NATIXIS - 2020 Meeting notice combined general shareholder's meeting

MANAGEMENT REPORT AT DECEMBER 31, 2019

Changes in regulatory capital, regulatory own funds requirements and ratios in 2019

In accordance with the Basel 3/CRR regulatory framework, under Pillar I these ratios must exceed the minimum limits of 4.5%, 6% and 8%, respectively, in addition to the cumulative safety buffers of 7.21%, 8.71%and 10.71%, respectivelyfor 2019.

Regulatory capital and capital adequacy ratio The 2019 CET1, Tier 1 and total ratios are presentedbelow by major component. The same ratios for 2018 are shown by way of comparison.

Total capital ratio

(in millions of euros)

31/12/2018

31/12/2019

Shareholders’ equity (Group share) Deeply subordinated notes (DSNs) Perpetual subordinated notes (PSN)

19,396

19,916

1,978

1,978

0

0

Consolidated shareholders’ equity (Group share) net of DSNs and PSNs

17,418

17,938

Minority interests (amount before phase-in arrangements)

286

241

Intangible assets

(479)

(580)

Goodwill

(3,385)

(3,330)

Dividends proposed to the General Shareholders’ Meeting and expenses Deductions, prudential restatements and phase-in arrangements

0

(944)

(1,696) 12,145

(1,374) 11,951

Total Common Equity Tier 1 capital

Deeply subordinated notes (DSNs) and preference shares

2,165

2,145

Additional Tier 1 capital

0

0

Tier 1 deductions and phase-in arrangements

(22)

(22)

Total Tier 1 capital Tier 2 instruments Other Tier 2 capital

14,288

14,074

2,996

3,131

26

34

Tier 2 deductions and phase-in arrangements

(760)

(761)

Overall capital

16,550 98,990 73,117 11,109 13,733

16,477 109,225

Total risk-weighted assets Credit risk-weighted assets Market risk-weighted assets Operational risk-weighted assets Other risk-weighted assets Capital adequacy ratios Common Equity Tier 1 ratio

84,245

9,635

15,345

1,031

12.3% 14.4% 16.7%

10.9% 12.9% 15.1%

Tier 1 ratio

Total capital ratio

Common Equity Tier 1 (CET1) capital totaled €12.1 billion at December 31, 2019, up +€0.2 billionover theyearattributablenotably to: common net income (excluding the capital gain following V the disposalof the retail banking activities)at +€1.2 billion; changes in other items of comprehensiveincome (recyclablegains V and losses directly recognized in shareholders’ equity and exchange rate effect relating to changes in the euro/dollar exchange rate) for+€0.4 billion; prudential deductions relating to goodwill and intangible assets V (-€0.1 billion), deferred tax assets on losses carried forward (-€0.1 billion) and, for the first time in 2019, security deposits to the SRF and DGS(-€0.1 billion); perpetual deeply subordinated notes (pay and conversion impact) V for -€0.2 billion.

Accompanying these factors is a -€0.9 billion impact relating to the disposal of the retail banking business and its acquisition by BPCE S.A.: the pay-out of a special dividend of -€1.5 billion over the financial year having been partially offset by a +€0.6 billion capital gainon the disposal. Additional Tier 1 capital remained stable at €2.1 billion. Tier 2 capital came down slightly to €2.3 billion, the discount on issuance totaling€0.1 billion for the period. At €99.0 billion, risk-weighted assets decreased by -€10.2 billion in 2019.

14

NATIXIS MEETING NOTICE 2020