Natixis — Groupe BPCE — Q1 2015 Earnings Presentation
64 slides from Natixis's earnings presentation, May 6, 2015
Slide 1: Results for the 1st quarter of 2015
Results for the May 6, 2015 1st quarter 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: Groupe BPCE delivers a robust performance in Q1-15
Groupe BPCE delivers a robust performance in Q1-15 Net income attributable to equity holders of the parent (excluding exceptional items and impact of IFRIC 21) of €1bn, +16.1% vs. Q1-14 pf1 Banque Populaire and Caisse d’Epargne retail banking networks Deposits & savings: +€28bn year-on-year Loan out
Slide 4: Contents
Contents 1 2 3 4 Results Capital Results of Conclusion of adequacy the Groupe and business BPCE liquidity lines May 6, 2015 Results for the 1st quarter of 2015 4
Slide 5: Exceptional items
Exceptional items Q1-15 Q1-14 In millions of euros Net income Net income Income attributable to Income attributable to before tax equity holders before tax equity holders of the parent of the parent Revaluation of own debt 1 (Net Banking Income) -8 -6 -3 -4 2 Provision Heta Asset Resolution AG (Cost
Slide 6: Q1-15 results of Groupe BPCE
Q1-15 results of Groupe BPCE Strong growth in net income attributable to equity holders of the parent (excl. exceptional items and IFRIC 21 impact): €1bn, +16.1% Core business Core business 3 3 Results Q1-15 Q1-14 pf Q1-15/Q1-14 pf lines lines Q1-15/Q1-14 pf In millions of euros % change Q1-15 Q1-14
Slide 7: Results of Groupe BPCE
Results of Groupe BPCE Cost of risk in Q1-15 equal to 32bps1 (41bps including the impact of the Heta dossier) Cost of risk in bps1 Banque Populaire banks 41 41 37 42 34 50 40 Cost of risk at 40pbs, stable compared with the average cost of risk in 2014 Caisses d’Epargne 27 28 27 27 29 29 32 Slight ri
Slide 8: Contents
Contents 1 2 3 4 Results of Capital Results of Conclusion Groupe adequacy the BPCE and business liquidity lines May 6, 2015 Results for the 1st quarter of 2015 8
Slide 9: Capital adequacy
Capital adequacy CET1 ratio up 20bps in Q1-15 to 12.2%1 Change in Common Equity Tier-1 ratio + 13bps +11bps - 3bps - 5bps - 32bps 12.0%1 12.2%1,2 11.9%2 CET1 ratio Retained Q1-15 Issue of Change in Deduction of CET1 ratio at Impact of CET1 ratio at at Dec. 31, 2014 earnings 3 cooperative RWA and 10%
Slide 10: Capital adequacy
Capital adequacy Overall capital adequacy ratio up 10bps in Q1-15 to 15.7%1 Capital adequacy ratios1 (as a %) 15.6% 15.7% 13.1% 2.6 2.9 1.5 1.0 0.6 1.2 12.0 12.2 10.4 2 €1.4bn increase in total capital in Q1-15, in line Dec. 31, 2013 Dec. 31, 2014 March 31, 2015 2 with the Group’s priorities regardi
Slide 11: Liquidity
Liquidity Continued strengthening of the balance sheet structure Liquidity reserves (in €bn) and short-term Customer loan/deposit ratio2 funding 147% 138% Liquidity reserves: €181bn at March 31, 2015 3 128% 126% 4 5 €56bn in cash placed with central banks 121% 119% €125bn of available assets eligibl
Slide 12: Liquidity
Liquidity More than 50% of the 2015 medium-/long-term funding plan already completed 55% of the 2015 MLT funding plan completed as at April 22, 2015 €13.7bn raised out of a €25bn program Average maturity at issue: 5.4 years Average rate: mid-swap +32bps 52% public issues and 48% private placements B
Slide 13: Contents
Contents 1 2 3 4 Results of Capital Results Conclusion Groupe adequacy of the BPCE and business liquidity lines May 6, 2015 Results for the 1st quarter of 2015 13
Slide 14: Results of the business lines
Results of the business lines Commercial Banking & Insurance Results Q1-15 Q1-14 pf Q1-15/Q1-14 pf In millions of euros % change Net banking income 3,951 3,774 4.7% 1 Net banking income 3,962 3,774 5.0% 1 Banque Populaire banks 1,660 1,603 3.6% 1 Caisses d’Epargne 1,873 1,805 3.8% 1 Other networks 4
Slide 15: Commercial Banking & Insurance: strong growth in new inflows and buoyant lending
