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Groupe BPCE, Natixis post YOY drop in Q1 profit


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Groupe BPCE, Natixis post YOY drop in Q1 profit

reportedfirst-quarter net income of €578 million, compared to €645 million in the firstquarter of 2015.

Excludingthe impact of noneconomic and exceptional items and after restating to account forthe impact of IFRIC 21, first-quarter net income attributable to equity holdersof the parent was €872 million, compared to €873 million in the year-ago period.

First-quarternet banking income declined on a yearly basis to €5.79 billion from €6.03 billion.The cost of risk was €372 million, compared to €493 million a year ago.

ROEfor the period was 6.2%, compared to 6.3% in the first quarter of 2015. ROE forthe group's core business lines was 10%, down from 11% a year ago.

Asof March 31, the group's common equity Tier 1 ratio under CRR/CRD IV withouttransitional measures and after restatement to account for deferred tax assetson tax loss carry-forwards stood at 13.3%, compared to 13.2% at the end of2015. Including about €1.6 billion of Tier 2 issues completed after March 31,the total capital adequacy ratio was 17.3%, compared to 17.0% at 2015-end.

TheBasel III leverage ratio was 4.7% at March-end, including centralized savingsinflows in exposures, unchanged from the pro forma ratio at Dec. 31, 2015.

UnitNatixis, meanwhile,posted first-quarter consolidated net income group share of €200 million,including nonoperating items and the IFRIC 21 impact, compared to €287 milliona year earlier.

Theunit's pro forma net revenues declined year over year to €2.08 billion from€2.15 billion. Net revenues from corporate and investment banking dropped 3% ona yearly basis to €782 million and were driven by "good performances inequity derivatives, solid resistance in fixed income and strong growth inAsia," the company said. Pretax profit at the division was €202 million,compared to €253 million a year ago.

AUM totaled €776 billion at March 31. The €25 billionreduction from the end of 2015 mainly stemmed from a €19 billion negativeexchange rate effect and a €4 billion negative perimeter effect linked to thedisposal of two small affiliates, according to Natixis.

Natixis'CRR/CRD IV CET1 ratio stood at 10.8% at March 31, while the leverage ratio was4.2% at March-end.