Natixis — Groupe BPCE — Q1 2017 Earnings Presentation
59 slides from Natixis's earnings presentation, May 9, 2017
Slide 1: Results for the 1st quarter of 2017
Results for the May 9, 2017 1st quarter of 2017
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: Good performance achieved by all the business lines in Q1-17
Good performance achieved by all the business lines in Q1-17 Attributable net income1,2 of €948m, +8.2% Excellent level of activity achieved Income before tax: +11.6%1 vs. Q1-16 pf by the business lines Retail Banking: strong lending activities Resilient performance achieved by Retail Banking Strong
Slide 4: Contents
Contents 1 2 3 4 Results Capital Results of the Conclusion of Groupe adequacy and business lines BPCE liquidity May 9, 2017 Results for the 1st quarter of 2017 4
Slide 5: Q1-17 results
Q1-17 results 8.2% year-on-year growth in net income1,2 to €948m Q1-17 underlying Impact of non Impact of non / Q1-16 pf Q1-16 pf Q1-17 economic and Q1-17 underlying Q1-16 pf economic and underlying underlying exceptional items exceptional items % change In millions of euros Net banking income 6,062
Slide 6: 11.9% growth in gross operating income
11.9%1 growth in gross operating income Limited decline in the net banking income from Retail Banking activities Change in net banking income Q1/Q1 (in €m) Net banking income generated by the BP and CE networks stood up well in a context of continuous pressure on net interest margins; +4.9% positive
Slide 7: Results of Groupe BPCE: cost of risk
Results of Groupe BPCE Cost of risk remains stable at a low level Groupe BPCE - 1.6% Cost of risk, expressed in bp2 372 366 Banque Populaire banks 36 28 30 32 Cost of risk (€m) 29 21 22 excluding exceptional items Q1-16 Q1-17 Caisses d’Epargne 26 Ratio of non-performing 18 15 15 17 25 14 3.6% 3.4% l
Slide 8: Contents
Contents 1 2 3 4 Results of Capital Results of the Conclusion Groupe adequacy business lines BPCE and liquidity May 9, 2017 Results for the 1st quarter of 2017 8
Slide 9: Capital adequacy: CET1 ratio
Capital adequacy CET1 ratio up 10bp in Q1-17 to 14.4%1,2 Change in the CET1 ratio Total capital ratios (as a %) Without transitional 16.7% 18.5% 18.7% measures +15bp +13bp -16bp - 8bp 18.7%1 18.7%1,2 16.8%1 4.0 3.9 14.3%1 14.4%1,2 14.4%2 3.4 0.4 0.4 0.4 CET1 ratio AT1 contribution 13.0 14.3 14.4 CET
Slide 10: Capital adequacy: TLAC requirement
Capital adequacy 2019 TLAC requirement satisfied as of Q1-17 Total loss-absorbing capacity1 equal to TLAC ratio (as a % of risk-weighted assets) €76.9bn2 at end-March 2017 Without transitional 19.3% 19.6% Assumptions adopted for the trajectory leading measures to compliance with the TLAC requirement
Slide 11: Liquidity
Liquidity Liquidity reserves and short-term funding at March 31, 2017 Total liquidity reserves of Groupe BPCE1 Coverage ratio of short-term funding + (in €bn) MLT debt maturing in the short term by liquidity reserves2 230 168% 215 158% 154% 196 71 85 61 Short-term funding and MLT debt maturing in th
Slide 12: Liquidity: 2017 wholesale funding plan
Liquidity 2017 wholesale medium-/long-term funding plan 60% completed at April 30, 2017 Structure of MLT funding at April 30, 2017 in line with objectives 74% Covered bond issues 60% of the 2017 wholesale MLT funding plan completed at April 30, 2017 €11.9bn1 raised out of a €20bn plan Unsecured bond
Slide 13: Contents
Contents 1 2 3 4 Results Capital Results of Conclusion of Groupe adequacy and the business BPCE liquidity lines May 9, 2017 Results for the 1st quarter of 2017 13
Slide 14: Changes in segment reporting in Q1-17
