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NATIXIS :4Q17 AND 2017 RESULTS

Paris, February 13, 2018
4Q17 and 2017 results

Reported Net income up +21% at €1,669m in 2017 and +5% at €518m in 4Q17
€0.37(1) cash dividend per share

 
   

/EIN News/ --

SOLid growth and improved profitability across our business lines

net revenues(2) +9% in 2017 At €9.5bn, GOI(2) +19% at €3bn and businesses' roe(2) At 13.8%

AWM: Net revenue and fee rate increases thanks to our resolutely active positioning

Significant increase in net revenues, above €3.1bn (+22% in 4Q17 and +15% in 2017)

Fee rate increase in both Europe and North America: 31.5bps overall in 4Q17 (+3.4bps YoY)

Positive net inflows momentum for long-term products: +€10bn in 4Q17 (+€27bn in 2017)

      $1trn assets under management as at December 31, 2017 (€831bn)

CIB: Strong momentum across all activities, market share gains

Net revenues (ex CVA/DVA desk) up +9% in 2017, of which +11% in Global markets

Strong momentum in IB and M&A: Net revenues up +27% in 2017, of which +47% in M&A

Global finance: Net revenues increased +12% in 4Q17, notably driven by a dynamic new loan production

RWA decreased -11% in 2017 and profitability increased significantly (+250bps)

Insurance: A sustainable growth driver for Natixis

Net revenues up +12% in 2017 and +11% in 4Q17

Life Insurance: ~€10bn premiums in 2017 (+53%), AuM at €54.7bn of which €12.6bn in unit-linked products

SFS: The Payments hub keeps building up

Net revenues from SFS up +3% in 4Q17 and +2% in 2017

Successful mandatory takeover bid on Dalenys and exclusivity agreement for the acquisition of Comitéo

€446m revenue synergies with Groupe BPCE networks as at end 2017, beyond the €400m initial target

sustainable value creation (rote: 12.3%), financial strength and dividend increase

FY17 net income excluding exceptionals at €1.7bn up +25% and €470m in 4Q17 (+22%)

RoTE improvement at 12.3% in 2017 (+240bps vs. 2016) and 12.6% in 4Q17

Basel 3 FL CET1 ratio(3) at 10.65% as at December 31, 2017. ~160bps of organic capital generation in 2017

Ordinary cash dividend of €0.37(1) per share (payout ratio of 74%)

NEW DIMENSION off to a good start

Laurent Mignon, Natixis Chief Executive Officer, said: "Natixis delivered good performances in all business lines in 2017, amongst the best in the industry, while successfully completing the New Frontier strategic plan. We strengthened our major lines of expertise around the world, thanks to a strong commercial momentum and a proactive acquisition strategy in asset management, insurance, M&A and payments. We are committed to deliver on our New Dimension plan, that we enter with confidence. New Dimension seeks to sustainably anchor our development and our value creation through time by deepening our expertise, leveraging growth through digital and especially continuing to differentiate ourselves via chosen businesses and the way in which we deliver solutions to our clients."

(1) Subject to the approval of the General Shareholders' Meeting on May 23, 2018 (2) Excluding exceptional items and the IFRIC 21 impact for cost/income ratio, RoE, and RoTE (2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in

4Q17 rEsults

The Board of Directors approved Natixis' accounts for the fourth quarter of 2017 on February 13, 2018.

€m   4Q17 o/w o/w 4Q17 4Q17
reported recurring exceptionals vs. 4Q16 vs. 4Q16
      reported recurring
Net revenues   2,506 2,450 56 (1)% 7%
o/w businesses   2,255 2,255   6% 6%
Expenses   (1,737) (1,698) (39) 4% 4%
Gross operating income   769 753 17 (10)% 15%
Provision for credit losses   (65) (65)   8% 8%
Net operating income   704 687 17 (12)% 16%
Associates and other items   29 11 18    
Pre-tax profit   733 699 35 (8)% 17%
Income tax   (139) (153) 14    
Minority interests   (76) (76)      
Net income - group share   518 470 48 5% 22%


Excluding exceptional items   4Q17 4Q16   4Q17
€m vs. 4Q16
Net income - (gs) - restated   470 384   22%
Restatement of IFRIC 21 impact   (42) (39)    
Net income - (gs) - restated excl. IFRIC impact   428 346   24%


       
EXCEPTIONALS (€m) 4Q17 4Q16
Capital gain on the sale of 15% stake in CACEIS (Net revenues) Corporate center 74  
Exchange rate fluctuations on DSN in currencies (Net revenues) Corporate center (18) 20
Transformation & Business Efficiency Investment costs (Expenses) Business lines & Corporate center (39)(1) (9)
Capital gain on the liquidation of a holding structure (Gain or loss on other assets) CIB 18  
 
       
       
FV adjustment on own senior debt (Net revenues) Corporate center   136
Coface: "Fit to win" restructuring costs (-€39m) & other gains (+€19m) (Expenses) Corporate center   (19)
Coface: gain on State guarantees transfer to BpiFrance (Gross operating income) Corporate center   75
Total impact on income tax   14 (70)
Total impact on minority interests     (21)
Total impact on net income (gs)   48 111
  1. o/w €32m in the Corporate center

Unless stated otherwise, the commentary that follows refers to results excluding exceptional items (see detail p2).

Natixis

Natixis posted €2.5bn in net revenues in 4Q17, up +7% YoY and +10% at constant exchange rate. Net revenues generated by the businesses improved +6% YoY to €2.3bn, including significant rises from Asset & Wealth Management (+28% at constant exchange rate), Insurance (+11%) and Coface (+33%).

Expenses came out at €1.7bn in 4Q17, up +4% YoY, translating into a 3pp positive jaws effect and a 220bps YoY improvement in the cost/income ratio at 71.2%, excluding IFRIC 21. Gross operating income of €753m progressed +15% in 4Q17 vs. 4Q16.

The cost of risk amounted to €65m in 4Q17, slightly up YoY. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses' cost of risk worked out to 22bps in 4Q17. Pre-tax profit rose +17% to €699m in 4Q17 vs. 4Q16.

The 4Q17 tax rate notably benefited from a ~€100m positive impact from the US tax reforms (write-down of deferred tax liabilities). The marked YoY increase in minority interests reflected solid growth in Coface's contribution and a high level of performance fees generated by some European Asset Management affiliates.

