Natixis — Groupe BPCE — 9M 2016 Earnings Presentation
69 slides from Natixis's earnings presentation, Nov 8, 2016
Slide 1: Results for the 3rd quarter and first 9 months of 2016
Results for the 3rd quarter November 8, 2016 and first 9 months of 2016
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 attributable net income of €2.8bn in 9M-16, +8.6%
Groupe BPCE attributable net income1,2 of €2.8bn in 9M-16, +8.6% Published attributable net income of €3.4bn in 9M-16, benefiting from the capital gains realized on the Visa Europe transaction Robust results thanks to our Commercial activity remains buoyant “universal banking” model Strong momentum
Slide 4: Contents
Contents 1 2 3 4 Results of Capital Results of the Conclusion Groupe adequacy and business lines BPCE liquidity November 8, 2016 Results for the 3rd quarter and first 9 months of 2016 4
Slide 5: Non-economic and exceptional items
Non-economic and exceptional items 9M-16 9M-15 pf Q3-16 Q3-15 pf Non-economic items Net income Net income Net income Net income in millions of euros attributable attributable attributable Income attributable to Income Income Income to equity to equity to equity before tax equity holders before tax b
Slide 6: 9M-16 results
9M-16 results Net income attributable to equity holders of the parent1,2 up by 8.6%, to €2.8bn Core business Core business 3 3 Results 9M-16 9M-15 pf 9M-16/9M-15 pf lines lines 9M-16/9M-15 pf In millions of euros % change 9M-16 9M-15 pf % change 1 Net banking income 17,420 17,735 -1.8% 17,149 17,418
Slide 7: Q3-16 results
Q3-16 results Net income attributable to equity holders of the parent1,2 equal to €929m, up 2.7% Core business Core business 3 3 Results Q3-16 Q3-15 pf Q3-16/Q3-15 pf lines lines Q3-16/Q3-15 pf In millions of euros % change Q3-16 Q3-15 pf % change 1 Net banking income 5,791 5,770 0.4% 5,639 5,681 -0
Slide 8: Results of Groupe BPCE: cost of risk kept at a low level
Results of Groupe BPCE Cost of risk kept at a low level Groupe BPCE -16.7% Cost of risk, expressed in basis points2 1,698 1,253 1,044 Banque Populaire banks 34 40 27 25 30 29 Cost of risk (€m) 21 excluding exceptional items 9M-15 2015 9M-16 Caisses d’Epargne 25 19 27 16 15 15 17 Ratio of non-perform
Slide 9: Contents
Contents 1 2 3 4 Results of Capital Results of the Conclusion Groupe adequacy business lines BPCE and liquidity November 8, 2016 Results for the 3rd quarter and first 9 months of 2016 9
Slide 10: Capital adequacy
Capital adequacy Significant ability to generate CET1, chiefly via retained earnings: CET1 ratio up 35bps in Q3-16 to 14%1,2 Change in the Common Equity Tier 1 ratio +22bps +5bps +8bps +11bps +2bps +39bps +13bps -15bps 14.0%1,2 13.9%2 13.7%1 13.0%1 Pro forma Retained Issue of Visa Europe Other CET1
Slide 11: Capital adequacy
Capital adequacy Closely managed change in risk-weighted assets Leverage ratio significantly higher than the required level Change in risk-weighted assets (in €bn) Leverage ratio1 (at current exchange rates) 5.0% 2 5.0% 391 387 388 4.8% 10% 10% 10% 4.5% 4% 3% 3% 1% 1% 1% 4.7% >3.6% 85% 86% 86% 3% De
Slide 12: Capital adequacy
Capital adequacy Early 2019 target of 18%1,2 for the total capital ratio already reached more than two years ahead Total capital ratios4 (as a %) Increase in the total capital ratio: 17.8% 18.4% 16.8% +160bps since the beginning of the year 3.7 4.0 3.4 0.4 0.4 Chiefly as a result of the increase in
Slide 13: Liquidity
Liquidity Robust liquidity reserves and diversified wholesale funding Liquidity reserves/(short-term funding +MLT and subordinated debt maturing Liquidity reserves: €183bn at Sept. 30, 2016 within 1 year), expressed as a % 167% €45bn in cash placed with central banks 152% 153% 138% 137% €138bn of av
