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News Article | May 26, 2017
Site: www.prnewswire.co.uk

Browse 121 market data tables and 38 figures spread through 194 pages and in-depth TOC on "Refrigerant Market - Global Forecast to 2022" http://www.marketsandmarkets.com/Market-Reports/refrigerant-market-1082.html Early buyers will receive 10% customization on this report. Rising end-use applications such as refrigerants, large-scale refrigerators, chillers, air conditioners, and heat pumps are driving the market for refrigerants. Along with these, the growing demand for consumer appliances and the cold chain market are also driving the market. Request for Sample PDF of the Report @ http://www.marketsandmarkets.com/pdfdownload.asp?id=1082 Air conditioners application accounted for the largest share in 2016 The air conditioners segment is projected to be the largest market for refrigerants from 2017 to 2022, owing to its rapid growth in the Asia-Pacific. Factors such as rising disposable incomes; rising living standards; flexible government taxation policies; rapid technological advancements in products & product offerings, by major international and domestic players, at competitive prices; are a few of the major factors driving the market for the air conditioners application. These factors, along with upcoming infrastructure projects on transport networks, institutional sites, and residential projects are also expected to drive the refrigerants market in the air conditioner application. Hydrocarbons are expected to be the fastest growing segment in the refrigerants market The main reason for the high demand for hydrocarbons can be attributed to the increasing consumption of refrigeration and AC equipment, which are its largest applications. Additionally, the demand for fluorocarbon refrigerants is expected to decline in the near future mainly due to the required 100% phase-out of HCFC by 2040 and 85% phase-out of HFC by 2047, which is expected to lead to an increase in the demand for alternative refrigerants. Thus, the growth of inorganics and hydrocarbons is expected to remain high between 2017 and 2022. Asia-Pacific was the largest refrigerants market in 2016 The Asia-Pacific is projected to be the largest market for refrigerants from 2017 to 2022. Factors contributing to market growth in this region are the rise in demand for consumer appliances in emerging countries, growing urbanization, and the growing cold chain market. These factors, along with upcoming infrastructure projects in energy, transport networks, institutional sites, and residential projects are expected to drive the Refrigerant Market across various applications in the region. Large-scale investments along with the increasing standards of living provide opportunities for infrastructure developments that are expected to lead to the high growth of the refrigerants market. The global refrigerants market has a large number of market players; however the market is led by some of the major players, such as The Chemours Company (U.S.), Honeywell International Inc. (U.S.), Arkema S.A. (France), Dongyue Group Co. Ltd (China), Asahi Glass Co., Ltd. (Japan), Daikin Industries Ltd. (Japan), Sinochem Corporation (China), Mexichem S.A.B. de C.V. (Mexico), The Linde Group (Germany), and SRF Ltd. (India), among others. Natural Refrigerants Market by Type (Ammonia, Carbon dioxide, Hydrocarbons and Others), by Application (Refrigeration: Industrial, Commercial, and Domestic, Air Conditioning: Stationary and Mobile, and Others) - Global Trends & Forecasts to 2020 http://www.marketsandmarkets.com/Market-Reports/natural-refrigerant-market-165104142.html MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies' revenues. Currently servicing 5000 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions. Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model - GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve. MarketsandMarkets's flagship competitive intelligence and market research platform, "RT" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets. Visit Our Blog @ http://www.marketsandmarketsblog.com/market-reports/chemical Connect with us on LinkedIn @ http://www.linkedin.com/company/marketsandmarkets


News Article | May 26, 2017
Site: www.prnewswire.com

Browse 121 market data tables and 38 figures spread through 194 pages and in-depth TOC on "Refrigerant Market - Global Forecast to 2022" http://www.marketsandmarkets.com/Market-Reports/refrigerant-market-1082.html Early buyers will receive 10% customization on this report. Rising end-use applications such as refrigerants, large-scale refrigerators, chillers, air conditioners, and heat pumps are driving the market for refrigerants. Along with these, the growing demand for consumer appliances and the cold chain market are also driving the market. Request for Sample PDF of the Report @ http://www.marketsandmarkets.com/pdfdownload.asp?id=1082 Air conditioners application accounted for the largest share in 2016 The air conditioners segment is projected to be the largest market for refrigerants from 2017 to 2022, owing to its rapid growth in the Asia-Pacific. Factors such as rising disposable incomes; rising living standards; flexible government taxation policies; rapid technological advancements in products & product offerings, by major international and domestic players, at competitive prices; are a few of the major factors driving the market for the air conditioners application. These factors, along with upcoming infrastructure projects on transport networks, institutional sites, and residential projects are also expected to drive the refrigerants market in the air conditioner application. Hydrocarbons are expected to be the fastest growing segment in the refrigerants market The main reason for the high demand for hydrocarbons can be attributed to the increasing consumption of refrigeration and AC equipment, which are its largest applications. Additionally, the demand for fluorocarbon refrigerants is expected to decline in the near future mainly due to the required 100% phase-out of HCFC by 2040 and 85% phase-out of HFC by 2047, which is expected to lead to an increase in the demand for alternative refrigerants. Thus, the growth of inorganics and hydrocarbons is expected to remain high between 2017 and 2022. Asia-Pacific was the largest refrigerants market in 2016 The Asia-Pacific is projected to be the largest market for refrigerants from 2017 to 2022. Factors contributing to market growth in this region are the rise in demand for consumer appliances in emerging countries, growing urbanization, and the growing cold chain market. These factors, along with upcoming infrastructure projects in energy, transport networks, institutional sites, and residential projects are expected to drive the Refrigerant Market across various applications in the region. Large-scale investments along with the increasing standards of living provide opportunities for infrastructure developments that are expected to lead to the high growth of the refrigerants market. The global refrigerants market has a large number of market players; however the market is led by some of the major players, such as The Chemours Company (U.S.), Honeywell International Inc. (U.S.), Arkema S.A. (France), Dongyue Group Co. Ltd (China), Asahi Glass Co., Ltd. (Japan), Daikin Industries Ltd. (Japan), Sinochem Corporation (China), Mexichem S.A.B. de C.V. (Mexico), The Linde Group (Germany), and SRF Ltd. (India), among others. Natural Refrigerants Market by Type (Ammonia, Carbon dioxide, Hydrocarbons and Others), by Application (Refrigeration: Industrial, Commercial, and Domestic, Air Conditioning: Stationary and Mobile, and Others) - Global Trends & Forecasts to 2020 http://www.marketsandmarkets.com/Market-Reports/natural-refrigerant-market-165104142.html MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies' revenues. Currently servicing 5000 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions. Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model - GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve. MarketsandMarkets's flagship competitive intelligence and market research platform, "RT" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets. Visit Our Blog @ http://www.marketsandmarketsblog.com/market-reports/chemical Connect with us on LinkedIn @ http://www.linkedin.com/company/marketsandmarkets


