NATIXIS - 2020 Meeting notice combined general shareholder's meeting

MANAGEMENT REPORT AT DECEMBER 31, 2019

... and fintech activities: the growth of volumes collected by PayPlug and Dalenys, for instance, reached record a record 83% and 21% in 2019 year-on-year. This developmentof the businesslines went hand-in-handwith: a 6.4% increase in liquidity needs year-on-year; V the consumption of Basel 3 RWA was stable year-on-year at V €99.0 billion.

driven by strong growth in payment solutionsfor which transaction V processing volumes continued to rise at a steady pace (+16% for card authorizationsand +11% for transactioncards); and by the volume of NIT issuance, up 7%, after the entity was selected V by the SNCF for its staffrestaurantvouchers.

Consolidated results

Change 2019/2018 Current

2019

2018 pro forma

(in millions of euros)

Constant

Net revenues

9,196 8,365

8,749 7,958

5.1% 5.1% 4.3% 7.2%

3.1% 2.9% 2.4% 5.0%

o/w business lines Operating expenses

(6,632)

(6,357)

Gross operating income Provision for credit losses

2,564 (332) 2,232

2,391 (193) 2,199

72.0%

Operating results

1.5%

Associates

21

29 54

(27.4)%

Gains or losses on other assets Change in the value of goodwill

687

5

0

Pre-tax profit Income taxes

2,945 (669) (380) 1,897 72.1% 11.1% 14.3%

2,281 (673) (303) 1,306 72.7%

29.1% (0.6)% 25.4% 45.2%

Non-controlling interests Net income (Group share)

Cost/income ratio

ROE

9.2%

ROTE

11.8%

Analysis of changes in the main items comprising the consolidated income statement Net revenues Natixis’ net revenues stood at €9,196 million at December 31, 2019, up 3.1% from2018 at constantexchange rates. At €8,365 million, net revenues generated by the main business lines were up 2.9% at constant exchange rates versus 2018. The various divisions posted stable or increased revenues. Asset & Wealth Management net revenues gained 4.1% at constant exchange rates. Corporate & Investment Banking net revenues were virtually stable at constant exchange rates. The Insurance and Payments divisionswere up 7% and 8.5% respectively. Financial investments net revenues totaled €772 million in 2019, up 4.1%compared with 2018,€712 millionof whichfor Coface. The Corporate Center’s net revenues totaled €59 million in 2019. They include +€19 million for the return of foreign-currency DSNs to the historicexchangerate, versus +€48 million in 2018.

Operating expenses and headcount Recurring expenses totaled €6,632, up 2.4% at constant exchange rates compared with 2018. Asset & Wealth Management expenses were up 3% at constant exchange rates. CIB expenses came down very slightly by -0.3% at constant exchange rates, while those of the Insurance and Payments divisions rose 7% and 8.5% respectively. Financial investments expenses were up 6.5%. Corporate Center expenses were stable at€497 million, despite increasing the contributionto the Single ResolutionFund to €170 millionin 2019 versus €160 millionin 2018. Headcount at the end of the period stood at 19,639 FTE, up 3% year-on-year, with a 2% increase for the business lines and Financial investments, and 6% growth for the Corporate Center with the strengthening of the control functions and the expansion of the IT teams in Porto. Gross operating income Gross operating income stood at €2,564 million in 2019, up 5% at constant exchangerates versus 2018.

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NATIXIS MEETING NOTICE 2020