Net income (group share), adjusted for IFRIC 21 and excluding exceptional items, came out at €428m in 4Q17, a +24% YoY increase. Accounting for exceptional items (+€48m impact net of tax in 4Q17) and IFRIC 21 (+€42m impact in 4Q17), the reported net income (group share) increased +5% YoY to €518m in 4Q17.

Excluding IFRIC 21, Natixis' RoTE(1) equated to 12.6% and the businesses' RoE(1) reached 12.5%, up +270bps and +20bps respectively vs. 4Q16.

Asset & Wealth Management

€m 4Q17 4Q16 4Q17 vs. 4Q16
Net revenues 899  735 22% 
  o/w Asset management 857  700 23% 
  o/w Wealth management 42  35 20% 
Expenses (609)  (523) 16% 
Gross operating income 290  211 37% 
Provision for credit losses 0  
Associates and other items (10)  
Pre-tax profit 293  202 45% 
       
Cost/income ratio(1) 67.8% 71.4% (3.6)pp
RoE after tax(1) 14.0% 10.2% +3.8pp

Revenues from Asset & Wealth Management (AWM) were up a significant +22% YoY in 4Q17 (+28% at constant exchange rate), notably fueled by improved margins and higher AuM. Net revenues from Asset management amounted to €857m in 4Q17, up +23% vs. 4Q16 and including rises of +37% to €334m in Europe and +8% to €408m in North America. Net revenues from Wealth management increased +20% YoY.

In Asset management in 4Q17, margins excluding performance fees (€149m in 4Q17) improved +3.4bps to 31.5bps overall and rose +2.8bps to 16.7bps in Europe and +1.5bps to 39.5bps in North America. Margin growth resulted from an improved product mix and the integration of Investors Mutual Limited (IML) in Australia.

Asset management attracted +€8bn of net inflows overall during the quarter, including +€2.6bn in Europe (driven notably by H2O and DNCA) and +€5.0bn in North America (Harris Associates: +$1.4bn, Loomis Sayles: +$3.4bn). AuM reached €831bn at year-end 2017, of which €406bn in Europe and €410bn in North America. AuM growth this quarter was driven by a combination of net inflows, the integration of IML (+€6bn of AuM) and a +€10bn positive market effect, which outweighed a -€6bn negative FX impact. Wealth management had €31.6bn(2) of AuM at end-December 2017.

AWM lifted RoE after tax and excluding IFRIC 21 by +380bps to 14.0% in 4Q17.

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost/income ratio and RoE on 4Q16 and 4Q17
  2. Including Vega IM, 60% owned by Natixis Wealth Management

 Corporate & Investment Banking

€m 4Q17 4Q16 4Q17 vs. 4Q16
 
Net revenues 817 883 (8)%
Net revenues excl. CVA/DVA 840 873 (4)%
   o/w Global markets 432 462 (7)%
  o/w Global finance 358 320 12%
 o/w IB et M&A 74 85 (12)%
Expenses (567) (573) (1)%
Gross operating income 249 310 (20)%
Provision for credit losses (21) (21) 2%
Associates and other items 2 3  
Pre-tax profit 231 293 (21)%
       
Cost/income ratio(1) 70.6% 66.0% +4.6pp
RoE after tax(1) 10.3% 11.9% (1.6)pp

Net revenues from Corporate & Investment Banking excluding the CVA/DVA desk were down a limited -1% in 4Q17 at constant exchange rate (-4% on a reported basis at €840m).

Net revenues from Global markets were adversely affected by lower client activity in Rates and Equity Derivatives as well as lower volatility in the latter business and in FX. This translated into YoY revenues declines of -8% in FICT to €288m and -4% in Equity to €144m. Within Global finance, robust new loan production in structured financing (+51% YoY) particularly in US Real Estate, drove a +12% YoY rise in revenues to €358m. Revenues generated by Investment banking and M&A amounted to €74m in 4Q17, down on the year-earlier level, due notably to less transactions closed in ECM.

CIB posted RoE after tax and excluding IFRIC 21 of 10.3% in 4Q17.

Insurance

€m 4Q17 4Q16 4Q17 vs. 4Q16
Net revenues 190  171 11% 
Expenses (110)  (102) 8% 
Gross operating income 80  69 15% 
Provision for credit losses 0  
Associates and other items  
Pre-tax profit 84  71 17% 
       
Cost/income ratio(1) 60.0% 60.9% (0.9)pp
RoE after tax(1) 25.3% 19.3% +6.0pp

Net revenues from Insurance increased +11% YoY to reach €190m in 4Q17, driven by both Life/Personal protection and P&C. Expenses rose +8% to €110m, resulting in a positive jaws effect, a cost/income ratio improvement to 60.0% and a gross operating income at €80m, up +15% YoY.

Insurance lifted RoE after tax and excluding IFRIC 21 by +600bps to 25.3% in 4Q17.

Global turnover excluding the reinsurance agreement with CNP amounted to €2.8bn in 4Q17. It included rises of +9% in Life/Personal protection and of +6% in Property & Casualty.

Life Insurance AuM reached €54.7bn at end-December 2017, of which 23% in the form of unit-linked products. The combined ratio for P&C activities worked out to 91.5% in 4Q17, down -1.5pp vs. 4Q16.

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost/income ratio and RoE on 4Q16 and 4Q17

Specialized Financial Services

€m 4Q17 4Q16 4Q17
vs. 4Q16
Net revenues 350 341 3%
  Specialized financing 210 210 0%
  Payments 89 85 4%
  Financial services 51 45 12%
Expenses (242) (221) 10%
Gross operating income 108 120 (11)%
Provision for credit losses (24) (16) 53%
Associates and other items 0 0  
Pre-tax profit 83 105 (20)%
       
Cost/income ratio(1) 69.9% 65.5% +4.4pp
RoE after tax(1) 11.2% 15.0% (3.8)pp

Net revenues from Specialized Financial Services grew +3% YoY in 4Q17. This overall growth included stable revenues from Specialized financing, and increases of +4% for Payments and +12% for Financial services (of which +25% for Employee savings plans).

SFS' expenses increased +10% YoY in 4Q17, though rose only +2% at constant scope. The cost/income ratio excluding IFRIC 21 and Payments acquisitions worked out to 67.3% in 4Q17.

The cost of risk stood at €24m and was adversely impacted during the quarter by model updates.

