NATIXIS -2020 Universal Registration Document

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk management

2019 MLT funding program

2020 MLT funding program

24 % Other long-term loans (y.c Financement du fonds Natixis Deposit)

9 % Other long-term loans (y.c Financement du fonds Natixis Deposit)

36 % Natixis issues

43 % Natixis issues

48 % Borrowings from BPCE

40 % Borrowings from BPCE

Sources: Management data.

In 2020, under its annual medium-term funding program, Natixis raised €12.3 billion (and €8.7 billion net of PPS buybacks and calls) in resourcescomparedwith €11.5 billion(€7.4 billionnet of buybacksand calls). Natixis benefited from the TLTRO resourcesprovidedby BPCE to finance the GBLs. Term depositswere partially backed at more than one year by cash flows, thus creating an additional resource of €3 billion, which explains the increase in resources compared to last year. Comments on the Bank’s funding Short-term funding

This movement was only very temporary, however, since the actions of central banks quickly led to a return of confidence and liquidity in the money markets. Companies were also able to benefit from a State-guaranteed loan scheme which reassured them that they would be able to maintain their cash flow during the crisis and some of them were able to reduce the amount of their reserves to reinvest in the money market via Asset Management companies. As proof of the return of this confidence and of the current strong appetite of investors for monetary assets, interbank rates (Euribor) have eased steadily from the month of April 2020 and remained below or very close to the deposit facility of the European Central Bank (-0.50%). Over the year 2020, the outstanding amount of our short-term debt programs expressed in euros decreased by almost 10 billion (9.861), reflecting both lower refinancing requirementswithin the Group due to the liquidity provided to the market by central banks, the desire to reallocate issues to BPCE programs in the United States in particular and, to a lesser extent, the fall in the exchange rate of the dollar against the euro.

The year 2020 was very mixed on the short-term debt markets. It was marked by the COVID-19 pandemic that affected the financial markets, but also by the formidable reaction of the political and monetary authorities to provide the fastest and most appropriate response possible. From the beginning of March, many companies preferred to withdraw from their investments in money management companies to build up a liquidity buffer to cope with the inevitable loss of revenue caused by the pandemic. These withdrawal movements affected the liquidity of the money markets, which closed very quickly due to a lack of bank debt buyers. This situation caused the very significant attrition of the Group’s stock of monetary debt, largely offset by an increase in deposits in corporate bank accounts, as a result of them building up their buffer.

Natixis’ short-term issuance program outstandings

(in millions of euros or euro equivalents)

Deposit certificates

Commercial papers

Program ceiling*

45,000 19,693

24,224 10,389

Outstandings at 31/12/2020

* For certificates of deposit, NEU CP program ceiling only.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020

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