Strong growth ambitions for Natixis’ business lines at the heart of
the “BPCE 2024” strategic plan
Paris, July 8th,
2021
Strong growth
ambitions for
Natixis’ business
lines at the heart of the “BPCE
2024” strategic plan
Groupe BPCE presents today its new strategic
plan “BPCE 2024.” This business development plan is based on
three strategic priorities (Winning Spirit,
Customers, Climate) and three key principles
(Simple, Innovative, and Secure), and incorporates strong
ambitions for its core business lines: Retail Banking
& Insurance and Global Financial Services. Natixis’ business
lines are fully integrated within this strategic plan.
Over the past ten years, Natixis has
developed four business lines that are
recognized for their expertise and
that create value for our
clients:
- Asset & Wealth
Management: A global tier-one player, with a diversified
and high-performing entrepreneurial model focused on generating
value-added for our clients;
- Corporate & Investment
Banking: a bank recognized for its expertise and
innovation capabilities;
- Insurance: a
fully-fledged bancassurer and a leading player in France;
- Payments: an
industrial player, highly competitive on all its activities and
positioned to foster the digitalization of society.
The new 2024 ambitions of
Natixis’ Global Financial
Services (Asset & Wealth Management, Corporate
& Investment Banking) and Retail
(Insurance, Payments) businesses
are underpinned by
three
principles:
DIVERSIFY, for the
benefit of our clients and our developmentThis principle
aims to: i) selectively enhance our value
proposition based on our expertise in order to better
support our clients and target the highest
satisfaction rates, ii) combine our strengths with the Banque
Populaire and Caisse d'Epargne banking networks to
increase our footprint on high-potential segments
(e.g., French mid-caps the healthcare sector), and iii) conquer
new clients in EMEA, the
Americas and in
Asia-Pacific. In
2024, this diversification should result in around €500
million of additional revenues for Natixis Corporate &
Investment Banking (CIB) in our eight core industries, a
contribution of private assets of over 25% to
Natixis Investment Managers’ (Natixis IM)
profitability, and a Net Promoter Score
above 40 for P&C
Insurance and
Payments.
COMMIT,
to the energy transition and to responsible
financeThis principle aims to cement our
positioning as our clients’ go-to financial
partner for their energy transition
strategies, and notably to multiply Natixis CIB's “green” revenues
by 1.7 times by 2024. It also
aims to position ESG at the center of our asset
management and insurance activities, with a target of over
€600 billion in assets under management in the
sustainable or impact investing category for Natixis IM
representing 50% of total AuM by 2024. Finally,
Natixis commits to aligning its balance sheet and investments with
a "net zero" emissions trajectory consistent with the Paris
Agreement (aligning the insurance general fund with a +1.5°C
trajectory by 2030 and Natixis CIB’s balance sheet with a +1.5°C
trajectory by 2050).
TRANSFORM, and
invest to deliver
sustainable valueThis principle aims to ensure the
sustainable growth of Natixis' business lines
consistent with our risk appetite through ongoing investments in
the robustness of our
infrastructure and our oversight
framework (e.g.
around €400
million in total investments in Natixis CIB
technology over 2021-2024). This ambition also
targets investments in innovation, particularly
data and APIs, the development of our employees’
skills, and the adaptation and
simplification of
our ways of
working to cultivate our agility and collective
engagement.
By building on these
principles, each of Natixis' business
lines has defined clear
ambitions for
2024:
- Asset & Wealth
Management: reinforce Natixis Investment Managers'
position as a global leader in asset management; provide a high
value-added offering to our direct High Net Worth Individuals
(HNWI) clients and those of the Banque Populaire and Caisse
d'Epargne retail banking networks;
- Corporate & Investment
Banking: become the go-to bank for our clients in selected
and diversified areas of expertise;
- Insurance:
accelerate the rollout of responsible insurance solutions for the
clients of the Banque Populaire and Caisse d'Epargne retail banking
networks by capitalizing on the investments we have made;
- Payments: innovate
and constitute a growth driver for Groupe BPCE and a means of
differentiation for the Banque Populaire and Caisse d'Epargne
networks.
For Natixis, “BPCE 2024” plan therefore
constitutes a growth and investment plan, as reflected in a
targeted compound annual growth rate of around 5% in net
banking income for 2020-2024, along with an
improvement in the cost to
income ratio to
~70%.