Results of the business lines Commercial Banking & Insurance: strong growth in new inflows and buoyant lending activity against a background of very low interest rates Unless specified to the contrary, all changes are vs. March 31, 2014 Deposits & savings and loan outstandings2 (in €bn) 596 611 583
Slide 16: Banque Populaire banks: growth in customers' use of banking products
Results of the business lines Banque Populaire banks: growth in customers’ use of banking products and services and extremely dynamic new fund inflows Unless specified to the contrary, all changes are vs. March 31, 2014 Buoyant growth among priority customer groups Deposits & savings and loan outsta
Slide 17: Caisses d'Epargne: dynamic growth in the customer base
Results of the business lines Caisses d’Epargne: dynamic growth in the customer base and extremely buoyant lending activities Unless specified to the contrary, all changes are vs. March 31, 2014 Dynamic growth in the customer base Principal active customers using banking services: +2.0% Deposits & s
Slide 18: Other networks and CNP / Real-estate Financing
Results of the business lines Other networks and CNP / Real-estate Financing1: buoyant business activity with enhanced margins Unless specified to the contrary, all changes are vs. March 31, 2014 Loan outstandings2 (in €bn) – Core businesses Dynamic commercial activity Aggregate new loan production:
Slide 19: Other networks and CNP / Insurance, BPCE IOM & Banque Palatine
Results of the business lines Other networks and CNP / Insurance, BPCE IOM & Banque Palatine Unless specified to the contrary, all changes are vs. March 31, 2014 CNP and others1 Business activity indicators Life insurance: >Gross new inflows from the Caisses d’Epargne of €2.9bn March 31, 2015 / in Q
Slide 20: Core business lines of Natixis
Results of the business lines Core business lines of Natixis: Wholesale Banking, Investment Solutions, and Specialized Financial Services Results Q1-15 Q1-14 pf Q1-15/Q1-14 pf In millions of euros % change Net banking income 1,953 1,693 15.4% Wholesale Banking 806 732 10.1% Investment Solutions 823
Slide 21: Core business lines of Natixis: solid momentum
Results of the business lines Core business lines of Natixis: solid momentum for all our business lines Change in net banking income and income Wholesale Banking: income before tax +8%1 before tax1 of the core business lines (in €m) vs. Q1-14 pf Growth in net banking income: +10% (+ 16 % excl. non r
Slide 22: Wholesale Banking: solid results from Capital Market activities
Results of the business lines Wholesale Banking: solid results from Capital Market activities and resilience in Financing in a difficult environment Financing activities Change in net revenues (in €m) Structured financing Financing activities Capital markets >New loan production: €5.7bn in Q1-15 tha
Slide 23: Investment Solutions: strong momentum in the 3 business lines
Results of the business lines Investment Solutions: strong momentum in the 3 business lines Asset management Net new fund inflows in Q1-15 of €19bn (€17bn excluding Asset management: AuM (in €bn) money-market funds): >+€8bn in Europe >+€11bn in the USA Strong dynamics of the centralized distribution
Slide 24: SFS: significant rise in net revenues from Specialized financing
Results of the business lines SFS: significant rise in net revenues from Specialized financing and strong increase of profitability Specialized financing Consumer finance >Net revenues buoyed up by a 9% increase in outstandings and by a 4% rise in new production year-on-year Sureties & financial gua
Slide 25: Equity interests
Equity interests1 Results Q1-15 Q1-14 pf Q1-15/Q1-14 pf In millions of euros % change Net banking income 227 213 6.3% Operating expenses -179 -176 1.5% Gross operating income 48 37 29.3% Cost of risk -3 -2 51.1% Income before tax 50 38 31.6% Restatement of IFRIC 21 impact 2 3 Income before tax excl.
