Paris, February 6, 2020

4Q19 & 2019 results
Delivering growth across the board, increased dividend with reinforced solvency
Increase in reported net income at €371m in 4Q19 and €1,897m in 2019 vs. €181m in 4Q18 and €1,306m in 2018
Cash dividend per share of 0.31€1, up +3% vs. 2018
Operating trends improving throughout the year with a strong 4Q19



BUSINESSES WELL DIVERSIFIED AND ALL GROWING IN 4Q19 AND 2019

UNDERLYING NET REVENUES2 AT €2.5BN IN 4Q19 (+11%3 YOY) AND €9.2BN IN 2019 (+6% YOY)

AWM: 2019 net revenues at an all-time high, back to positive net inflows in 4Q19 and fee rate resilience

Strength of our active asset management model with underlying net revenues2 up +8% YoY in 4Q19 (+7% YoY in 2019), partly driven by high levels of performance fees that reached €265m in 4Q19 (€627m in 2019), coming from multiple affiliates. Revenue growth higher than cost growth both in 4Q19 and 2019 to reach a historically high level in 2019 (including and excluding performance fees)

Positive net inflows on LT products in 4Q19 (~€3bn) both in Europe and North America. Strong AuM growth, up +16% over the year at €934bn

Average fee rate in line with New Dimension target at ~30bps in 4Q19 and 2019

Underlying RoE2 at ~15% in 2019, close to the 2020 New Dimension target

CIB: Positive jaws effect both in 4Q19 and 2019 with activity levels picking up towards year-end

Underlying net revenues2 up +16%3 YoY in 4Q19 primarily driven by Global markets (+40%3 YoY) and with a historically high quarter for Investment banking/M&A. Success of the diversification strategy illustrated by net revenues up +4% in 2019 vs. 2018

Costs under control, down -1% YoY at constant exchange rate in 2019 despite revenue growth

Underlying RoE2 at ~9% in 2019 with a cost of risk above its through-the-cycle average

Insurance: Continued growth and profitability

Underlying net revenues2 up +7% YoY with a positive jaws effect both in 4Q19 and 2019

Underlying RoE2 ~30% in 2019, close to the target set for New Dimension by 2020

Life insurance4: AuM up +14% over 2019 including a +23% growth across unit-linked products

P&C insurance: combined ratio at 91.7% in 2019, better than 2020 guidance of < 94%

Payments: Continued growth with positive jaws, EBITDA5 up +13% YoY in 2019

Underlying net revenues2 up +9% YoY in 2019 with a positive jaws effect

Underlying RoE2 ~10% in 2019

Increase in business volumes from Dalenys & PayPlug, up around +25% vs. 2018

SUSTAINABLE VALUE CREATION AND FINANCIAL STRENGTH
ORDINARY DIVIDEND INCREASE WITH A PAY-OUT RATIO >80%1

Organic capital creation of ~120bps in 2019, of which ~24bps in 4Q19 (~28bps excluding exceptional items)

Basel 3 FL CET1 ratio6 at 11.3% as at December 31, 2019 (+50bps over the year), above our 2020 target of 11.2% and with a cash dividend per share1 of 0.31€ (83% pay-out ratio), up vs. 0.30€ in 2018 and after a 0.48€ special dividend paid in June 2019

Underlying net income2 at €415m in 4Q19 (x2.2 YoY) and €1,370m in 2019 (+3% YoY)

Underlying RoTE2 at 10.8% in 4Q19 and 10.0% in 2019

Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view [1] Proposal of a 0.31€ ordinary dividend per share submitted to the approval of the Annual General Meeting on May 20, 2020 2 Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE in 4Q19 (see note on methodology) 3 Excluding the €(259)m non-recurring revenue impact from Asian equity derivatives in 4Q18 4 Excluding reinsurance agreement with CNP 5 Standalone view excluding exceptional items, analytical items and structure charges - see page 19 6 See note on methodology

In 2019, Natixis recorded very sound results with each of our four businesses growing revenues faster than costs. The fourth quarter of 2019 notably represented Natixis' best-ever quarter in terms of revenue and gross operating income generated. This momentum of successive quarter-on-quarter growth is the result of our unwavering implementation of our asset-light strategy and represents a solid base for us to complete our 2018-2020 strategic plan. 2019 was marked by key strategic milestones: the project to create a leader in the management of life insurance assets with LBPAM, the implementation of the Green Weighting Factor as well as projects being carried out to allow Natixis to reach its 2020 ambition of serving all the customers of Banques Populaires and Caisses d'Epargne on both Life and Non-life insurance. Together with a bolstered robustness and solidity, Natixis will pay a higher ordinary dividend per share of €0.31 to its shareholders, reflecting the strength of its business model.”

François Riahi, Natixis Chief Executive Officer

4Q19 RESULTS

On February 6th, 2020, the Board of Directors examined and approved Natixis’ fourth quarter 2019 results.

€m 4Q19
reported
4Q18
restated
 4Q19
o/w underlying
4Q18
o/w underlying
 4Q19 vs. 4Q18
restated
 4Q19 vs. 4Q18 underlying
Net revenues 2,5032,040 2,5342,024 23% 25%
o/w businesses 2,3351,856 2,3351,856 26% 26%
Expenses (1,745)(1,656) (1,708)(1,626) 5% 5%
Gross operating income 758383 826398 98% 108%
Provision for credit losses (119)(23) (119)(23)    
Net operating income 639361 707375 77% 89%
Associates and other items 958 958    
Pre-tax profit 648418 715432 55% 65%
Income tax (163)(110) (185)(115)    
Minority interests (113)(127) (116)(128)    
Net income - group share 371181 415189 105% 119%

Natixis’ underlying net revenues are up +26% YoY across the businesses with CIB up +74% YoY, AWM up +8% YoY, Insurance up +7% YoY and Payments up +6% YoY. Adjusting net revenues for the 4Q18 non-recurring impact on Asian equity derivatives, top-line growth across Natixis’ businesses reached +10% YoY (o/w +16% in CIB).

Underlying expenses are up +4% YoY at constant exchange rate with a positive jaws effect and a cost/income ratio improvement across all business lines. Expense base reflecting a historically high quarter for net revenues (impact on variable costs) as well as sustained investments in functions to support business growth. The underlying cost/income ratio1 is at 69.5%, down -13.5pp vs. 4Q18.

The underlying gross operating income more than doubled YoY (+26% YoY adjusting net revenues for the 4Q18 non-recurring impact on Asian equity derivatives) to reach a historically high level and absorb an increase in loan loss provisioning compared with a low 4Q18. Cost of risk above through-the-cycle guidance of ~30bps (equivalent to ~€190m for 2020) mainly due to provisioning efforts being made across natural gas producers in the U.S. due to the structural transformation of this sector. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 69bps in 4Q19.

Net income (group share), adjusted for IFRIC 21 and excluding exceptional items reached €368m in 4Q19. Accounting for exceptional items (€(44)m net of tax in 4Q19), and IFRIC 21 impact (+€47m in 4Q19) the reported net income (group share) in 4Q19 is at €371m.