Slide 14: Contents
Contents 1 2 3 4 Results of Capital Results of Conclusion Groupe adequacy and the business BPCE liquidity lines November 8, 2016 Results for the 3rd quarter and first 9 months of 2016 14
Slide 15: Commercial Banking & Insurance
Results of the business lines Commercial Banking & Insurance Results 9M-16 9M-15 pf 9M-16/9M-15 pf Q3-16 Q3-15 pf Q3-16/Q3-15 pf In millions of euros % change % change Net banking income 11,185 11,621 -3.8% 3,684 3,861 -4.6% 1 Net banking income 11,227 11,657 -3.7% 3,685 3,869 -4.8% 1 Banque Populai
Slide 16: Commercial Banking & Insurance: decline in net banking income limited
Results of the business lines Commercial Banking & Insurance: decline in net banking income limited by the dynamism of commercial activities Unless specified to the contrary, all changes are vs. Sept. 30, 2015 Deposits & savings and loan outstandings Significant growth in loan outstandings: +€20bn o
Slide 17: Banque Populaire banks
Results of the business lines Banque Populaire banks: growth in customer base driven by the individual customer segment; general growth in customer services Unless specified to the contrary, all changes are vs. Sept. 30, 2015 Loan outstandings (in €bn) Deposits & savings (in €bn) Customer base Princ
Slide 18: Caisses d'Epargne
Results of the business lines Caisses d’Epargne: growth in customer base driven by the professional and corporate segments; general growth in customer services Unless specified to the contrary, all changes are vs. Sept. 30, 2015 Loan outstandings (in €bn) Deposits & savings (in €bn) Customer base +1
Slide 19: Other networks
Results of the business lines Other networks Real estate Financing Core business lines of Crédit Foncier Principal entity: Crédit Foncier Loan outstandings3 (in €bn) Commercial activities >Aggregate new loan production: €6.5bn in 9M-16 84 84 82 >New loan production of €2.1bn in Q3-16 driven, 5 5 5 A
Slide 20: Core business lines of Natixis
Results of the business lines Core business lines of Natixis: Investment Solutions, Corporate & Investment Banking, and Specialized Financial Services Results 9M-16 9M-15 pf 9M-16/9M-15 pf Q3-16 Q3-15 pf Q3-16/Q3-15 pf In millions of euros % change % change 1 Net banking income 5,964 5,797 2.9% 1,95
Slide 21: Core business lines of Natixis: net revenues of almost €6bn
Results of the business lines Core business lines of Natixis: net revenues1 of almost €6bn, +3% vs. 9M-15 pf, despite a difficult first quarter in 2016 Change in core business line net banking Investment Solutions: income before tax -4%2 income1 and income before tax1,2 – (in €m) vs. 9M-15 pf Asset
Slide 22: Investment Solutions
Results of the business lines Investment Solutions: decline in the contribution from Asset Management, offset in part by the good growth dynamics enjoyed by Insurance Asset management: AuM (in €bn) Asset management +24 Assets under management stable since early 2016, at €798bn Europe: positive net i
Slide 23: Corporate & Investment Banking
Results of the business lines Corporate & Investment Banking: continued excellent dynamics on Global markets Change in net banking income2 (in €m) Global markets Global finance & FIC-T (Foreign Exchange, Interest Rate, Commodities & Global markets3 Investment banking Treasury) >Net revenues up thank
Slide 24: Specialized Financial Services