Changes in segment reporting in Q1-17 Business divisions ROE Net banking income Retail Banking 69% •Banque Populaire banks (72%) 10% •Caisses d’Epargne (10%) •Specialized Financial 15% Services (14%) •Other networks 16% Crédit Foncier, Banque Palatine, (14%) BPCE International Operating expenses Inv
Slide 15: Retail Banking
Retail Banking Net banking income remains firm, buoyed up by robust commercial performance Loan outstandings: +4.5% year-on-year New loan production at a high level in Q1-17, in excess of Deposits & savings and loan outstandings €33bn, displaying strong growth in all segments (in €bn) > Home loans +
Slide 16: Retail Banking: Banque Populaire banks
Retail Banking Banque Populaire banks: net banking income driven by the dynamism of commissions Loan outstandings (in €bn) Deposits & savings (in €bn) Customer base +4.3% New relationships forged with individual customers: +20% 241 246 235 in Q1-17 (137,000) +7.1% 72 69 71 187 182 9 10 Principal act
Slide 17: Retail Banking: Caisses d'Epargne
Retail Banking Caisses d’Epargne: commercial activities buoyed up by new customer influx and the take-up of banking services ; growth in commissions Loan outstandings (in €bn) Deposits & savings (in €bn) Customer base +1.1% Principal active customers aged 25 +6.2% or more: +120,500 (+2.3%) of which
Slide 18: Retail Banking: Specialized Financial Services
Retail Banking Specialized Financial Services: net banking income stands up well Specialized financing Consumer loans >New production of personal loans up 25% Contribution to Group results >Loan outstandings: €19.3bn at end-March 2017 Factoring >Factored turnover generated from BP and CE retail netw
Slide 19: Retail Banking: Other networks
Retail Banking Other networks1 Real estate Financing Loan outstandings1,2 Deposits & savings2 (in €bn) (in €bn) Principal entity: Crédit Foncier Good level of new loan production in Q1-17: €3.2bn 98.6 94.8 (vs. €3.2bn in Q4-16 and €2.1bn in Q1-16) 5.8 5.5 23.0 21.6 >Home loans granted to individual
Slide 20: Investment Solutions
Investment Solutions Continued strong momentum enjoyed by Insurance activities and return to positive inflows in the USA Asset management Asset management: AuM (in €bn) Net inflows of €5bn in Q1-17, including €6bn in the USA. If NAM is excluded, net fund inflows in Europe equaled +16 €1.7bn, driven
Slide 21: Corporate & Investment Banking
Corporate & Investment Banking Greater momentum enjoyed by Global markets Global markets1 FIC-T (Fixed Income, Commodities & Treasury) Change in net revenues (in €m) >Net revenues up by 36% yoy, buoyed up by Fixed Income & Forex segments and Securities Financing Global finance & Global markets1 Grou
Slide 22: Contents
Contents 1 2 3 4 Results of Capital Results of the Conclusion Groupe adequacy and business lines BPCE liquidity May 9, 2017 Results for the 1st quarter of 2017 22
Slide 23: Conclusion
Conclusion Q1-17: good performance achieved by the Group’s 3 business divisions with revenues up by 4.9%2 Retail Banking: -0.8%1 despite the low interest-rate environment Investment solutions: +8.1% Corporate & Investment Banking: +25.9% Operational excellence initiative enjoying strong momentum pen
Slide 24: Annexes
Results for the May 9, 2017 1st quarter of 2017 Annexes
Slide 25: Annexes contents
Annexes Organizational structure of Groupe BPCE Retail Banking Income statement and quarterly series Consolidated results of Groupe BPCE Banque Populaire and Caisse d’Epargne – quarterly series Notes on methodology Banque Populaire network – Deposits & savings and loan Income statement: reconciliati
Slide 26: Organization chart of Groupe BPCE