Slide 26: Equity interests
Equity interests Turnover1 (in €m) Coface Turnover1: +2.3% vs. Q1-14 +2.3% Expenses under close control2 +0.3% vs. Q1-14 377 Combined ratio remains stable vs. Q1-14 369 Loss ratio: 49.8% vs. 52.3% in Q1-14 Cost ratio: 27.7% vs. 25.4% in Q1-14 Combined ratio stable: 77.5% vs. 77.7% in Q1-14 Q1-14 Q1-
Slide 27: Contents
Contents 1 2 3 4 Results of Capital Results of Conclusion Groupe adequacy the BPCE and business liquidity lines May 6, 2015 Results for the 1st quarter of 2015 27
Slide 28: Conclusion
Conclusion Strong core business An active role A robust basis of A strong balance line growth with played in financing results: sheet: revenues up the French 8.0%1 economy: €1.0bn in net CET1 ratio of (+5.5% at constant income 12.2%3 exchange rates), 3.0% increase2 attributable to chiefly driven by
Slide 29: Annexes
Results for the 1st quarter May 6, 2015 of 2015 Annexes
Slide 30: Annexes
Annexes Organizational structure of Groupe BPCE Commercial Banking & Insurance Income statement Consolidated results of Groupe BPCE Banque Populaire retail banking network – Deposits & Notes on methodology savings and loan outstandings Q1-14 income statement: reconciliation of pro-forma Caisse d’Epa
Slide 31: Organizational structure of Groupe BPCE
Annex - Groupe BPCE Organizational structure of Groupe BPCE May 6, 2015 Results for the 1st quarter of 2015 31
Slide 32: Notes on methodology
Annex – Consolidated results of Groupe BPCE Notes on methodology Presentation of Q1-14 pro forma quarterly 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 Caisses d’Epargne
Slide 33: 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) Applicat
Slide 34: Notes on methodology – Single Resolution Fund (SRF)
Annex - Consolidated results of Groupe BPCE Notes on methodology – Single Resolution Fund (SRF) At European Union level At euro zone level Directive 2014/59/UE of May 15, 2014 (BRRD), which Regulation n°806/2014 of July 15, 2014, establishing a proposes a single rulebook for the resolution of bankin
Slide 35: Income statement: 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 Changes in Changes in Changes in Pf C.Coop the
Slide 36: Income statement: 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 and Groupe BPCE Commercial Banking and Insurance Equity interests Corporate center SFS Changes in Changes in Changes in Changes in Pf C.Coop the
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 Q1-15 Q1-14 pf Q1-15 Q1-14 pf Q1-15 Q1-14 pf % Q1-15 Q1-14 pf Q1-15 Q1-14
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 Net banking income 5,643 5,735 5,477 5,533 6,191 Operating expenses -4,025 -3,846 -3,687 -4,039 -4,318 Gross operating income 1,618 1,888 1,789 1,494 1,873 Cost / income ratio 71
Slide 39: Consolidated balance sheet
Annex – Groupe BPCE Consolidated balance sheet ASSETS in millions of euros March 31, 2015 Dec. 31, 2014 LIABILITIES in millions of euros March 31, 2015 Dec. 31, 2014 C ash and amounts due from central banks 73,668 79,028 Amounts due to central banks 1 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 to In millions of euros equity holders of the parent December 31, 2014 55,290 Effect of the application of IFRIC interpretation 21 46 Distributions -12 Capital increase (cooperative shares) 482 Income 626 Re
Slide 41: Passage des capitaux propres aux fonds propres
Annexe - Structure financière Passage des capitaux propres aux fonds propres1 -1.4 In billions of euros +4.0 +13.1 -3.2 -5.0 -1.4 -1.92 +2.2 62,591 62.6 56.2 50.9 50,936 48,683 48.7 48,683 Equity Cancellation Non-controlling Goodwill and EL/Prov Other Common Additional Tier-1 Tier-2 Deductions Total
Slide 42: Prudential ratio and credit ratings
Annex - Financial structure Prudential ratio1 and credit ratings March 31, 2015 Dec. 31, 2014 Dec. 31, 2013 pf Total risk-weighted assets €399bn €393bn €409bn Common Equity Tier-1 capital €48.3bn €46.6bn €42.3bn Tier-1 capital €50.1bn €50.0bn €46.5bn Total capital €62.2bn €60.5bn €53.6bn Common Equi
Slide 43: Breakdown of risk-weighted assets at March 31, 2015
Annex - Financial structure Breakdown of risk-weighted assets at March 31, 2015 Commercial Banking & 84% Credit risk Insurance 64% CVA Natixis 31% Market risk Other 2% Operational risk 5% 5% 9% May 6, 2015 Results for the 1st quarter of 2015 43
Slide 44: Leverage ratio
Annex Leverage ratio1 In billions of euros March 31, 2015 Dec. 31, 2014 Tier-1 capital 50.9 51.1 Balance sheet total 1,238.6 1,223.3 Prudential restatements -70.7 -66.1 Prudential balance sheet total2 1,167.9 1,157.2 Adjustments related to exposure to derivatives3 -68.2 -35.3 Adjustments related to
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 62.2 60,2 60,2 62.6 (in €bn) 1 2 3 Transfer from Basel 3 ratio2 to the conglomerate
Slide 46: 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 Q1-15 Q1-14 pf % Q1-15 Q1-14 pf % Q1-15 Q1-14 pf % Q1-15 Q1-14 pf % Net banking income 1,655 1,603 3.2% 1,86
