NATIXIS -2020 Universal Registration Document

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

an increased rate of defaults on loans and receivables and higher V provisions for non-performing loans due to the impact on the business and operations of Natixis’ customers. A significant increase in these provisions or the realization of losses in excess of the provisions recorded could have an adverse effect on Natixis’ results and financial position; a decline in prices on the bond, equity or commoditymarkets could V reduce business volumes on these markets; macro-economic policies adopted in response to actual or V anticipated adverse economic conditions could have unintended negative effects, and are likely to negatively impact market parameters such as interest rates and foreign exchange rates, which could affect the results of Natixis’ businesses that are most exposed to market risk; perceived favorable economic conditions generally or in specific V business sectors could result in asset price bubbles decorrelated from the actual value of the underlying assets; this could in turn exacerbate the negative impact of corrections when conditions become less favorable and cause losses in Natixis’ businesses; a significanteconomicdisruption(such as the global financialcrisis V of 2008 or the Europeansovereigndebt crisis of 2011) could have a severe negative impact on all the activities of Natixis, particularly if the disruption is characterized by an absence of market liquidity that makes it difficult to finance Natixis and to sell certain categories of assets at their estimated market value or at all; an adverse change in the market prices of various asset classes V could affect the performance of Natixis Investment Managers companies, especially due to a decrease in assets on which management fees are charged; low interest rates may also negatively affect the profitability of V Natixis’ Insuranceactivities, as Insuranceaffiliatesmay not be able to generate enough investment returns to cover amounts paid out on some of their insurance products. Furthermore, were market interest rates to rise in the future, a portfolio featuring significant low interest rate loans and fixed income securities would be expected to decline in value. Low interest rates may also adversely affect commissions charged by Natixis Asset Management affiliates on money market and other fixed income products. This could adversely affect the profitability and financial position of Natixis. For information, at 31/12/2020, the economic value sensitivities of the main entities within Natixis’ consolidatedscope to a -200 bp shift (with the regulatory floor) and to a +200 bp shift, calculated in accordance with EBA standards, represented +€27 million and -€152 million, respectively. In addition, the main markets on which Natixis operates may be affected by uncertainties such as those regarding the future relationshipbetween the UK and the EU followingBrexit, global trade, the geopolitical context, and any manner of uncertainty. A perfect illustration of this is the impact of the COVID-19 pandemic on the global economy. The consequences for Natixis are presented under the risk factor “The ongoing COVID-19 pandemic could adversely affect Natixis’ business activity, operations and financial performance”. Legislative and regulatory measures in response to the global financial crisis may have a material impact on Natixis and on the financial and economic environment in which it operates Legislative and regulatory texts are constantly evolving to take into account the lessons of crises or simply to adapt to the transformation of the economic and financial environment. Thus, after the financial crisis of 2008, texts were promulgated or proposed to avoid the occurrence of another similar global crisis. Similarly, the economic crisis linked to COVID-19 has already given

rise to short-term measures by the regulatory and supervisory authorities in 2020; medium to long-term actions cannot be ruled out. In addition, the identification of new types of risks related, for example, to technological innovation may lead to new regulatory requirements. All of these changes have significantly changed, and are likely to change in the future, the environment in which Natixis and other financial institutions operate. Natixis is exposed to risk related to these legislative and regulatory changes. Among the measures that have been or may be adopted could potentially: prohibit or limit some kinds of financial products or activities, V thereby partially restricting the diversity of Natixis’ sources of income. For example, the introduction a withholding tax on dividends from borrowed securities under certain circumstances could weaken the appeal of some of Natixis’ current products; strengthen internal control requirements, which would require V investing heavily in Human Resources and materials for risk monitoring and compliance purposes; amend the capital requirement framework and necessitate V investment in internal calculation models. For example, changes related to the Basel 3 regulations (in particular revised Basel 3) being transposed in Europe could lead to a review of the Risk-Weighted Asset calculation models for certain activities; strengthen the requirements regarding the conditions for granting V and monitoring loans, but also influence the management of transactions for customers in difficulty; introduce new prescriptive provisions to identify, measure and V manage environmental, societal and governance risks, particularly in relation to sustainable development and the transition to a low-carbon economy (e.g. amendment to the regulations on financial products, enhanced information disclosurerequirements); strengthen requirements pertaining to personal data protection V and cybercrime, as they can lead to higher costs due to additional investments in the bank’s information system; modify, create or strengthen regulations related to digitization and V technological innovations in connection with the emergence of crypto assets, discussions on the digital currencies of central banks, the use of artificial intelligence and robotizationor because of the technological developments in payment services and fintechs; transformthe banking model with disintermediationand increased V competition linked to European “open banking” initiatives such as the “PSD2” Payment Service Directive; require the bank to make a substantial financial contribution to V guarantee the stability of the European banking system and limit the impact of a bank failure on public finances and the real economy. In this changing legislativeand regulatoryenvironment,it is impossible to predict the impact these newmeasureswill have on Natixis.Natixis is incurring,and could incur in the future, significantcosts to updateor developprogramsto complywith these new legislativeand regulatory measures, and to update or enhance its information systems in response to or in preparationfor these measures.Despite its efforts, Natixismayalsobe unableto fully complywithall applicablelegislation and regulations and could therefore be subject to financial or administrative penalties. Furthermore, the new legislative and regulatorymeasuresmay requireNatixisto adapt its businesses,which could affect its results and financial position. Lastly, under new regulations Natixis may be obligated to increase its capital requirements or its overall funding costs.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020

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