Annex - Groupe BPCE Organization chart of Groupe BPCE at March 31, 2017 9 MILLION COOPERATIVE SHAREHOLDERS 100% 100%* 50% 50% BPCE SA 100% 71% * Indirectly through Local Savings Companies. 29% FLOAT May 9, 2017 Results for the 1st quarter of 2017 26
Slide 27: Notes on methodology (1/4)
Annex – Consolidated results of Groupe BPCE Notes on methodology (1/4) Presentation of 2016 pro-forma quarterly results The segment information was modified as of Q1-17, with the creation of the Retail Banking division, which includes the Banque Populaire and Caisse d’Epargne retail banking networks
Slide 28: Notes on methodology (2/4)
Annex – Consolidated results of Groupe BPCE Notes on methodology (2/4) Net banking income Customer net interest income, excluding regulated home savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products (Livr
Slide 29: Notes on methodology (3/4)
Annex – Consolidated results of Groupe BPCE Notes on methodology (3/4) Capital adequacy Common Equity Tier 1 is determined in accordance with the applicable CRR/CRD IV rules; fully-loaded equity is presented without the application of transitional measures, except for the restatement of deferred tax
Slide 30: Notes on methodology (4/4)
Annex – Consolidated results of Groupe BPCE Notes on methodology (4/4) Liquidity Total liquidity reserves include: >Central bank-eligible assets include: ECB-eligible securities not eligible for the LCR, taken for their ECB valuation (after ECB haircut), securities retained (securitization and cover
Slide 31: Q1-17 income statement reconciliation
Annex – Groupe BPCE Q1-17 quarterly income statement: reconciliation of consolidated data, excl. non-economic and exceptional items, to published consolidated data Net income Net banking Operating Income attributable to Cost of risk income expenses before tax equity holders of the parent in millions
Slide 32: Q1-16 pf income statement reconciliation
Annex - Groupe BPCE Q1–16 pf quarterly income statement: reconciliation of consolidated data excl. non-economic and exceptional items to published consolidated data Net income Income attributable to Net banking Operating Cost of risk before tax equity holders income expense of the parent in millions
Slide 33: Reconciliation of pro-forma to published data
Annex - Groupe BPCE Reconciliation of pro-forma consolidated data to published consolidated data IFRS9 - IFRS9 - IFRS9 - IFRS9 - Final SRF Final SRF Q1-16 Restatement of Q2-16 Restatement of Q3-16 Restatement of Q4-16 Restatement of contribution Q1-16 pf contribution Q2-16 pf Q3-16 pf Q4-16 pf in mi
Slide 34: Quarterly income statement per business line
Annex - Groupe BPCE Quarterly income statement per business line Corporate & Investment Retail Banking Investment Corporate center Groupe BPCE Solutions Banking in millions of euros Q1-17 Q1-16 pf Q1-17 Q1-16 Q1-17 Q1-16 Q1-17 Q1-16 pf Q1-17 Q1-16 pf % Net banking income 4,110 4,124 891 825 984 782
Slide 35: Quarterly series
Annex - Groupe BPCE Quarterly series Groupe BPCE in millions of euros Q1-16 pf Q2-16 pf Q3-16 pf Q4-16 pf 2016 Q1-17 Net banking income 5,732 6,666 5,712 6,049 24,158 6,062 Operating expenses -4,405 -4,045 -3,876 -4,348 -16,673 -4,561 Gross operating income 1,328 2,621 1,836 1,701 7,485 1,501 Cost /
Slide 36: Consolidated balance sheet
Annex - Groupe BPCE Consolidated balance sheet ASSETS in millions of euros March 31, 2017 Dec. 31, 2016 LIABILITIES in millions of euros March 31, 2017 Dec. 31, 2016 C ash and amounts due from central banks 98,418 83,919 C ash and amounts due from central banks 0 0 Financial assets at fair value thr