SFS posted RoE after tax and excluding IFRIC 21 of 11.2% in 4Q17.

Within Payments, the mandatory takeover bid on Dalenys was successfully completed on January 26, 2018. January 16, 2018 also saw Groupe BPCE become the first payment services provider (PSP) in France to join the SEPA Instant Credit Transfer (SCT Inst) scheme. Most BPCE banks will be ready to propose SCT Inst-based services in April 2018.

Corporate Center

€m 4Q17 4Q16 4Q17
vs. 4Q16
Net revenues 195 156 25%
  Coface 167 126 33%
  Others 28 30 (8)%
Expenses (169) (214) (21)%
  Coface (114) (126) (10)%
  SRF 0 0  
  Others (56) (88) (37)%
Gross operating income 26 (58)  
Provision for credit losses (20) (24)  
Associates and other items 2 10  
Pre-tax profit 8 (72)  

Activities housed in the Corporate Center generated €195m of net revenues in 4Q17, a +25% YoY increase, of which €167m came from Coface (+33% YoY).

Coface's turnover reached €340m in 4Q17, up +2% at constant scope and exchange rate. The combined ratio net of reinsurance improved markedly to 76.1%, on the back of reduced claims (loss ratio of 41.8% vs. 68.0% in 4Q16) and a tight grip on expenses (cost ratio of 34.3% vs. 32.0% in 4Q16).

Corporate Center expenses excluding Coface and the SRF dropped -37% YoY. Coface's expenses were down -10% during the same period.

Pre-tax profit came out at €8m vs. -€72m in 4Q16.

During 4Q17, Natixis sold its 15% stake in CACEIS, thereby generating a €74m capital gain. The deal lowered RWA by -€0.8bn and will have no impact on Natixis' P&L going forward.

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost/income ratio and RoE on 4Q16 and 4Q17

2017 rEsults

€m   2017 o/w o/w 2017 2017
reported recurring exceptionals vs. 2016 vs. 2016
      reported recurring
Net revenues   9,467 9,497 (30) 9% 9%
o/w businesses   8,810 8,810   10% 9%
Expenses   (6,632) (6,540) (93) 6% 5%
Gross operating income   2,835 2,957 (123) 14% 19%
Provision for credit losses   (258) (258)   (15)% (15)%
Net operating income   2,577 2,699 (123) 19% 23%
Associates and other items   74 56 18    
Pre-tax profit   2,651 2,755 (105) 16% 21%
Income tax   (789) (848) 59    
Minority interests   (192) (192)      
Net income - group share   1,669 1,715 (46) 21% 25%


EXCEPTIONALS (€m) 2017 2016
Capital gain on the sale of 15% stake in CACEIS (Net revenues) Corporate center 74  
Exchange rate fluctuations on DSN in currencies (Net revenues) Corporate center (104) 9
Transformation & Business Efficiency Investment costs (Expenses) Business lines & Corporate center (74) (1) (9)
Capital gain on the liquidation of a holding structure (Gain or loss on other assets) CIB 18  
       
SWL litigation (Net revenues) CIB   (69)
FV adjustment on own senior debt (Net revenues) Corporate center   0
Non-recurring additional Corporate Social Solidarity Contribution Insurance (19)

 
 
resulting from agreement with CNP (Expenses)
Coface: "Fit to win" restructuring costs (-€39m) & other gains (+€19m) (Expenses) Corporate center   (19)
Coface: gain on State guarantees transfer to BpiFrance (Gross operating income) Corporate center   75
Gain from disposal of operating property assets (Gain or loss on other assets) Corporate center   97
Goodwill impairment on Coface (Change in value of goodwill) Corporate center   (75)
Total impact on income tax   59 (29)
Total impact on minority interests     23
Total impact on net income (gs)   (46) 3
  1. o/w €57m in the Corporate center

Unless stated otherwise, the commentary that follows refers to results excluding exceptional items (see detail p6).

Natixis

Natixis posted €9.5bn in net revenues in 2017, up +9% YoY. Net revenues generated by the businesses improved +9% YoY as well to €8.8bn, including significant rises from Asset & Wealth Management (+15% in 2017), Insurance (+12%) and Corporate & Investment Banking (+7%).

Expenses came out at €6.5bn in 2017, up +5% YoY, translating into a 4pp positive jaws effect and a 250bps YoY improvement in the cost/income ratio at 68.9%. Gross operating income of €3.0bn progressed +19% in 2017 vs. 2016.

The cost of risk amounted to €258m in 2017, down -15% YoY despite a €60m reinforcement of the general reserve, booked in the corporate center. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses' cost of risk worked out to 23bps in 2017 vs. 34bps in 2016. The cost of risk/net revenues ratio decreased from 3.5% in 2016 to 2.7% this year. Pre-tax profit rose +21% YoY to €2.8bn.

The 2017 tax rate notably benefited from a positive impact from the US tax reforms recognized in 4Q17. The marked YoY increase in minority interests reflected solid growth in Coface's contribution and a high level of performance fees generated by some European Asset Management affiliates.

Net income (group share), excluding exceptional items, came out at €1.7bn in 2017, a +25% YoY increase. Accounting for exceptional items (-€46m impact net of tax in 2017), the reported net income (group share) increased +21% YoY to €1.7bn in 2017.

Natixis' RoTE(1) equated to 12.3% and the businesses' RoE(1) reached 13.8%, up +240bps and +160bps  respectively vs. 2016.

Asset & Wealth Management

€m 2017 2016 2017 vs. 2016
Net revenues 3,113 2,718 15%
  o/w Asset management 2,972 2,582 15%
  o/w Wealth management 142 136 4%
Expenses (2,175) (1,981) 10%
Gross operating income 938 737 27%
Provision for credit losses 0 1  
Associates and other items 11 8  
Pre-tax profit 949 746 27%
       
Cost/income ratio(1) 69.9% 72.9% (3.0)pp
RoE after tax(1) 12.8% 11.5% +1.3pp

Revenues from Asset & Wealth Management (AWM) were up a significant +15% YoY in 2017 (+16% at constant exchange rate), notably fueled by improved margins and higher AuM. Net revenues from Asset management amounted to €3.0bn in 2017, up +15% vs. 2016. Net revenues from Wealth management increased +4% YoY.

In Asset management, margins excluding performance fees (€287m in 4Q17) improved +1.3bps to average 29.5bps for the year.