News Article | May 9, 2017
Site: globenewswire.com

RESULTS[1] FOR THE FIRST QUARTER OF 2017 OF GROUPE BPCE Good performance achieved by all the business lines in the first quarter of 2017 Attributable net income of €948m[2], up by 8.2% EXCELLENT LEVEL OF ACTIVITY ACHIEVED BY THE BUSINESS LINES Asset management: return to positive inflows in the USA Corporate & Investment Banking: greater momentum enjoyed by Global markets and increased contribution from the international platforms               INCOME BEFORE TAX UP BY 11.6%[4] YEAR-ON-YEAR Sharp increase in the CIB division's contribution to income before tax: +81.4%, to €422m2 Gross operating income4: +11.9% year-on-year (despite the higher contribution to the SRF) Cost of risk stable at 22bp, lower than the business cycle average (30 to 35bp) Operating expenses down in the retail banking networks: if transformation expenses are excluded, the cost base changed as follows: Banque Populaire network -0.1% and Caisse d'Epargne network -1.7% Mergers: 31 regional banks in May 2017 vs. 35 one year ago CET1 ratio of 14.4%[5], up 10bp in Q1-17 TLAC ratio of 19.7%5 On May 9, 2017, the Supervisory Board of Groupe BPCE convened a meeting chaired by Pierre Valentin to examine the Group's financial statements for the first quarter of 2017. François Pérol, Chairman of the Management Board of Groupe BPCE, said: "Our first quarter results confirm the strength of our fundamentals and the resilience of our universal banking model. Thanks to business growth in all our major business lines, our revenues have increased by 4.9%4 with, in particular, 4.5% growth in the loan outstandings position of our Retail Banking division, strong development of our insurance business, the extremely significant expansion of our capital market activities this quarter, and the return of our asset management business to positive growth. Closely managed operating expenses and a new decline in the cost of risk have allowed our net income to increase by 8.2%2."    1. CONSOLIDATED RESULTS[6] OF GROUPE BPCE FOR THE FIRST QUARTER OF 2017 Groupe BPCE has published robust results for the first quarter of 2017, with a 4.9%4 increase in its revenues as a whole, emphasizing the good performance of the Group's three business divisions: Retail Banking, Investment Solutions, Corporate & Investment Banking (see below). Despite the low interest-rate environment, the revenues posted by the Retail Banking division only declined by 0.8% (excluding changes in provisions for home purchase savings schemes) thanks to strong business dynamics. Both the Corporate & Investment Banking and Investment Solutions divisions posted extremely good results, with 25.9% and 8.1% growth in revenues respectively. In this context, the Group's results improved still further in the first quarter of 2017: net income attributable to equity holders of the parent rose 8.2% to reach a total of 948 million euros2. Groupe BPCE boasts a robust, enhanced financial structure with a fully loaded TLAC ratio equal to 19.6% at March 31, 2017, exceeding the 19.5% required at the beginning of 2019. In the first quarter of the year, Groupe BPCE was also able to enjoy strong momentum in its operational excellence initiative pending the launch of the next strategic plan for 2018-2020 to be presented at the Investor Days event scheduled for November 20, 2017 for Natixis and November 29, 2017 for Groupe BPCE. Changes in segment reporting in the first quarter of 2017 Starting in the first quarter of 2017, information about the Group's different divisions is presented as follows: A Corporate center division, which includes the Corporate Center as such (BPCE SA and the Corporate center division of Natixis), Equity interests, and Other activities (cross-functional activities, investment activities, real-estate subsidiaries, etc.). Consolidated results for the first quarter of 2017: net income attributable to equity holders of the parent equal to 948 million euros2, up 8.2% The net banking income[7] of Groupe BPCE for the first quarter of 2017 came to 6,069 million euros, equal to an increase of 4.9% compared with the first quarter of 2016 thanks to extremely strong growth in revenues posted by the Corporate & Investment Banking division (+25.9%), a sharp rebound in the Investment Solutions division (+8.1%) driven by Asset management in Europe and strong momentum in Insurance activities, and a limited decline in revenues posted by the Retail Banking division (-0.8%, excluding changes in provisions for home purchase savings schemes). Retail Banking revenues only suffered a limited dip thanks to the strong resilience of the net banking income generated by the Banque Populaire and Caisse d'Epargne networks in a business environment characterized by continuous pressure on net interest margins, a favorable trend in commissions as well as net banking income generated by the Specialized financing business line (now included in the Retail Banking division) which enjoyed growth in all its different segments. The Group's operating expenses7 came to 4,504 million euros for the first quarter of 2017, representing year-on-year growth of 2.6%. This increase in expenses can be explained by a number of reasons, notably the increase in different regulatory contributions (accounted for in the Corporate center division). If we exclude the increase in the estimated contribution to the SRF of 256 million euros in the first quarter of 2017 (against 229 million euros in the first quarter last year), the Group's operating expenses increased by 2.0%. The operating expenses of the Retail Banking division have declined by 0.5%7, while the expenses of the Investment Solutions and Corporate & Investment Banking divisions experienced a moderate increase given the buoyant growth in their activities. The Group's gross operating income7 came to 1,565 million euros, up by 11.9% compared with the first quarter of 2016. The Group's cost of risk stood at 366 million euros7 for the first quarter of 2017. It was down 1.6%7 compared with the first quarter of 2016, reaching 22 basis points[8] in the first quarter of 2017 (against 24 basis points in the first quarter of 2016). This low level is equivalent to the average annual cost of risk observed in 2016. The ratio of non-performing loans to gross loan outstandings has declined, falling from 3.6% at March 31, 2016 to 3.4% at March 31, 2017, and the impaired loans coverage ratio (including guarantees related to impaired outstandings) came to 82.5% at March 31, 2017 (against 82.3% at March 31, 2016). The Group's income before tax7 has risen by a substantial 11.6% to reach 1,274 million euros in the first quarter of 2017. The Group's income tax7 charge comes to 497 million euros, up 11.1% compared with the first quarter of 2016. The tax rate is structurally high in the first quarter of the year (41.6% in the first quarter of 2017 and 40.6% in the same period of 2016) as the contribution to the Single Resolution Fund (SRF) and the tax on systemic banking risks (TSB) are not deductible from taxable income. Net income attributable to equity holders of the parent7 has risen by 9.7% compared with the first quarter of 2016 to reach a total of 664 million euros. After restatement to account for the impact of IFRIC 21, net income attributable to equity holders of the parent7 stands at 948 million euros, up by 8.2%, the cost/income ratio7 has declined by 1.6 percentage points to 68.3% and the Group's ROE7 comes to 6.2%, stable on a year-on-year basis. After accounting for non-economic and exceptional items and cancelling restatements made to account for the impact of IFRIC 21, published net income attributable to equity holders of the parent stands at 623 million euros, up by 8.8%. CONSOLIDATED RESULTS OF GROUPE BPCE FOR THE FIRST QUARTER OF 2017 Q1-2016 pro forma, cf. the notes on methodology at the end of this press release 2. HIGH LEVEL OF CAPITAL ADEQUACY RATIOS PUTS THE GROUP IN A STRONG POSITION TO MEET FUTURE REGULATORY REQUIREMENTS The CET1[9] ratio of Groupe BPCE continued to progress in the first quarter of 2017, reaching a level estimated at 14.4% at March 31, 2017, up from 14.3% at December 31, 2016, equal to an increase of 10 basis points. The increase in the CET19 ratio reflects the continuous generation of Common Equity Tier 1 thanks to the Group's policy regarding retained earnings (+13 basis points since December 31, 2016) and the issue of cooperative shares (+15 basis points since December 31, 2016). The total capital ratio9, with a level estimated at 18.7% at March 31, 2017, has stabilized vis-à-vis December 31, 2016 with a 190 basis-point rise since January 1st, 2016 on a pro forma basis. The total capital ratio without transitional measures, which came to an estimated 18.7% at March 31, 2017, is pursuing its upward trajectory with an increase of 20 basis points since the beginning of 2017 and an increase of 200 basis points since January 1st, 2016 pro forma. Total capital9 increased by 0.3 billion euros in the first quarter of 2017, rising from 73.0 billion euros at December 31, 2016 to an estimated 73.3 billion euros at March 31, 2017. This growth in the Group's total capital is mostly related to the increase in CET1 (thanks, in particular, to retained earnings) which amounted to an estimated 56.5 billion euros at March 31, 2017 vs. 56.0 billion euros at December 31, 2016. Risk-weighted assets remain under tight control, at 391 billion euros at March 31, 2017, stable compared with their level at December 31, 2016 (at current exchange rates). 2.2 TLAC ratio required for early 2019 attained as of the first quarter of 2017 Total loss-absorbing capacity[10] (TLAC) stood at 76.9 billion euros9 at the end of March 2017. The TLAC ratio9 (expressed as a percentage of risk-weighted assets), which stood at an estimated 19.7% at March 31, 2017, is already higher than the TLAC level of 19.5% required at the beginning of 2019. In order to remain compliant with this requirement, Groupe BPCE plans to issue senior non-preferred debt of between 1.5 and 3.5 billion euros per year, and does not anticipate having recourse to the fixed portion of senior preferred debt. In view of Groupe BPCE's TLAC policy, it is now more likely that the call options attached to former additional Tier-1 capital instruments issued by BPCE without step-up clauses will be exercised subject, however, to obtaining prior approval from the banking supervisory authorities. At March 31, 2017, the leverage ratio9,[11] was equal to 5.0%, stable compared with the December 31, 2016 ratio. At March 31, 2017, Groupe BPCE's total liquidity reserves[12] stood at 215 billion euros at March 31, 2017, including 61 billion euros in available assets eligible for central bank funding, 69 billion euros in securities eligible for the Liquidity Coverage Ratio (LCR), and 85 billion euros in cash placed with central banks. At March 31, 2017, the total liquidity reserves of Groupe BPCE covered 154% of total short-term funding outstandings and medium-/long-term debt maturing within one year or less (against 158% at December 31, 2016). The LCR remained in excess of 110% at March 31, 2017. 2.4 A wholesale medium-/long-term funding plan for 2017 already 60% completed as at April 30, 2017 Groupe BPCE's ability to access major debt markets allowed it to raise medium-/long-term (MLT) resources for an aggregate total of 11.9 billion euros at April 30, 2017, equal to 60% of the 2017 program (20 billion euros). This total includes an issue of 1.85 billion dollars raised in a pre-funding operation for 2017, completed on November 29, 2016. The average maturity at issue stands at 8.6 years and the average interest rate is equal to mid-swap +32 basis points. During this period, 58% of MLT funding was completed in the form of public bond issues and 42% in the form of private placements. The 11.9 billion euros raised as at April 30, 2017 can be broken down as follows: During this period, Groupe BPCE continued to raise substantial funds thanks to the considerably broad diversification of its investor base. As a result, 54% of the bonds issued in the unsecured segment were placed in currencies other than the euro (notably 34% in US dollars and 15% in Japanese yen). 3. RESULTS[13] OF THE BUSINESS LINES: EXCELLENT LEVEL OF ACTIVITY ACHIEVED BY THE BUSINESS LINES The contribution of the business lines to the results of Groupe BPCE in the first quarter of 2017 can be broken down as follows (excluding the Corporate center division): The Retail Banking division groups together the activities pursued by the Banque Populaire and Caisse d'Epargne retail banking networks, the Specialized Financial Services of Natixis and the activities of the Other networks comprised of Crédit Foncier, Banque Palatine and BPCE International. The Retail Banking division maintained strong commercial momentum in the first quarter of 2017. With new loan production in excess of 33 billion euros in the first quarter of this year, the result of strong growth in all business segments, the Retail Banking division is playing an active role in financing the French economy: increase in home loans and equipment loans of 86% and 35% respectively and 22% growth in consumer loans. Loan outstandings enjoy regular growth, reaching an aggregate total of 521 billion euros at March 31, 2017, equal to growth of 4.5% since March 31, 2016. Total deposits & savings of the Retail Banking division came to 672 billion euros at March 31, 2017, up 2.0% since March 31, 2016 (representing an increase of more than 13 billion euros). This growth is largely the result of an increase in on-balance sheet deposits & savings driven, in particular, by strong growth in demand deposits (+13.7%). Synergies between the Retail Banking activities and the business lines of Natixis continued to be developed in the first quarter of 2017: Retail Banking: financial results for the first quarter of 2017 The net banking income of the Retail Banking division came to 4,122 million euros (excluding changes in provisions for home purchase savings schemes) in the first quarter of 2017, representing a marginal decline of 0.8% over the previous 12-month period. The environment characterized by historically low interest rates continued to depress net interest income. Commissions have risen, buoyed up by growth in the customer base and by the wider use of banking products and services, as have commissions related to payment processing. Commissions related to early loan redemption also enjoyed substantial growth during the first quarter of the year. Operating expenses (excluding exceptional items[14]) came to 2,814 million euros for the first quarter of 2017, marginally down compared with the first quarter of 2016 (-0.5%). Gross operating income (excluding exceptional items) remained virtually unchanged (-0.1%) in the first quarter of 2017 and stands at 1,295 million euros. The cost of risk, which reached 304 million euros in the first quarter of 2017, has risen by 8.3% compared with the first quarter of 2016 (this increase is chiefly due to BPCE International while the cost of risk has declined in the Banque Populaire and Caisse d'Epargne retail banking networks). The contribution of the Retail Banking division to the Group's income before tax (excluding exceptional items) came to 1,003 million euros in the first quarter of 2017, down 4.0% compared with the same period in 2016. Restated to reflect the impact of IFRIC 21 and excluding exceptional items, income before tax stood at 1,125 million euros in the first quarter of 2017, translating a decline of 4.1% compared with the first quarter of 2016, while the cost/income ratio rose marginally (+0.1 percentage point) to 65.5%. If account is taken of exceptional items and the restatement of the impact of IFRIC 21 is cancelled, published income before tax came to a total of 973 million euros in the first quarter of 2017, down by 5.4% compared with the first quarter of 2016. 