Slide 37: 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, 2016 61,462 Distributions - Capital increase (cooperative shares) 684 Income 623 Remuneration of super-subordinated notes (TSSDI) -25 Issue a
Slide 38: Reconciliation of shareholders' equity to Tier-1 capital
Annex - Financial structure Reconciliation of shareholders' equity to Tier-1 capital1 - 0.8 In billions of euros +16.3 + 5.1 - 4.8 - 1.6 - 1.1 - 3.72 + 1.3 73,3 73.3 62.6 61,0 61,0 61,3 60,2 56,5 56.5 56,5 57.8 57,8 Equity Cancellation Non-controlling Goodwill EL/Prov Other Common Additional Tier-1
Slide 39: Prudential ratios and credit ratings
Annex - Financial structure Prudential ratios and credit ratios March 31, Dec. 31, Dec. 31, 20171 2016 2015 Total risk-weighted assets €391bn €391bn €391bn Common Equity Tier-1 capital €56.0bn €55.3bn €50.9bn Tier-1 capital €57.1bn €56.6bn €52.2bn Total capital €72.8bn €72.3bn €65.8bn Common Equity
Slide 40: Breakdown and change in risk-weighted assets
Annex – Financial structure Breakdown and change in risk-weighted assets (in €bn) Breakdown per business line Quarterly change +2 391 391 391 10% 9% 9% -2 0 0 18% 17% 16% 4% 5% 5% 391 391 68% 69% 70% 1 Dec. 31, 2015 Dec. 31, 2016 March 31, 2017 Risk-weighted Retail Investment Corporate & Other Risk-
Slide 41: Leverage ratio
Annex Leverage ratio March 31, Dec. 31, In billions of euros 20171 2016 Leverage ratio1 Tier-1 capital 57.8 57.6 Balance sheet total 1,238.7 1,235.2 Prudential restatements -91.4 -88.8 5%2 Prudential balance sheet 5.0% 5.0% 1,147.3 1,146.5 total3 4.5% 4.7% Adjustments related to -42.3 -59.6 exposure
Slide 42: Financial conglomerate
Annex Financial conglomerate CRR/CRD IV2 Restatements Financial Financial conglomerate ratio viewpoint conglomerate viewpoint -1.3 Banking CR1 (CRR/CRD IV) Regulatory capital > + Insurance CR1 (Solvency 2) Total capital 72.8 71,473 71,473 71,473 71.5 (in €bn) Transfer from the ratio Basel 3 ratio2 t
Slide 43: Liquidity: customer loan/deposit ratio
Annex – liquidity Customer loan/deposit ratio1 138% 2 128% 3 126% 4 121% 5 120% 121% 119% Dec. 2011 Dec. 2012 Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 March 2017 1 Excluding SCF (Compagnie de Financement Foncier, the Group’s société de crédit foncier – a French legal covered bonds issuer) 2 Change in
Slide 44: Retail Banking quarterly income statement
Annex – Retail Banking Quarterly income statement per business line Specialized Financial Banque Populaire banks Caisses d'Epargne Other networks Retail Banking Services Q1-16 Q1-16 in millions of euros Q1-17 Q1-16 % Q1-17 Q1-16 % Q1-17 Q1-16 % Q1-17 % Q1-17 % pf pf Net banking income 1,606 1,582 1.
Slide 45: Retail Banking quarterly series
Annex – Retail Banking Quarterly series Retail Banking in millions of euros Q1-16 pf Q2-16 pf Q3-16 pf Q4-16 pf 2016 pf Q1-17 Net banking income 4,124 4,057 4,008 4,102 16,291 4,110 Operating expenses -2,844 -2,692 -2,614 -2,828 -10,977 -2,844 Gross operating income 1,281 1,366 1,394 1,274 5,314 1,2
Slide 46: Banque Populaire and Caisses d'Epargne quarterly series
Annex – Retail Banking Banque Populaire banks and Caisses d’Epargne – quarterly series Banque Populaire banks in millions of euros Q1-16 Q2-16 pf Q3-16 Q4-16 pf 2016 Q1-17 Net banking income 1,582 1,583 1,539 1,590 6,295 1,606 Operating expenses -1,113 -1,056 -1,053 -1,141 -4,363 -1,118 Gross operat
Slide 47: Banque Populaire: customer deposits & savings
Annex - Retail Banking Banque Populaire network: customer deposits & savings (in €bn) 245.7 241.3 235.5 % change March 2017/ 60.8 69.6 72.7 March 2016 Demand deposits +19.5% Passbook savings accounts +4.6% 45.1 45.9 47.1 Regulated home savings +5.9% plans 18.4 19.1 19.5 Term accounts -13.0% 31.6 29.
