Paris, July 28, 2016

Second-Quarter 2016 and First-Half 2016 Results REVENUES UP 2% IN 2Q16 DRIVEN BY GOOD CORE-BUSINESS MOMENTUM Reported NET INCOME of €381m in 2Q16

CORE-BUSINESSES : STRONG MOMENTUM IN CORPORATE & INVESTMENT BANKING IN 2Q16

  • Investment Solutions: resilience of Asset Management and continued rollout of Insurance offering in the Caisses d'Epargne network

    Asset Management: €787bn of assets under management at June 30, 2016, €10bn higher than at end-March 2016 with limited outflow of €2bn in 2Q16

    Insurance: momentum from all segments lifted overall turnover to €1.7bn in 2Q16, up 12% yoy, excluding reinsurance agreement with CNP

  • Corporate & Investment Banking: marked rebound in Capital Markets activities

    Capital Markets: FIC-T posted excellent performances in 2Q16, soaring 35% vs. 2Q15, while Equities continued to grow (up 4% vs. 2Q15 in revenues)

    Structured Financing: increased contribution of fees in revenues to 39% in 2Q16 vs. 37% in 2015

  • Specialized Financial Services: robust performances in Specialized Financing

    Brisk production in the Leasing segment (+7% vs. 2Q15), and 22% yoy growth in factored turnover

    SHARP IMPROVEMENT IN ROTE(1,2) TO 11.7% IN 2Q16 (+70BPS YOY)

  • Natixis' revenues over €2.2bn in 2Q16, up 2% yoy and up 7% qoq. Expense growth (excluding IFRIC 21) restricted to 3% vs. 1Q16
  • Core-business revenues of nearly €2.1bn in 2Q16, up 2% yoy and 6% qoq
  • Restated net income (group share and excluding the IFRIC 21 impact) up 5% to €400m. Reported net income (group share) of €381m in 2Q16, including a €31m negative impact from a goodwill writedown on Coface
  • Restated net income (group share and excluding the IFRIC 21 impact) almost stable to €711m in 1H16, showing the strong resilience of the business model in a difficult environment

    REINFORCED SOLVENCY AND DIVIDEND POLICY CONFIRMED

    • CET1 ratio of 11.3%(3) at end-June 2016, before factoring in the dividend
    • Leverage ratio(1) kept above 4% at end-June 2016
  • 65bps of CET1 ratio generated so far in 2016, equivalent to €730m (€0.24 per share), of which €440m above the minimum payout of 50%, distributable in the absence of acquisitions
  1. See note on methodology (2) Excluding IFRIC 21 (3) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in except for DTAs on tax-loss carryforwards and pro forma of additional phase-in of DTAs following ECB regulation 2016/445

    The Board of Directors examined Natixis' second-quarter 2016 accounts.

    For Natixis, the main features of 2Q16 were (1):

    • 2% increase in Natixis' net revenues and core-business revenues to €2.224bn and €2.060bn, respectively, relative to 2Q15.

      Within the Investment Solutions core business, Asset Management recorded limited outflow of €2bn and €10bn growth in AuM relative to end-March 2016, thanks notably to a positive exchange-rate effect.

      Insurance continued to enjoy sustained momentum in all segments and the life insurance offering was rolled out in half of Caisses d'Epargne network at end-June 2016. Overall Insurance turnover (excluding the reinsurance treaty with CNP) climbed 12% vs. 2Q15.

      In Corporate & Investment Banking, new Structured Financing production amounted to €7.5bn, largely thanks to Real Estate Finance Europe, Acquisitions & Strategic Finance and GEC Trade (Global Energy & Commodities). In the Capital Markets segment, the quarter featured significant year-on- year growth in Rates & Forex and further development in M&A.

      In Specialized Financial Services, solid performances in Leasing and Factoring showed up in a 4% rise in net revenues from Specialized Financing.

