Natixis: 4Q19 and 2019 results

Paris, February 6, 20204Q19 & 2019 results
Delivering growth across the board, increased dividend with reinforced solvency
Increase in reported net income at €371m in 4Q19 and €1,897m in 2019 vs. €181m in 4Q18 and €1,306m in 2018
Cash dividend per share of 0.31€¹, up +3% vs. 2018
Operating trends improving throughout the year with a strong 4Q19BUSINESSES WELL DIVERSIFIED AND ALL GROWING IN 4Q19 AND 2019UNDERLYING NET REVENUES² AT €2.5BN IN 4Q19 (+11%³ YOY) AND €9.2BN IN 2019 (+6% YOY)AWM: 2019 net revenues at an all-time high, back to positive net inflows in 4Q19 and fee rate resilienceStrength of our active asset management model with underlying net revenues² up +8% YoY in 4Q19 (+7% YoY in 2019), partly driven by high levels of performance fees that reached €265m in 4Q19 (€627m in 2019), coming from multiple affiliates. Revenue growth higher than cost growth both in 4Q19 and 2019 to reach a historically high level in 2019 (including and excluding performance fees)Positive net inflows on LT products in 4Q19 (~€3bn) both in Europe and North America. Strong AuM growth, up +16% over the year at €934bnAverage fee rate in line with New Dimension target at ~30bps in 4Q19 and 2019Underlying RoE² at ~15% in 2019, close to the 2020 New Dimension targetCIB: Positive jaws effect both in 4Q19 and 2019 with activity levels picking up towards year-endUnderlying net revenues² up +16%³ YoY in 4Q19 primarily driven by Global markets (+40%³ YoY) and with a historically high quarter for Investment banking/M&A. Success of the diversification strategy illustrated by net revenues up +4% in 2019 vs. 2018Costs under control, down -1% YoY at constant exchange rate in 2019 despite revenue growthUnderlying RoE² at ~9% in 2019 with a cost of risk above its through-the-cycle averageInsurance: Continued growth and profitabilityUnderlying net revenues² up +7% YoY with a positive jaws effect both in 4Q19 and 2019Underlying RoE² ~30% in 2019, close to the target set for New Dimension by 2020Life insurance⁴: AuM up +14% over 2019 including a +23% growth across unit-linked productsP&C insurance: combined ratio at 91.7% in 2019, better than 2020 guidance of < 94%Payments: Continued growth with positive jaws, EBITDA⁵ up +13% YoY in 2019Underlying net revenues² up +9% YoY in 2019 with a positive jaws effectUnderlying RoE² ~10% in 2019Increase in business volumes from Dalenys & PayPlug, up around +25% vs. 2018SUSTAINABLE VALUE CREATION AND FINANCIAL STRENGTH
ORDINARY DIVIDEND INCREASE WITH A PAY-OUT RATIO >80%¹Organic capital creation of ~120bps in 2019, of which ~24bps in 4Q19 (~28bps excluding exceptional items)Basel 3 FL CET1 ratio⁶ at 11.3% as at December 31, 2019 (+50bps over the year), above our 2020 target of 11.2% and with a cash dividend per share¹ of 0.31€ (83% pay-out ratio), up vs. 0.30€ in 2018 and after a 0.48€ special dividend paid in June 2019Underlying net income² at €415m in 4Q19 (x2.2 YoY) and €1,370m in 2019 (+3% YoY)Underlying RoTE² at 10.8% in 4Q19 and 10.0% in 2019Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view ^[1]Proposal of a 0.31€ ordinary dividend per share submitted to the approval of the Annual General Meeting on May 20, 2020 ² Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE in 4Q19 (see note on methodology) ³ Excluding the €(259)m non-recurring revenue impact from Asian equity derivatives in 4Q18 ⁴ Excluding reinsurance agreement with CNP ⁵ Standalone view excluding exceptional items, analytical items and structure charges – see page 19 ⁶ See note on methodology

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