Asset management attracted +€24bn of net inflows during the year and +€72bn for the 2014-2017 period. AuM reached €831bn at year-end 2017, or $1trn. At constant exchange-rate, average AuM for the year rose +10.5% in Europe (excluding Life Insurance) and +8.4% in North America.

Expenses increased +10% during the year, translating into a 5pp positive jaws effect and a cost/income ratio improvement, below 70% for 2017 (72.9% in 2016). Both gross operating income and pre-tax profit rose +27% YoY.

AWM lifted RoE after tax by +130bps to 12.8% in 2017.

  1. See note on methodology

Corporate & Investment Banking

€m 2017 2016 2017
vs. 2016
Net revenues 3,581 3,339 7%
Net revenues excl. CVA/DVA 3,576 3,290 9%
  o/w Global markets 1,916 1,731 11%
  o/w Global finance 1,328 1,281 4%
 o/w IB et M&A 362 285 27%
Expenses (2,191) (2,046) 7%
Gross operating income 1,390 1,293 8%
Provision for credit losses (115) (195) (41)%
Associates and other items 10 14  
Pre-tax profit 1,285 1,111 16%
       
Cost/income ratio(1) 61.2% 61.3% (0.1)pp
RoE after tax(1) 13.2% 10.7% +2.5pp

Net revenues from Corporate & Investment Banking excluding the CVA/DVA desk rose +9% YoY in 2017, fueled by solid performances from Global markets (+11% vs. 2016) and from Investment banking and M&A (+27%, including +47% growth in M&A). Over the same period, CIB RWA declined -11%, testifying to the success of the O2D model. Net revenues equated to 5.7% of average RWA over the year (excluding the CVA/DVA desk).

Within Global markets, FICT revenues rose +6% in 2017, notably buoyed by the US and APAC platforms (+20% in 2017), whilst Equity revenues grew +21%. The US and APAC platforms lifted their contribution to CIB overall revenues from 35% in 2016 to 38%.

Fixed costs excluding regulatory projects increased +3% during the year, while the cost/income ratio improved slightly relative to 2016.

The cost of risk fell -41% versus the 2016 figure and pre-tax profit increased +16% YoY.

CIB lifted RoE after tax by +250bps to 13.2% in 2017.

Insurance

€m  

2017
 

2016
2017
vs. 2016
Net revenues 734  655 12% 
Expenses (416)  (378) 10% 
Gross operating income 318  277 15% 
Provision for credit losses 0  
Associates and other items 13  9  
Pre-tax profit 331  287 15% 
       
Cost/income ratio(1) 56.6% 57.6% (1.0)pp
RoE after tax(1) 23.9% 20.8% +3.1pp

Net revenues from Insurance increased +12% YoY to reach €734m in 2017 driven by both Life/Personal protection and P&C. Expenses rose +10% to €416m, resulting in a positive jaws effect, a cost/income ratio improvement to 56.6% and a gross operating income at €318m, up +15% YoY.

Insurance lifted RoE after tax by +310bps to 23.9% in 2017.

Global turnover excluding the reinsurance agreement with CNP increased +46% YoY in 2017 to €11.7bn, of which €10.3bn for Life/Personal protection and €1.4bn for Property & Casualty.

Life Insurance net inflows in unit-linked products almost tripled in 2017 at +€2.9bn and accounted for half of total 2017 net inflows and 35% of gross inflows. The combined ratio for P&C activities worked out to 92.1% in 2017, down - 0.4pp vs. 2016.

  1. See note on methodology

Specialized Financial Services

€m 2017 2016 2017
vs. 2016
Net revenues 1,382 1,352 2%
  Specialized financing 862 840 3%
  Payments 336 329 2%
  Financial services 184 183 1%
Expenses (930) (885) 5%
Gross operating income 451 466 (3)%
Provision for credit losses (73) (57) 27%
Associates and other items 0 31  
Pre-tax profit 379 440 (14)%
       
Cost/income ratio(1) 67.3% 65.5% +1.8pp
RoE after tax(1)(2) 13.3% 15.4% (2.1)pp

Net revenues from Specialized Financial Services grew +2% in 2017 and included increases of +3% for Specialized financing (+5% for Sureties & guarantees), +2% for Payments and +1% for Financial services.

Expansion in the Payments area was reflected in the +64% increase in recently acquired Payplug and Dalenys' combined turnover in 2017, as well as in the +10% YoY revenue growth in prepaid (at constant scope) and the +10% increase in the volume of card transactions processed. 79% of Payments revenues were generated with the Groupe BPCE networks in 2017.

SFS posted RoE after tax of 13.3% in 2017.

Corporate Center

€m 2017 2016 2017
vs. 2016
Net revenues 687 636 8%
  Coface 624 552 13%
  Others 63 85 (26)%
Expenses (827) (918) (10)%
  Coface (484) (508) (5)%
  SRF (122) (114) 7%
  Others (221) (296) (25)%
Gross operating income (140) (281) (50)%
Provision for credit losses (71) (54)  
Associates and other items 22 29  
Pre-tax profit (189) (306) (38)%

Activities housed in the Corporate Center generated €687m of net revenues, an increase of +8% YoY, of which €624m came from Coface (+13% YoY).

Coface's combined ratio net of reinsurance improved sharply to 86.6% from 97.4% in 2016, on the back of reduced claims (loss ratio of 51.4% vs. 65.5%), while the cost ratio remained fairly stable at 35.2% (excluding the State Export Guarantees Management business in 2016).

Corporate Center expenses excluding Coface and the SRF dropped -25% YoY.

The pre-tax profit reached -€189m from -€306m in 2016.

(1)  See note on methodology (2) Excluding real estate capital gains for CEGC in 2Q16

Financial structure

Basel 3 fully-loaded
Natixis' Basel 3 fully-loaded CET1 ratio(1) worked out to 10.65% at December 31, 2017.

  • Basel 3 fully-loaded CET1 capital amounted to €11.8bn
  • Basel 3 fully-loaded RWA amounted to €110.7bn.

Based on a Basel 3 fully-loaded CET1 ratio of 10.4% at December 31, 2016, the respective impacts of 2017 were as follows:

  • Effect of allocating net income (group share) to retained earnings in 2017: +139bps,
  • Planned dividend(2) for 2017: -101bps,
  • RWA and other effects: +21bps.
  • Acquisition/disposal effects: -36bps

Basel 3 phased-in, regulatory ratios
As at December 31, 2017, Natixis' Basel 3 regulatory (phased-in) capital ratios stood at 10.8% for the CET1, 12.9% for the Tier 1 and 14.9% for the total solvency ratio.