Results of the business lines Specialized Financial Services: extremely good performance achieved by Specialized financing since the beginning of 2016 Specialized financing Contribution to Group results Factoring >Buoyant growth in revenues: +56% vs. Q3-15 >Average outstandings financed: +35% year-o
Slide 25: Natixis' Transformation and Business Efficiency project
Natixis’ Transformation and Business Efficiency project1 ~50% to modernize IT and invest in new technologies One-off investment costs ~50% to manage the impacts of transformation €220m (over 2017 & 2018) Cost savings on business efficiency Constant business line perimeter Recurring annual Swift ramp
Slide 26: Natixis' Transformation and Business Efficiency project
Natixis’ Transformation and Business Efficiency project1 Areas for action % of annual savings Flagship projects Bringing IT resources in-house in Portugal IT streamlining 35% IT applications decommissioning New platform for managing margin calls Optimization of sales organization Organizational opti
Slide 27: Contents
Contents 1 2 3 4 Results of Capital Results of the Conclusion Groupe adequacy and business lines BPCE liquidity November 8, 2016 Results for the 3rd quarter and first 9 months of 2016 27
Slide 28: Conclusion
Conclusion Robust net income attributable to equity holders of the parent posted by the core business lines in a sluggish business environment: €3.2bn1 in 9M-16, +4.4% vs. 9M-15 pf Buoyant business activities achieved by the BP and CE retail banking networks, making it possible to limit the structur
Slide 29: Annexes
Results for the 3rd quarter and November 8, 2016 first 9 months of 2016 Annexes
Slide 30: Annexes
Annexes Organizational structure of Groupe BPCE Commercial Banking and Insurance Income statement Consolidated results of Groupe BPCE Banque Populaire network – Changes in savings and loan Notes on methodology outstandings Income statement: reconciliation of consolidated data Caisse d’Epargne networ
Slide 31: Organizational structure of Groupe BPCE
Annex - Groupe BPCE Organizational structure of Groupe BPCE as at September 30, 2016 8.9 MILLION COOPERATIVE SHAREHOLDERS 100% 100%* 50% 50% BPCE SA 100% 71% * Indirectly through Local Savings Companies. 29% FLOAT November 8, 2016 Results for the 3rd quarter and first 9 months of 2016 31
Slide 32: Notes on methodology (1/3)
Annex - Consolidated results of Group BPCE Notes on methodology (1/3) Presentation of 2015 pro-forma quarterly results The segment information has been modified as of Q1-16 after the Equity interests division was subsumed into the Corporate center division. On September 18, 2015, BPCE International
Slide 33: Notes on methodology (2/3)
Annex - Consolidated results of Group BPCE Notes on methodology (2/3) Net banking income • Net customer 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 (Liv
Slide 34: Notes on methodology (3/3)
Annex - Consolidated results of Group BPCE Notes on methodology (3/3) Capital adequacy Common Equity Tier 1 is determined in accordance with the applicable CRR/CRD 4 rules; fully-loaded equity is presented without the application of transitional measures, except for deferred tax assets on tax loss c
Slide 35: 9-month income statement reconciliation
Annex - Groupe BPCE 9-month income statement: reconciliation of consolidated data excluding non-economic and exceptional items to published consolidated data Revaluation of assets Results Impairment of asssociated with Capital gains Disposal of Disposal of Provision in millions of euros 9M-16 Banca
Slide 36: Quarterly income statement reconciliation
