NATIXIS - 2018 Registration document and annual financial report

RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

Breakdown by rating

% breakdown

Breakdown by country

% breakdown

AAA AA A BBB

1%

USA

100%

TOTAL

100%

BB NR

99%

TOTAL

100%

3

EXPOSURES TO COUNTRIES RECEIVING FINANCIAL ASSISTANCE R

At December 31, 2018, exposures to sovereign risk in countries receiving financial aid or facing uncertainties (political, currency, etc.) were as follows:

31/12/2018 (a)

31/12/2017 (a)

Sovereign securities Derivatives (b)

Sovereign securities Derivatives (b)

Other

Total 1,253

Other

Total

(in millions of euros)

Spain* Greece* Ireland* Portugal*

1,250

(1)

4

916

4

10

930

2

1 8

3

0

0

203 212

210 212

185 154

(4)

181 154

Russia Ukraine

2 1

(1)

9

10

1

10

11

1

-

Venezuela

46

46

58

58

TOTAL

1,670

7

59

1,736

1,256

0

79

1,334

Countries receiving financial aid from the European Union. * Excluding corporates. (a) Including credit derivatives. (b)

At December 31, 2018, exposure to non-government risk, in particular Greece and countries facing uncertainties (political, currency, etc.), directly held by Natixis stood as follows:

Expected credit losses (b)

Total gross exposure

Net exposure

Total gross exposure Provisions

Net exposure

Gross exposure at December 31, 2017 (a)

Gross exposure at December 31, 2018 (a)

Asset financing and structured transactions (c)

Asset financing and structured transactions (c)

Bank

Corporate

Bank

Corporate

(in millions of euros)

Greece*

546

105

62

713

(9)

704

5

182

22

209

(25)

185

Russia

77

409

397

883

(1)

882

525

419

328

1,272

(6)

1,265

Ukraine

0

129

0

129

1

130

0

118

25

143

(8)

134

TOTAL

623

643

459

1,725

(9)

1,716

530

718

375

1,624

(39)

1,585

Countries receiving financial aid from the European Union. * Gross exposure: gross carrying amount on the balance sheet at December 31, 2018 and December 31, 2017. (a) Credit losses expected at one year and credit losses expected at maturity. (b) Exposure corresponds mainly to the “shipping finance” sector amounting to €29 million at December 31, 2018 versus €82 million at (c) December 31, 2017.

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Natixis Registration Document 2018