Businesses’ underlying RoE1 reached 13.5% in 4Q19.

Natixis’ underlying RoTE1 reached 10.8% in 4Q19 excl. IFRIC 21 and 12.2% on a normalized cost of risk2.

1 See note on methodology. Excluding exceptional items and excluding IFRIC 21 2 Normalizing the 4Q19 cost of risk at 30bps

2019 RESULTS1

€m 2019
restated
2018
restated
 2019
o/w underlying
2018
o/w underlying
 2019 vs. 2018
restated
 2019 vs. 2018 underlying
Net revenues 9,1968,749 9,1778,632 5% 6%
o/w businesses 8,3657,958 8,3657,889 5% 6%
Expenses (6,632)(6,357) (6,545)(6,272) 4% 4%
Gross operating income 2,5642,391 2,6332,360 7% 12%
Provision for credit losses (332)(193) (332)(122)    
Net operating income 2,2322,199 2,3012,238 2% 3%
Associates and other items 71383 3083    
Pre-tax profit 2,9452,281 2,3312,321 29% 0%
Income tax (669)(673) (612)(687)    
Minority interests (380)(303) (349)(304)    
Net income - group share 1,8971,306 1,3701,330 45% 3%

Natixis’ underlying net revenues are increasing across all business lines with Payments up +9% YoY, AWM and Insurance up +7% YoY and CIB up +4% YoY. 2019 revenue evolution reflecting an improved momentum throughout the year with 52% of Natixis’ top-line generated during the second semester vs. an average 49% over the last 5 years.

Underlying expenses are well under control and up +2% YoY at constant exchange rate with a positive jaws effect and a cost/income ratio improvement across all business lines. Cost control mainly reflected through CIB expenses, down -1% YoY at constant exchange rate despite revenue growth. The underlying cost/income ratio2 is at 71.3%, down -140bps vs. 2018

The underlying loan loss provisioning increased from a low 2018 on the back of a large single file in 2Q19 and a number of files being provisioned for, mainly in the Energy & Natural Resources space in 2H19. Net revenues adjusted for the cost of risk up +4% YoY in 2019. Net revenues adjusted for the cost of risk up +4% YoY in 2019. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 50bps in 2019 (33bps since the launch of New Dimension).

Net income (group share) excluding exceptional items reached €1,370m in 2019. Accounting for exceptional items (+€527m net of tax in 2019), the reported net income (group share) in 2019 is at €1,897m.

Businesses’ underlying RoE2 reached 12.5% in 2019.

Natixis’ underlying RoTE2 reached 10.0% in 2019 (10.4% adjusted for the disposal of the retail banking activities to BPCE S.A.). Such a level of profitability has been reached in an uncertain geopolitical and economic context that has proved to be volatile over the year, being reminded that the performance of Natixis’ businesses will remain, among other things, sensitive to the evolution of this context over 2020.

1 Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view 2 See note on methodology. Excluding exceptional items

4Q19 & 2019 RESULTS
Exceptional items

€m  4Q194Q18 20192018
Exchange rate fluctuations on DSN in currencies (Net revenues)Corporate center(31)16 1948
SWL provision reversal (Net revenues)CIB00 (0)68
Transformation & Business Efficiency Investment costs (Expenses)Business lines &
Corporate center
(31)(27) (79)(82)
Fit to Win investments & restructuring expenses (Expenses)Financial investments(6)(3) (8)(3)
Legal provision (Provision for credit losses)CIB00 0(71)
Disposal of subsidiary in Brazil (Gain or loss on other assets)CIB00 (15)0
Capital gain - Disposal retail banking activities (Gain/loss on other assets)Corporate center00 6970
Total impact on income tax 225 (57)14
Total impact on minority interests 21 (30)1
Total impact on net income (gs) (44)(8) 527(25)

€586m positive net impact from the disposal of the retail banking activities in 1Q19: €697m capital gain minus €78m income tax minus €33m minority interests

TRANSFORMATION & BUSINESS EFFICIENCY

Investment costs by reporting line

€m 4Q194Q18 20192018
AWM(2)(9) (9)(21)
CIB(12)(6) (27)(14)
Insurance(3)(2) (6)(2)
Payments(2)(0) (5)(0)
Financial Investments00 00
Corporate center(12)(11) (33)(45)
Impact on expenses(31)(27) (79)(82)


Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Asset & Wealth Management

€m  4Q194Q184Q19
vs. 4Q18
 201920182019
vs. 2018
2019
vs. 2018
constant FX
Net revenues 1,1091,0328% 3,7603,5137%4%
 o/w Asset Management1 1,0619986% 3,6113,3697%4%
 o/w Wealth management 483442% 1491443%3%
Expenses (679)(634)7% (2,483)(2,322)7%4%
Gross operating income 4303988% 1,2771,1917%5%
Provision for credit losses 20  (8)(2)  
Associates and other items 243  539  
Pre-tax profit 434441(2)% 1,2741,2284% 
Cost/income ratio2 61.3%61.6%-0.3pp 66.0%66.1%-0.1pp 
RoE after tax2 19.1%20.1%-1.0pp 14.9%16.0%-1.1pp 

Underlying net revenues from Asset & Wealth Management (AWM) are up +8% YoY in 4Q19 both including and excluding AM performance fees, illustrating the strength of our diversified multi-boutique model which delivered a +7% YoY revenue growth in 2019 to reach a historically high level (even excluding performance fees). Asset management (excl. Employee savings plan) underlying net revenues, including performance fees, are up +4% YoY in North America (€415m) and up +6% YoY in Europe (€459m) in 4Q19 (+2% at €1,647m and +10% at €1,297m in 2019 for North America and Europe respectively). Wealth management net revenues are significantly up YoY in 4Q19 (~€6m of performance fees).

The Asset management overall fee rate excluding performance fees is at ~30bps both in 4Q19 (slightly up QoQ) and 2019, in line with New Dimension target. For European affiliates, it is at ~16bps in 2019 (~17bps in 4Q19) and ~28bps excl. Life Insurance General Accounts (~30bps in 4Q19). For North American affiliates, it is at ~38bps (~37bps in 4Q19) vs. ~40bps in 2018 mainly due to a lower share of average AuM from Harris following the 4Q18 market effect. Performance fees reached €265m in 4Q19 (€627m in 2019) driven by various strategies (global macro, real assets, ESG, equity growth, fixed income) across multiple affiliates.

Asset management net flows on LT products reached ~€3bn in 4Q19 with an improving trend throughout the quarter. In Europe, ~€0.5bn net inflows in 4Q19 with a positive momentum for global macro and ESG strategies largely offset by a ~€3bn single mandate outflow although low-margin. Good start for Thematics AM (€0.7bn AuM at end-December). In North America, ~€3bn net inflows in 4Q19 across both fixed income and equity strategies.

