Groupe BPCE Commercial Banking and Insurance Equity interests Corporate center and SFS Changes in the Changes in the Changes in the Changes in th
Slide 36: 9-month income statement per business line
Annex - Groupe BPCE 9-month income statement per business line Wholesale Commercial Banking, Banking & Core businesses Equity interests Corporate center Groupe BPCE Investment Insurance Solutions and SFS 9M-14 in millions of euros 9M-15 9M-14 pf 9M-15 9M-14 pf 9M-15 9M-14 pf % 9M-15 9M-14 pf 9M-15 p
Slide 37: Quarterly income statement per business line
Annex - Groupe BPCE Quarterly income statement per business line Wholesale Commercial Banking, Banking & Core businesses Equity interests Corporate center Groupe BPCE Investment Insurance Solutions and SFS in millions of euros Q3-15 Q3-14 pf Q3-15 Q3-14 pf Q3-15 Q3-14 pf % Q3-15 Q3-14 pf Q3-15 Q3-14
Slide 38: Quarterly income statement
Annex – Groupe BPCE Quarterly income statement Groupe BPCE in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 5,643 5,735 5,477 5,533 6,191 6,058 5,740 Operating expenses -4,025 -3,846 -3,687 -4,039 -4,318 -3,929 -3,832 Gross operating income 1,618 1,888 1,
Slide 39: Consolidated balance sheet
Annex – Groupe BPCE Consolidated balance sheet ASSETS in millions of euros Sept. 30, 2015 Dec. 31, 2014 LIABILITIES in millions of euros Sept. 30, 2015 Dec. 31, 2014 C ash and amounts due from central banks 65,996 79,028 Amounts due to central banks 0 2 Financial assets at fair value through profit
Slide 40: 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, 2014 55,290 Effect of the application of IFRIC interpretation 21 46 Distributions - 380 Capital increase (cooperative shares) 534 Income 2,61
Slide 41: Reconciliation of shareholders' equity to total capital
Annex – Financial structure Reconciliation of shareholders' equity to total capital1 -1.4 in billions of euros +13.0 +4.1 -4.6 -2.0 -1.5 -2.12 +1.6 63,1 62.9 55.7 49,6 49,6 51.3 51,5 49.6 Equity Cancellation Non-controlling Goodwill EL/Prov Other Common Additional Tier-1 Tier-2 Deductions Total capi
Slide 42: Prudential ratios and credit ratings
Annex – Financial structure Prudential ratios1 and credit ratings September 30, 2015 June 30, 2015 Dec. 31, 2014 Dec. 31, 2013 pf Total risk-weighted assets €390bn €394bn €393bn €409bn Common Equity Tier-1 capital €49.5bn €48.7bn €46.6bn €42.3bn Tier-1 capital €50.7bn €50.5bn €50.0bn €46.5bn Total c
Slide 43: Breakdown of risk-weighted assets at September 30, 2015
Annex - Financial structure Breakdown of risk-weighted assets at September 30, 2015 Commercial Banking & 85% Credit risk Insurance 65% CVA Natixis Market risk 30% Other 1% Operational risk 4% 5% 10% November 4, 2015 Results for the 3rd quarter and first 9 months of 2015 43
Slide 44: Leverage ratio
Annex Leverage ratio1 September 30, June 30, in billions of euros Dec. 31, 2014 2015 2015 Tier-1 capital 51.3 51.1 51.1 Balance sheet total 1,173.2 1,169.2 1,223.3 Prudential restatements -69.0 -68.9 -66.1 Prudential balance sheet total2 1,104.2 1,100.3 1,157.2 Adjustments related to exposure to der
Slide 45: Financial conglomerate
Annex Financial conglomerate CRR/CRD 42 Restatements Financial Financial conglomerate ratio viewpoint conglomerate viewpoint +0.4 Banking CR1 (CRR/CRD4) Regulatory capital > + Insurance CR1 (Solvency 1) Total capital 62.7 60,2 60,2 63.2 (in €bn) 1 2 3 Transfer from the Basel 3 ratio2 to the conglome
Slide 46: Commercial Banking & Insurance: 9-month income statement
Annex - Commercial Banking & Insurance 9-month income statement per business line Commercial Banking & Banque Populaire banks Caisses d'Epargne Other networks Insurance in millions of euros 9M-15 9M-14 pf % 9M-15 9M-14 pf % 9M-15 9M-14 pf % 9M-15 9M-14 pf % Net banking income 4,964 4,796 3.5% 5,541
Slide 47: Commercial Banking & Insurance: quarterly income statement per business line
Annex - Commercial Banking & Insurance Quarterly income statement per business line Commercial Banking & Banque Populaire banks Caisses d'Epargne Other networks Insurance in millions of euros Q3-15 Q3-14 pf % Q3-15 Q3-14 pf % Q3-15 Q3-14 pf % Q3-15 Q3-14 pf % Net banking income 1,663 1,586 4.8% 1,79
Slide 48: Commercial Banking & Insurance: quarterly income statement
Annex - Commercial Banking & Insurance Quarterly income statement Commercial Banking & Insurance in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 3,774 3,729 3,809 3,733 3,951 3,888 3,859 Operating expenses -2,618 -2,437 -2,365 -2,576 -2,604 -2,448 -2,400
Slide 49: Banque Populaire banks and Caisses d'Epargne quarterly income statement
Annex - Commercial Banking & Insurance Quarterly income statement: Banque Populaire banks and Caisses d’Epargne Banque Populaire banks in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 1,603 1,607 1,586 1,563 1,655 1,646 1,663 Operating expenses -1,109 -1,
Slide 50: Banque Populaire network: customer deposits & savings
Annex - Commercial Banking & Insurance Banque Populaire network: customer deposits & savings (in €bn) 228.8 217.1 213.0 58.9 50,3 54.4 % change Q3-15/Q3-14 Demand deposits +17.0% 44.5 43.1 42.6 Passbook savings accounts +3.3% 17.4 Regulated home savings 15.9 16.3 +9.4% plans 29.7 29.9 31.6 Term acco
