Preparation of the 1Q20 Financial Communication
20 Abril 2020 - 12:38PM
Preparation of the 1Q20 Financial Communication
Paris, April 20, 2020
Preparation of the 1Q20 Financial
Communication
The 2019 quarterly series have been updated
following the February 25, 2020 announcement regarding the sale by
Natixis of a 29.5% stake in Coface to Arch Capital Group. This
announcement notably translates into the following:
- Natixis losing exclusive control over Coface in the first
quarter of 2020 and the recognition of a capital loss at the date
of such a loss of control. It is estimated at €112m based on the
2020 sale price;
- Application of the IAS 28 standard “Investments in associates
and joint ventures” to the residual stake held by Natixis in
Coface. For financial communication purposes, the contribution of
Coface to Natixis' income statement is isolated on a line "Coface
net contribution" as presented on page 2 (based on a ~42% ownership
over 2019 and of ~13% as of the first quarter of 2020) and the
Financial investments division no longer
exists;
- In addition, the value of the retained stake (accounted for
under the equity method) will be impacted by a €7m impairment due
to the drop in the value of Coface related to the context
prevailing at March 31, 2020. For financial communication purposes,
these two items – capital loss and residual stake impairment – will
be classified as exceptional items in the first quarter of 2020 and
both presented within the line "Coface net
contribution";
- The prudential treatment applied to Natixis' stake in Coface
will result in a ~€2bn risk-weighted asset release in the first
quarter 2020. Upon closing of the transaction, ~€1.5bn of
additional risk-weighted assets should be released i.e. €3.5bn in
total (estimated based on 31/12/2019 figures), as announced in the
press release dated February 25, 2020;
- The remaining Financial investments, namely
Natixis Algeria as well as the private equity activities managed in
run-off, are no longer isolated and are reallocated to the
Corporate center, which, as a reminder, gathers
the holding and the centralized balance sheet management functions
of Natixis.
Appendices (unaudited):
2019 updated quarterly series following the
announcement of the sale by Natixis of a 29.5% stake in Coface. The
Natixis consolidated and the Corporate
center series are the only ones to be impacted. The series
for Asset and wealth management,
CIB, Insurance and
Payments remain unchanged.
Natixis
consolidated
€m |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
Net revenues |
1,957 |
2,100 |
2,102 |
2,326 |
Expenses |
(1,597) |
(1,448) |
(1,465) |
(1,606) |
Gross operating
income |
360 |
653 |
637 |
719 |
Provision for credit losses |
(31) |
(109) |
(70) |
(119) |
Associates |
3 |
8 |
3 |
6 |
Gain or loss on other assets |
682 |
(7) |
9 |
1 |
Change in value of goodwill |
0 |
0 |
0 |
0 |
Pre-tax profit |
1,015 |
545 |
579 |
607 |
Tax |
(201) |
(149) |
(114) |
(153) |
Minority interests |
(65) |
(68) |
(66) |
(96) |
Net income - group share excl. Coface net
contribution |
749 |
328 |
399 |
358 |
Coface net contribution |
15 |
18 |
16 |
12 |
Net income - group share incl. Coface net
contribution |
764 |
346 |
415 |
371 |
Corporate Center
€m |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
Net revenues |
55 |
10 |
64 |
(10) |
Expenses |
(244) |
(110) |
(84) |
(102) |
SRF |
(170) |
0 |
0 |
(0) |
Other |
(74) |
(110) |
(84) |
(102) |
Gross operating income |
(188) |
(100) |
(20) |
(112) |
Provision for credit losses |
(1) |
(3) |
(2) |
(2) |
Net operating
income |
(190) |
(103) |
(22) |
(114) |
Associates |
(0) |
0 |
(0) |
(0) |
Other
items |
699 |
(5) |
1 |
(0) |
Pre-tax profit |
509 |
(108) |
(21) |
(114) |
RWA
(Basel 3 - in €bn) |
8.8 |
9.2 |
9.8 |
9.4 |
Coface
€bn |
1Q19 |
2Q19 |
3Q19 |
4Q19 |
RWA
(Basel 3) |
3.9 |
3.8 |
3.8 |
4.0 |
About NatixisNatixis is a
French multinational financial services firm specialized in asset
& wealth management, corporate & investment banking,
insurance and payments. A subsidiary of Groupe BPCE, the
second-largest banking group in France through its two retail
banking networks, Banque Populaire and Caisse d’Epargne, Natixis
counts nearly 16,000 employees across 38 countries. Its clients
include corporations, financial institutions, sovereign and
supranational organizations, as well as the customers of Groupe
BPCE’s networks. Listed on the Paris stock exchange, Natixis has a
solid financial base with a CET1 capital under Basel 3(1) of €11.2
billion, a Basel 3 CET1 Ratio(1) of 11.3% and quality long-term
ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings:
A+). (1) Based on CRR-CRD4 rules as reported on June 26, 2013,
including the Danish compromise - without phase-inFigures as at 31
December 2019.
Contacts:
Investor
Relations |
investorelations@natixis.com |
|
Damien Souchet
Noémie Louvel Souad Ed Diaz |
+33 1 58 55 41 10
+33 1 78 40 37 87 +33 1 58 32 68 11 |
|
|
|
|
Press contacts |
|
|
Sonia Dilouya Daniel
Wilson |
+33 1 58 32 01 03
+33 1 58 19 10 40 |
sonia.dilouya@natixis.com daniel.wilson@natixis.com |
www.natixis.com