Asset management AuM reached €934bn as at December 31, 2019, up +1% QoQ and +16% YTD. Positive market effect of +€26bn in 4Q19 (mainly December) essentially impacting North American equity strategies and more than offsetting a weaker USD (~€14bn negative FX & perimeter effect). AuM were also impacted in 4Q19 by ~€2bn net outflows on low-margin money-market products. YE19 AuM above their 2018 and 2019 average level both in North America and Europe. Wealth management AuM reached €30.4bn as at December 31, 2019 with €0.5bn net inflows in 2019.

Underlying expenses tracking revenue growth with a slight positive jaws effect both in 4Q19 and 2019.

The underlying gross operating income is up high single-digit both in 4Q19 (+8%) and 2019 (+7%).

The underlying RoE2 reached ~15% for the year, close to New Dimension 2020 target with net income flat vs. 2018 (higher minority interests) and more capital allocated to the business.

1 Asset management including Private equity and Employee savings plan
2 See note on methodology. Excluding exceptional items and excluding IFRIC 21 in 4Q


Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Corporate & Investment Banking

€m  4Q194Q184Q19
vs. 4Q18
 201920182019
vs. 2018
2019
vs. 2018
constant FX
Net revenues 89951874% 3,3373,1974%2%
Net revenues excl. CVA/DVA/Other 90150080% 3,3383,1406%4%
Expenses (590)(553)7% (2,208)(2,188)1%(1)%
Gross operating income 309(35)NR  1,1291,00912%8%
Provision for credit losses (118)(9)  (312)(103)  
Associates and other items 23  1014  
Pre-tax profit 193(41)NR  827921(10)% 
Cost/income ratio1 66.5%108.3%NR 66.2%68.4%-2.2pp 
RoE after tax1 8.0%NRNR 8.9%10.2%-1.3pp 

Underlying net revenues are up +16% YoY in 4Q19 adjusting for the 4Q18 €(259)m non-recurring impact on Asian equity derivatives. The growth is primarily driven by Global markets (+40% YoY) and Investment banking/M&A (+14% YoY). Global finance revenues are up +2% YoY in 4Q19 on a strong 4Q18. Underlying net revenue growth for 2019 reached +4% YoY.

Underlying net revenues/RWA2 improving at above 5.8% in 4Q19.

Global markets net revenues are up +40% YoY in 4Q19 adjusting for the 4Q18 €(259)m non-recurring impact on Asian equity derivatives with strong performance from the EMEA region. Underlying net revenues excluding CVA/DVA featured strong resilience over 2019, down a modest -3% YoY adjusted3 despite a challenging 1Q19. FICT net revenues are up +33% YoY in 4Q19 to reach their highest level since 1Q18 and marking the third consecutive quarter of YoY revenue growth amidst improving market conditions following an unfavorable 1Q19. Strong client activity across Rates and Credit. Equity net revenues are multiplied by x2 YoY3 in 4Q19 on a low 4Q18 and largely flat YoY3 in 2019. Benign volatility in 4Q19 leading to low client activity for derivatives. Global finance net revenues are up +2% YoY in 4Q19 and marginally down YoY in 2019 on a historically high basis. 4Q19 revenues growing for syndication across all Real Assets business lines as well as Trade & Treasury Solutions, offsetting a lower contribution from Energy & Natural Resources. Distribution rate on Real Assets at ~60% in 2019. Investment banking and M&A net revenues are up +14% YoY in 4Q19 (+6% YoY in 2019) driven by robust activity across DCM and Acquisition & Strategic Finance.
Strong quarter for M&A boutiques, especially for Fenchurch (#1 UK FIG M&A by deal value and volume, #4 Europe FIG M&A by deal value)4 and PJ Solomon. Azure Capital the most active M&A adviser in Western Australia (13 announced transactions with a value of $1.3bn)5. M&A revenues up +3% YoY at ~€200m with Natixis ranking #5 in France by deal volume4. Proportion of revenues generated from service fees at ~43% in 4Q19 and >40% in 20196.

Underlying expenses are well under control, down -1% YoY at constant exchange rate in 2019 despite a net revenue increase. The 4Q19 +5% YoY expense growth (at constant FX) reflects higher variable staff costs vs. 4Q18 given the +70% revenue expansion (at constant FX).

Underlying cost of risk is up YoY in 4Q19 vs. a very low 4Q18 due to provisioning efforts mainly made across the U.S. natural gas space.

Underlying RoE1 of 8.0% in 4Q19 and 8.9% in 2019. Normalizing for the cost of risk7, the 4Q19 RoE would have reached 10.8% and the 2019 RoE 10.2%.

RWA are slightly down QoQ and up +2% over 2019.

1 See note on methodology. Excluding exceptional items and excluding IFRIC 21 in 4Q 2 4Q19 annualized net revenues (excl. CVA/DVA desk) on average RWA 3 Adjusting net revenues for the 4Q18 €(259)m non-recurring impact on Asian equity derivatives 4 Source: Mergermarket 5 Source: Business News Western Australia 6 ENR, Real Assets, ASF 7 Normalizing the cost of risk at 30bps
Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Insurance

€m  4Q194Q184Q19
vs. 4Q18
 201920182019
vs. 2018
Net revenues 2162017% 8467907%
Expenses (123)(116)5% (472)(446)6%
Gross operating income 938510% 3743449%
Provision for credit losses 00  00 
Associates and other items 49  1015 
Pre-tax profit 96933% 3843587%
Cost/income ratio1   58.9%60.3%-1.4pp 55.8%56.5%-0.7pp
RoE after tax1 26.0%29.8%-3.8pp 28.4%29.1%-0.7pp

Banking view

Underlying net revenues are up +7% YoY both in 4Q19 and 2019 with growth across the board.

Underlying expenses are up +5% YoY in 4Q19 and +6% YoY in 2019, translating into a positive jaws effect and a cost/income ratio improvement, alongside with investments being made, especially on digital tools.

Underlying gross operating income is up +10% YoY in 4Q19 and +9% YoY in 2019.

Underlying RoE1 is above 28% in 2019, impacted by a higher capital allocation (positive OCI development contributing to an increase in book value, risk-weighted under the Danish Compromise).

Insurance view

Global turnover2 reached €3.1bn in 4Q19, up +18% YoY (+6% in 2019 at €12.7bn).

Life and Personal protection: €2.7bn earned premiums2 in 4Q19, up +20% YoY (+6% in 2019).

  • Total AuM2 at €68.4bn as at end-December 2019, up +3% QoQ and +14% YTD, driven by €1.4bn of net inflows2 in 4Q19 (€6.0bn in 2019).
     
  • Unit-linked AuM2 at €17.3bn as at end-December 2019, up +5% QoQ and +23% YTD, driven by €0.8bn of net inflows2 in 4Q19 (59% of total net inflows) and €2.5bn in 2019. UL products accounted for 31% of gross inflows in 2019, above the French market3.
     
