Natixis — Groupe BPCE — FY2009 Earnings Presentation
57 slides from Natixis's earnings presentation, Feb 25, 2010
Slide 1: 2009 Annual Results
2009 Annual Results February 25, 2010
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: Key messages
Key messages z Good result in the 4th quarter of 2009 with net income of €847m, putting the group in line with the goals of its strategic plan z A positive result of €537m in 2009, significantly better in the second half of the year after a first half still impacted by the crisis z The 2 strategic b
Slide 4: Contents
Contents 1. Results of Groupe BPCE 2. Results of the core business lines 3. Financial structure 4. Annexes 4- 2009 Annual Results
Slide 5: Consolidated results of Groupe BPCE 2009: return to profit
1. Consolidated results of Groupe BPCE 2009: return to profit... 2008 Core 2009/ 2009/ in millions of euros 2009 bus.* Pro forma 2008 2008 2009 Net banking income 21,227 16,096 + 32% 19,101 + 9% Operating expenses - 16,359 - 16,337 = - 13,514 + 1% Gross operating income 4,868 - 241 ns 5,587 + 31% Co
Slide 6: Q4 2009: a good quarterly result
1. Consolidated results of Groupe BPCE Q4 2009: ... thanks to a good quarterly result Q4-08 Core Core Q4-09/ Q409/ en millions d’euros Q4-09 Pro bus.* bus.* Q4-08 Q4-08 forma Q4-09 Q4-08 Net banking income 6 099 3 216 + 89 % 4 930 4 319 + 14 % Operating expenses - 4 352 - 4 358 = - 3 664 - 3 569 + 3
Slide 7: Net banking income of the core businesses
1. Net banking income of the core businesses in millions of euros Contribution of core business lines to 2009 net banking income: €19.1bn 18 58219 101 13 09614 159 26% 5486 4 942 2008 2139 1 687 74% 2009 Commercial CIB, Total core bus. Equity Commercial Banking and Insurance Banking and Investment L
Slide 8: Gross operating income of the core businesses
1. Gross operating income of the core businesses in millions of euros 5 587 4 110 5 258 3 348 1910 1 477 182 2008 2009 -253 Commercial CIB, Total Core Bus. Banking and Investment Lines Equity Insurance Solutions & interests Non-recurring items SFS z Commercial Banking and Insurance o Expenses under
Slide 9: Cost of risk and Workout Portfolio Management (GAPC)
1. Cost of risk and Workout Portfolio Management (GAPC) Core business lines Cost of risk* in basis points on customer lending activities z Networks o Average weighted cost of risk of the 2 networks: 52 40 basis points * 49 49 Banques Populaires o Level of risk kept under control, one of the lowest i
Slide 10: Contents
Contents 1. Results of Groupe BPCE 2. Results of the core business lines 3. Financial structure 4. Annexes 10 - 2009 Annual Results
Slide 11: Commercial Banking and Insurance
2. Commercial Banking and Insurance in millions of euros + 8% Contribution to 2009 net banking income 14 159 13 096 7% 8% + 23% 42% 4 110 + 23% + 3% 43% 3 348 2008 1 428 1 820 1 873 1 161 2009 Banques Populaires NBI Gross operating Cost of risk Net income Caisses d’Epargne Non-recurring items income
Slide 12: Commercial Banking and Insurance: Banques Populaires
2. Commercial Banking and Insurance Banques Populaires Savings deposits (in €bn) z Commercial dynamism in all market segments Individual customers 165 + 6.4% 176 o Life funds: + 10% / Dec. 31, 08 o Livret A passbook savings account: more than €3bn in new 66 72 deposits Professionals and corporates 9
Slide 13: Commercial Banking and Insurance: Caisses d'Epargne
2. Commercial Banking and Insurance Caisses d’Epargne Savings deposits (in €bn) z Savings focused on products offering good returns and security 322 327 + 1.6% o Excess inflows of life funds and popular retirement savings 127 128 product (PERP): x 2.4 / 2008 o Home purchase savings plans: return to
Slide 14: CIB, Investment Solutions and SFS
2. CIB, Investment Solutions and SFS Contribution to Groupe BPCE’s consolidated results in millions of euros 5,624 CPM* impact 4,946 1,910 1,477 1,464 748 2008 568 178 2009 Net Gross Cost of risk Net income banking operating income income Contribution figures ≠ figures published by Natixis (notably,
Slide 15: Contents
Contents 1. Results of Groupe BPCE 2. Results of the core business lines 3. Financial structure 4. Annexes 15 - 2009 Annual Results
Slide 16: A robust financial structure
3. A robust financial structure Groupe BPCE Favorable liquidity position 38 9,2 37,6 37 Marginal dependence of the Banques Populaires 9,1 z 36 9,1 35,8 and Caisses d’Epargne on the financial markets 36 9 o 83% of customer loans financed by customer deposits 35 8,9 (excluding centralized Livret A fun