3.1.1 Banque Populaire: net banking income driven by the dynamism of commissions The Banque Populaire network comprises the 15 Banque Populaire banks, including CASDEN Banque Populaire and Crédit Coopératif and their subsidiaries, Crédit Maritime Mutuel and the Mutual Guarantee Companies. The Banque Populaire retail banking network expanded its customer base in the first quarter of 2017 with a 20% increase in the number of new relationships forged with individual customers (+137,000 customers). The Banque Populaire network pursued its strategy of increasing the delivery of banking services and products to its customers resulting, at the end of March 2017, in 2.6% year-on-year growth in the number of principal active customers aged 25 or more using banking services (or +84,300 customers including +78,000 customers using banking services). Loan outstandings came to 187 billion euros at the end of March 2017, representing 7.1% growth compared to March 31, 2016. Deposits & savings stood at 246 billion euros at March 31, 2017, equal to growth of 4.3% compared with March 31, 2016.                             Insurance activities continued to grow with a year-on-year increase in the portfolio of 10.0% for P&C/non-life insurance and of 8.3% for provident and health insurance. Net banking income stood at 1,614 million euros in the first quarter of 2017 (excluding changes in provisions for home purchase savings schemes), up 1.3% compared with the first quarter of 2016. This progress is the result, in particular, of an 8.3% decrease in customer net interest income (excluding changes in provisions for home purchase savings schemes), a substantial increase in early loan redemption fees (+61.4%), and a 6.3% rise in other commissions. Operating expenses (excluding exceptional items), which came to 1,107 million euros in the first quarter of 2017, are marginally down (-0.1%) compared with the same period in 2016. Gross operating income (excluding exceptional items) stood at 499 million euros in the first quarter of 2017, up 5.2% compared with the first quarter of last year. The cost of risk, which amounted to 105 million euros in the first quarter of 2017, enjoyed a significant drop of 19.9% compared with the first quarter of 2016. Income before tax (excluding exceptional items) came to 404 million euros in the first quarter of 2017, equal to growth of 8.5% compared with the first quarter of 2016. Restated to reflect the impact of IFRIC 21 and excluding exceptional items, income before tax stands at 449 million euros, up 7.3%, and the cost/income ratio declined by 1.0 percentage point to 66.1% in the first quarter of 2017. After taking account of exceptional items and the cancellation of the restatement of the impact of IFRIC 21, published income before tax came to 393 million euros in the first quarter of 2017, up 7.2% compared with the first quarter of 2016. 3.1.2 Caisse d'Epargne: commercial activities buoyed up by new customer influx and the take-up of banking services, leading to growth in commissions In the first quarter of 2017, the Caisse d'Epargne network comprised the 17 individual Caisses d'Epargne along with their subsidiaries. The Caisse d'Epargne Hauts de France, created from the merger between the Caisse d'Epargne Picardie and the Caisse d'Epargne Nord France Europe on May 1st, 2017, takes to 16 the number of Caisses d'Epargne as of this date. The strategy consisting in delivering banking services to the individual customers of the Caisse d'Epargne retail banking network continued during the first quarter of 2017 and led to 2.3% growth in the number of principal active customers aged 25 or more, i.e. 120,500 additional customers (of which 102,000 customers using banking services). In the professional customers market segment, the strategy aimed at attracting new customers made it possible to increase the number of active customers by 7.0% (+12,500 clients in the space of a year). In the corporate customer segment, the number of active customers increased by 8.7% (+1,400 customers). Loan outstandings stood at 240 billion euros at March 31, 2017, up 6.2% compared with March 31, 2016. Deposits & savings came to 404 billion euros at March 31, 2017. This figure represents a 1.1% increase over their level at March 31, 2016. The Caisse d'Epargne retail banking network saw significant expansion in its insurance activities, leading to 6.9% growth in its portfolio of P&C/non-life insurance contracts and 11.6% growth in provident and health insurance cover. Net banking income stood at 1,820 million euros in the first quarter of 2017 (excluding changes in provisions for home purchase savings schemes), down 2.9% compared with the first quarter of 2016. This change is the result, in particular, of a 10.5% reduction in customer net interest income (excluding changes in provisions for home purchase savings schemes), a significant rise in early loan redemption fees (+50.6%) and a 2.5% increase in other commissions. Operating expenses (excluding exceptional items) came to a total of 1,222 million euros in the first quarter of 2017, down 1.7% compared with the same period in 2016. Gross operating income (excluding exceptional items) stood at 594 million euros in the first quarter of 2017, down 2.6% compared with the first quarter of 2016. The cost of risk, which came to 81 million euros for the first quarter of 2017, is 4.5% lower than in the first quarter of 2016. Income before tax (excluding exceptional items) amounted to 513 million euros in the first quarter of 2017, down 2.0% on a year-on-year basis. When restated to reflect the impact of IFRIC 21 and excluding exceptional items, income before tax for the quarter stands at 564 million euros, down 2.2%, and the cost/income ratio is up by a 0.3 percentage point, at 64.5% for the first quarter of the year. After accounting for exceptional items and cancelling restatements made to account for the impact of IFRIC 21, published income before tax comes to 495 million euros for the first quarter of 2017, down 3.5% compared with the same period in 2016. 3.1.3 Specialized Financial Services: net banking income stands up well The Specialized Financial Services (SFS) division of Natixis includes eight activities organized within two business lines: Specialized financing (factoring, sureties & financial guarantees, consumer finance, lease financing, film industry financing) and Financial services (employee savings plans, payments, securities services). Net banking income stood at 344 million euros in the first quarter of 2017, virtually unchanged (+0.4%) compared with the first quarter of 2016. More particularly, the net banking income generated by the Specialized financing business line achieved year-on-year growth of 2% driven by Consumer finance (+2%), Factoring (+4%) and Lease financing (+5%). Operating expenses amounted to 231 million euros in the first quarter of 2017, up 2.7% compared with the first quarter of 2016. This increase is due to the inclusion of Groupe BPCE's payment structures within Natixis. Gross operating income came to 113 million euros in the first quarter of 2017, down 4.0% compared with the first quarter of 2016. The cost of risk, which came to 21 million euros for the first quarter of 2017, increased by a significant 65.9% versus the same period in 2016. This deterioration is chiefly due to the Lease financing activity (unfavorable basis of comparison) and the Consumer finance business (migration toward a new recovery system). Return to normal is expected in the second quarter of 2017. Income before tax amounted to 92 million euros in the first quarter of 2017, down 12.5% over a 12-month period. Restated to account for the impact of IFRIC 21, income before tax for the quarter stands at 99 million euros, representing a decline of 12.6%, while the cost/income ratio increases by a 1.8 percentage point to 65.2% for the first quarter of 2017. Figures specifying the contribution to Groupe BPCE are different from those published by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com. The Other networks business line is chiefly comprised of the activities pursued by Crédit Foncier, Banque Palatine, and BPCE International. Crédit Foncier is the principal entity contributing to the Real estate Financing business line. Aggregate new loan production remained at a good level, comparable to that of the 4th quarter of 2016, with 3.2 billion euros in the first quarter of 2017 versus 2.1 billion euros in the same period last year. Home loans granted to individual customers accounted for 2.4 billion euros in the aggregate new loan production figure. At the same time, and chiefly owing to the high rate of early loan redemptions noted over the past nine months, Crédit Foncier has experienced a gradual decline in its loan outstandings position. As a result, loan outstandings stood at 80.7 billion euros at March 31, 2017 against 84.6 billion euros at March 31, 2016. Against a background of low interest rates and more intense competition, the contribution made by Crédit Foncier to the Group's income before tax has declined, falling from 39 million euros in the first quarter of 2016 (pro forma) to 12 million euros in the first quarter of this year. This downward trend should be viewed in the light of a 10.7% decline in net banking income as a result of early loan redemption and the booking in the first quarter of 2017 of a provision related to a retirement forecasting agreement; indeed, within the framework of a new operational efficiency plan, five agreements were signed at the beginning of the year with trade union organizations. Crédit Foncier is also pursuing its policy aimed at substantially cutting its costs. As a result, operating expenses - restated to account for the provision booked regarding the retirement forecasting agreement - declined by almost 7% in the first quarter of 2017. The average loan outstandings position has increased to stand at 8.6 billion euros (against 8.2 billion euros in the first quarter of 2016). In line with the policy to manage the cost of resources, the average level of deposits & savings has declined to 16.6 billion euros (against 17.7 billion euros in the first quarter of 2016). The contribution made by Banque Palatine to the Group's income before tax came to 18 million euros in the first quarter of 2017 against 14 million euros in the same period of 2016 on a pro forma basis. This increase is related to an improvement in the cost of risk; the net banking income and operating expenses, for their part, remain stable overall. BPCE International represents all the international subsidiaries of Groupe BPCE, with the exception of Natixis. Aggregate loan outstandings stand at 5.5 billion euros (against 5.8 billion euros in the first quarter of 2016). Deposits & savings amount to 5.0 billion euros (against 5.3 billion euros in the first quarter of 2016). The contribution of BPCE International to the Group's income before tax was negative in the first quarter of 2017 at -37 million euros. This sharp decline is due to the booking of additional provisions on loan portfolios in Tunisia. 