    • a 4% increase in expenses relative to a year earlier, excluding the €35m additional contribution to the Single Resolution Fund during the quarter,

    • an €88m provision for credit loss reflecting the end of provisioning efforts in the Oil and Gas sector,

    • restated net income (group share) and excluding the IFRIC 21 impact of €400m, up 5% relative to 2Q15,

    • reported net income (group share) of €381m, including a goodwill impairment on Coface, with a negative impact of €31m,

    • a leverage ratio(1) of 4.1% at end-June 2016,
    • a CET1 ratio(2) of 11.0% at end-June 2016.

Laurent Mignon, Natixis Chief Executive Officer, said: "Thanks to our balanced business model and the unrelenting efforts of our teams, our three core businesses continue to expand in a manner perfectly consistent with our strategic objectives. This enables us to confirm our ability to attain the profitability targets enshrined in the New Frontier strategic plan. To accelerate the transformation of Natixis' business, we intend to continue to develop the business of Investment Solutions, to deepen revenue synergies with Group BPCE retail networks and to adapt our asset-light model in Corporate & Investment Banking by adopting a more cross-cutting organization geared to expanding our origination capacity. In addition, in recognition of the structural changes being driven by new technologies in all of our business lines and processes, we are currently working on a transformation and operational excellence project due to be presented this November."

  1. See note on methodology

  2. Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in except for DTAs on tax-loss carryforwards and pro forma of additional phase-in of DTAs following ECB regulation 2016/445

  1. - NATIXIS 2Q16 AND 1H16 RESULTS
    1. EXCEPTIONAL ITEMS(1)

      In €m

      2Q16

      2Q15

      1H16

      1H15

      FV adjustment on own senior debt

      Corporate Center (Net revenues)

      (20)

      125

      (26)

      130

      Restatement for exchange rate fluctuations on DSN in currencies

      Corporate Center (Net revenues)

      8

      (11)

      (7)

      24

      Goodwill impairment on Coface

      Financial Investments (Change in value of goodwill)

      (75)

      (75)

      Disposal of Corporate Data Solutions entity (Kompass International)

      Financial Investments (Gain or loss on other assets)

      (30)

      (30)

      Tax impact

      Minority interest impact

      4

      44

      (39)

      11

      44

      (53)

      Impact in net income

      (39)

      45

      (53)

      72

      1. See note on methodology

      2. 2Q16 RESULTS

        (1)

        Pro forma and excluding exceptional items

        in €m

        Net revenues

        of which core businesses Expenses Gross operating income

        Provision for credit losses

        Pre-tax profit

        Income tax Minority interest

        Restated net income (gs)

        2Q16

        2Q15

        2Q16

        vs. 2Q15

        2,224

        2,060

        (1,522)

        2,187 2%

        2,023 2%

        (1,431) 6%

        756 (7)%

        702

        (88)

        (64) 38%

        651

        705 (8)%

        (215)

        (16)

        (273) (21)%

        (27) (41)%

        420

        405 4%

        In €m

        Restatement of IFRIC 21 impact

        Restated net income (gs) - excl. IFRIC 21 impact

        ROTE excluding IFRIC 21 impact

        2Q16

        2Q15

        2Q16

        vs. 2Q15

        (20)

        (26)

        379 5%

        400

        11.7%

        11.0%

        In €m

        Exceptional items

        Reinstatement of IFRIC 21 impact

        Net income (gs) - reported

        2Q16

        2Q15

        2Q16 vs. 2Q15

        (39)

        20

        45

        26

        381

        450 (15)%

        1. See note on methodology

        2. Unless stated otherwise, the commentary that follows refers to pro forma results excluding exceptional items (see detail p3).

        Natixis SA published this content on 28 July 2016 and is solely responsible for the information contained herein.
        Distributed by Public, unedited and unaltered, on 28 July 2016 15:51:07 UTC.

        Original documenthttps://www.natixis.com/natixis/jcms/lpaz5_52367/en/natixis-pr-results-2q16

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