Slide 17: Annexes
@ BPCE 2009 Annual Results Annexes ee PARTENAIRE OFFICIEL
Slide 18: Annexes contents
x. Annexes z CIB, Investment Solutions and SFS z Groupe BPCE o Annual income statement per sub-division o Annual income statement per business line o Quarterly income statement per sub-division o Quarterly income statement per business line o Consolidated balance sheet z Equity interests o Goodwill
Slide 19: Groupe BPCE annual income statement per business line
x. Annex - Groupe BPCE Annual income statement per business line CIB, Investment Solutions Workout portfolio Commercial banking & & Specialized Financial Total core businesses Equity interests management & other Groupe BPCE Insurance Services businesses In millions of euros 2009 2008 2009 2008 2009
Slide 20: Groupe BPCE quarterly income statement per business line
x. Annex - Groupe BPCE Quarterly income statement per business line CIB, Investment Solutions Workout portfolio Commercial banking & & Specialized Financial Total core businesses Equity interests management and other Groupe BPCE Insurance Services businesses In millions of euros Q4-09 Q4-08 Q4-09 Q4
Slide 21: Consolidated balance sheet
x. Annex - Groupe BPCE Consolidated balance sheet 21 - 2009 Annual Results
Slide 22: Goodwill
x. Annex - Groupe BPCE Goodwill Dec. 31, Other Dec. 31, in millions of euros Impairment Disposals 2008 movements 2009 Commercial banking and Insurance 1,969 - 401 - 115 1,453 CIB, Investment Solutions and SFS 3,018 -9 - 468 113 2,654 Equity interests 2,422 - 873 14 1,563 TOTAL 7,409 - 1,283 - 468 12
Slide 23: Statement of changes in shareholders' equity
x. Annex - Groupe BPCE Statement of changes in shareholders' equity Equity Gains & Deeply losses attributable to Share capital in millions of euros subordinated directly equity holders and reserves notes recognized in of the parent equity January 1, 2009 31,514 32,442 950 - 1,878 After harmonization
Slide 24: Reconciliation of shareholders' equity to Tier-1 capital
x. Annex - Financial structure Reconciliation of shareholders’ equity to Tier-1 capital in billions of euros - 1.7 - 6.5 + 3.1 - 7.4 + 0.1 +9 -3 44 37.6 Equity Cancellation Cancellation Minority Goodwill Other Deductions TSS Total attributable to of capital of TSS interests & intangibles restatement
Slide 25: Prudential ratios and credit ratings
x. Annex - Financial structure Prudential ratios and credit ratings 30/09/2009 Dec. 31, 2009 Credit risk €354bn €358bn Market risk €24bn €24bn Operational risk €31bn €30bn Total weighted risks €409bn €412bn Tier-1 capital €36bn €37.6bn Tier-1 ratio 8.8% 9.1% Long-term credit ratings (July 31, 2009)
Slide 26: Commercial banking and Insurance annual income statement
x. Annex - Commercial banking and Insurance Annual income statement per sub-division Insurance, Int. activities Commercial banking & Banques Populaires Caisses d'Epargne Real estate financing & Other Networks Insurance In millions of euros 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Net bankin
Slide 27: Commercial banking and Insurance quarterly income statement
x. Annex – Commercial banking and Insurance Quarterly income statement per sub-division Insurance, International Commercial banking & Banques Populaires Caisses d'Epargne Real estate financing & Other Networks Insurance In millions of euros Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08
Slide 28: Banque Populaire network: customer savings
x. Annex – Commercial banking and Insurance Banque Populaire network: customer savings (in €bn) 165.3 + 6.4% 175.8 40,1 Demand deposits 39,3 Home purc. Sav. Plans 14,5 14,8 % change Passbook savings acc. 26,8 23 Demand deposits + 1.9% Term accounts, PEP 22,7 Home purchase 21,9 = savings plans Life i
Slide 29: Banque Populaire network: loans outstanding
x. Annex - Commercial banking and Insurance Banque Populaire network: loans outstanding (in €bn) + 2.5% 139.8 136.4 7,2 7 65,5 68,1 Consumer loans Real estate loans Short-term credit fac. % Equipment loans change 11,3 9,4 Other Consumer loans + 2.7% Real estate loans + 3.9% 47,8 49,5 Short-term cred
Slide 30: Caisse d'Epargne network: customer savings
x. Annex – Commercial banking and Insurance Caisse d'Epargne network: customer savings (in €bn) 321.8 + 1.6% 327.1 25,4 30 Demand deposits 34,3 35,2 Home purc. Sav. Plans % change 121,4 115,4 Passbook savings acc. Demand deposits + 18.1% Term accounts Home purchase + 2.7% 14,1 18 savings plans Life
Slide 31: Caisse d'Epargne network: loans outstanding