  • Decrease of profit-sharing rate by ~50bps vs. 2018 and reinforcement by ~20% of the policyholder reserve (PPE)4

             
P&C: earned premiums above €0.4bn in 4Q19, up +6% YoY (+6% in 2019). The combined ratio reaches 91.7% in 2019
(+0.5pp YoY) and 90.0% in 4Q19 (+1.1pp YoY).

The non-life equipment rate at the end of December is at 26.6% (+1.2pp YoY) for Banques Populaires and at 29.9% (+1.3pp YoY) for Caisses d’Epargne.

1 See note on methodology. Excluding exceptional items and excluding IFRIC 21 in 4Q 2 Excluding reinsurance agreement with CNP
3 Source: FFA 4 BPCE Vie

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Payments

€m  4Q194Q184Q19
vs. 4Q18
 201920182019
vs. 2018
Net revenues 1111056% 4233899%
Expenses (93)(90)4% (365)(341)7%
Gross operating income 181519% 574819%
Provision for credit losses (0)(2)  (2)(2) 
Associates and other items (0)0  01 
Pre-tax profit 171336% 554718%
Cost/income ratio1 84.1%85.9%-1.8pp 86.5%87.6%-1.1pp
RoE after tax1 12.4%9.9%2.5pp 10.0%9.9%0.1pp

Underlying net revenues up +9% YoY in 2019 and +6% YoY in 4Q19. Payment revenues multiplied by ~1.3x since the launch of New Dimension and with ~40% of 2019 revenues realized with direct clients (+1pp vs. 2018).

  • Payment Processing & Services: Steady +6% YoY revenue growth in Natixis Payments’ historical activities in 4Q19 (+5% YoY in 2019). Number of card transactions processed up +8% YoY in 4Q19 (+10% YoY in 2019).
     
  • Merchant Solutions: Solid business volumes generated by Dalenys and PayPlug, up +29% YoY in 4Q19 (+25% YoY in 2019 o/w +83% for PayPlug and +21% for Dalenys). Launch of the card payment in installments solution by PayPlug (with Oney).
     
  • Prepaid & Issuing Solutions: Robust revenue growth in 2019 (+30% YoY) mainly driven by meal voucher (+6% YoY) and Benefits & Rewards (Titres Cadeaux and Comitéo). Number of mobile payments more than x2.5 vs. 2018.

1 See note on methodology. Excluding exceptional items and excluding IFRIC 21 in 4Q
Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Financial Investments

€m  4Q194Q184Q19
vs. 4Q18
 201920182019
vs. 2018
Net revenues 1881814% 7727424%
Coface 1771658% 7126785%
Other 1016  6064 
Expenses (147)(136)7% (552)(524)6%
Gross operating income 4144(7)% 2202181%
Provision for credit losses (1)3  (10)(1) 
Associates and other items 20  76 
Pre-tax profit 4247(11)% 216223(3)%

The net combined ratio of Coface1 reached 80.4% in 4Q19 vs. 81.4% in 4Q18 (77.7% in 2019 vs. 79.6% in 2018) with a cost ratio moving from 35.9% to 35.6% (from 34.5% in 2018 to 32.7% in 2019) and a loss ratio moving from 45.5% to 44.8% (from 45.1% in 2018 to 45.0% in 2019).

Corporate Center

€m  4Q194Q184Q19
vs. 4Q18
 201920182019
vs. 2018
Net revenues 11(12)  401 
Expenses (76)(96)(21)% (464)(452)3%
SRF (0)0  (170)(160)6%
Other (76)(96)(21)% (294)(292)1%
Gross operating income (66)(109)(40)% (424)(451)(6)%
Provision for credit losses (0)(15)  1(14) 
Associates and other items (0)3  (2)8 
Pre-tax profit (67)(120)(45)% (425)(456)(7)%

Underlying net revenues of €40m in 2019 (positive FVA impacts mainly in 1Q19) and €11m in 4Q19.

Underlying expenses excluding SRF down -21% YoY in 4Q19 and largely flat YoY in 2019.

P&L drag at pre-tax profit level reduced by ~€30m in 2019 despite SRF contribution increase.

1 Reported ratios, net of reinsurance


FINANCIAL STRUCTURE

Basel 3 fully-loaded1
Natixis’ Basel 3 fully-loaded CET1 ratio worked out to 11.3% as at December 31, 2019.

  • Basel 3 fully-loaded CET1 capital amounted to €11.2bn
  • Basel 3 fully-loaded RWA amounted to €99.0bn

Based on a Basel 3 fully-loaded CET1 ratio of 10.8% as at December 31, 2018, the respective 2019 impacts were as follows:

  • IFRS 16 & deduction for Irrevocable Payment Commitments: -22bps
  • Disposal of retail banking activities: +223bps
  • 2019 results: +137bps
  • 2019 RWA and other effects: -21bps
  • 2019 strategic operations: -21bps
  • Special dividend paid in 2019 following the disposal of the retail banking activities: -153bps
  • 2019 ordinary dividends: -99bps

As at December 31, 2019, Natixis’ Basel 3 fully-loaded capital ratios stood at 13.1% for the Tier 1 and 15.3% for the Total capital.

Basel 3 phased-in excl. current financial year’s earnings and dividends1
As at December 31, 2019, Natixis’ Basel 3 phased-in capital ratios excl. current financial year’s earnings and dividends stood at 10.4% for the CET1, 12.5% for the Tier 1 and 14.8% for the Total capital.

  • Core Tier 1 capital stood at €10.2bn and Tier 1 capital at €12.4bn
  • Natixis’ RWA totaled €99.0bn, breakdown as follows:
    • Credit risk: €66.3bn
    • Counterparty risk: €6.4bn
    • CVA risk: €1.3bn
    • Market risk: €11.2bn
    • Operational risk: €13.7bn

Book value per share
Equity capital (group share) totaled €19.4bn as at December 31, 2019, of which €2.0bn in the form of hybrid securities (DSNs) recognized in equity capital at fair value (excluding capital gain following reclassification of hybrids).

Natixis’ book value per share including dividend distribution projected for the fiscal year 2019 stood at €5.17 as at December 31, 2019 based on 3,150,995,283 shares excluding treasury shares (the total number of shares being 3,153,078,482). The tangible book value per share (after deducting goodwill and intangible assets) is €3.89.

Leverage ratio1

The leverage ratio worked out to 4.1% as at December 31, 2019.

Overall capital adequacy ratio
As at December 31, 2019, the financial conglomerate’s excess capital was estimated at around €3.1bn (based on own funds including current financial year’s earnings and projected dividend distribution).

     1 See note on methodology

APPENDICES

Note on methodology:

The results at 31/12/2019 were examined and approved by the board of directors at their meeting on 06/02/2020.
Figures at 31/12/2019 are presented in accordance with IAS/IFRS accounting standards and IFRS Interpretation Committee (IFRIC) rulings as adopted in the European Union and applicable at this date

Changes in Natixis’ account presentation following the disposal of the retail banking activities to BPCE S.A.