  • Core Tier 1 capital stood at €12.0bn and Tier 1 capital at €14.3bn.
  • Natixis' RWA totalled €110.7bn, breakdown as follows:
    • Credit risk: €78.3bn
    • Counterparty risk: €6.7bn
    • CVA risk: €1.2bn
    • Market risk: €9.7bn
    • Operational risk: €14.8bn

IFRS 9
The anticipated First Time Application impact of IFRS 9 is around 15bps on Natixis' Basel 3 fully-loaded CET1 ratio on January 1, 2018.

Book value per share
Equity capital (group share) totalled €19.8bn at December 31, 2017, of which €2.2bn was in the form of hybrid securities (DSNs) recognized in equity capital at fair value (excluding capital gain following reclassification of hybrids).

Book value per share was €5.18 at December 31, 2017(post dividends) based on 3,135,928,302 shares excluding treasury stock (the total number of shares stands at 3,137,360,238). Tangible book value per share (after deducting goodwill and intangible assets) was €3.96.

Leverage ratio

The leverage ratio(3) worked out to 4.1% at December 31, 2017.

Overall capital adequacy ratio
As at December 31, 2017, the financial conglomerate's capital excess was estimated at around €3.2bn.

  1. Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in
  2. Subject to approval of the General Shareholders' Meeting on May 23, 2018
  3. See note on methodology


Appendices

Note on methodology:

The results at 31/12/2017 were examined by the board of directors at their meeting on 13/02/2018.
Figures at 31/12/2017 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.
In view of the new strategic plan New Dimension, the 2016 & 9M17 quarterly series have been restated for the following changes in business lines organization and in standards for implementation in Q4-2017 as if these changes had occurred on 1st January 2016.

The new businesses organization mainly takes into account:

  • The split of Investment Solutions into two new divisions: Insurance and Asset & Wealth Management(1)
  • Within CIB:
    • Global finance and Investment banking(2) are now two separate business lines
    • Creation of Global Securities & Financing (GSF), a joint venture between FIC and Equity derivatives. The joint venture includes Securities Financing Group (SFG, previously in FIC) and Equity Finance (previously in Equity). Revenues of GSF are equally split between Equity & FIC
  • Within SFS, the Payments division is split out of Financial services and reported separately within the SFS business line
  • The removal of the Financial investments division and its inclusion within the Corporate center.

Following changes in standards have been included:

  • Increase in capital allocation to our business lines from 10% to 10.5% of the average Basel 3 risk weighted assets
  • Reduction in normative capital remuneration rate to 2% (compared to 3% previously)

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 on preferred shares after tax. 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 on preferred shares after tax. 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 on the basis of 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 at 2%.
  1. Asset management includes Private equity (2) including M&A business

Net book value: calculated by taking shareholders' equity group share, 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:

In €m 31/12/2017
Intangible assets 732
Restatement for Coface minority interest & others (37)
Restated intangible assets 694


In €m 31/12/2017
Goodwill 3,601
Restatement for Coface minority interests (165)
Restatement for AWM deferred tax liability & others (311)
Restated goodwill 3,126

Own senior debt fair-value adjustment: calculated using a discounted cash-flow model, contract by contract, including parameters such as swaps curve, 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. All impacts since the beginning of the financial year 2016 are recognized in equity, even those that had impacted the income statement in the interim financial statements for March, June and September 2016.

Leverage ratio: based on delegated act rules, without phase-in except for DTAs on tax-loss carryforwards 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 3. 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 and the RoE excluding IFRIC 21 impact calculation takes into by quarter one fourth of the annual duties and levies concerned by this new 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.


Natixis - Consolidated P&L

€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 2016 2017 2017
vs. 4Q16 vs. 2016
Net revenues 2,063 2,211 1,924 2,520 2,347 2,410 2,205 2,506 (1)% 8,718 9,467 9%
Expenses (1,605) (1,522) (1,447) (1,664) (1,771) (1,594) (1,530) (1,737) 4% (6,238) (6,632) 6%
Gross operating income 458 689 477 856 576 815 674 769 (10)% 2,480 2,835 14%
Provision for credit losses (88) (88) (69) (60) (70) (67) (55) (65) 8% (305) (258) (15)%
Associates 8 7 4 (6) 7 6 5 8   13 26  
Gain or loss on other assets 29 31 104 12 9 18 (1) 22   175 48  
Change in value of goodwill 0 (75) 0 0 0 0 0 0   (75) 0  
Pre-tax profit 407 564 516 801 523 772 623 733 (8)% 2,287 2,651 16%
Tax (172) (211) (184) (255) (214) (255) (181) (139)   (822) (789)  
Minority interests (34) 28 (34) (50) (28) (29) (59) (76)   (90) (192)  
Net income (group share) 200 381 298 496 280 487 383 518 5% 1,374 1,669 21%

Natixis - Balance sheet

Assets (in €bn) 31/12/2017 31/12/2016
Cash and balances with central banks 36.9 26.7
Financial assets at fair value through profit and loss 184.5 187.6
Available-for-sale financial assets 57.9 55.0
Loans and receivables 182.1 199.1
Held-to-maturity financial assets 1.9 2.1
Accruals and other assets 49.8 50.5
Investments in associates 0.7 0.7
Tangible and intangible assets 2.6 2.5
Goodwill 3.6 3.6
Total 520.0 527.8
     
Liabilities and equity (in €bn) 31/12/2017 31/12/2016
Due to central banks 0.0 0.0
Financial liabilities at fair value through profit and loss 144.9 146.2
Customer deposits and deposits from financial institutions 198.9 187.9
Debt securities 32.6 48.9
Accruals and other liabilities 40.6 48.7
Insurance companies' technical reserves 76.6 68.8
Contingency reserves 1.7 2.0
Subordinated debt 3.7 4.2
Equity attributable to equity holders of the parent 19.8 19.8
Minority interests 1.2 1.3
Total 520.0 527.8