Annex - Groupe BPCE Quarterly income statement: reconciliation of consolidated data excluding non-economic and exceptional items to published consolidated data Q3-16 Revaluation of assets Impairment of Results Disposal of Disposal of excl. non- asssociated with Banca Carige / Settlement of goodwill
Slide 37: Pro-forma reconciliation to published data
Annex - Groupe BPCE Income statement: reconciliation of pro-forma consolidated data to published consolidated data Investment Solutions, Corporate & Groupe BPCE Commercial Banking & Insurance Equity interests Corporate center Investment Banking, SFS Standardization of Standardization of Transfer of
Slide 38: Pro-forma reconciliation to published data
Annex - Groupe BPCE Income statement: reconciliation of pro-forma consolidated data to published consolidated data Investment Solutions, Corporate & Groupe BPCE Commercial Banking & Insurance Equity interests Corporate center Investment Banking, SFS Standardization of Standardization of Transfer of
Slide 39: 9-month income statement per business line
Annex - Groupe BPCE 9-month income statement per business line Investment Commercial Banking Solutions, CIB and Core businesses Corporate center Groupe BPCE & Insurance SFS in millions of euros 9M-16 9M-15 pf 9M-16 9M-15 pf 9M-16 9M-15 pf % 9M-16 9M-15 pf 9M-16 9M-15 pf % Net banking income 11,185 1
Slide 40: Quarterly income statement per business line
Annex - Groupe BPCE Quarterly income statement per business line Commercial Investment Banking & Solutions, CIB and Core businesses Corporate center Groupe BPCE Insurance SFS in millions of euros Q3-16 Q3-15 pf Q3-16 Q3-15 pf Q3-16 Q3-15 pf % Q3-16 Q3-15 pf Q3-16 Q3-15 pf % Net banking income 3,684
Slide 41: Quarterly income statement
Annex – Groupe BPCE Quarterly income statement Groupe BPCE in millions of euros Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 pf Q2-16 Q3-16 9M-16 Net banking income 6,101 6,040 5,776 17,917 5,892 23,809 5,739 6,640 5,592 17,971 Operating expenses -4,265 -3,929 -3,832 -12,025 -4,223 -16
Slide 42: Consolidated balance sheet
Annex – Groupe BPCE Consolidated balance sheet ASSETS in millions of euros Sept. 30, 2016 Dec. 31, 2015 LIABILITIES in millions of euros Sept. 30, 2016 Dec. 31, 2015 C ash and amounts due from central banks 62,582 71,119 Amounts due to central banks 0 0 Financial assets at fair value through profit
Slide 43: 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, 2015 57,632 Distributions -361 Capital increase (cooperative shares) 486 Income 3,382 Remuneration of super-subordinated notes (TSSDI) -75 Is
Slide 44: Reconciliation of shareholders' equity to total capital
Annex – Financial structure Reconciliation of shareholders' equity to total capital1 - 0.9 In billions of euros + 16.3 + 4.2 - 4.6 - 1.6 -1 - 2.42 + 1.5 71,3 71.3 59.8 58,2 58,2 57,6 56,5 55.9 55,9 54,1 54.4 54,4 Equity Cancellation Non-controlling Goodwill EL/Prov Other Common Additional Tier-1 Tie
Slide 45: Prudential ratios and credit ratings
Annex – Financial structure Prudential ratios and credit ratings Sept. 30, 20161 June 30, 2016 Dec. 31, 2015 Dec. 31, 2014 Total risk-weighted assets €388bn €387bn €391bn €393bn Common Equity Tier-1 capital €54.3bn €53.0bn €50.9bn €46.6bn Tier-1 capital €55.6bn €54.3bn €52.2bn €50.0bn Total capital
Slide 46: Breakdown of risk-weighted assets
Annex - Financial structure Breakdown of risk-weighted assets (in billions of euros) Breakdown by business line 391 387 388 5% 5% 5% 29% 29% 29% 66% 66% 66% Dec. 15 June 16 Sept. 16 Commercial Banking and Insurance Natixis Others November 8, 2016 Results for the 3rd quarter and first 9 months of 201
Slide 47: Leverage ratio