  • Employee savings plan is reallocated to Asset & Wealth Management
  • Film industry financing is reallocated to Corporate & Investment Banking
  • Insurance is not impacted
  • Payments becomes a standalone business line
  • Financial Investments are isolated and include Coface, Natixis Algeria and the private equity runoff activities. The Corporate Center is refocused on Natixis’ holding and ALM functions and carries the Single Resolution Fund contribution within its expenses

                         

Additional impacts on the quarterly series from the disposal of the retail banking activities to BPCE S.A.

  • New support function services provided by Natixis to the activities sold (TSA / SLA), as well as the cancellation of services or analytical items that have been made obsolete following such a disposal are factored in
  • The reclassification as Net revenues of the residual IT and logistic services that continue to be provided to the activities sold. Such services now being provided to entities that do not fall under Natixis’ scope of consolidation anymore, they have been reclassified as Net revenues instead of expense deductions
  • The implementation of introductory fees between the Natixis CIB Coverage and the entities sold

In order to ensure comparability between the 2018 and 2019 quarterly series, these impacts have been simulated retroactively as of January 1st, 2018, even though they only impact the published financial statements as of their implementation date in 2019. These items essentially impact the Corporate Center and more marginally the CIB. The others business lines are unimpacted

Business line performances using Basel 3 standards:

  • The performances of Natixis business lines are presented using Basel 3 standards. Basel 3 risk-weighted assets are based on CRR-CRD4 rules as published on June 26th, 2013 (including the Danish compromise treatment for qualified entities).
  • Natixis’ RoTE is calculated by taking as the numerator net income (group share) excluding DSN interest expenses (the associated tax benefit being already accounted for in the net income following the adoption of IAS 12 amendment). Equity capital is average shareholders’ equity group share as defined by IFRS, after payout of dividends, excluding average hybrid debt, average intangible assets and average goodwill.

-            Natixis’ RoE: Results used for calculations are net income (group share), deducting DSN interest expenses (the associated tax benefit being already accounted for in the net income following the adoption of IAS 12 amendment). Equity capital is average shareholders’ equity group share as defined by IFRS, after payout of dividends, excluding average hybrid debt, and excluding unrealized or deferred gains and losses recognized in equity (OCI).
-            RoE for business lines is calculated based on normative capital to which are added goodwill and intangible assets for the business line. Normative capital allocation to Natixis’ business lines is carried out based on 10.5% of their average Basel 3 risk-weighted assets. Business lines benefit from remuneration of normative capital allocated to them. By convention, the remuneration rate on normative capital is maintained at 2%.

Note on Natixis’ RoE and RoTE calculation: Calculations based on quarter-end balance sheet in 1Q19 to reflect the disposal of the retail banking activities. The €586m net capital gain is not annualized. 2018 RoTE of 10.4% on page 4 adjusted for the disposal of the retail banking activities i.e. as if the operation took effect on January 01, 2018 (vs. 12.0% as reported) with a numerator of €1,233m: €1,330m underlying net income group share as shown on page 14 minus €97m post-tax DSN interest expenses and a denominator of €11,855m: 2018 average equity for RoTE calculation of €12,565m adjusted for the following impacts related to the perimeter sold (+) €586m net capital gain recorded in 1Q19 (-) €1,512m special dividend paid out in 2Q19 (+) €178m goodwill and intangibles (+) €38m other impacts (OCI). Adoption of IAS 12 amendment effective as of 3Q19 (see next slide for additional comments), with no impact on the RoE/RoTE.

Net book value: calculated by taking shareholders’ equity group share (minus distribution of dividends proposed by the Board of Directors and submitted to the approval of the General Shareholders' Meeting on May 28, 2019), restated for hybrids and capital gains on reclassification of hybrids as equity instruments. Net tangible book value is adjusted for goodwill relating to equity affiliates, restated goodwill and intangible assets as follows:

€m31/12/2019
Goodwill3,891
Restatement for Coface minority interests(162)
Restatement for AWM deferred tax liability & others(343)
Restated goodwill3,386


€m31/12/2019
Intangible assets717
Restatement for Coface minority interest & others(48)
Restated intangible assets669

Own senior debt fair-value adjustment: calculated using a discounted cash-flow model, contract by contract, including parameters such as swap curves and revaluation spread (based on the BPCE reoffer curve). Adoption of IFRS 9 standards, on November 22, 2016, authorizing the early application of provisions relating to own credit risk as of FY2016 closing.

Phased-in capital and ratios excl. current financial year’s earnings and dividends: based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - phased in. Presentation excluding current financial year’s earnings and dividend declared

Fully-loaded capital and ratios: based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. Presentation including current financial year’s earnings and dividend declared)

Leverage ratio: based on delegated act rules, without phase-in (presentation including 2019 earnings and declared dividend) and with the hypothesis of a roll-out for non-eligible subordinated notes under Basel 3 by eligible notes. Repo transactions with central counterparties are offset in accordance with IAS 32 rules without maturity or currency criteria. Leverage ratio disclosed including the effect of intragroup cancelation - pending ECB authorization

Exceptional items: figures and comments on this press release are based on Natixis and its businesses’ income statements excluding non-operating and/or exceptional items detailed page 5. Figures and comments that are referred to as ‘underlying’ exclude such exceptional items. Natixis and its businesses’ income statements including these items are available in the appendix of this press release

Restatement for IFRIC 21 impact: the cost/income ratio, the RoE and the RoTE excluding IFRIC 21 impact calculation in 4Q19 takes into account ¼ of the annual duties and levies concerned by this accounting rule

Earnings capacity: net income (group share) restated for exceptional items and the IFRIC 21 impact

Expenses: sum of operating expenses and depreciation, amortization and impairment on property, plant and equipment and intangible assets

IAS 12: As of 3Q19, according to the adoption of IAS 12 (income taxes) amendment, the tax benefit on DSN interest expenses previously recorded in the consolidated reserves is now being accounted for in the income statement (income tax line). Previous periods have not been restated with a positive impact of €47.5m in 2019, of which €35.9m recognized in in 3Q19 (€23.8m related to 1H19).