Nicolas Namias, Chief Executive Officer
of Natixis, said:
“I am delighted to present today the development
and growth ambitions of Natixis’ businesses at the heart of our
BPCE 2024 strategic plan. After ten years focused on building
businesses recognized for their expertise and entrepreneurial
culture, Natixis is today a robust company embedded within Groupe
BPCE.
After supporting our clients through the
unprecedented crisis from which we are only just emerging, it is
now essential to support the three major transitions facing our
economies, in all the regions where we are active: the
environmental and ecological transition, the technological
transition, and the societal transition accompanied by profound
changes in our clients’ needs and expectations. Our ambition for
2024 is based on three clear objectives: diversify for the benefit
of our clients and our development; commit to the energy transition
and to responsible finance; and transform our activities and invest
to deliver sustainable value. Our ambition is strong: to make each
of Natixis' four business lines a benchmark for our clients in
order to create value for all our stakeholders.
To attain these objectives, Natixis can count on
an array of formidable assets: first and foremost, the people who
represent our company, committed every day to serving our clients’
needs; second, our wealth of expertise, the essential DNA of our
business model; and finally, the strength of Groupe BPCE, which
will enable Natixis’ business lines to continue to develop for the
benefit of our clients."
ASSET &
WEALTH MANAGEMENT (AWM)
REINFORCE NATIXIS IM'S
POSITION AS A GLOBAL LEADER IN ASSET MANAGEMENT
AND PROVIDE A HIGH VALUE-ADDED OFFERING TO
OUR DIRECT HNWI
CLIENTS AND THOSE OF THE RETAIL NETWORKS
AmbitionsPursue
a selective and diversified
development strategy for the benefit of
our clients
- Advance our
position among the world's top 15 asset management firms by
strengthening our capabilities and our performance of four key
areas of expertise1 and by accelerating our leadership in ESG
- Accelerate our
diversification by client type through strategic distribution
partnerships and by region outside of France and the United
States
Become
an ESG
leader in Europe and develop an
offering matching the
diverse needs of our clients
- Assert strong
ESG ambitions for Natixis IM, notably by measuring the carbon
footprint and global temperature trajectory of our portfolios
- Develop a
leading ESG offering consistent with our affiliates' convictions
and clients’ needs
- Strengthen our
capabilities to support our clients’ ESG developments, notably by
making these an integral part of the portfolio construction tools
for our clients
Invest to
strengthen the
resilience and
efficiency of our
multi-affiliate model
- Continue to
develop a best-in-class oversight framework
- Simplify the
operating model for our affiliates (shared services and targeted
investments in technology) and maintain strict cost management
- Play an active
role in the consolidation trend and pursue a targeted acquisition
strategy.
Provide a high
value-added offer to our direct HNWI and network clients
by promoting our ESG vision among the members of our ecosystem and
by digitalizing our technology platform
Principal objectives
and indicators
- Net
banking income: 2020-2024 CAGR >3% assuming a very
limited market effect and excluding external growth
-
Cost/income ratio: ~72% in 2024
-
Cumulative net inflows in
Asset Management: ~€100 bn over
2021-2024
1 High-alpha strategies, private assets,
LDI/insurance management, and quantitative investment
management
CORPORATE & INVESTMENT BANKING
(CIB)
BECOME THE GO TO BANK FOR OUR
CLIENTS IN SELECTED AND DIVERSIFIED AREAS OF
EXPERTISE
AmbitionsDiversify our
clients, our expertise, and our geographical
presence
- Strengthen our
differentiating expertise and diversify on our eight core
industries1 including Health Care and Tech
- Increase our
support for corporate clients, including French mid-caps, with a
commercial banking offering, while continuing to develop our
privileged relationships with institutional clients
- Reassert our
global dimension and our ability to support our clients in the
Americas and Asia-Pacific regions and be a "go-to-Europe"
bank.