3.2 Investment Solutions: continued strong momentum enjoyed by Insurance activities and return to positive inflows in the USA The Investment Solutions business line includes the Asset management, Private banking and Insurance activities. Net banking income came to 891 million euros in the first quarter of 2017, up 8.1% compared with the first quarter of 2016. This sharp recovery can be explained by the strong momentum achieved by Asset management activities in Europe and by Insurance. Operating expenses (excluding exceptional items) came to 625 million euros in the first quarter of 2017, up 5.9% compared with the same period in 2016. Gross operating income (excluding exceptional items) stood at 266 million euros in the first quarter of 2017, up 13.6% compared with the same period in 2016. The cost of risk is zero, as in the first quarter of 2016. Income before tax (excluding exceptional items) stood at 280 million euros in the first quarter of 2017, up 8.4% year-on-year. If exceptional items are excluded, and after restating to account for the impact of IFRIC 21, income before tax came to 294 million euros in the first quarter of 2017, up 9.1% over the 12-month period, and the cost/income ratio improved by 1.6 percentage points, to 68.6% in the first quarter of 2017. After cancelling restatements made to account for the impact of IFRIC 21 and exceptional items, the quarter's published income before tax stands at 259 million euros, up 0.6%. Figures specifying the contribution to Groupe BPCE are different from those published by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com. The Corporate & Investment Banking division includes the Global markets and Global finance & Investment banking activities of Natixis. Net banking income rose 25.9% in the first quarter of 2017 to reach a total of 984 million euros. If the CVA/DVA desk is excluded, net banking income rose by 20% on a year-on-year basis driven in particular, by the increased contribution from the international platforms. Operating expenses came to 563 million euros in the first quarter of 2017, up 10.0% compared with the first quarter of 2016. The increase in fixed costs is limited to 4%. Gross operating income amounted to 421 million euros in the first quarter of 2017, up 56.1% compared with the first quarter of 2016. The cost of risk, which stood at 29 million euros for the first quarter of 2017, has declined by a total of 58.9% compared with the first quarter of 2016. Income before tax stood at 394 million euros in the first quarter of 2017. It has almost doubled in the space of one year (+95.4%). When restated to account for the impact of IFRIC 21, the income before tax for the quarter comes to 422 million euros, equal to growth of 81.4%, while the cost/income ratio improved by 7.1 percentage points, to 54.4%, for the first quarter of 2017. Figures specifying the contribution to Groupe BPCE are different from those published by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com. Q1-16 results are presented pro forma (cf. notes on methodology at the end of this press release) For further details about the financial results for the first quarter 2017, please consult the Investors/Results section of the corporate website www.groupebpce.fr The quarterly financial statements of Groupe BPCE for the period ended March 31, 2017 approved by the Management Board at a meeting convened on May 2, 2017, were verified and reviewed by the Supervisory Board at a meeting convened on May 9, 2017. The financial results contained in this presentation have not been reviewed by the statutory auditors. Presentation of 2016 pro-forma quarterly results The segment information was modified as of Q1-17, with the creation of the Retail Banking division, which includes the Banque Populaire and Caisse d'Epargne retail banking networks, the Specialized Financial Services division of Natixis and the Other networks division (Crédit Foncier, Banque Palatine and BPCE International). The SFS division includes two business lines: Specialized financing (factoring, sureties & financial guarantees, lease financing, consumer finance) and Financial services (payments, employee savings plans, and securities services), which are central to the Group's retail banking networks and at the service of their continuing growth. The minority equity interest in CNP Assurances, consolidated using the equity method and previously included for reporting purposes within the Commercial Banking & Insurance division, has been transferred to the Corporate center division. The IFRS 9 standard adopted in November 2016 permits the early adoption - starting with the financial year ended on Dec. 31, 2016 - of regulatory provisions governing the bank's own credit risk, to the effect that all changes will henceforth be recorded in shareholders' equity and no longer as previously in the income statement. The first three quarters of 2016 have been restated accordingly. When the Q1-16 results were published, the amount recognized as the Group's contribution to the Single Resolution Fund was based on an estimate. Following notification of the actual amount of the contribution in Q2-16, the amount of the SRF recognized in Q1-16 has been readjusted. Non-economic and exceptional items The non-economic and exceptional items and the reconciliation of the restated income statement with the income statement published by Groupe BPCE are specified in the table above. The Group has launched a number of transformation operations helping to simplify its organizational structure and to generate synergies. The resulting transformation costs (restructuring expenses specific to projects for the combination/merger of entities and the migration to existing IT platforms) have been isolated on a retrospective basis as of Q2-16. Restatement of the impact of IFRIC 21 The results, cost/income ratios and ROE, after being restated to account for the impact of IFRIC 21, are calculated on the basis of 1/4 of the amount of taxes and contributions resulting from the interpretation of IFRIC 21 for a given quarter, or 1/2 of the amount of taxes and contributions resulting from the interpretation of IFRIC 21 for a 6-month period. In practice, for Groupe BPCE, the principal taxes concerned by IFRIC 21 are the company social solidarity contribution (C3S) and contributions and levies of a regulatory nature (systemic risk tax levied on banking institutions, contribution to ACPR control costs, contribution to the Single Resolution Fund and to the Single Supervisory Mechanism). Net banking income Net customer interest income, excluding regulated home savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products (Livret A, Livret Développement Durable, Livret Epargne Logement passbook savings accounts) in addition to changes in provisions for regulated home purchase savings schemes. Net interest on centralized savings are assimilated to commissions. Operating expenses The operating expenses correspond to the aggregate total of the "Operating Expenses" (as presented in the Group's registration document, note 6.6 appended to the consolidated financial statements of Groupe BPCE) and "Depreciation, amortization and impairment for property, plant and equipment and intangible assets." Cost of risk The cost of risk is expressed in basis points and measures the level of risk per business line as a percentage of the volume of loan outstandings; it is calculated by comparing net provisions booked with respect to credit risks of the period to gross customer loan outstandings at the beginning of the period. Business line performance presented using Basel 3 standards The accounting ROE of Groupe BPCE, is the ratio between the following items: Net income attributable to equity holders of the parent restated to account for the interest expense related to deeply subordinated notes classified as equity and for non-economic and exceptional items Equity attributable to equity holders of the parent restated to account for the deeply subordinated notes classified as equity and for unrealized gains and losses The normative ROE of the business lines (Retail Banking; Investment Solutions and Corporate & Investment Banking), is the ratio between the following items: Business line contributory net income attributable to equity holders of the parent, less interest (computed at the standard rate of 3%) paid on surplus equity compared with normative capital and restated to account for non-economic and exceptional items Normative capital adjusted to reflect goodwill and intangible assets related to the business line Normative capital is allocated to Groupe BPCE business lines on the basis of 10% of Basel-3 average risk-weighted assets. Capital adequacy Common Equity Tier 1 is determined in accordance with the applicable CRR/CRD IV rules; fully-loaded equity is presented without the application of transitional measures, except for the restatement of deferred tax assets (DTA) on tax loss carryforwards and pro forma of the additional phase-in of the stock of DTA in accordance with regulation 2016/445. Additional Tier-1 capital takes account of subordinated debt issues that have become non-eligible and subject to ceilings at the phase-out rate in force. The leverage ratio is calculated using the rules of the Delegated Act published by the European Commission on October 10, 2014, without transitional measures, after restating to account for deferred tax assets on tax loss carryforwards. Securities financing operations carried out with clearing houses are offset on the basis of the criteria set forth in IAS 32, without consideration of maturity and currency criteria. Account has been taken in the total leverage exposure of savings deposits centralized with the Caisse des Dépôts et Consignations since Q1-16. Total loss-absorbing capacity The amount of liabilities eligible for inclusion in the numerator used to calculate the Total Loss-Absorbing Capacity (TLAC) ratio is determined on the basis of our understanding of the Term Sheet published by the FSB on November 9, 2015: "Principles on Loss-Absorbing and Recapitalization Capacity of G-SIBs in Resolution." This amount is comprised of the following 4 items: >Common Equity Tier 1 in accordance with the applicable CRR/CRD IV rules, >Additional Tier-1 capital in accordance with the applicable CRR/CRD IV rules, >Tier-2 capital in accordance with the applicable CRR/CRD IV rules, >Subordinated liabilities not recognized in the capital mentioned above and whose residual maturity is greater than 1 year, namely: Eligible amounts differ slightly from the amounts adopted for the numerator of the capital adequacy ratios; these eligible amounts are determined using the principles defined in the Term Sheet published by the FSB on November 9, 2015. Liquidity Total liquidity reserves include: >Central bank-eligible assets include: ECB-eligible securities not eligible for the LCR, taken for their ECB valuation (after ECB haircut), securities retained (securitization and covered bonds) that are available and ECB-eligible taken for their ECB valuation (after ECB haircut) and private receivables available and eligible for central bank funding (ECB and Federal Reserve), net of central bank funding. >LCR eligible assets comprising the Group's LCR reserve taken for their LCR valuation. >Liquid assets placed with central banks (ECB and the Federal Reserve), net of US Money Market Funds deposits and to which fiduciary money is added. Short-term funding corresponds to funding with an initial maturity of less than or equal to 1 year, and the short-term maturities of medium-/long-term debt correspond to debt with an initial maturity date of more than 1 year maturing within the next 12 months. The Group's LTD ratio (customer loan-to-deposit ratio) is the ratio between customer loans and centralized regulated passbook savings accounts in the numerator, and customer deposits in the denominator. The scope of the calculation excludes SCF (Compagnie de Financement Foncier, the Group's société de crédit foncier, a French covered bond issuer). These items are taken from the Group's accounting balance sheet after accounting for the insurance entities using the equity method. Customers' deposits are subject to the following adjustments: >Addition of security issues placed by the Banque Populaire and Caisse d'Epargne retail banking networks with their customers, and certain operations carried out with counterparties comparable to customer deposits >Withdrawal of short-term deposits held by certain financial customers collected by Natixis in pursuit of its intermediation activities. Loan outstandings and deposits & savings Restatements regarding transitions from book outstandings to outstandings under management (loans and deposits & savings) are as follows: >Deposits & savings: the scope of outstandings under management excludes debt securities (certificates of deposit and savings bonds) >Loan outstandings: the scope of outstandings under management excludes securities classified as customer loans and receivables and other securities classified as financial operations. About Groupe BPCE Groupe BPCE, the 2nd-largest banking group in France, includes two independent and complementary cooperative commercial banking networks: the network of 15 Banque Populaire banks and the network of 16 Caisses d'Epargne. It also works through Crédit Foncier in the area of real estate financing. It is a major player in Investment Solutions & Insurance, Corporate & Investment Banking and Specialized Financial Services with Natixis. Groupe BPCE, with its 108,000 employees, serves a total of 31.2 million customers and enjoys a strong local presence in France with 8,000 branches and 9 million cooperative shareholders. [1] Q1-16 pro forma (cf. the note on methodology at the end of this press release) ; unless specified to the contrary, all changes use the same reference base of March 31, 2016 [2] Excluding non-economic and exceptional items and after restating to account for the impact of IFRIC 21 [3] Entities included: CNP Assurances, Natixis Assurances, Prépar vie (gross inflows from the Banque Populaire and Caisse d'Epargne retail banking networks) [5] Estimate at March 31, 2017 - CRR/CRD  IV without transitional measures (except for deferred tax assets on tax loss carryforwards); additional Tier-1 capital takes account of subordinated debt issues that have become ineligible and capped at the phase-out rate in force [6] Q1-16 pro forma (cf. the note on methodology at the end of this press release) ; unless specified to the contrary, all changes use the same reference base of March 31, 2016 [7] Excluding non-economic and exceptional items (presented at the end of this press release) [8] Cost of risk expressed in annualized basis points on gross customer outstandings at the beginning of the period [9] CRR/CRD IV without transitional measures (except for deferred tax assets on tax loss carryforwards - pro forma of the additional phase-in of the stock of DTA in accordance with regulation 2016/445 for periods prior to December 31, 2016); additional Tier-1 capital takes account of subordinated debt issues that have become ineligible and capped at the phase-out rate in force [10] According to the term sheet published by the Financial Stability Board on the "Total Loss-Absorbing Capacity" dated November 9, 2015 [11] Estimate at March 31, 2017 calculated using the rules of the Delegated Act published by the European Commission on October 10, 2014 [13] Q1-16 pro forma (cf. the note on methodology at the end of this press release); unless specified to the contrary, all changes use the same reference base of March 31, 2016 [14] The exceptional items correspond to transformation costs (cf. Notes on methodology at the end of this press release)