Natixis - Consolidated P&L (restated)

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues2,1932,3602,1562,0402,1322,2822,2802,503 23% 8,7499,196 5%
Expenses(1,675)(1,528)(1,499)(1,656)(1,720)(1,577)(1,590)(1,745) 5% (6,357)(6,632) 4%
Gross operating income 518832658383412705689758 98% 2,3912,564 7%
Provision for credit losses(36)(41)(93)(23)(31)(110)(71)(119)   (193)(332)  
Associates736133836   2921  
Gain or loss on other assets64(0)44682(2)93   54692  
Change in value of goodwill00000000   00  
Pre-tax profit4957985704181,066602630648 55% 2,2812,945 29%
Tax(175)(234)(154)(110)(215)(164)(126)(163)   (673)(669)  
Minority interests(60)(57)(59)(127)(86)(92)(88)(113)   (303)(380)  
Net income (group share) 260507358181764346415371 105% 1,3061,897 45%

Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See below for the reconciliation of the restated figures with the accounting view

Natixis - Reconciliation between management and accounting figures

2018

€m 2018
underlying
 Exceptional items 2018
restated
Contribution from perimeter sold 2018
reported
Net revenues8,632 116 8,749867 9,616
Expenses(6,272) (85) (6,357)(466) (6,823)
Gross operating income 2,360 31 2,391401 2,793
Provision for credit losses(122) (71) (193)(22) (215)
Associates29 0 290 29
Gain or loss on other assets54 0 54(0) 54
Pre-tax profit2,321 (40) 2,281380 2,661
Tax(687) 14 (673)(108) (780)
Minority interests(304) 1 (303)(1) (304)
Net income (group share)1,330 (25) 1,306271 1,577

2019

€m 2019
underlying
 Exceptional items 2019
restated
Residual contribution from perimeter sold 2019
reported
Net revenues9,177 19 9,19622 9,219
Expenses(6,545) (88) (6,632)(22) (6,655)
Gross operating income 2,633 (69) 2,564(0) 2,564
Provision for credit losses(332) 0 (332)(0) (332)
Associates21 0 210 21
Gain or loss on other assets9 683 692(0) 692
Pre-tax profit2,331 614 2,945(0) 2,945
Tax(612) (57) (669)0 (669)
Minority interests(349) (30) (380)0 (380)
Net income (group share)1,370 527 1,897(0) 1,897


Natixis - IFRS 9 Balance sheet

Assets (€bn) 31/12/201931/12/2018
Cash and balances with central banks21.024.3
Financial assets at fair value through profit and loss1228.8214.1
Financial assets at fair value through Equity12.110.8
Loans and receivables1119.296.6
Debt instruments at amortized cost1.61.2
Insurance assets108.1100.5
Non-current assets held for sale0.025.6
Accruals and other assets15.716.8
Investments in associates0.70.7
Tangible and intangible assets2.11.1
Goodwill3.93.8
Total513.2495.5
Liabilities and equity (€bn) 31/12/201931/12/2018
Due to central banks0.00.0
Financial liabilities at fair value through profit and loss1218.3208.2
Customer deposits and deposits from financial institutions1102.4109.2
Debt securities47.435.0
Liabilities associated with non-current assets held for sale0.09.7
Accruals and other liabilities18.117.0
Insurance liabilities100.589.5
Contingency reserves1.61.7
Subordinated debt4.04.0
Equity attributable to equity holders of the parent19.419.9
Minority interests1.41.3
Total513.2495.5

1 Including deposit and margin call

Natixis - 4Q19 P&L by business line

€mAWMCIBInsurancePaymentsFinancial investmentsCorporate Center 4Q19
reported
Net revenues1,109899216111188(20) 2,503
Expenses(681)(602)(125)(96)(153)(89) (1,745)
Gross operating income 428297901535(109) 758
Provision for credit losses2(118)0(0)(1)(0) (119)
Net operating income 430179901534(109) 639
Associates and other items224(0)2(0) 9
Pre-tax profit432181941535(109) 648
      Tax (163)
      Minority interests (113)
      Net income (gs)  371

Asset & Wealth Management

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues7998428411,0327739329451,109 8% 3,5133,760 7%
Asset Management17628058059987429009081,061 6% 3,3693,611 7%
Wealth management3737363431323748 42% 144149 3%
Expenses(548)(569)(584)(642)(558)(605)(648)(681) 6% (2,343)(2,492) 6%
Gross operating income 251273257389216327297428 10% 1,1701,268 8%
Provision for credit losses(0)(1)(1)01(2)(8)2   (2)(8)  
Net operating income 251272256390216325289430 10% 1,1691,260 8%
Associates00020000   31  
Other items(0)(3)(2)41(2)(2)81   375  
Pre-tax profit251269255433214323297432 (0)% 1,2081,266 5%
Cost/Income ratio68.6%67.6%69.4%62.3%72.1%64.9%68.5%61.4%   66.7%66.3%  
Cost/Income ratio excl. IFRIC 2168.1%67.7%69.6%62.4%71.6%65.1%68.7%61.5%   66.7%66.3%  
RWA (Basel 3 - in €bn)11.711.812.512.312.513.713.414.0 14% 12.314.0 14%
Normative capital allocation (Basel 3)4,1434,0654,1504,3634,3644,4074,5554,581 5% 4,1804,477 7%
RoE after tax (Basel 3)213.7%15.2%13.9%19.6%11.5%15.1%13.3%19.0%   15.7%14.8%  
RoE after tax (Basel 3) excl. IFRIC 21214.0%15.1%13.8%19.5%11.8%15.0%13.3%19.0%   15.7%14.8%  

[1] Asset management including Private equity and Employee savings plan
2 Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

Corporate & Investment Banking

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues944976828518807847784899 74% 3,2663,337 2%
Global markets52745733414366419344381 NR  1,3321,509 13%
   FIC-T 378299252231251304258306 33% 1,1591,118 (4)%
   Equity14814597(219)1251179481 NR  171417 144%
Excl. cash14314097(219)1251179481   162417 157%
Cash equity54(0)(0)0000   90  
   CVA/DVA desk113(15)2(9)(3)(8)(6)   2(26)  
Global finance1341394341362337333369369 2% 1,4381,408 (2)%
Investment banking2828578126879073145 14% 372395 6%
Other (7)417416166(2)5   12324  
Expenses(566)(551)(525)(559)(582)(523)(527)(602) 8% (2,202)(2,235) 1%
Gross operating income 378425302(41)225324256297 NR 1,0641,102 4%
Provision for credit losses(31)(37)(98)(9)(30)(104)(59)(118)   (174)(312)  
Net operating income 347388204(50)195219197179 NR 890790 (11)%
Associates43332322   1210  
Other items30(0)0(15)0(0)(0)   3(15)  
Pre-tax profit353391207(47)183222200181 NR 904786 (13)%
Cost/Income ratio60.0%56.4%63.5%107.9%72.2%61.8%67.3%67.0%   67.4%67.0%  
Cost/Income ratio excl. IFRIC 2157.7%57.2%64.4%109.4%69.1%62.7%68.3%67.9%   67.4%67.0%  
RWA (Basel 3 - in €bn)59.761.761.261.162.061.162.362.2 2% 61.162.2 2%
Normative capital allocation (Basel 3)6,4356,4166,6766,6316,6346,7406,7346,768 2% 6,5396,719 3%
RoE after tax (Basel 3)316.0%17.6%9.0%NR7.6%9.6%8.5%7.8%   10.0%8.4%  
RoE after tax (Basel 3) excl. IFRIC 21317.0%17.2%8.7%NR8.6%9.2%8.2%7.5%   10.0%8.4%  

[1] Including Film industry financing 2 Including M&A 3 Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