x. Annex - Commercial banking and Insurance Caisse d'Epargne network: loans outstanding (in €bn) + 7.3% 137.3 127.9 9,7 9 Consommation 80 Real estate loans 77 Short term credit fac. % Equipment loans change Other Consumer loans + 6.9% 6,3 5,8 Real estate loans + 3.9% Short-term credit 37,8 + 8.9% 32
Slide 32: Real estate financing
x. Annex - Commercial banking and Insurance Real estate financing z Contribution to net banking income: €1,008m, down 9% / 2008 (high base effect in 2008 with the realization of exceptional capital gains) o Net banking income buoyed up by growth in the interest margin z Outstandings: + 1.7% / Dec. 3
Slide 33: Insurance, International and Other Networks
x. Annex - Commercial banking and Insurance Insurance, International and Other Networks Insurance, International Insurance International Other networks & Other Networks In millions of euros 2009 2008 2009 2008 2009 2008 2009 2008 Net banking income 91 106 333 349 702 661 1 126 1 116 Operating expens
Slide 34: Insurance, International and Other Networks (quarterly)
x. Annex – Commercial banking and Insurance Insurance, International and Other Networks Insurance, International Insurance International Other networks & Other Networks In millions of euros Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Net banking income 28 26 55 87 197 257 280 370 Operating expen
Slide 35: Principal contributing subsidiaries
x. Annex - Commercial banking and Insurance Insurance, International and Other Networks Principal contributing subsidiaries Insurance International z Individual life insurance: rebound in Océor revenues (+ 26%), driven by product innovation z Growth in outstandings in a difficult social o Excess inf
Slide 36: CIB, Investment Solutions and SFS annual income statement
x. Annex - CIB, Investment Solutions and SFS Annual income statement per sub-division CIB, Investment CIB Investment Solutions SFS Solutions & SFS In millions of euros 2009 2008 2009 2008 2009 2008 2009 2008 Net banking income 2 561 2 857 1 540 1 693 841 936 4 942 5 486 Operating expenses -1 664 -1
Slide 37: CIB, Investment Solutions and SFS quarterly income statement
x. Annex - CIB, Investment Solutions and SFS Quarterly income statement per sub-division CIB, Investment CIB Investment Solutions SFS Solutions & SFS In millions of euros Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Net banking income 564 879 401 399 213 236 1 178 1 514 Operating expenses -422 -4
Slide 38: Equity interests annual income statement
x. Annex – Equity interests Annual income statement per sub-division Groupe Nexity Foncia Coface & Private Equity Other investments (1) Equity interests In millions of euros 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Net banking income 828 911 547 526 345 733 -33 -31 1 687 2 139 Operating exp
Slide 39: Equity interests quarterly income statement
x. Annex – Equity interests Quarterly income statement per sub-division Other Groupe Nexity Foncia Coface & Private Equity Equity interests interests (1) In millions of euros Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Net banking income 224 210 139 137 172 1 -34 -55 501 293 Operatin
Slide 40: Principal equity interests
x. Annex – Equity interests Principal equity interests Foncia Nexity z Revenues: €543m, + 3.5% / 2008 z 2009 revenues of €2,838m, + 6% / 2008 z Business model based on the recurring activities o Growth in revenues generated by the development activities of the Housing and of rental property and cond
Slide 41: Workout portfolio management and Other businesses
x. Annex - Workout portfolio management and “Other businesses” Workout portfolio Workout portfolio Corporate centre management & other management businesses In millions of euros 2009 2008 2009 2008 2009 2008 Net banking income -1 830 -3 746 2 269 128 439 -3 618 Operating expenses -167 -171 -738 -885
Slide 42: Workout portfolio management and Other businesses (quarterly)
x. Annex - Workout portfolio management and “Other businesses” Workout portfolio Workout portfolio Corporate centre management & other management businesses In millions of euros Q4-09 Q4-08 Q4-09 Q4-08 Q4-09 Q4-08 Net banking income 136 -1 508 532 112 668 -1 396 Operating expenses -55 -40 -131 -228
Slide 43: Groupe BPCE: non-performing loans
x. Annex - Risks Groupe BPCE: non-performing loans Dec. 31, in millions of euros 2009 Gross outstanding customer loans 517,440 O/w non-performing loans 18,858 Non-performing/gross outstanding loans 3.6% Impairment recognized * 10,861 Impairment recognized/non-performing loans 58% * Including collect