Slide 47: 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 Net banking income 3,774 3,729 3,809 3,733 3,951 Operating expenses -2,618 -2,437 -2,365 -2,576 -2,604 Gross operating income 1,156 1,293 1,
Slide 48: Quarterly income statement: Banque Populaire banks and Caisses d'Epargne
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 Net banking income 1,603 1,607 1,586 1,563 1,655 Operating expenses -1,109 -1,037 -1,026 -1,114 -1,105
Slide 49: Banque Populaire network: customer deposits & savings
Annex - Commercial Banking & Insurance Banque Populaire network: customer deposits & savings (in €bn) 225.5 217.1 208.2 54.4 54.4 47.0 % change Q1-15 / Q1-14 43.7 Demand deposits +15.9% 43.1 42.6 Passbook savings accounts +1.4% 16.8 15.4 16.3 Regulated home savings +9.4% 29.9 32.3 plans 29.0 Term ac
Slide 50: Banque Populaire retail network: customer loan outstandings
Annex - Commercial Banking & Insurance Banque Populaire retail network: customer loan outstandings (in €bn) 167.1 167.4 168.6 % change Q1-15 / Q1-14 88.0 89.9 90.6 Home loans +3.1% Consumer loans and +1.7% short-term credit facilities 18.2 17.9 18.4 Equipment loans -0.5% Other ns 54.2 53.9 54.0 Tota
Slide 51: Caisse d'Epargne retail network: customer deposits & savings
Annex - Commercial Banking & Insurance Caisse d’Epargne retail network: customer deposits & savings (in €bn) 379.3 385.9 375.1 47.0 47.6 % change 40.7 Q1-15 / Q1-14 Demand deposits +16.8% 132.4 126.8 126.4 Passbook savings accounts -4.5% Regulated home savings +10.9% 46.7 48.5 plans 43.7 18.4 19.4 2
Slide 52: Caisse d'Epargne retail network: customer loan outstandings
Annex - Commercial Banking & Insurance Caisse d’Epargne retail network: customer loan outstandings (in €bn) 210.7 212.9 204.4 % change Q1-15 / Q1-14 127.0 128.6 122.6 Home loans +4.9% Consumer loans and +5.4% short-term credit facilities 19.9 20.6 Equipment loans - 19.6 Other ns 58.7 58.5 58.7 Total
Slide 53: 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 Net banking income 365 394 427 391 429 Operating expenses -286 -257 -246 -267 -282 Gross operating income 79 137 182 123 147 Cost / inc
Slide 54: 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, Investment Solutions and Wholesale Banking Investment Solutions Specialized Financial Services Specialized Financial Services in millions of euros Q1
Slide 55: 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 Net banking income 1,693 1,793 1,677 1,729 1,953 Operating expenses -1,155 -1,1
Slide 56: Wholesale Banking quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement per business line Wholesale Banking in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Net banking income 732 763 680 629 806 Operating expenses -455 -422 -403 -435 -492 Gross operating income 277 340 277
Slide 57: Investment Solutions quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement per business line Investment Solutions in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Net banking income 648 711 690 773 823 Operating expenses -486 -489 -480 -549 -583 Gross operating income 163 222 2
Slide 58: Specialized Financial Services quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement per business line Specialized Financial Services in millions of euros Q1-14 pf Q2-14 pf Q3-14 pf Q4-14 pf Q1-15 Net banking income 313 320 307 327 324 Operating expenses -214 -206 -200 -212 -217 Gross operating income
Slide 59: 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 Net banking income 213 212 209 195 227 Operating expenses -176 -171 -167 -180 -179 Gross operating income 37 41 42 15 48 Cost of risk -2 -3 -2 -4 -3 Income before tax 3
Slide 60: 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 Net banking income -37 0 -219 -125 60 Operating expenses -77 -122 -73 -86 -243 Gross operating income -114 -121 -291 -211 -183 Cost of risk -22 -34 -25 50 -159 Income b
Slide 61: Risks: non-performing loans and impairment
Annex – Risks Groupe BPCE: non-performing loans and impairment In millions of euros March 31, 2015 Dec. 31, 2014 Dec. 31, 2013 Gross outstanding customer loans 629,093 623,256 590,704 O/w non-performing loans 23,491 22,919 23,330 Non-performing/gross outstanding loans 3.7 % 3.7% 3.9% Impairment reco
Slide 62: Risks: breakdown of commitments
Annex – Risks Breakdown of commitments a March 31, 2015 Breakdown of commitments Breakdown of commitments to Corporates per counterparty per economic sector 6% Finance Insurance 15.7% 9% Real estate rentals 11.0% Energy 9.7% 26% Real estate 8.8% 5% Holding companies & diversified 6.7% Services 4.8%
Slide 63: Risks: geographical breakdown of commitments
Annex – Risks Geographical breakdown of commitments as at March 31, 2015 Central administrations/ central banks and other Institutions sovereign exposures Corporates 4% 1% 2% 3% 18% 4% 8% 14% 11% 20% 16% 30% 67% 36% 66% France Centralization of regulated savings Europe excl. France Americas Asia/Oce
Slide 64: May 6, 2015 Results for the 1 st quarter of 2015
May 6, 2015 Results for the 1st quarter of 2015 64