Insurance

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues204193192201218207205216 7% 790846 7%
Expenses(118)(108)(103)(118)(125)(116)(112)(125) 6% (448)(478) 7%
Gross operating income 8685898393929390 9% 342368 8%
Provision for credit losses00000000   00  
Net operating income 8685898393929390 9% 342368 8%
Associates30390514   1510  
Other items00(0)00(0)00   (0)(0)  
Pre-tax profit8985929193969494 3% 356378 6%
Cost/Income ratio58.0%56.1%53.8%58.9%57.5%55.8%54.6%58.1%   56.7%56.5%  
Cost/Income ratio excl. IFRIC 2151.1%58.5%56.2%61.2%51.7%57.8%56.6%60.1%   56.7%56.5%  
RWA (Basel 3 - in €bn)7.37.07.17.38.07.98.48.3 14% 7.38.3 14%
Normative capital allocation (Basel 3)853868828841858942926978 16% 848926 9%
RoE after tax (Basel 3)128.6%26.4%30.3%30.7%29.4%28.4%27.7%26.4%   29.0%27.9%  
RoE after tax (Basel 3) excl. IFRIC 21133.0%24.9%28.8%29.2%33.3%27.2%26.4%25.2%   29.0%27.9%  

1 Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

Payments

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues939596105103105103111 6% 389423 9%
Expenses(79)(88)(84)(90)(88)(94)(93)(96) 6% (341)(370) 9%
Gross operating income 147121516111015 3% 4852 9%
Provision for credit losses(0)(0)0(2)(0)(1)(1)(0)   (2)(2)  
Net operating income 14712131610915 17% 4650 9%
Associates00000000   00  
Other items0100000(0)   10  
Pre-tax profit14812131610915 17% 4750 7%
Cost/Income ratio85.2%92.2%87.6%85.7%84.8%89.6%90.1%86.1%   87.6%87.6%  
Cost/Income ratio excl. IFRIC2184.5%92.4%87.9%85.9%84.1%89.8%90.3%86.3%   87.6%87.6%  
RWA (Basel 3 - in €bn)1.01.21.01.11.11.21.11.1 (1)% 1.11.1 (1)%
Normative capital allocation (Basel 3)295300352332356373385384 16% 320375 17%
RoE after tax (Basel 3)112.8%7.4%9.6%10.1%12.0%7.3%6.5%10.9%   9.9%9.1%  
RoE after tax (Basel 3) excl. IFRIC 21113.4%7.2%9.4%9.9%12.5%7.1%6.3%10.7%   9.9%9.1%  

Standalone EBITDA calculation
Figures excluding exceptional items2

€m1Q182Q183Q184Q181Q192Q193Q194Q19 20182019
Net revenues939596105103105103111 389423
Expenses(79)(87)(85)(90)(88)(94)(91)(93) (341)(365)
Gross operating income - Natixis reported
excl. exceptional items
148111516111318 4857
Analytical adjustments to net revenues(1)(1)(2)(1)(1)(1)(1)(1) (5)(6)
Structure charge adjustments to expenses55556555 2022
Gross operating income - standalone view1812141920151722 6373
Depreciation, amortization and impairment on property, plant and equipment and intangible assets34454434 1616
EBITDA - standalone view2116182424192026 7989

EBITDA = Net revenues (-) Operating expenses. Standalone view excluding analytical items and structure charges

[1] Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles 2 See page 5

Financial investments

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues 190 174 197 181 193 196 195 188 4%  742 772 4%
Coface 177 156 180 165 175 181 178 177 8%  678 712 5%
Other 13 18 17 16 18 15 17 10 (34)%  64 60 (5)%
Expenses(130)(125)(131)(140)(133)(141)(133)(153) 9% (526)(561) 7%
Gross operating income  59 49 66 41 60 55 62 35 (15)%  215 211 (2)%
Provision for credit losses(6)113(2)(4)(3)(1)   (1)(10)  
Net operating income  54 50 67 44 58 51 59 34 (23)%  214 201 (6)%
Associates 0 0 0 0 0 0 0 0    0 0  
Other items 2 3 0 0 0 5 0 2    5 7  
Pre-tax profit56 53 67 44 58 56 59 35  (19)% 220 208  (5)%
RWA (Basel 3 - in €bn)5.35.65.55.65.75.75.65.8 5% 5.65.8 5%

Corporate Center

€m1Q182Q183Q184Q181Q192Q193Q194Q19 4Q19
vs. 4Q18
 20182019 2019
vs. 2018
Net revenues(37)793337(5)47(20)   4959  
Expenses(232)(87)(71)(107)(234)(98)(77)(89) (17)% (497)(497) (0)%
SRF(160)(0)(0)0(170)00(0)   (160)(170) 6%
Other(73)(86)(71)(107)(64)(98)(77)(89) (17)% (337)(327) (3)%
Gross operating income (269)(7)(68)(104)(196)(103)(29)(109) 5% (448)(437)  
Provision for credit losses1(4)4(15)010(0)   (14)1  
Net operating income (269)(11)(63)(118)(196)(102)(29)(109) (8)% (462)(437)  
Associates000000(0)(0)   00  
Other items1223699(5)1(0)   8695  
Pre-tax profit (268)(9)(62)(115)503 (107)(28)(109) (5)% (453)258   
RWA (Basel 3 - in €bn)9.09.48.77.87.07.38.07.6 (3)% 7.87.6 (3)%

€697m capital gain coming from the disposal of the retail banking activities in 1Q19

4Q19 results: from data excluding non-operating items to reported data

€m 4Q19
underlying
 Exchange rate fluctuations on DSN in currencies Transformation & Business Efficiency investment costs Fit to Win investments & restructuring expenses Other 4Q19
reported
Net revenues2 534 (31)    2 503
Expenses(1 708)  (31)(6)  (1 745)
Gross operating income 826 (31)(31)(6)0 758
Provision for credit losses(119)      (119)
Associates6      6
Gain or loss on other assets2    0 3
Pre-tax profit715 (31)(31)(6)0 648
Tax(185) 10102  (163)
Minority interests(116)   2  (113)
Net income (group share)415 (21)(22)(2)0 371

2019 results: from data excluding non-operating items to restated data

€m 2019
underlying
 Exchange rate fluctuations on DSN in currencies Transformation & Business Efficiency investment costs Fit to Win investments & restructuring expenses Disposal of subsidiary in BrazilCapital gain - Disposal of retail banking activities  2019
restated
Net revenues9,177 19     9,196
Expenses(6,545)  (79)(8)   (6,632)
Gross operating income 2,633 19(79)(8)00 2,564
Provision for credit losses(332)       (332)
Associates21       21
Gain or loss on other assets9    (15)697 692
Pre-tax profit2,331 19(79)(8)(15)697 2,945
Tax(612) (6)243 (78) (669)
Minority interests(349)   3 (33) (380)
Net income (group share)1,370 13(55)(2)(15)586 1,897

Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view


Natixis - 4Q19 capital & Basel 3 financial structure
See note on methodology - Irrevocable Payment Commitment (IPC) deduction disclosed as part of the ratio as of 2Q19