News Article | May 11, 2017
Site: globenewswire.com

Q1-2017: Net income up sharply for both Crédit Agricole Group and Crédit Agricole S.A., strong commercial momentum in all business lines This press release comments on the results of Crédit Agricole S.A. and those of Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 56.6% of Crédit Agricole S.A. In line with previous quarters, the Group's results for the first quarter of 2017 reflect strong business momentum in all components of Crédit Agricole Group, including the retail banks, specialised business lines and Large customers. Operating expenses remain well controlled, despite investment in business development, and the cost of credit risk remains low. The Group's profitability was therefore excellent, with stated net income Group share of 1,600 million euros and underlying[4] net income Group share of 1,654 million euros, excluding this quarter's specific items. The fully-loaded Common Equity Tier 1 ratio at end-March 2017 was stable compared with end-2016 at 14.5%, among the best in the sector and well above the regulatory requirements[5]. In line with its "Strategic Ambition 2020" medium-term plan (MTP), the Group is capitalising on its stable, diversified and profitable business model to support organic growth in all its business lines, largely through synergies between the specialised business lines and the retail networks, and to maintain a high level of operating efficiency while generating capacity to invest in business development. As announced at the end of 2016 at the time of Amundi's proposed acquisition of Pioneer Investments, the Group's asset management company completed its 1.4 billion euros rights issue at the end of March 2017. Crédit Agricole Group sold some of its subscription rights to reduce its percentage interest in Amundi from 75.7% to 70%, including 68.5% held by Crédit Agricole S.A. (74.1% previously). However, Amundi's first quarter results were consolidated at the old percentage interest, as the rights were not sold until the very end of the quarter. Liquidity in Amundi shares has improved significantly as a result of the rights issue and the broader free float arising from the reduction in Crédit Agricole Group's percentage interest. It should be noted that the value of the Group's holding in Amundi has increased significantly since the rights issue, despite the dilution of its percentage interest, and is well above the amount invested by the Group in this transaction. The closing of the acquisition of Pioneer Investments should occur late in the first half of 2017, or perhaps early in the second, and is expected to have a impact of -35 basis points on Crédit Agricole Group's fully-loaded CET1 ratio (-60 basis points for Crédit Agricole S.A.). The Group also announced in a press release issued on 24 April 2017 that it is in preliminary discussions with the Bank of Italy and the Italian Interbank Deposit Protection Fund with a view to the acquisition of three Italian savings banks. Their integration by Crédit Agricole Cariparma SpA would increase its customer base by about 20% and contribute to its expansion in some attractive regions of Italy without changing its geographical positioning, as these banks operate in neighbouring areas. All of the doubtful loans carried on their balance sheets would be derecognised prior to the integration. This transaction forms part of the Group's aim of strengthening its position in Italy, in line with Strategic Ambition 2020 and with the Group's strict rules as regards return on investment and risk profile of new acquisitions. It is subject to a positive outcome of the due diligence process, which is due to begin soon. Based on information available to date, the acquisition would have a negative impact of less than 10 basis points on the fully-loaded CET1 ratio for both Crédit Agricole Group and Crédit Agricole S.A. In the first quarter of 2017, Crédit Agricole Group's stated net income Group share came to 1,600 million euros versus 818 million euros in the first quarter of 2016. Excluding specific items[6] of -54 million euros in the first quarter of 2017 versus -423 million euros in the first quarter of 2016, underlying net income Group share6 came to 1,654 million euros, compared with 1,241 million euros in the first quarter of 2016, a year-on-year increase of +33.3%. Specific items6 this quarter included only the usual volatile accounting items: revaluation of own debt in line with changes in issuer spread (-7 million euros in net income Group share compared with +16 million euros in the first quarter of 2016), DVA (Debt Valuation Adjustment, -31 million euros versus +9 million euros) and loan portfolio hedges in Large customers (-16 million euros versus 0). In the first quarter of 2016, specific items6 also included the balance of the liability management operation completed ahead of the operation to simplify the Group's structure ("Eureka") for an amount of -448 million euros in net income Group share. Specific items therefore totalled -54 million euros in the first quarter of 2017 versus -423 million euros in the first quarter of 2016. In the first quarter, underlying revenues6 were up +6.7% year on year 8,334 million euros, thanks to a positive contribution to growth from all business lines. The Regional Banks' revenues were up excluding the impacts of the Group's transaction to simplify its structure last year (negative impact of -174 million euros before tax). Despite an increase in eurozone long rates since the fourth quarter of 2016, bringing them up to their highest level since the first quarter of 2016, they nonetheless remain low and the short end of the curve is still in negative territory. These low interest rates continued to put pressure on the interest margin on intermediation activities, particularly in Retail banking in France and Italy. This triggered a wave of home loan renegotiations in France, which even escalated with the increase in rates as of November, culminating in a record level of monthly renegotiations in January 2017 (2.1 billion euros for LCL that month for example). These renegotiations were accompanied by high volumes of loan restructuring fees or early repayment penalties, which had a temporary positive effect on retail banking revenues in France, but the impact of the renegotiations will continue to depress interest interest over the coming quarters. Alongside this increase in revenues, operating expenses remained well controlled at 5,480 million euros, a year-on-year increase of +2.2% and +1.6% excluding the contribution to the Single Resolution Fund (SRF), which increased by +14.8% to 274 million euros. It should be noted that in 2016, an additional SRF contribution was recognised in the second quarter. Operating expenses did not include any specific items[7] in the first quarter either of 2017 or 2016 This led to a highly positive jaws effect between underlying7 revenues and operating expenses and the underlying7 cost/income ratio excluding SRF therefore improved by more than 3 percentage points (3.1) to 62.5% versus 65.6% in the first quarter of 2016. Underlying gross operating income7 also increased significantly, by +16.5% year-on-year to 2,855 million euros. Cost of credit risk decreased by 13.7% at 478 million euros versus 554 million euros in the first quarter of 2016. As in previous quarters, cost of risk relative to outstandings remained low at 26 basis points[8]. In addition to cost of credit risk, a non-specific provision for legal risk of 40 million euros was recognised this quarter in the financial statements of CACIB (Large customers). The sharp increase in the contribution from equity-accounted entities (+72.5% to 218 million euros) offset the absence of gains on other assets this quarter, compared with a gain of 25 million euros in the first quarter of 2016. Underlying7 pre-tax income increased by +24.8% year-on-year. Underlying7 net income Group share increased even more, by +33.3% to 1,654 million euros, due to the gain on disposal of Credicom in Greece (15 million euros after tax), a decrease in the underlying7 effective tax rate from 37.2% in the first quarter of 2016 to 35.2% this quarter, and stable non-controlling interests. The Regional Banks continued to enjoy buoyant business momentum both in lending (+5.3% at end-March 2017 versus end-March 2016) and deposits (+4.6%). Growth in home loans (+7.6%) accelerated further compared with the growth rate at end-December 2016, as did growth in demand deposits (+17.6%), while consumer finance outstandings were up sharply (+9.1% year-on-year). Lastly, the strong momentum in personal and property insurance continued apace. This commercial performance of the Regional Banks made a significant contribution to growth in Crédit Agricole S.A.'s business lines, many of whose products they distribute as the Group's leading distribution channel. The year-on-year comparison of the Regional Banks' first quarter revenues were affected by the transaction to simplify the Group's structure ("Eureka"), which took place last year. Stated revenues were down -0.9% year-on-year to 3,529 million euros. Excluding these effects[9] (-174 million euros) and in the absence of any movement in home purchase savings provisions in the first quarter of either 2017 or 2016, underlying7 revenues increased by +3.9%, thanks to growth in both interest income (+1.5%) and fee and commission income (+3.2%) compared with the first quarter of 2016. Operating expenses increased by +3.5% to 2,178 million euros and by +3.4% excluding SRF, giving a cost/income ratio excluding SRF of 61.7%. Cost of risk decreased by -21.4% year-on-year to 116 million euros. In all, the Regional Banks' contribution to Crédit Agricole Group's underlying7 net income Group share was 755 million euros in the first quarter 2017, a year-on-year decrease of -8.6%. Excluding the impacts of the transaction to simplify the Group's structure, net income Group share was up +5.1%. The performance of the other Crédit Agricole Group business lines is described in detail in the section of this press release on Crédit Agricole S.A. During the quarter, Crédit Agricole Group's financial solidity remained strong, with a fully-loaded Common Equity Tier 1 (CET1) ratio of 14.5%, stable compared with end-December 2016. This ratio provides a substantial buffer above the distribution restriction trigger applicable to Crédit Agricole Group as of 1 January 2019, set at 9.5% by the ECB. The impact of the consolidation of Pioneer Investments is estimated at -35 basis points, as of mid-2017. The TLAC ratio was 20.5% at 31 March 2017, excluding eligible senior preferred debt, versus 20.3% at end-December 2016. This level already exceeds the 2019 minimum requirement of 19.5%, whereas the regulatory calculation of this ratio allows for the inclusion of eligible senior preferred debt (up to 2.5%). After the successful inaugural issue of senior non-preferred debt at the very end of 2016, just after the enactment of the law authorising such issues, the Group further strengthened its TLAC ratio by issuing 3.4 billion euros equivalent of senior non-preferred debt in the first four months of the year. The phased-in leverage ratio stood at 5.7%, stable compared with end-December 2016. Credit Agricole Group's liquidity position is robust. Its banking cash balance sheet, at 1,116 billion euros at 31 March 2017, showed a surplus of stable funding over LT applications of funds of 116 billion euros, up by +5 billion euros compared with end-December 2016 and by +2 billion euros compared with the first quarter of 2016. It exceeded the Medium Term Plan target (of over 100 billion euros). The surplus of stable funds financed the HQLA securities portfolio generated by the LCR requirement of customer and customer-related activities.  Liquidity reserves including valuation gains and haircuts related to the securities portfolio amounted to 255 billion euros, covering gross short-term debt almost three times over. Crédit Agricole Group issuers raised 14.1 billion euros equivalent of debt on the market in the first quarter of 2017, of which 52% was raised by Crédit Agricole S.A. (7.3 billion euros), versus just over 33 billion euros for the whole year 2016. Credit Agricole Group also placed 1.3 billion euros of bonds in its retail networks (Regional Banks, LCL and Cariparma). After a particularly active month of April, Crédit Agricole S.A. had issued a total of 11.3 billion euros since the beginning of the year, completing 70% of its 2017 market funding programme. Dominique Lefebvre, Chairman of SAS Rue La Boétie and Chairman of Crédit Agricole S.A.'s Board of Directors, commented the Group's results and activities for the first quarter of 2017: "In the first quarter of 2017, Crédit Agricole Group once again demonstrated the robustness of its Universal customer-focused banking business model and the synergies that could be generated by a customer approach common to the various business lines. This was reflected in strong business momentum and results, which bodes well for the success of our Strategic Ambition 2020 plan." Crédit Agricole S.A.'s Board of Directors, chaired by Dominique Lefebvre, met on 10 May 2017 to examine the financial statements for the first quarter of 2017. In the first quarter of 2017, stated net income Group share came to 845 million euros. Specific items10 for the quarter were limited to an impact of -50 million euros on net income Group share (-81 million euros before tax and non-controlling interests), exclusively due to recurring volatile accounting items (issuer spread, DVA and loan portfolio hedges in Large customers). In the first quarter of 2016, specific items10 had an impact on net income Group share of -167 million euros (-395 million euros before tax and non-controlling interests), mainly reflecting transactions in preparation for the transaction to simplify the Group's structure (non-taxable dividends received from the Regional Banks for +256 million euros and upfront payment of the liability management operation for -683 million euros before tax)10. Excluding specific items10, underlying10 net income Group share for the first quarter of 2017 was 895 million euros, 2.3 times higher than in the first quarter of 2016, which was a low base for comparison, even on an underlying basis10. Underlying10 earnings per share came to 0.27 euros per share, 2.8 times higher than in the first quarter of 2016. It should be noted that, as is the case for each first quarter of the year, net income Group share includes a high level of charges arising from IFRIC 21, which requires annual charges to be recognised in the quarter in which they are due, and not spread across the year. In first quarter of 2017, these charges totalled about 338 million euros before tax, or 317 million euros in net income Group share, including 224 million euros in SRF (228 million euros in 2016 and 192 million euros in the first quarter of 2016). As in previous quarters, these excellent underlying13 results were driven mainly by strong growth in revenues coupled with good cost control and low cost of risk, including a decrease in cost of credit risk, i.e. excluding the non-specific provision for legal risk (40 million euros). Revenue growth was driven by strong business momentum in all Crédit Agricole S.A. Group's business lines and distribution networks, as well as the Regional Banks which distribute their products. This momentum reflects an improvement in economic activity in the Group's core European markets, but above all, the robustness of the Universal customer-focused banking model, which encourages cross-selling between the specialised business lines and the retail banks and between the specialised business lines themselves. Cross-selling is a core component of the "Strategic Ambition 2020" plan and drives the Group's revenue growth. Activity was buoyant in all business lines: Driven by this strong momentum in all business lines, underlying revenues were up +14.0% compared with the first quarter of 2016. Underlying[13] revenues of the business lines (excluding Corporate centre) increased by +10.0%. Good control over operating expenses, which increased by +1.6% or +0.7% excluding SRF[14], generated a strong jaws effect, thereby improving the underlying13 cost/income ratio excluding SRF by more than 8 percentage points (8.3) year-on-year to 62.7%. Cost of credit risk was stable at 399 million euros (versus 402 million euros in the first quarter of 2016), but this quarter it included a non-specific provision for legal risk of 40 million euros. Cost of credit risk therefore decreased by -10.6% to 359 million euros, representing 37 basis points of consolidated outstandings[15] versus 39 basis points in the first quarter of 2016, still below the 50 basis points assumption in the Medium-Term Plan. Thanks to these items and a good contribution from equity-accounted entities, which increased by +75.1% or +92 million euros mainly due to a very high contribution from Eurazeo recognised in Corporate centre and an increase in the contribution from the consumer finance joint ventures, underlying pre-tax income before operations sold and non-controlling interests increased by +85.1% to 1,368 million euros. As a result of more modest growth in underlying[16] tax (effective tax rate of 32.4% versus 38.6% at first quarter 2016) and non-controlling interests, coupled with a 15 million euros gain on the disposal of Credicom in Greece, underlying net income Group share  increased by +126% or 2.3 times compared with the first quarter of 2016. By business line, more than half of the growth in underlying16 revenues (+587 million euros or +14.0%) came from Large customers (+286 million euros or +23.7% and +13.7% excluding xVA), driven by a good commercial performance and a weak base for comparison in the first quarter of 2016. The second largest contributor was Corporate centre (+140 million euros) thanks to the full impact of Eureka (+222 million euros including liability management) compared with the first quarter of 2016, followed by Asset gathering (+72 million euros or +6.1%), Retail banking (+51 million euros or +3.5%) and Specialised financial services (+38 million euros or +5.9%), thanks to their strong business momentum. It should be noted that the increase in LCL's revenues (+69 million euros or +8.2%) benefited from the positive cumulative impacts of home loan renegotiation fees and early repayment penalties (+32 million euros compared with the first quarter of 2016) and the funding cost adjustment (+18 million euros), coupled with strong business momentum (commissions up +3,7% versus first quarter 2016) more than offsetting the persistent negative effects of low interest rates on margins. The weak growth in underlying16 operating expenses (+21 million euros or +0.7% year-on-year excluding SRF) reflects strong cost control in all business lines, the increase being mainly due to sustained business activity in Large customers (+27 million euros or +3.4%) and investment in business development in Asset gathering (+35 million euros or +5.9%) and Specialised financial services (+3 million euros or +1.0%). Operating expenses continued to decline in Retail banking (-31 million euros or -3,0%), particularly at LCL (-26 million euros or -4.1%). Cost of credit risk remained low, down -43 million euros or -10.6% year-on-year, excluding the legal risk provision recognised in Large customers. The main contributors to this decrease were Specialised financial services (-27 million euros or -22.5% year-on-year), International retail banking (-22 million euros or -17.5%) and Large customers (-16 million euros or -12.8%). The cost of risk on outstandings[17] is down for the retail banking in Italy for the nine last quarters, to 87 basis points, and that of Consumer finance (CACF) stands at 134 basis points versus 140 in the first quarter of 2016 and also in the fourth quarter 2016, which was marked by a tightening of the provisioning parameters in support of the restart of the activity in spite of a strengthening of the provisions parameters on Agos. By contrast, cost of risk for LCL has more than doubled to 48 million euros (+26 million euros or +118%), but relative to a very low baseline in the first quarter of 2016 (22 million euros). Compared with the quarterly average in 2016 (46 million euros), cost of risk in the first quarter of 2017 increased by just +6.2%, representing 19 basis points of outstandings17. At end-March 2017, Crédit Agricole S.A.'s capital ratios remained high, with a ratio Common Equity Tier 1 (CET1) ratio of 11.9%, a decrease of -15 basis points compared with end-December 2016. The change over the quarter stemmed from stated net income Group share for the period (+27 basis points), offset by the provision for dividends and the AT1 coupon (-19 basis points), a decrease in unrealised gains on available-for-sale securities (-12 basis points) and other changes (-11 basis points). Risk-weighted assets were down slightly over the quarter to 300 billion euros versus 301 billion euros at 31 December 2016. The phased-in leverage ratio stood at 4.7% at end-March 2017 as defined in the Delegated Act adopted by the European Commission, a decrease of -30 basis points compared with end-December 2016. The LCR ratio for both Credit Agricole S.A. and the Group remained in excess of 110% at end-March 2017. At end-April 2017, Credit Agricole S.A. had completed 70% of its annual medium- to long-term market funding programme of 16 billion euros. It raised 7.9 billion euros equivalent of senior preferred debt and 3.4 billion euros equivalent of senior non-preferred debt. Philippe Brassac, Chief Executive Officer, commented: "The first quarter was in line with 2016 as regards implementation of the "Strategic Ambition 2020" medium-term plan. All Crédit Agricole S.A. group entities enjoyed strong growth in business momentum, which was reflected in a high level of revenues and earnings. This quarter was a successful new milestone in the achievement of our Plan targets." Crédit Agricole Group was the first French bank to obtain certification for its anti-corruption and bribery system. Issued by SGS, this BS 10500 certification is recognition of the Group's determination and the quality of its anti-corruption and bribery programme. It confirms that corruption and bribery risks are properly identified and analysed and that the programme applied by Crédit Agricole is designed to mitigate these various risks by drawing on best international practices. The certification covers all of the Crédit Agricole Group's business lines. It bears witness to the Group's commitment to put compliance and ethics at the heart of its business development. Table 3.             Crédit Agricole Group - Reconciliation between the stated and the underlying results Table 5.             Crédit Agricole S.A. - Reconciliation between the stated and the underlying results The financial information for the first quarter of 2017 for Crédit Agricole S.A. and the Crédit Agricole Group comprises this press release and the attached quarterly financial report and presentation, available at https://www.credit-agricole.com/en/finance/finance/financial-publications. This press release may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of European Regulation 809/2004 of 29 April 2004 (chapter 1, article 2, §10). This information was compiled from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, these assumptions are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly for the calculation of market values and asset impairments. Readers must take all of these risk factors and uncertainties into consideration before making their own judgement. The figures presented for the three-month period ended 31 March 2017 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with prudential regulations currently in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 "Interim Financial Reporting" and has not been audited. N.B. The scope of consolidation of Crédit Agricole S.A. group and Crédit Agricole Group has not changed materially since the filing with the AMF of Crédit Agricole S.A.'s 2016 Registration Document on 21 March 2017 under number D.17-0197 and update A.01 of the 2016 Registration Document containing the regulated information for Crédit Agricole Group. The sum of the values contained in the tables and analyses may differ slightly from the totals due to rounding effects. Unlike publications for previous quarters, the income statements contained in this press release show non-controlling interests with a minus sign such that the line item "net income Group share" is the mathematical addition of the line item "net income" and the line item "non-controlling interests". On 1 January 2017, Calit was transferred from Specialised financial services (Crédit Agricole Leasing & Factoring) to Retail banking in Italy. Historical data have not been restated on a pro forma basis. All our press releases are available at: - www.creditagricole.info [1] Pro forma P2R for 2019 as notified by the ECB [2] See p. 11 for further details on specific items [3] Calculated on an average annualised basis over four rolling quarters [4] See p. 11 for further details on specific items [5] Pro forma P2R for 2019 as notified by the ECB: 9.50% as of 1 January 2019 [6] See p. 11 for further details on Crédit Agricole Group's specific items [7] See p. 11 for further details on Crédit Agricole Group's specific items [9] Impact of operation to simplify the Group's structure (Q1-17 impact unwinding of Switch guarantee - €115m and loan -€59m, making a total of -€174 million euros before tax, deductible at the standard rate in France) [10] See p. 11 for further details on Crédit Agricole S.A.'s specific items [13] See p. 11 for further details on Crédit Agricole S.A.'s specific items [15] Calculated on an average annualised basis over four rolling quarters [16] See p. 11 for further details on Crédit Agricole S.A.'s specific items [17] Calculated on an average annualised basis over four rolling quarters