Slide 44: Retail networks: non-performing loans
x. Annex - Risks Retail networks: non-performing loans Banques Populaires (aggregated) Dec. 31, June 30, in millions of euros Dec. 31, 2009 2008 2009 Gross outstanding customer loans 141,223 142,915 144,807 O/w non-performing loans 5,937 6,505 6,810 Non-performing/gross outstanding loans 4.20% 4.55%
Slide 45: Breakdown of commitments at December 31, 2009
x. Annex - Risks Breakdown of commitments at December 31, 2009 Breakdown of commitments Breakdown of commitments to Companies by counterparty by industrial sector 30% Tourism-Hotels-Catering 1, 00% Raw materials trade 1, 10% 7% Services to local authorities 1, 40% Pharma-Health 2, 00% Food industry
Slide 46: Geographical breakdown of commitments
x. Annex - Risks Geographical breakdown of commitments at December 31, 2009 Banks Sovereigns Corporates 91% 69% 61% 26% 17% 10% 9% 2% 6% 3% 1% 1% 2% France France France Other European countries Other European countries Other European countries America America America Asia/Oceania Asia/Oceania Asia/
Slide 47: VaR risk management
x. Annex - VaR risk management The risks of Groupe BPCE managed using VaR are chiefly held by Natixis VaR Natixis 70 Millions 60 50 40 30 20 10 0 déc.-08 janv.-09 févr.-09 mars-09 avr.-09 mai-09 juin-09 juil.-09 août-09 sept.-09 oct.-09 nov.-09 déc.-09 z VaR Natixis Group at December 31, 2009: €19m
Slide 48: Sensitive exposures (excl. Natixis)
X. Annex – Sensitive exposures (excl. Natixis) Recommendations of the Financial Stability Forum Foreword z With the exception of the summary on the next page, the information contained in the following pages is based on the scope of consolidation of Groupe BPCE (excluding Natixis) z For specific det
Slide 49: Summary of sensitive exposures
x. Annex - Groupe BPCE FSF report at Dec. 31, 2009 Summary of sensitive exposures Groupe BPCE Total Total (excl. Natixis in millions of euros Natixis) Dec. 31, 09 Sept. 30, 09 Net exposure ABS CDOs (US residential market) 7 885 892 803 Net exposure Other at-risk CDOs 1,929 3,261 5,190 5,149 Net expo
Slide 50: Other CDOs (unhedged)
x. Annex - Sensitive exposures (excl. Natixis) Other CDOs (unhedged) Gross exposure Changes in Net exposure in millions of euros Provisions value Dec. 31, 09 Dec. 31, 09 Portfolio at fair value through profit or loss 417 - 275 142 Portfolio at fair value through shareholders’ 291 240 531 equity Port
Slide 51: CMBS
x. Annex - Sensitive exposures (excl. Natixis) CMBS z CMBS: Net exposure at Dec. 31, 09: €444m (vs. €468m at Sept. 30, 09) • Of which 79% classified in the portfolio of loans and receivables • Provision on CMBS classified in the portfolio of loans and receivables: €74m Breakdown of residual exposure
Slide 52: RMBS
x. Annex - Sensitive exposures (excl. Natixis) RMBS z RMBS*: Net exposure at Dec. 31, 09: €1,132m (vs. €1,147m at Sept. 30, 09) • Of which 95% classified in the portfolio of available-for-sale assets Breakdown of residual exposure Breakdown of residual exposure by rating by geographical region 88% 1
Slide 53: Protection acquired
x. Annex - Sensitive exposures (excl. Natixis) Protection acquired Credit enhancers (monoline) z Protections acquired from credit enhancers by Crédit Foncier de France are not included for the appraisal of hedged instruments (valued at zero) z In this respect, they do not therefore reflect exposure
Slide 54: LBO financing
x. Annex - Sensitive exposures (excl. Natixis) LBO financing z Net exposure at Dec. 31, 09: €2,954m Breakdown by industry vs. €2,828m at Sept. 30, 09) o Provision: €144m 6,1% 5,1% z Exposure exclusively comprised of shares 17,2% 4,3% 1,4% not intended for sale z Average commitment per deal: €1.8m 37
Slide 55: BPCE SA group income statement
x. Annex - BPCE SA group Income statement 2009 2008 in millions of euros Pro forma Net banking income 6,501 4,053 Operating expenses - 5,682 - 5,881 Gross operating income 819 - 1,828 Cost of risk - 2,788 - 1,925 Operating income - 1,969 - 3,753 Share in net income of associates 572 388 Impairment o
Slide 56: BPCE SA group balance sheet
x. Annex - BPCE SA group Balance sheet 56 - 2009 Annual Results
Slide 57: BPCE SA group financial structure
x. Annex - BPCE SA group Financial structure in billions of euros Sept. 30, 2009 Dec. 31, 2009 Risk-weighted assets €164bn €161bn Tier-1 capital €15.7bn €15.5bn Tier-1 ratio 9.6% 9.6% Capital adequacy ratio 13.3% 11.8% 57 - 2009 Annual Results