Fully-loaded          

€bn31/12/2019
Shareholder’s Equity19.4
Hybrid securities(2)(2.1)
Goodwill & intangibles(3.9)
Deferred tax assets(0.7)
Dividend provision(1.0)
Other deductions(0.5)
CET1 capital11.2
CET1 ratio11.3%
Additional Tier 1 capital1.8
Tier 1 capital12.9
Tier 1 ratio13.1%
Tier 2 capital2.2
Total capital15.2
Total capital ratio15.3%
Risk-weighted assets99.0

Phased-in excl. current financial year’s earnings and dividends

€bn31/12/2019
Fully-loaded CET1 capital11.2
Current financial year’s earnings(1.9)
Current financial year’s accrued dividend1.0
CET1 capital10.2
CET1 ratio10.4%
Additional Tier 1 capital2.1
Tier 1 capital12.4
Tier 1 ratio12.5%
Tier 2 capital2.3
Total capital14.7
Total capital ratio14.8%
Risk-weighted assets99.0


IFRIC 21 effects by business line


Effect in Expenses

€m1Q182Q183Q184Q181Q192Q193Q194Q19 20182019
AWM(4)111(4)111 00
CIB(22)777(24)888 00
Insurance(14)555(13)444 00
Payments(1)000(1)000 00
Financial investments0000(0)000 00
Corporate center(119)404040(119)404040 00
Total Natixis(160)53 53 53 (161)54 54 54  0 0

Historical figures restated for the disposal of the retail banking activities

Normative capital allocation and RWA breakdown - 31/12/2019

€bnRWA
EoP
% of
total
Goodwill & intangibles
2019
Capital allocation 2019RoE
after tax
2019
AWM14.016%3.14.514.8%
CIB62.273%0.26.78.4%
Insurance8.310%0.10.927.9%
Payments1.11%0.30.49.1%
Total (excl. Corp. center and Financial invmts)85.6100%3.712.5 


RWA breakdown (€bn)31/12/2019
Credit risk66.3
Internal approach53.9
Standard approach12.4
Counterparty risk6.4
Internal approach5.5
Standard approach0.9
Market risk11.2
Internal approach5.8
Standard approach5.4
CVA1.3
Operational risk - Standard approach13.7
Total RWA99.0


Fully-loaded leverage ratio1
According to the rules of the Delegated Act published by the European Commission on October 10, 2014, including the effect of intragroup cancelation - pending ECB authorization

€bn31/12/2019
Tier 1 capital(1)13.3
Total prudential balance sheet407.2
Adjustment on derivatives(45.3)
Adjustment on repos(2)(26.6)
Other exposures to affiliates(43.5)
Off balance sheet commitments38.6
Regulatory adjustments(5.2)
Total leverage exposure325.2
Leverage ratio4.1%

[1] See note on methodology. Without phase-in - supposing replacement of existing subordinated issuances when they become ineligible 2 Repos with clearing houses cleared according to IAS32 standard, without maturity or currency criteria

Net book value as at December 31, 2019

€bn31/12/2019
Shareholders’ equity (group share)19.4
Deduction of hybrid capital instruments(2.0)
Deduction of gain on hybrid instruments(0.1)
Distribution(1.0)
Net book value16.3
Restated intangible assets1(0.7)
Restated goodwill1(3.4)
Net tangible book value212.2
 
Net book value per share5.17
Net tangible book value per share3.89

2019 Earnings per share

€m31/12/2019
Net income (gs)1,897
DSN interest expenses on preferred shares adjustment(138)
Net income attributable to shareholders1,759
Earnings per share (€)0.56

Number of shares as at December 31, 2019

 31/12/2019
Average number of shares over the period, excluding treasury shares3,150,173,517
Number of shares, excluding treasury shares, EoP3,150,995,283
Number of treasury shares, EoP2,083,199

Net income attributable to shareholders

€m4Q192019
 Net income (gs)3711,897
 DSN interest expenses on preferred shares adjustment(34)(138)
 RoE & RoTE numerator3371,759

[1] See note on methodology 2 Net tangible book value = Book value – goodwill - intangible assets

RoTE1

€m31/12/2019
Shareholders’ equity (group share)19,396
DSN deduction(2,122)
Dividend provision(977)
Intangible assets(669)
Goodwill(3,386)
RoTE Equity end of period12,243
Average RoTE equity (4Q19)12,398
4Q19 RoTE annualized with no IFRIC 21 adjustment10.9%
IFRIC 21 impact(47)
4Q19 RoTE annualized excl. IFRIC 219.4%
Average RoTE equity (2019)12,296
2019 RoTE annualized excl. IFRIC 2114.3%

RoE1

€m31/12/2019
Shareholders’ equity (group share)19,396
DSN deduction(2,122)
Dividend provision(977)
Unrealized/deferred gains and losses in equity (OCI)(512)
  
RoE Equity end of period15,785
Average RoE equity (4Q19)15,929
4Q19 RoE annualized with no IFRIC 21 adjustment8.5%
IFRIC 21 impact(47)
4Q19 RoE annualized excl. IFRIC 217.3%
Average RoE equity (2019)15,821
2019 RoE annualized excl. IFRIC 2111.1%

Doubtful loans2

€bn 30/09/2019
Under
IFRS 9
31/12/2019
Under
 IFRS 9
Provisionable commitments31.92.0
Provisionable commitments / Gross debt1.5%1.8%
Stock of provisions41.41.4
Stock of provisions / Provisionable commitments72%71%

[1]See note on methodology. Returns based on quarter-end balance sheet to reflect the disposal of the retail banking activities. The €586m net capital gain is not annualized 2 On-balance sheet, excluding repos, net of collateral 3 Net commitments 4 Specific and portfolio-based provisions

Disclaimer

This media release may contain objectives and comments relating to the objectives and strategy of Natixis. Any such objectives inherently depend on assumptions, project considerations, objectives and expectations linked to future and uncertain events, transactions, products and services as well as suppositions regarding future performances and synergies.

No Insurance can be given that such objectives will be realized. They are subject to inherent risks and uncertainties, and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those implied by such objectives.

Information in this media release relating to parties other than Natixis or taken from external sources has not been subject to independent verification, and Natixis makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions herein. Neither Natixis nor its representatives shall be liable for any errors or omissions, or for any prejudice resulting from the use of this media release, its contents or any document or information referred to herein.

Included data in this press release have not been audited.

NATIXIS financial disclosures for the fourth quarter 2019 are contained in this press release and in the presentation attached herewith, available online at www.natixis.com in the “Investors & shareholders” section.

The conference call to discuss the results, scheduled for February 7, 2020 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the “Investors & shareholders” page).

Contacts:

Investor Relations:investorelations@natixis.com Press Relations:relationspresse@natixis.com 
     
Damien SouchetT + 33 1 58 55 41 10 Daniel WilsonT + 33 1 58 19 10 40
Noemie LouvelT + 33 1 78 40 37 87 Vanessa StephanT + 33 1 58 19 34 16
Souad Ed DiazT + 33 1 58 32 68 11   

www.natixis.com

 

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