News Article | May 9, 2017
Site: www.mining-journal.com

North America silver producer Hecla Mining (US:HL) has delivered on expectations for its March quarter production and financial results, though has cast doubt over full-year guidance as industrial action threatens its Lucky Friday mine in Idaho, US. Production across the group was down on both the most recent quarter and the corresponding period last year, though this largely anticipated. Greens Creek (Alaska), Lucky Friday, Casa Berardi (Canada), and San Sebastian (Mexico) yielded 1.93 million ounces of silver along with 14,022oz of gold (Q416: 2.23Moz and 14,415oz); 680,782oz of silver (Q417: 874,019oz); 35,807oz of gold and 8,545oz of silver (Q417: 41,693oz and 9,607oz); and 750,803oz of silver plus 6,284oz (Q417: 860,071oz and 7,042oz), respectively. Total production for the company reached 3.37Moz of silver and 56,113oz of gold for the quarter against 3.98Moz of silver and 63,150oz of gold in the December quarter – a 15% and 11% drop for silver and gold respectively. The falls came as Hecla continued to move forward with development work at all but one of its operations, Lucky Friday, ahead of schedule. The installation of the Woodgrove SRF flotation cells at Greens Creek was expected to conclude this month, which should result in a US$1.5-2.5 million uplift in revenues per annum by upgrading the precious-metal content of the bulk concentrate. The underground development at San Sebastian was reportedly advancing well and was set for first production by year-end. At Casa Berardi, meanwhile, surface exploration continued to build on near-surface mineralisation, which Hecla hopes will add to openpit reserves. Despite the lower production, costs were down at all operations except Casa Berardi – Hecla’s lowest-producing operation – with all-in sustaining silver costs reduced by more than 33% to $7.60/oz (gold was flat). That cost profile helped Hecla to EBITDA of $53.9 million and free cash flow of $16.6 million. "We have started 2017 with strong sales, net income and free cash flow, and our silver margins remain among the top in the industry, driving an increase in cash balances and strengthening our balance sheet," Hecla chief executive Phillips Baker said. “For the remainder of 2017, our focus is on growing reserves and resources, investing in new technologies that will increase productivity, mine life and margins, and advancing the underground at San Sebastian as well as optimising the openpits at Casa Berardi.” Baker’s commentary, however, ended on a sour note, as he sought to brush away ongoing issues with striking workers at Lucky Friday, which has prompted the miner to suspend its full-year guidance estimates. A silver lining to the industrial action has been the opening of a suspension window in which to complete necessary maintenance work. BMO Capital Markets this week said it was factoring in a mid-year resolution to the issue. Shares in Hecla have appreciated in value since the release of the results, up almost 6% mid this week, showing the broader market remains unconcerned by problems at Lucky Friday.


MALVERN, Pa., May 10, 2017 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc. (NYSE:VSH) today introduced a new IHLP® low profile, high current inductor in the 1616 case size that combines a high operating temperature to +155 °C with a low profile of 2 mm for commercial and industrial applications in extreme environments. With a frequency range up to 2 MHz, the Vishay Dale IHLP-1616BZ-51 is optimized for energy storage in DC/DC converters and high current filtering up to the self-resonant frequency (SRF) of the inductor (see table below). Applications include notebooks, desktop PCs, and servers; low profile, high current power supplies, PMICs, and point of load (POL) converters; industrial and telecommunications power systems; and DC/DC converters for distributed power systems and FPGAs. The device released today features high efficiency with typical DCR from 4.0 mΩ to 102.0 mΩ and a wide range of inductance values from 0.10 µH to 4.7 µH. The IHLP-1616BZ-51 provides rated current to 19.0 A and handles high transient current spikes without saturation. Packaged in a 100 % lead (Pb)-free shielded, composite construction with a custom iron alloy that reduces buzz noise to ultra low levels, the inductor offers high resistance to thermal shock, moisture, and mechanical shock. The IHLP-1616BZ-51 is RoHS-compliant, halogen-free, and Vishay Green. Samples and production quantities of the new inductor are available now, with lead times of 10 weeks for large orders. Vishay Intertechnology, Inc., a Fortune 1000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs, and infrared optoelectronics) and passive electronic components (resistors, inductors, and capacitors). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, power supplies, and medical markets. Vishay’s product innovations, successful acquisition strategy, and "one-stop shop" service have made it a global industry leader. Vishay can be found on the Internet at www.vishay.com. Share it on Twitter: http://twitter.com/intent/tweet?text=.@vishayindust IHLP inductor offers high temperature performance for commercial applications - https://goo.gl/TMosgq


