NATIXIS - 2018 Registration document and annual financial report

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Basel 3 Pillar III disclosures

TRANSITION FROM SHAREHOLDER’S EQUITY TO PRUDENTIAL CAPITAL AFTER APPLYING PHASE-IN ARRANGEMENTS R

31/12/2018

(in millions of euros)

Shareholders’ equity Capital

5,040

Issue premium

4,251

Retained earnings

6,447

Treasury shares

(27)

Other, including items of comprehensive income

650

Other instruments to be reclassified as Additional Tier 1 capital

1,978

Net income

1,577

Total shareholders' equity – Group share

19,916

Reclassification as Additional Tier 1 capital

(1,978)

Translation adjustments

(6)

Restatement of proposed dividend (dividend for previous year)

0

Prudential filters after phase-arrangements Own credit risk: Gain on reclassification of hybrid securities

(144)

Own credit risk: liabilities and derivatives net of deferred taxes

(109)

Prudent valuation adjustment

(383)

Unrealized gains and losses

105

Total prudential filters

(531)

Deductions after phase-in arrangements Dividend proposed for current year and related expenses

(944)

Goodwill Amount as per accounting base

(3,437)

Amount of related deferred tax liabilities

336

Amount included in value of investments in associates

(228)

Intangible assets Amount as per accounting base Non-controlling interests Amount as per accounting base

(580)

241

Prudential adjustment including phase-in arrangements

(241)

Deferred tax assets (tax loss carry-forwards) Amount as per accounting base

(1,354)

o/w portion not including tax loss carry-forwards and impact of netting

706

Prudential adjustment including phase-in arrangements

130

Shortfall of provisions to expected losses

0

Investments in the share capital of financial sector entities

0

Other prudential adjustments including phase-in arrangements

(77)

Total deductions

(5,449)

Total Common Equity Tier 1 (CET1)

11,951

Hybrid capital instruments Amount as per accounting base Other equity instruments

1,978

Residual gain on reclassification as equity

144

Nominal value adjustment during the period

22

Early redemption through exercise of call option

0

Leveling due at the grandfathering limit

0

Total hybrid instruments

2,145

Deductions

(22)

Other prudential adjustments including phase-in arrangements

0

Total additional Tier 1 capital

2,123

Total Tier 1 capital

14,074

Subordinated debt instruments Amount as per accounting base

3,372

Regulatory adjustment

(241)

Transfer of grandfathering leveling on hybrid capital instruments

0

Total Tier 2 instruments

3,131

Surplus of provisions to expected losses

34

Deductions

(761)

Other prudential adjustments including phase-in arrangements

0

Total Tier 2 capital

2,403

TOTAL REGULATORY CAPITAL

16,477

Pursuant to Commission Implementing Regulation (EU) No. 1423/2013, the audit trail of regulatory capital as described in Appendix VI of the regulation is provided below.

172

Natixis Registration Document 2018

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