Natixis - 4Q17 P&L by business line

€m AWM CIB Insurance SFS Corporate   4Q17
Center reported
Net revenues 899 817 190 350 251   2,506
Expenses (610) (567) (109) (249) (201)   (1,737)
Gross operating income 289 249 80 101 50   769
Provision for credit losses 0 (21) 0 (24) (20)   (65)
Net operating income 289 228 80 77 30   704
Associates and other items 3 21 4 (0) 2   29
Pre-tax profit 291 249 85 77 32   733
        Tax   (139)
        Minority interests   (76)
        Net income (gs)   518

Asset & Wealth Management

€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 2016 2017 2017
vs. 4Q16 vs. 2016
Net revenues 658 676 649 735 704 743 766 899 22% 2,718 3,113 15%
Asset management(1) 624 643 615 700 671 713 730 857 23% 2,582 2,972 15%
Wealth management 34 33 34 35 33 30 36 42 20% 136 142 4%
Expenses (493) (493) (471) (523) (519) (521) (528) (610) 17% (1,981) (2,178) 10%
Gross operating income 165 183 177 211 186 222 239 289 37% 737 936 27%
Provision for credit losses 0 0 0 0 0 0 0 0   1 0  
Net operating income 165 183 177 212 186 223 239 289 36% 738 936 27%
Associates 1 1 1 (12) 0 0 0 1   (9) 1  
Other items 18 (2) (2) 2 9 0 (1) 2   17 10  
Pre-tax profit 185 182 177 202 195 222 238 291 44% 746 947 27%
Cost/Income ratio 74.9% 72.9% 72.7% 71.2% 73.6% 70.1% 68.8% 67.9%   72.9% 69.9%  
Cost/Income ratio excluding IFRIC 21 effect 74.3% 73.1% 72.9% 71.4% 73.2% 70.2% 69.0% 68.0%   72.9% 69.9%  
RWA (Basel 3 - in €bn) 9.3 10.1 10.2 10.8 10.6 10.2 10.2 11.7 8% 10.8 11.7 8%
Normative capital allocation (Basel 3) 3,703 3,627 3,728 3,727 3,874 3,828 3,715 3,676 (1)% 3,696 3,773 2%
RoE after tax (Basel 3)(2) 11.9% 12.4% 11.2% 10.3% 11.3% 12.5% 13.5% 14.0%   11.5% 12.8%  
RoE after tax (Basel 3) excluding IFRIC 21 effect(2) 12.2% 12.3% 11.1% 10.2% 11.5% 12.4% 13.4% 13.9%   11.5% 12.8%  
  1. Asset management including Private equity
  2. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

Corporate & Investment Banking

€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 2016 2017 2017
vs. 4Q16 vs. 2016
Net revenues 769 874 744 883 971 1,019 775 817 (8)% 3,270 3,581  10%
  Global markets 402 501 405 472 603 547 363 408 (14)% 1,780 1,921  8%
  FIC-T 287 345 293 312 388 389 253 288 (8)% 1,238 1,317  6%
  Equity 121 123 99 150 179 172 103 144 (4)% 493 599  21%
  CVA/DVA desk (7) 33 13 10 35 (13) 7 (24)   49 5  
  Global finance 301 330 330 320 312 343 315 358  12% 1,281 1,328  4%
  Investment banking (1) 54 71 75 85 81 122 85 74 (12)% 285 362  27%
  Other 12 (28) (66) 6 (25) 7 12 (24)   (75) (30)  
Expenses (515) (486) (472) (573) (566) (555) (506) (567) (1)% (2,046) (2,194)  7%
Gross operating income 253 389 272 310 404 464 269 249 (20)% 1,224 1,387  13%
Provision for credit losses (71) (53) (50) (21) (29) (48) (16) (21)  2% (195) (115) (41)%
Net operating income 182 336 222 290 375 416 253 228 (21)% 1,029 1,272  24%
Associates 3 4 3 3 3 3 3 3   14 10  
Other items 0 0 0 0 0 0 0 18   0 18  
Pre-tax profit 185 340 225 293 378 418 255 249 (15)% 1,043 1,300  25%
Cost/Income ratio 67.1% 55.6% 63.4% 64.9% 58.3% 54.4% 65.3% 69.5%   62.6% 61.3%  
Cost/Income ratio excluding IFRIC 21 effect 63.0% 56.7% 64.8% 66.0% 55.5% 55.4% 66.5% 70.6%   62.6% 61.3%  
RWA (Basel 3 - in €bn) 67.0 68.8 64.9 66.1 64.4 61.3 60.4 59.0 (11)% 66.1 59.0 (11)%
Normative capital allocation (Basel 3) 7,276 7,106 7,408 6,997 7,136 6,963 6,623 6,519 (7)% 7,197 6,810 (5)%
RoE after tax (Basel 3)(2) 6.9% 12.9% 8.2% 12.3% 14.7% 16.5% 10.5% 11.8%   10.0% 13.5%  
RoE after tax (Basel 3) excluding IFRIC 21 effect(2) 8.0% 12.5% 7.9% 11.9% 15.7% 16.1% 10.2% 11.4%   10.0% 13.5%  
  1. Including M&A
  2. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

Insurance

€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 2016 2017 2017
vs. 4Q16 vs. 2016
Net revenues 169 158 157 171 189 179 176 190 11% 655 734 12%
Expenses (99) (88) (89) (102) (129) (102) (99) (109) 7% (378) (439) 16%
Gross operating income 69 70 69 69 60 77 77 80 16% 277 295 6%
Provision for credit losses 0 0 0 0 0 0 0 0   0 0  
Net operating income 69 70 69 69 60 77 77 80 16% 277 295 6%
Associates 3 1 4 2 4 3 2 4   9 13  
Other items 0 0 0 0 0 0 0 0   0 0  
Pre-tax profit 72 71 72 71 65 80 79 85 18% 287 308 7%
Cost/Income ratio 59.0% 55.5% 56.3% 59.5% 68.1% 56.9% 56.2% 57.5%   57.6% 59.8%  
Cost/Income ratio excluding IFRIC 21 effect 54.7% 57.0% 57.9% 60.9% 54.9% 61.5% 60.9% 61.9%   57.6% 59.8%  
RWA (Basel 3 - in €bn) 7.1 6.9 7.2 7.2 7.4 7.2 7.4 7.2 0% 7.2 7.2 0%
Normative capital allocation (Basel 3) 724 836 823 850 857 871 849 875 3% 808 863 7%
RoE after tax (Basel 3)(1) 22.7% 19.9% 20.7% 20.0% 17.7% 21.6% 22.3% 26.7%   20.8% 22.1%  
RoE after tax (Basel 3) excluding IFRIC 21 effect(1) 25.3% 19.1% 19.9% 19.3% 25.6% 19.0% 19.6% 24.2%   20.8% 22.1%  
  1. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