Slide 48: Banque Populaire: customer loan outstandings
Annex - Retail Banking Banque Populaire network: customer loan outstandings (in €bn) 186.5 182.2 174.1 % change 103.7 March 2017/ 101.3 95.8 March 2016 Home loans +8.4% Consumer loans +11.9% 8.2 8.4 7.5 12.9 13.9 Short-term credit facilities +14.1% 12.2 Equipment loans +3.0% 54.5 55.4 56.1 Other ns
Slide 49: Caisse d'Epargne: customer deposits & savings
Annex - Retail Banking Caisse d'Epargne network: customer deposits & savings (in €bn) 399.7 399.4 404.3 % change 56.3 59.5 61.9 March 2017/ March 2016 Demand deposits +9.9% 122.2 Passbook savings accounts +0.2% 120.3 122.5 Regulated home savings +4.6% plans 53.7 Term accounts -23.0% 55.6 56.1 BPCE b
Slide 50: Caisse d'Epargne: customer loan outstandings
Annex - Retail Banking Caisse d'Epargne network: customer loan outstandings (in €bn) 236.0 240.3 226.4 % change March 2017/ 142.7 145.9 136.7 March 2016 Home loans +6.7% Consumer loans +5.6% Short-term credit facilities +10.1% 14.0 14.5 13.7 8.5 9.2 9.3 Equipment loans +4.8% Other ns 62.1 64.5 65.1
Slide 51: SFS quarterly series
Annex - Retail Banking SFS – quarterly series (*) Specialized Financial Services in millions of euros Q1-16 Q2-16 Q3-16 Q4-16 2016 Q1-17 Net banking income 343 341 325 341 1,350 344 Operating expenses -225 -220 -215 -220 -880 -232 Gross operating income 118 121 110 122 470 113 Cost / income ratio 65
Slide 52: Other networks quarterly series
Annex - Retail Banking Other networks – quarterly series (*) Other networks in millions of euros Q1-16 pf Q2-16 pf Q3-16 pf Q4-16 pf 2016 pf Q1-17 Net banking income 346 348 356 380 1,431 344 Operating expenses -251 -225 -218 -240 -933 -255 Gross operating income 95 124 139 140 497 90 Cost / income
Slide 53: Investment Solutions quarterly series
Annex – Investment Solutions Quarterly series Investment Solutions in millions of euros Q1-16 Q2-16 Q3-16 Q4-16 2016 Q1-17 Net banking income 825 832 804 904 3,364 891 Operating expenses -590 -579 -558 -623 -2,350 -645 Gross operating income 234 253 246 280 1,014 246 Cost / income ratio 71.6% 69.6%
Slide 54: Corporate & Investment Banking quarterly series
Annex - Corporate & Investment Banking Quarterly series Corporate & Investment Banking in millions of euros Q1-16 Q2-16 Q3-16 Q4-16 2016 Q1-17 Net banking income 782 887 757 896 3,322 984 Operating expenses -512 -482 -468 -569 -2,032 -563 Gross operating income 270 405 289 327 1,291 421 Cost / incom
Slide 55: Corporate center quarterly series
Annex - Corporate center Quarterly series Corporate center in millions of euros Q1-16 pf Q2-16 pf Q3-16 pf Q4-16 pf 2016 pf Q1-17 Net banking income 2 890 142 147 1,181 77 Operating expenses -459 -293 -235 -327 -1,314 -508 Gross operating income -457 597 -94 -180 -133 -431 Cost of risk -19 -26 10 28
Slide 56: Non-performing loans and impairment
Annex – Risks Groupe BPCE: non-performing loans and impairment In millions of euros March 31, 2017 Dec. 31, 2016 Dec. 31, 2015 Gross outstanding customer loans 686,173 679,176 629,775 O/w non-performing loans 23 ,391 23,427 23,098 Non-performing/gross outstanding loans 3.4% 3.4% 3.7% Impairment reco
Slide 57: Breakdown of commitments at March 31, 2017
Annex – Risks Breakdown of commitments at March 31, 2017 Breakdown of commitments Breakdown of commitments to Corporates per counterparty per economic sector Finance & Insurance 13.2% 5% Real estate rentals 11.4% 8% Energy 10.5% 27% Real estate 9.8% Holding companies & diversified 6.7% 4% Services 4
Slide 58: Geographical breakdown of commitments
Annex – Risks Geographical breakdown of commitments at March 31, 2017 Central administrations/central Institutions banks and other sovereign Corporates exposures 5% 1% 1% 1% 4% 12% 15% 4% 10% 11% 15% 16% 41% 30% 66% 68% France Centralization of regulated savings Europe excluding North & Asia/Oceania
Slide 59: May 9, 2017 Results for the 1st quarter of 2017
May 9, 2017 Results for the 1st quarter of 2017 59