Natixis Q1 2017 Earning results
Natixis Global Asset Management and its parent company, Natixis, released Q1 2017 earnings on May 9. The bank’s first-quarter 2017 results showed marked improvement and reflected strong momentum and excellent performances in the bank’s core businesses. Overall, Natixis’ net revenues reached €2.358 billion, a 13% increase on first-quarter 2016, while their net profit climbed 40% to €436 million. Revenues from the bank’s core businesses advanced 14% to €2.219 billion during the quarter, fueled by robust activity in a variety of areas, including renewed inflows in asset management in the U.S.
Groupe BPCE also announced good first-quarter results, with all business lines making contributions. Overall, net revenues rose 4.9% to €6.069 billion and net income progressed 8.2% to €948 million compared to the first quarter of 2016.
Natixis’ Investment Solutions Division, which includes core businesses such as Asset Management, Insurance and Private Banking, saw revenues from core business improve 8% year-over-year to €891 million in the first quarter.
Asset Management’s Q1 2017 net revenues were up markedly at 7% year over year, increasing to €667 million while gross operating income also grew 8% year over year, from €172 to €186. Reflecting an encouraging upturn in activity, our net inflows reached €6 billion in the U.S., with strong performance with long-term products at Loomis Sayles and Harris Associates, while in Europe, net inflows for the period were €1.7 billion, excluding NAM, driven by a robust momentum on alternative strategies (H2O, DNCA and AEW-Ciloger). Overall, we recorded our first positive net inflow on long-term products since the second quarter of 2015.
Our margins for the quarter, excluding performance fees, came to 38.3 basis points in U.S. and 12.5 basis points in Europe. Overall, our margin in Q1 2017 of 28 basis points was virtually flat vs. Q1 2016 of 28.3 basis points. The ability to maintain high margins also underlined the resilience of our model, which is both demanding and generating alpha in various asset classes.
Natixis Global Asset Management’s assets under management rose by €11 billion in constant Euros or €6 billion in current Euros, to €837.5 billion from the end of 2016. Assets in the U.S. grew by 12% (5% at constant exchange rate) to €418.9 billion and 5% in Europe to €411.3 billion year over year.
For comparison, assets under management at Natixis Global Asset Management as of March 31, 2017 totaled $895.6 billion (€837.5 billion), compared with $877.1 billion (€831.5 billion) as of December 31, 2016. Asset Management’s assets in North America as of March 31, 2017 were $447.9 (€418.9) vs. $427.4 billion (€405.2 billion) as of Dec. 31, 2016. In Europe, Asset Management’s assets were €411.3 ($439.9) billion as of March 31, 2017 vs. €411.2 billion ($433.7 billion) as of Dec. 31, 2016. The firm also had assets of $ $7.8 billion (€7.3 billion) in the Private Equity division.
As our shareholder prepares for its new 2018-2020 strategic plan (to be presented on November 20, 2017), Natixis Global Asset Management remains committed to offering our clients a variety of investment solutions through our broad range of investment subsidiaries. We continue to strive to exceed client expectations by focusing on the inherent strength of our multi-affiliate model, expanding our global distribution network and assisting our clients in building investment portfolios that can stand up to increasingly unpredictable market conditions while staying focused on long-term investment goals.
Source : Natixis and Natixis Global Asset Management
Natixis Global Asset Management S.A.
RCS Paris 453 952 681
Share Capital: €178 251 690
21 quai d’Austerlitz, 75013 Paris