Specialized Financial Services

€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 2016 2017 2017
vs. 4Q16 vs. 2016
Net revenues 343 342 325 341 344 347 341 350  3% 1,352 1,382 2%
Specialized financing 215 212 203 210 219 218 215 210 0% 840 862 3%
 Factoring 38 39 39 42 39 39 38 42 (1)% 158 158 0%
Sureties & financial guarantees  56 43 47 45 55 46 52 47  2% 191 200 5%
Leasing 52 59 49 54 54 61 52 49 (9)% 213 216 2%
Consumer financing 64 66 63 63 66 65 67 67  6% 257 265 3%
Film industry financing 5 6 5 6 5 6 5 6 (1)% 21 23 6%
Payments 83 81 80 85 81 83 83 89  4% 329 336 2%
Financial services 46 49 43 45 44 46 43 51  12% 183 184 1%
Employee savings  plans 22 25 20 21 21 22 21 26  25% 89 91 3%
Securities services 24 23 23 24 23 23 22 25  1% 94 93 (1)%
Expenses (226) (222) (216) (221) (233) (228) (229) (249)  13% (885) (939) 6%
Gross operating income 117 120 109 120 112 118 112 101 (16)% 466 443 (5)%
Provision for credit losses (13) (17) (12) (16) (21) (14) (13) (24)  53% (57) (73) 27%
Net operating income 104 103 97 105 90 104 99 77 (27)% 409 371 (9)%
Associates 0 0 0 0 0 0 0 0   0 0  
Other items 0 31 0 0 0 0 0 0   31 0  
Pre-tax profit 104 135 97 105 90 104 99 77 (27)% 440 371 (16)%
Cost/Income ratio 65.9% 64.9% 66.5% 64.7% 67.6% 65.8% 67.1% 71.2%   65.5% 67.9%  
Cost/Income ratio excluding IFRIC 21 effect 63.6% 65.7% 67.3% 65.5% 65.6% 66.5% 67.7% 71.8%   65.5% 67.9%  
RWA (Basel 3 - in €bn) 13.7 14.8 14.6 15.4 15.2 16.0 15.7 16.7  8% 15.4 16.7 8%
Normative capital allocation (Basel 3) 1,698 1,694 1,803 1,782 1,961 1,889 1,907 1,958  10% 1,745 1,929 11%
RoE after tax (Basel 3)(1) 16.1% 20.8% 14.1% 15.4% 12.6% 15.1% 14.0% 10.7%   16.5% 13.0%  
RoE after tax (Basel 3) excluding IFRIC 21 effect(1) 17.4% 20.4% 13.7% 15.0% 13.6% 14.7% 13.6% 10.3%   16.5% 13.0%  
  1. Normative capital allocation methodology based on 10.5% of the average RWA - including goodwill and intangibles

Corporate Center

€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 4Q17 2016 2017 2017
vs. 4Q16 vs. 2016
Net revenues 124 161 48 389 138 122 146 251 (36)% 723 657 (9)%
Coface 162 139 125 203 137 152 167 167 (18)% 629 624 (1)%
Others (38) 22 (77) 186 1 (30) (21) 84 (55)% 94 33 (65)%
Expenses (271) (234) (199) (245) (324) (189) (169) (201) (18)% (948) (883) (7)%
Coface (130) (127) (125) (148) (122) (128) (119) (114) (23)% (530) (484) (9)%
SRF (79) (35) 0 0 (128) 6 0 0   (114) (122)  7%
Others (62) (71) (74) (97) (74) (66) (50) (87) (10)% (305) (277) (9)%
Gross operating income (147) (72) (150) 144 (186) (67) (23) 50 (65)% (225) (226) 0%
Provision for credit losses (4) (19) (7) (24) (20) (5) (26) (20)   (54) (71)  
Net operating income (151) (91) (157) 120 (206) (72) (49) 30 (75)% (279) (297)  6%
Associates 0 0 (3) 1 0 0 0 0   (2) 1  
Other items 11 (73) 105 10 1 18 0 2   53 20  
Pre-tax profit (139) (164) (55) 130 (205) (54) (49) 32 (76)% (228) (275)  21%

4Q17 results: from data excluding non-operating items to reported data

                     
€m 4Q17 excl.
exceptional items
  Capital gain
 on the sale
 of 15% stake
in CACEIS
Exchange rate fluctuations
 on DSN in  currencies
Transformation
 & Business Efficiency
investment
 costs
Capital gain on
 the liquidation
 of a holding structure
    4Q17
reported
 
Net revenues 2,450   74 (18)         2,506  
Expenses (1,698)       (39)       (1,737)  
Gross operating income 753   74 (18) (39)       769  
Provision for credit losses (65)               (65)  
Associates and other items 11          18     29  
Pre-tax profit 699   74 (18) (39) 18     733  
Tax (153)   (9) 8 15       (139)  
Minority interests (76)               (76)  
Net income (group share) 470   65 (10) (25) 18     518  
                     

2017 results: from data excluding non-operating items to reported data

                       
  €m 2017 excl.
exceptional items
  Capital gain
 on the sale of
15% stake in CACEIS
Exchange rate fluctuations
 on DSN in currencies
Transformation
 & Business Efficiency
investment
 costs
Capital gain on
the liquidation
 of a holding structure
Non-recurring additional C3S(1) resulting from agreement with CNP     2017  reported  
  Net revenues 9,497   74 (104)           9,467  
  Expenses (6,540)       (74)   (19)     (6,632)  
  Gross operating income 2,957   74 (104) (74)   (19)     2,835  
  Provision for credit losses (258)                 (258)  
  Associates and other items 56         18       74  
  Pre-tax profit 2,755   74 (104) (74) 18 (19)     2,651  
  Tax (848)   (9) 36 26   6     (789)  
  Minority interests (192)                 (192)  
  Net income (group share) 1,715   65 (68) (48) 18 (13)     1,669  
                         