Be our
clients’ go-to financial partner for
their energy transition
- Embrace our role
as a go-to adviser and financial partner, and support our clients
in their energy transition strategy
- Align our
portfolio with a +2.5°C trajectory by 2024 and +1.5°C by 2050,
leveraging the Green Weighting Factor
- Broaden the
dynamic beyond the climate to incorporate social, natural
resources, and biodiversity dimensions
Accelerate our investments to strengthen
our resilience, competitiveness and attractiveness
- Step up our
investments in technology to strengthen our robustness,
competitiveness, time-to-market and operational efficiency
- Attract and
develop new talent, further enhancing our attractiveness
- Develop the
Natixis Corporate & Investment Banking brand
Principal objectives
and indicators
- Net
banking income: 2020-2024 CAGR of ~7%
-
Cost/income ratio: ~65% in 2024
-
RWA: 2020-2024 CAGR of ~2%
-
“Green”
revenues: x1.7 between 2020 and 2024
1 Energy (Oil & Gas, Power &
Renewables), Metals & Mining, Real Estate, Transportation,
Telecom & Tech, Environment, Healthcare, Insurance
INSURANCE
ACCELERATE THE ROLLOUT
OF RESPONSIBLE INSURANCE SOLUTIONS FOR CLIENTS OF
THE RETAIL NETWORKS
BY CAPITALIZING ON THE INVESTMENTS WE
HAVE MADE
AmbitionsAccelerate
on property & casualty and
personal protection insurance and roll out
innovative life insurance
and healthcare
offerings
- Accelerate
commercial momentum with the retail banking networks, particularly
in property & casualty and personal protection insurance by
capitalizing on our investments
- Continue to roll
out innovative offerings, particularly in life and health
insurance
- Speed up growth
in the small businesses market, in property & casualty,
retirement and personal protection insurance
Position the
general fund on a more
ambitious trajectory than
the Paris Agreement and promote SRI
unit-linked funds
- Align the
allocation of the general fund with a +2°C trajectory by 2024 and
+1.5°C by 2030
- Develop a more
responsible claims management system
Continue to invest in
terms of customer
experience and
efficiency
- Offer
best-in-class customer and advisor experiences, particularly by
leveraging the potential of data and digital technology
- Improve our
management ratios
Principal objectives and
indicators1
- Net
banking income: 2020-2024 CAGR of ~6%
-
Cost/income ratio: ~50% in
2024
-
Equipment rate2:
~35% in 2024
1 Excluding the impact of the implementation of
IFRS 17 2 P&C and personal protection of the
individual customers of the BP and CE retail networks
PAYMENTS
INNOVATE AND SERVE AS A
SOURCE OF GROWTH FOR GROUPE
BPCE AND OF
DIFFERENTIATION FOR THE RETAIL
NETWORKS
AmbitionsMake payments
a comparative advantage for the
retail banking networks while continuing our
development on external
clients, thanks to the excellence
of our offering and customer experience
- Accelerate growth for the networks
in payments activities and make payments a comparative advantage in
their efforts to win business
- Become the French go-to player for
the commerce digitalization
- Create a best-in-class digital
platform for employee benefits (meal and gift vouchers, money
pools…) and launch new offerings
- Differentiate ourselves through
technological performance, “useful” data and client experience
Foster the development of our talent and our positive
impact on society Support staff in upgrading their skills
to accompany them towards the professions of the future, notably
digital-related
- Limit our environmental impact by
offering recycled and digital vouchers, and encourage solidarity
(e.g. donation of meal vouchers)Attain profitability for
our 3 activities, while maintaining our investment efforts
Invest in our platforms to provide a competitive offering and
support the implementation of new standards (e.g. EPI, Request to
Pay)
- Orchestrate our portfolio of
fintechs to provide a consistent offering, and capture
synergies
Principal objectives and
indicators
- Net
banking income: 2020-2024 CAGR of ~9%
-
Cost/income ratio: ~82% in 2024
About NatixisNatixis is a
French multinational financial services firm specialized in asset
& wealth management, corporate & investment banking,
insurance and payments. A subsidiary of Groupe BPCE, the
second-largest banking group in France through its two retail
banking networks, Banque Populaire and Caisse d’Epargne, Natixis
counts over 16,000 employees across 36 countries. Its clients
include corporations, financial institutions, sovereign and
supranational organizations, as well as the customers of Groupe
BPCE’s networks. Listed on the Paris stock exchange, Natixis has a
solid financial base with a CET1 capital under Basel 3(1) of €12.3
billion, a Basel 3 CET1 Ratio(1) of 11.6% and quality long-term
ratings (Standard & Poor’s: A / Moody’s: A1 / Fitch Ratings:
A+). (1) Based on CRR-CRD4 rules as reported on June 26, 2013,
including the Danish compromise - without phase-inFigures as at 31
March 2021
Contacts
Investor
Relations |
investorelations@natixis.com |
|
Damien SouchetNoémie
Louvel |
+33 1 58 55 41
10+33 1 78 40 37 87 |
|
|
|
|
Press Relations |
press@communication.natixis.com |
|
Daniel WilsonSonia
DilouyaVanessa Stephan |
+33 1 58 19 10
40+33 1 58 32 01 03+33 1 58 19 34 16 |
|
www.natixis.com
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