Annex Leverage ratio1 In billions of euros Sept. 30, 20161 June 30, 2016 Jan. 1st 2016 pf5 Tier-1 capital 55.9 54.5 52.7 Balance sheet total 1,209.1 1,219.7 1,166.5 Prudential restatements -87.4 -84.4 -68.6 Prudential balance sheet total2 1,121.7 1,135.3 1,097.9 Adjustments related to exposure to de
Slide 48: Financial conglomerate
Annex Financial conglomerate CRR/CRD 42 Restatements Financial Financial conglomerate ratio viewpoint conglomerate viewpoint - 1.2 Banking CR1 (CRR/CRD4) Regulatory capital > + Insurance CR1 (Solvency 2) Total capital 71.2 69 70,0 70 70.0 (in €bn) 1 2 3 Transfer from the Basel 3 ratio2 to the conglo
Slide 49: Liquidity
Annex – Liquidity Breakdown of the liquidity reserve and short-term funding (in €bn) Group customer loan/deposit ratio1 Liquidity reserves and ST funding (in €bn) 199% Liquidity reserves / ST funding, as a % 153% Liquidity reserves / (ST funding + MLT and sub. maturing in ≤ 1 year), as a % Group cus
Slide 50: 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-16 9M-15 pf % 9M-16 9M-15 pf % 9M-16 9M-15 pf % 9M-16 9M-15 pf % Net banking income 4,705 4,942 -4.8% 5,425
Slide 51: 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 Q3-15 Q3-15 Q3-15 Q3-15 in millions of euros Q3-16 % Q3-16 % Q3-16 % Q3-16 % pf pf pf pf Net banking income 1,539 1,664 -7.5% 1,7
Slide 52: Commercial Banking & Insurance: quarterly income statement
Annex - Commercial Banking & Insurance Quarterly income statement Commercial Banking & Insurance in millions of euros Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 pf Q2-16 Q3-16 9M-16 Net banking income 3,914 3,846 3,861 11,621 3,693 15,314 3,784 3,718 3,684 11,185 Operating expenses -
Slide 53: 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 Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 pf Q2-16 Q3-16 9M-16 Net banking income 1,645 1,633 1,664 4,942 1,553 6,495 1,582 1,5
Slide 54: Banque Populaire: customer deposits & savings
Annex - Commercial Banking & Insurance Banque Populaire retail network: customer deposits & savings (in €bn) 238.8 228.8 229.5 % change Q3-16 / Q3-15 65.7 59.0 61.7 Demand deposits +11.4% Passbook savings accounts +2.2% 44.5 44.2 45.5 Regulated home savings +9.0% 17.4 18.9 plans 17.8 31.6 30.3 Term
Slide 55: Banque Populaire: customer loan outstandings
Annex - Commercial Banking & Insurance Banque Populaire retail network: customer loan outstandings (in €bn) 179.0 170.4 172.6 % change Q3-16 / Q3-15 Home loans +7.0% 94.7 99.2 92.8 Consumer loans +10.6% Short-term credit facilities +6.0% 7.2 7.4 8.0 Equipment loans +1.4% 12.0 11.8 12.7 Other ns 53.9
Slide 56: Caisse d'Epargne: customer deposits & savings
Annex - Commercial Banking & Insurance Caisse d’Epargne retail network: customer deposits & savings1 (in €bn) 397.5 398.7 401.6 % change 52.5 55.4 57.3 Q3-16 / Q3-15 Demand deposits +9.1% Passbook savings accounts -2.4% 125.6 122.9 122.7 Regulated home savings +8.3% plans Term accounts -17.2% 51.0 5
Slide 57: Caisse d'Epargne: customer loan outstandings
Annex - Commercial Banking & Insurance Caisse d’Epargne retail network: customer loan outstandings (in €bn) 232.5 221.4 224.6 % change Q3-16 / Q3-15 Home loans +5.2% 140.8 133.8 135.5 Consumer loans +5.8% Short-term credit facilities +1.1% Equipment loans +4.5% 12.8 13.1 13.6 9.2 8.9 9.3 Other ns 60
Slide 58: Quarterly income statement - Other networks
Annex - Commercial Banking & Insurance Quarterly income statement - Other networks (*) Other networks in millions of euros Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 pf Q2-16 Q3-16 9M-16 Net banking income 388 405 401 1,194 381 1,575 349 350 357 1,056 Operating expenses -254 -224 -21