(1) Corporate Social Solidarity Contribution

Regulatory capital in 4Q17 & financial structure Basel 3

Regulatory reporting, in €bn  
 
Shareholder's equity group share 19.8
Goodwill & intangibles (3.6)
Dividend (1.2)
Other deductions (0.6)
Hybrids restatement in Tier 1(1) (2.4)
CET1 Capital 12.0
Additional T1 2.3
Tier 1 Capital 14.3
Tier 2 Capital 2.3
Total prudential Capital 16.5
(1) Including capital gain following reclassification of hybrids as equity instruments


€bn 4Q16
CRD4 phased
1Q17
CRD4 phased
2Q17
CRD4 phased
3Q17
CRD4 phased
4Q17
CRD4 phased
CET1 ratio 10.8% 10.9% 11.2% 11.4%  10.8%
Tier 1 ratio 12.3% 12.8% 13.1% 13.1%  12.9%
Solvency ratio 14.5% 15.1% 15.4% 15.3%  14.9%
Tier 1 capital 14.2 14.6 14.7 14.6  14.3
RWA  EoP 115.5 114.1 112.6 111.7  110.7

IFRIC 21 effects by business line

Effect in Expenses
                       
€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17   2016 2017
AWM (4) 1 1 1 (3) 1 1 1   - -
CIB (31) 10 10 10 (28) 9 9 9   - -
Insurance (7) 2 2 2   (25)(1)   8(2)   8(2)   8(2)   - -
SFS (7) 2 2 2 (6) 2 2 2   - -
Corporate center (58) 2 28 28 (94) 34 30 30   - -
Total Natixis (107) 18 45 45 (156) 55 50 50   0 0
                       
Effect in Net revenues
                       
€m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17   2016 2017
SFS (Leasing) (2) 1 1 1 (1) 0 0 0   - -
Total Natixis (2) 1 1 1 (1) 0 0 0   0 0
  1. -€10.9m in recurring expenses and -€14.1m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP
  2. €3.6m in recurring expenses and €4.7m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP

Normative capital allocation and RWA breakdown - 31/12/2017

€bn RWA
EoP
in % of
 the total
Average goodwill & intangibles Average capital allocation RoE
 after tax
2017
AWM 11.7 12% 2.7 3.8 12.8%
CIB 59.0 62% 0.2 6.8 13.5%
Insurance 7.2 8% 0.1 0.9 22.1%
SFS 16.7 18% 0.3 1.9 13.0%
Total (excl. Corporat center) 94.5 100% 3.3 13.4  


RWA breakdown (€bn) 31/12/2017
Credit risk 78.3
Internal approach 60.8
Standard approach 17.5
Counterparty risk 6.7
Internal approach 5.8
Standard approach 0.9
Market risk 9.7
Internal approach 4.2
Standard approach 5.5
CVA 1.2
Operational risk - Standard approach 14.8
Total RWA 110.7

Leverage ratio
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

€bn 31/12/2017
Tier 1 capital(1) 14.5
Total prudential balance sheet 425.0
Adjustment on derivatives (41.1)
Adjustment on repos(2) (31.5)
Other exposures to affiliates (34.6)
Off balance sheet commitments 35.6
Regulatory adjustments (4.2)
Total leverage exposures 349.2
Leverage ratio 4.1%

(1) Without phase-in except for DTAs on tax loss carryforwards - 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 of December 31, 2017

€bn 31/12/2017
Shareholders' equity (group share) 19.8
Deduction of hybrid capital instruments (2.2)
Deduction of gain on hybrid instruments (0.2)
Distribution (1.2)
Net book value 16.2
Restated intangible assets(1) 0.7
Restated goodwill(1) 3.1
Net tangible book value(2) 12.4
 
Net book value per share 5.18
Net tangible book value per share 3.96

(1) See note on methodology (2) Net tangible book value = Book value - goodwill - intangible assets

Earnings per share (2017)

€m 31/12/2017
Net income (gs) 1,669
DSN interest expenses on preferred shares after tax (94)
Net income attributable to shareholders 1,575
   
Earnings per share (€) 0.50

Number of shares as of December 31, 2017

Average number of shares over the period, excluding treasury shares 3,135,991,405
Number of shares, excluding treasury shares, EoP 3,135,928,302
Number of treasury shares, EoP 1,431,936

Net income attributable to shareholders

€m 4Q17 2017
 Net income (gs) 518 1,669
 DSN interest expenses on preferred shares after tax (22) (94)
 RoE & RoTE numerator 496 1,575

Natixis RoTE(1)

€m 31/12/2017
Shareholders' equity (group share) 19,795
DSN deduction (2,401)
Dividends provision (1,160)
Intangible assets (694)
Goodwill (3,129)
RoTE Equity end of period 12,410
Average RoTE equity (4Q17) 12,889
4Q17 RoTE annualized 15.4%
Average RoTE equity (2017) 13,201
2017 RoTE 11.9%

Natixis RoE(1)

€m 31/12/2017
Shareholders' equity (group share) 19,795
DSN deduction (2,401)
Dividends provision (1,160)
Exclusion of unrealized or deferred gains and losses recognized in equity (OCI) (489)
 
RoE Equity end of period 15,744
Average RoE equity (4Q17) 16,044
4Q17 RoE annualized 12.4%
Average RoE equity (2017) 16,352
2017 RoE 9.6%
  1. See note on methodology


Doubtful loans(1)

€bn 31/12/2016 31/12/2017
Provisionable commitments(2) 2.6 2.7 
Provisionable commitments / Gross debt 2.0% 2.3% 
Stock of provisions(3)  2.1 2.1
Stock of provisions / Provisionable commitments 81% 76% 

(1)  On-balance sheet, excluding securities and repos, net of collateral (2) Net commitments include properties that are underlying leasing contracts and for which Natixis is the owner as well as factored loans for which the chargeable counterparties are not in default. (3) 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 2017 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 Wednesday February 14th, 2018 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  
         
Pierre-Alexandre Pechmeze T + 33 1 58 19 57 36   Elisabeth de Gaulle T + 33 1 58 19 28 09
Damien Souchet T + 33 1 58 55 41 10   Olivier Delahousse T + 33 1 58 55 04 47
Souad Ed Diaz
Brigitte Poussard

 
T + 33 1 58 32 68 11
T + 33 1 58 55 59 21

 

 
  Sonia Dilouya T + 33 1 58 32 01 03

www.natixis.com

  

Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/798a9784-3edc-45eb-8be0-7814e828a826

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