News Article | May 9, 2017
Site: globenewswire.com

STRONG GROWTH IN REVENUES TO OVER €2.3bn (+14%) and 40% ADVANCE IN REPORTED NET INCOME TO €280m INVESTMENT SOLUTIONS: BRISK activitY IN INsurance AND REBOUND IN asset management inflow SFS: Net revenues stable over one year to €344m (1) Excluding exceptional items and the IFRIC 21 impact for ROE, ROTE and earnings capacity calculations (2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on loss carry-forwards. End-2016 ratio, pro forma of 20% additional phase-in of DTAs scheduled for January 1, 2017 The Board of Directors approved Natixis' accounts for first-quarter 2017 on May 9, 2017. The marked rebound in net revenues in the Investment Solutions (+8% relative to 1Q16) was fueled by Asset Management in Europe and solid growth momentum in Insurance. The robust growth in net revenues from Corporate & Investment Banking (+26% relative to 1Q16) was mainly driven by fine performances by international platforms in Global markets. Within Specialized Financial Services, Consumer Credit and Factoring both made further progress, underpinned by the Groupe BPCE networks. Laurent Mignon, Natixis Chief Executive Officer, said: "Natixis enjoyed a very good first quarter, fueled by strong momentum in our core businesses - particularly in Corporate & Investment Banking and Investment Solutions - tight control over expenses and lower provisions. Activity levels in Global markets were especially high and our Asset Management business also attracted renewed net inflow in the USA. The first quarter 2017 was perfectly consistent with the objectives of our New Frontier plan, namely improved profitability in core businesses, tight control of risk-weighted assets, a strong contribution from international platforms and sustained growth in Insurance". Unless stated otherwise, the commentary that follows refers to results excluding exceptional items (see detail p3). Core businesses lifted net revenues by 14% yoy to €2.219bn. This total was buoyed by a 26% advance in net revenues from Corporate & Investment Banking and a marked upturn in revenues (+8% yoy) from Investment Solutions. Specialized Financial Services resisted well overall and posted stable net revenues compared to 1Q16. Net revenues from Financial Investments amounted to €153m and reflected declines of 16% from Coface and 30% from Corporate Data Solutions (the withdrawal strategy continues on the latter). Operating expenses rose 9% yoy to €1.743bn in 1Q17, affected by an increase in the estimated contribution to the Single Resolution Fund (SRF) to €128m in 1Q17 from €79m in 1Q16. After restating for the impact of the SRF, expenses rose by only 6%. The cost-income ratio excluding IFRIC 21 worked out to 67.9% in 1Q17, down 4.0pps yoy. With revenues rising faster than expenses, gross operating income climbed 29% to €615m in 1Q17. The provision for credit loss declined 20% yoy to €70m for Natixis in 1Q17 and 59% for CIB during the same period.  In terms of basis points of the loan book, the core-business provision for credit loss worked out to 24bps in 1Q17, markedly lower than the 1Q16 level which was affected by provisioning efforts on the energy and commodities sectors. The 18% decline in minority interests relative to 1Q16 was primarily due to Coface's lower contribution. Restated net income (group share), excluding IFRIC 21 and exceptional items, amounted to €436m in 1Q17, up 40% yoy. Including exceptional items (-€26m net of tax in 1Q17 vs. -€13m in 1Q16) and the IFRIC 21 impact (+€130m in 1Q17 vs. +€98m in 1Q16), net income (group share) worked out to €280m in 1Q17, a 40% improvement on a year earlier. Excluding IFRIC 21, Natixis' ROTE equated to 12.5% and core-business ROE amounted to 15.9%, up 340bps and 380bps, respectively, relative to 1Q16. Natixis' Basel 3 CET1 ratio(1) worked out to 11.0% at March 31, 2017. Based on a pro forma(2) Basel 3 CET1 ratio of 10.8% at December 31, 2016, the respective impacts in the first quarter of 2017 were as follows: Basel 3 capital and risk-weighted assets(1) amounted to €12.6bn and €114.1bn, respectively, at March 31, 2017. EQUITY CAPITAL - TIER ONE CAPITAL - BOOK VALUE PER SHARE Equity capital (group share) totalled €20.5bn at March 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). Core Tier 1 capital (Basel 3 - phased-in) stood at €12.4bn and Tier 1 capital (Basel 3 - phased-in) at €14.6bn. Natixis' risk-weighted assets totalled €114.1bn at March 31, 2017 (Basel 3 - phased-in), breakdown as following: Under Basel 3 (phased-in), the CET1 ratio amounted to 10.9%, the Tier 1 ratio to 12.8% and the total solvency ratio to 15.1% at March 31, 2017. Book value per share, including planned dividend for 2016, was €5.46 at March 31, 2017 based on 3,135,684,763 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 fixed assets) was €4.29. The leverage ratio worked out to 4.2% at March 31, 2017. OVERALL CAPITAL ADEQUACY RATIO As at March 31, 2017, the financial conglomerate's capital excess was estimated at around €2.5bn. Net revenues from the Investment Solutions enjoyed a marked rebound in 1Q17. On a current  exchange-rate basis, they rose 8% yoy to reach €891m, fueled by increases of 7% in Asset Management and 12% in Insurance. Operating expenses progressed 6% yoy to €625m. The cost-income ratio, excluding IFRIC 21, declined 1.6pps to 68.6%. Gross operating income advanced 14% yoy on a current exchange-rate basis and 11% on constant exchange rate in 1Q17. In 1Q16, the "Gain or loss on other assets" line included €20m of proceeds from the divestments of the Snyder and CGM entities, while in 1Q17 it incorporated €9m of proceeds from the divestment of the Caspian private equity funds. ROE after tax and excluding IFRIC 21, amounted to 14.6% in 1Q17, up slightly compared to 1Q16, whereas the capital allocated to the Investment Solutions core business rose 7% between the two periods to support the development of Insurance businesses. The improvement in Asset Management revenues in 1Q17 was primarily driven by asset management firms in Europe (revenues rose 12% relative to 1Q16 to reach €183m). Asset management firms in the US recorded a 3% increase in their revenues during the same period to €391m. Margins excluding performance fees worked out to 28bps in 1Q17 and were virtually unchanged on the full-year 2016 level. First-quarter 2017 featured renewed net inflows of €6bn in the US, with Harris Associates and Loomis Sayles contributing €2.2bn and €3.6bn of this figure, respectively. In Europe, net inflow excluding Natixis AM, amounted to €1.7bn, with a strong momentum on alternative strategies (H2O, DNCA and AEW-Ciloger). All in all, net inflow totaled €5bn in 1Q17. In addition to inflow, assets under management expanded to €837bn in 1Q17. AuM were impacted positively by a market effect (+€16bn) and negatively by a currency effect (-€5bn) and a change in the scope of consolidation (-€9bn). The latter effect stemmed from the disposal of IDFC AM, an India-based asset manager, without impact on the income statement. In Insurance, overall turnover (excluding the reinsurance treaty with CNP), advanced to €3.3bn in 1Q17 from €1.8bn in 1Q16. This 84% advance was notably fueled by the rollout of life insurance products in the Caisses d'Epargne network since early 2016. Overall turnover from life insurance climbed 113% yoy and net inflow more than tripled to €1.9bn in 1Q17 compared to a year earlier. The proactive strategy of reorienting the offering towards unit-linked policies drove an 11pp-rise yoy in the proportion of net inflow derived from unit-linked policies to over 47%. Assets under management expanded 12% over the year to reach €50bn at end-March 2017. During 1Q17, turnover rose 7% yoy in the personal protection & borrower's insurance segment and by 9% in property & casualty insurance, thanks to brisk growth in all lines (car assurance, home insurance, etc.). Net revenues from Corporate & Investment Banking expanded 26% yoy in 1Q17 (+20% excluding the CVA/DVA desk). Within Global markets, business momentum accelerated in 1Q17, with net revenues excluding the CVA/DVA desk climbing 38% relative to 1Q16.  The contribution to revenues from all international platforms rose from 55% in 1Q16 to 58% in 1Q17, reflecting significant growth in their revenues (+32% vs 1Q16). Operating expenses increased 10% yoy in 1Q17, though with fixed costs rising by only 4%. Compared to the year-earlier period, the cost-income ratio excluding IFRIC 21 improved by 7.1pps to 54.4%, while gross operating income jumped 56% to €421m in 1Q17. First-quarter 2017 featured a sharp reduction in provisions relative to 1Q16, the year-earlier period having witnessed sizeable provisioning efforts on the Oil and Gas sector. All in all, the provision for credit loss dropped 59% to €29m on a yoy basis.                     As a result, pre-tax profit virtually doubled yoy to €394m in 1Q17. ROE after tax and excluding IFRIC 21 exceeded 17%, a considerable 810bp-gain relative to 1Q16. Within Global markets, FICT reported a 36% increase in net revenues excluding the CVA/DVA desk, with the momentum coming from Interest Rates & Forex (+56% vs. 1Q16) and the Securities Financing Group(1) (+73% vs. 1Q16). Fixed Income activities posted 45% yoy growth in revenues at international platforms. Net revenues from Equity Derivatives climbed 48% yoy in 1Q17, fueled by strong growth in Solutions and robust momentum from international platforms. Global Finance & Investment Banking net revenues advanced 11% in 1Q17 relative to 1Q16. Global Finance origination revenues expanded 16% yoy, thanks to the Real Estate Finance and Global Energy & Commodities segments. During the same period, GEC Trade revenues climbed 25%. In Investment Banking, the Acquisition & Strategic Finance segment delivered 62% growth in revenues, buoyed by attractive conditions in 1Q17. The 9% decline in new production during 1Q17 was primarily due to a marked contraction in vanilla financings. Net revenues from Specialized Financial Services were stable in 1Q17 relative to 1Q16. They included increases of 4% for Factoring, 5% for Leasing and 2% for Consumer Finance, which together drove a 2% rise for Specialized Financing as a whole. Specialized Financing activities continued to enjoy healthy momentum. Personal loan issuance rose 25%, factored turnover with clients of the Groupe BPCE network expanded 10% and new equipment leasing production in France climbed 18%. Specialized Financial Services recorded a 3% yoy increase in operating expenses, reflecting ongoing moves to integrate Groupe BPCE's payment structures into Natixis. The provision for credit loss worked out to €21m. This figure reflected an adverse basis of comparison with 1Q16 in the Leasing segment and a temporary impact linked to the migration to a new recovery system in the Consumer Finance business (the situation should return to normal in 2Q17). This deterioration in the provision for credit loss led to a 13% decline in pre-tax profit relative to 1Q16 and a decrease in ROE after tax, excluding IFRIC 21, to 14.3% (vs. 18.3% in 1Q16). Net revenues from Financial Investments contracted 17% in 1Q17 compared to a year earlier. This contraction primarily reflected the ongoing withdrawal from Corporate Data Solutions entities. Turnover from Coface amounted to €345m on a constant perimeter and exchange-rate basis in 1Q17, down only 2% yoy. On a current basis, it totaled €348m vs. €365m in 1Q16, a reduction of 5% that notably reflects the downsizing of Coface's risk exposures on emerging markets and an adverse basis of comparison in North America (large contracts in 1Q16). In line with the Fit-to-Win plan, Coface maintained a tight grip on expenses: excluding the public guarantee management business, the cost ratio improved 0.8pps yoy to 33.9% in 1Q17. The loss picture is improving, with a loss ratio dropping to 58.2% in 1Q17 compared to 68.0% in 4Q16 and 72.4% in 3Q16. This significant decline lends weight to the 61% target for full-year 2017. The combined ratio net of reinsurance worked out to 92% in 1Q17. The results at 31/03/2017 were examined by the board of directors at their meeting on 5/09/2017. Figures at 31/03/2017 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. 2016 figures are presented pro forma of new intra-pole organizations: 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: 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 account 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. (1) -€14m in recurring expenses and -€14m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP 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 (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 Normative capital allocation and RWA breakdown at end-March 2017 - under Basel 3 Net book value as of March 31, 2017 (1) (1) Post distribution scheduled for 2016 (2) See note on methodology (3) Net tangible book value = Book value - goodwill - intangible assets (4) Calculated on the basis of 3,135,684,763 shares - end of period 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 assurance 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 first quarter 2017 are contained in this press release and in the presentation attached herewith, available online at in the "Investors & shareholders" section. The conference call to discuss the results, scheduled for Wednesday May 10th, 2017 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the "Investors & shareholders" page).