Slide 51: Banque Populaire retail network: customer loan outstandings
Annex - Commercial Banking & Insurance Banque Populaire retail network: customer loan outstandings (in €bn) 167.4 170.4 166.5 % change Q3-15/Q3-14 Home loans +3.9% 89.3 89.9 92.8 Consumer loans +7.7% Short-term credit facilities +5.0% 6.7 6.8 7.2 Equipment loans +0.3% 11.4 11.1 12.0 Other ns 53.7 53
Slide 52: Caisse d'Epargne retail network: customer deposits & savings
Annex - Commercial Banking & Insurance Caisse d’Epargne retail network: customer deposits & savings1 (in €bn) 394.1 381.3 381.9 % change 52.5 Q3-15/Q3-14pf 45.0 48.3 Demand deposits +16.7% Passbook savings accounts -4.3% 125.6 131.3 128.0 Regulated home savings +10.8% plans Term accounts +13.9% 51.0
Slide 53: Caisse d'Epargne retail network: customer loan outstandings
Annex - Commercial Banking & Insurance Caisse d’Epargne retail network: customer loan outstandings1 (in €bn) 221.4 210.7 213.8 % change Q3-15/Q3-14 133.8 127.0 128.2 Home loans +5.3% Consumer loans +13.4% Short-term credit facilities +5.6% 11.3 11.6 12.8 Equipment loans +4.1% 8.7 8.4 9.2 Other ns 58
Slide 54: Quarterly income statement - Other networks
Annex - Commercial Banking & Insurance Quarterly income statement - Other networks (*) Other networks in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 325 354 387 351 388 405 401 Operating expenses -260 -231 -219 -241 -254 -224 -219 Gross operating income
Slide 55: Wholesale Banking, Investment Solutions and SFS: 9-month income statement
Annex – Wholesale banking, Investment Solutions and Specialized Financial Services 9-month income statement per business line Wholesale Banking, Wholesale Banking Investment Solutions Specialized Financial Services Investment Solutions and Specialized Financial Services in millions of euros 9M-15 9M
Slide 56: Wholesale Banking, Investment Solutions and SFS: quarterly income statement per business line
Annex – Wholesale banking, Investment Solutions and Specialized Financial Services Quarterly income statement per business line Wholesale Banking, Wholesale Banking Investment Solutions Specialized Financial Services Investment Solutions and Specialized Financial Services in millions of euros Q3-15
Slide 57: Wholesale Banking, Investment Solutions and SFS quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Wholesale Banking, Investment Solutions and Specialized Financial Services in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 1,693 1,793 1,677 1,729 1,953 2,023 1,821 Operat
Slide 58: Wholesale Banking quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Wholesale Banking in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 732 763 680 629 806 842 665 Operating expenses -455 -422 -403 -435 -492 -459 -416 Gross operating income
Slide 59: Investment Solutions quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Investment Solutions in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 648 711 690 773 823 846 840 Operating expenses -486 -489 -480 -549 -583 -576 -569 Gross operating inco
Slide 60: Specialized Financial Services quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Specialized Financial Services in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 313 320 307 327 324 335 315 Operating expenses -214 -206 -200 -212 -217 -209 -206 Gross oper
Slide 61: Equity interests quarterly income statement
Annex - Equity interests Quarterly income statement Equity interests in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income 213 212 209 195 227 196 233 Operating expenses -176 -171 -167 -180 -179 -167 -172 Gross operating income 37 41 42 15 48 29 60 Cost / inco
Slide 62: Corporate center quarterly income statement
Annex - Corporate center Quarterly income statement Corporate center in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Q2-15 Q3-15 Net banking income -37 0 -219 -125 60 -49 -172 Operating expenses -77 -122 -73 -86 -243 -70 -69 Gross operating income -114 -121 -291 -211 -183 -119 -241 Co
Slide 63: Risks: non-performing loans and impairment
Annex – Risks Groupe BPCE: non-performing loans and impairment In millions of euros Sept. 30, 2015 Dec. 31, 2014 Dec. 31, 2013 Gross outstanding customer loans 628,614 623,256 590,704 O/w non-performing loans 23,547 22,919 23,330 Non-performing/gross outstanding loans 3.7% 3.7% 3.9% Impairment recog
Slide 64: Breakdown of commitments as at September 30, 2015
Annex – Risks Breakdown of commitments as at September 30, 2015 (on the basis of gross exposures) Breakdown of commitments Breakdown of commitments to Corporates per counterparty per economic sector Finance insurance 14.7% 6% Real-estate rentals 11.6% 9% Energy 9.7% 26% Real estate 8.9% 4% Holding c
Slide 65: Geographical breakdown of commitments
Annex – Risks Geographical breakdown of commitments as at September 30, 2015 (on the basis of gross exposures) Central administrations / central banks and other Institutions sovereign exposures Corporates 2% 4% 2% 3% 10% 4% 16% 9% 11% 17% 16% 34% 38% 68% 66% France Centralization of regulated saving
Slide 66: Results for the 3rd quarter and first 9 months of 2015
November 4, 2015 Results for the 3rd quarter and first 9 months of 2015 66