Slide 59: 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 Investment Solutions, Specialized Financial Investment Solutions Wholesale Banking Wholesale Banking and Services Specialized Financial Services in millions of euros 9M-16 9M
Slide 60: Investment Solutions, Wholesale Banking and SFS quarterly income statement
Annex - Investment Solutions, Wholesale Banking and Specialized Financial Services Quarterly income statement Investment Solutions, Corporate & Investment Specialized Financial Wholesale Banking and Investment Solutions Banking Services Specialized Financial Services Q3-15 Q3-15 Q3-15 Q3-15 in milli
Slide 61: Investment Solutions, CIB and SFS quarterly income statement
Annex - Investment Solutions, Corporate & Investment Banking and Specialized Financial Services Quarterly income statement Investment Solutions, Corporate & Investment Banking and Specialized Financial Services in millions of euros Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 Q2-16 Q3-
Slide 62: Investment Solutions quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Investment Solutions in millions of euros Q1-15 Q2-15 Q3-15 9M-15 Q4-15 2015 Q1-16 Q2-16 Q3-16 9M-16 Net banking income 823 846 840 2,509 1,006 3,515 825 832 804 2,460 Operating expenses -583 -576 -569 -1,728 -648 -2,
Slide 63: Corporate & Investment Banking quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Corporate & Investment Banking in millions of euros Q1-15 Q2-15 Q3-15 9M-15 Q4-15 2015 Q1-16 Q2-16 Q3-16 9M-16 Net banking income 806 842 665 2,313 742 3,056 782 887 757 2,426 Operating expenses -492 -459 -416 -1,367
Slide 64: Specialized Financial Services quarterly income statement
Annex - Wholesale Banking, Investment Solutions and SFS Quarterly income statement Specialized Financial Services in millions of euros Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 Q2-16 Q3-16 9M-16 Net banking income 324 335 315 974 334 1,308 343 341 325 1,009 Operating expenses -218 -
Slide 65: Corporate center quarterly income statement
Annex - Corporate center Quarterly income statement Corporate center in millions of euros Q1-15 pf Q2-15 pf Q3-15 pf 9M-15 pf Q4-15 pf 2015 pf Q1-16 pf Q2-16 Q3-16 9M-16 Net banking income 234 171 95 499 118 617 6 862 22 891 Operating expenses -367 -236 -238 -841 -279 -1,120 -459 -292 -235 -986 Gros
Slide 66: Non-performing loans and impairment
Annex – Risks Groupe BPCE: non-performing loans and impairment In millions of euros Sept. 30, 2016 June 30, 2016 Dec. 31, 2015 Gross outstanding customer loans 677,803 674,628 629,775 O/w non-performing loans 23,436 23,298 23,098 Non-performing/gross outstanding loans 3.5% 3.5% 3.7% Impairment recog
Slide 67: Breakdown of commitments as at September 30, 2016
Annex – Risks Breakdown of commitments as at September 30, 2016 Breakdown of commitments Breakdown of commitments to Corporates per counterparty per economic sector Finance insurance 15.3% 5% Real-estate rentals 11.5% Energy 10.1% 28% 9% Real estate 9.2% Holding companies & diversified 7.2% 4% Servi
Slide 68: Geographical breakdown of commitments
Annex – Risks Geographical breakdown of commitments as at September 30, 2016 Central administrations / central banks and other Institutions sovereign exposures Corporates 5% 2% 7% 1% 1% 4% 4% 16% 10% 11% 16% 13% 38% 37% 65% 70% France Centralization of regulated savings Europe excl. France N&S Ameri
Slide 69: Results for the 3rd quarter and first 9 months of 2016
November 8, 2016 Results for the 3rd quarter and first 9 months of 2016 69