News Article | May 9, 2017
Site: globenewswire.com

STRONG GROWTH IN REVENUES TO OVER €2.3bn (+14%) and 40% ADVANCE IN REPORTED NET INCOME TO €280m INVESTMENT SOLUTIONS: BRISK activitY IN INsurance AND REBOUND IN asset management inflow SFS: Net revenues stable over one year to €344m (1) Excluding exceptional items and the IFRIC 21 impact for ROE, ROTE and earnings capacity calculations (2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on loss carry-forwards. End-2016 ratio, pro forma of 20% additional phase-in of DTAs scheduled for January 1, 2017 The Board of Directors approved Natixis' accounts for first-quarter 2017 on May 9, 2017. The marked rebound in net revenues in the Investment Solutions (+8% relative to 1Q16) was fueled by Asset Management in Europe and solid growth momentum in Insurance. The robust growth in net revenues from Corporate & Investment Banking (+26% relative to 1Q16) was mainly driven by fine performances by international platforms in Global markets. Within Specialized Financial Services, Consumer Credit and Factoring both made further progress, underpinned by the Groupe BPCE networks. Laurent Mignon, Natixis Chief Executive Officer, said: "Natixis enjoyed a very good first quarter, fueled by strong momentum in our core businesses - particularly in Corporate & Investment Banking and Investment Solutions - tight control over expenses and lower provisions. Activity levels in Global markets were especially high and our Asset Management business also attracted renewed net inflow in the USA. The first quarter 2017 was perfectly consistent with the objectives of our New Frontier plan, namely improved profitability in core businesses, tight control of risk-weighted assets, a strong contribution from international platforms and sustained growth in Insurance". Unless stated otherwise, the commentary that follows refers to results excluding exceptional items (see detail p3). Core businesses lifted net revenues by 14% yoy to €2.219bn. This total was buoyed by a 26% advance in net revenues from Corporate & Investment Banking and a marked upturn in revenues (+8% yoy) from Investment Solutions. Specialized Financial Services resisted well overall and posted stable net revenues compared to 1Q16. Net revenues from Financial Investments amounted to €153m and reflected declines of 16% from Coface and 30% from Corporate Data Solutions (the withdrawal strategy continues on the latter). Operating expenses rose 9% yoy to €1.743bn in 1Q17, affected by an increase in the estimated contribution to the Single Resolution Fund (SRF) to €128m in 1Q17 from €79m in 1Q16. After restating for the impact of the SRF, expenses rose by only 6%. The cost-income ratio excluding IFRIC 21 worked out to 67.9% in 1Q17, down 4.0pps yoy. With revenues rising faster than expenses, gross operating income climbed 29% to €615m in 1Q17. The provision for credit loss declined 20% yoy to €70m for Natixis in 1Q17 and 59% for CIB during the same period.  In terms of basis points of the loan book, the core-business provision for credit loss worked out to 24bps in 1Q17, markedly lower than the 1Q16 level which was affected by provisioning efforts on the energy and commodities sectors. The 18% decline in minority interests relative to 1Q16 was primarily due to Coface's lower contribution. Restated net income (group share), excluding IFRIC 21 and exceptional items, amounted to €436m in 1Q17, up 40% yoy. Including exceptional items (-€26m net of tax in 1Q17 vs. -€13m in 1Q16) and the IFRIC 21 impact (+€130m in 1Q17 vs. +€98m in 1Q16), net income (group share) worked out to €280m in 1Q17, a 40% improvement on a year earlier. Excluding IFRIC 21, Natixis' ROTE equated to 12.5% and core-business ROE amounted to 15.9%, up 340bps and 380bps, respectively, relative to 1Q16. Natixis' Basel 3 CET1 ratio(1) worked out to 11.0% at March 31, 2017. Based on a pro forma(2) Basel 3 CET1 ratio of 10.8% at December 31, 2016, the respective impacts in the first quarter of 2017 were as follows: Basel 3 capital and risk-weighted assets(1) amounted to €12.6bn and €114.1bn, respectively, at March 31, 2017. EQUITY CAPITAL - TIER ONE CAPITAL - BOOK VALUE PER SHARE Equity capital (group share) totalled €20.5bn at March 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). Core Tier 1 capital (Basel 3 - phased-in) stood at €12.4bn and Tier 1 capital (Basel 3 - phased-in) at €14.6bn. Natixis' risk-weighted assets totalled €114.1bn at March 31, 2017 (Basel 3 - phased-in), breakdown as following: Under Basel 3 (phased-in), the CET1 ratio amounted to 10.9%, the Tier 1 ratio to 12.8% and the total solvency ratio to 15.1% at March 31, 2017. Book value per share, including planned dividend for 2016, was €5.46 at March 31, 2017 based on 3,135,684,763 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 fixed assets) was €4.29. The leverage ratio worked out to 4.2% at March 31, 2017. OVERALL CAPITAL ADEQUACY RATIO As at March 31, 2017, the financial conglomerate's capital excess was estimated at around €2.5bn. Net revenues from the Investment Solutions enjoyed a marked rebound in 1Q17. On a current  exchange-rate basis, they rose 8% yoy to reach €891m, fueled by increases of 7% in Asset Management and 12% in Insurance. Operating expenses progressed 6% yoy to €625m. The cost-income ratio, excluding IFRIC 21, declined 1.6pps to 68.6%. Gross operating income advanced 14% yoy on a current exchange-rate basis and 11% on constant exchange rate in 1Q17. In 1Q16, the "Gain or loss on other assets" line included €20m of proceeds from the divestments of the Snyder and CGM entities, while in 1Q17 it incorporated €9m of proceeds from the divestment of the Caspian private equity funds. ROE after tax and excluding IFRIC 21, amounted to 14.6% in 1Q17, up slightly compared to 1Q16, whereas the capital allocated to the Investment Solutions core business rose 7% between the two periods to support the development of Insurance businesses. The improvement in Asset Management revenues in 1Q17 was primarily driven by asset management firms in Europe (revenues rose 12% relative to 1Q16 to reach €183m). Asset management firms in the US recorded a 3% increase in their revenues during the same period to €391m. Margins excluding performance fees worked out to 28bps in 1Q17 and were virtually unchanged on the full-year 2016 level. First-quarter 2017 featured renewed net inflows of €6bn in the US, with Harris Associates and Loomis Sayles contributing €2.2bn and €3.6bn of this figure, respectively. In Europe, net inflow excluding Natixis AM, amounted to €1.7bn, with a strong momentum on alternative strategies (H2O, DNCA and AEW-Ciloger). All in all, net inflow totaled €5bn in 1Q17. In addition to inflow, assets under management expanded to €837bn in 1Q17. AuM were impacted positively by a market effect (+€16bn) and negatively by a currency effect (-€5bn) and a change in the scope of consolidation (-€9bn). The latter effect stemmed from the disposal of IDFC AM, an India-based asset manager, without impact on the income statement. In Insurance, overall turnover (excluding the reinsurance treaty with CNP), advanced to €3.3bn in 1Q17 from €1.8bn in 1Q16. This 84% advance was notably fueled by the rollout of life insurance products in the Caisses d'Epargne network since early 2016. Overall turnover from life insurance climbed 113% yoy and net inflow more than tripled to €1.9bn in 1Q17 compared to a year earlier. The proactive strategy of reorienting the offering towards unit-linked policies drove an 11pp-rise yoy in the proportion of net inflow derived from unit-linked policies to over 47%. Assets under management expanded 12% over the year to reach €50bn at end-March 2017. During 1Q17, turnover rose 7% yoy in the personal protection & borrower's insurance segment and by 9% in property & casualty insurance, thanks to brisk growth in all lines (car assurance, home insurance, etc.). Net revenues from Corporate & Investment Banking expanded 26% yoy in 1Q17 (+20% excluding the CVA/DVA desk). Within Global markets, business momentum accelerated in 1Q17, with net revenues excluding the CVA/DVA desk climbing 38% relative to 1Q16.  The contribution to revenues from all international platforms rose from 55% in 1Q16 to 58% in 1Q17, reflecting significant growth in their revenues (+32% vs 1Q16). Operating expenses increased 10% yoy in 1Q17, though with fixed costs rising by only 4%. Compared to the year-earlier period, the cost-income ratio excluding IFRIC 21 improved by 7.1pps to 54.4%, while gross operating income jumped 56% to €421m in 1Q17. First-quarter 2017 featured a sharp reduction in provisions relative to 1Q16, the year-earlier period having witnessed sizeable provisioning efforts on the Oil and Gas sector. All in all, the provision for credit loss dropped 59% to €29m on a yoy basis.                     As a result, pre-tax profit virtually doubled yoy to €394m in 1Q17. ROE after tax and excluding IFRIC 21 exceeded 17%, a considerable 810bp-gain relative to 1Q16. Within Global markets, FICT reported a 36% increase in net revenues excluding the CVA/DVA desk, with the momentum coming from Interest Rates & Forex (+56% vs. 1Q16) and the Securities Financing Group(1) (+73% vs. 1Q16). Fixed Income activities posted 45% yoy growth in revenues at international platforms. Net revenues from Equity Derivatives climbed 48% yoy in 1Q17, fueled by strong growth in Solutions and robust momentum from international platforms. Global Finance & Investment Banking net revenues advanced 11% in 1Q17 relative to 1Q16. Global Finance origination revenues expanded 16% yoy, thanks to the Real Estate Finance and Global Energy & Commodities segments. During the same period, GEC Trade revenues climbed 25%. In Investment Banking, the Acquisition & Strategic Finance segment delivered 62% growth in revenues, buoyed by attractive conditions in 1Q17. The 9% decline in new production during 1Q17 was primarily due to a marked contraction in vanilla financings. Net revenues from Specialized Financial Services were stable in 1Q17 relative to 1Q16. They included increases of 4% for Factoring, 5% for Leasing and 2% for Consumer Finance, which together drove a 2% rise for Specialized Financing as a whole. Specialized Financing activities continued to enjoy healthy momentum. Personal loan issuance rose 25%, factored turnover with clients of the Groupe BPCE network expanded 10% and new equipment leasing production in France climbed 18%. Specialized Financial Services recorded a 3% yoy increase in operating expenses, reflecting ongoing moves to integrate Groupe BPCE's payment structures into Natixis. The provision for credit loss worked out to €21m. This figure reflected an adverse basis of comparison with 1Q16 in the Leasing segment and a temporary impact linked to the migration to a new recovery system in the Consumer Finance business (the situation should return to normal in 2Q17). This deterioration in the provision for credit loss led to a 13% decline in pre-tax profit relative to 1Q16 and a decrease in ROE after tax, excluding IFRIC 21, to 14.3% (vs. 18.3% in 1Q16). Net revenues from Financial Investments contracted 17% in 1Q17 compared to a year earlier. This contraction primarily reflected the ongoing withdrawal from Corporate Data Solutions entities. Turnover from Coface amounted to €345m on a constant perimeter and exchange-rate basis in 1Q17, down only 2% yoy. On a current basis, it totaled €348m vs. €365m in 1Q16, a reduction of 5% that notably reflects the downsizing of Coface's risk exposures on emerging markets and an adverse basis of comparison in North America (large contracts in 1Q16). In line with the Fit-to-Win plan, Coface maintained a tight grip on expenses: excluding the public guarantee management business, the cost ratio improved 0.8pps yoy to 33.9% in 1Q17. The loss picture is improving, with a loss ratio dropping to 58.2% in 1Q17 compared to 68.0% in 4Q16 and 72.4% in 3Q16. This significant decline lends weight to the 61% target for full-year 2017. The combined ratio net of reinsurance worked out to 92% in 1Q17. The results at 31/03/2017 were examined by the board of directors at their meeting on 5/09/2017. Figures at 31/03/2017 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. 2016 figures are presented pro forma of new intra-pole organizations: 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: 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 account 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. (1) -€14m in recurring expenses and -€14m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP 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 (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 Normative capital allocation and RWA breakdown at end-March 2017 - under Basel 3 Net book value as of March 31, 2017 (1) (1) Post distribution scheduled for 2016 (2) See note on methodology (3) Net tangible book value = Book value - goodwill - intangible assets (4) Calculated on the basis of 3,135,684,763 shares - end of period 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 assurance 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 first quarter 2017 are contained in this press release and in the presentation attached herewith, available online at in the "Investors & shareholders" section. The conference call to discuss the results, scheduled for Wednesday May 10th, 2017 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the "Investors & shareholders" page).

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