NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Consolidated financial statements and notes

Fees and commissions that form an integral part of the effective yield on an instrument, such as fees for loan set-up, are recognized and amortized as an adjustment to the effective interest rate over the estimated term of the applicable loan. These fees and commissionsare recognized as interest income rather than “Net fee and commission income”. Any mismatch between the date of payment and the date of implementation of the service will generate an asset or liability depending on the type of contract and the nature of the mismatch and will be recorded under “Other assets” and “Othelriabilities”. tax payable by French companies at the rate of 32.02% for the V fraction of the profit exceeding €500,000 (28% of €0 to €500,000) or at the rate in force locally for foreign companies and branches; deferred taxes arising from temporary differences between the V carrying amount of assets and liabilities and their tax basis, which are calculated using the balance sheet liability method. Deferred tax assets and liabilities are calculated at the level of each tax entity in accordance with local tax rules and based on tax rates that have been enacted or substantively enacted at the date the temporary difference will reverse. Deferred taxes are nodtiscounted. Deferred tax assets are only recognized at the reporting date if the tax entity concerned is likely to recover tax savings over a fixed time period (10 years maximum). These savings will be realized by the deduction of temporary differences or tax loss carryforwards from estimated future taxable income within that time period. Deferred tax assets and liabilities are offset at the level of each tax entity. The tax entity may either be a single entity or, if applicable, a group of entities of which it is a part, that have elected for Group tax relief. The deferred tax rate applied in France takes account of the tax cuts introduced by parliament through the various Finance laws. The rate of corporate tax will decline (excluding a social security contribution impact of 3.3%) to 27.5% in 2021 (for all taxable income) and to 25% in 2022 and subsequent years. All temporary differences have been recognized regardless of their recovery or payment date. The net deferred income tax balance is shown in the balance sheet under “Deferred tax assets”. The value-addedcontribution,or “Cotisationsur la Valeur Ajoutée des Entreprises” (CVAE), is recorded in the accounts as “Operating expenses,” since Natixis considers that its calculation is not based on net income. Finally, it is necessary to note that from April 1, 2020 tax credits on foreign securities are no longer recorded in NBI but in corporate income tax. Tax expenses 5.19 The tax expense for the year comprises:

Financial guarantees given are stated initially at fair value, then subsequently at the higher of: the amount initially recognized upon inception less, where V appropriate, the amount of amortization recorded in line with the principles outlined in IFRS 15 “Revenue from Contracts with Customers”. This amortization represents the deferred recognition of the fees received over the period covered by the guaranteea;nd the amount of the provision determined according to the V provisions of the expected credit loss model (see Note 5.3) . The provisions arepresented in Note 7.16 “Summary of provisions”. All of the financial guarantees issued by insurance subsidiaries that also meet the definition of an insurance contract were accounted for in line with the requirements of IFRS 4 “Insurance Contracts” (see Note 8) . Specific case of guarantees issued to mutual funds Natixis guarantees the capital and/or returns on units in certain mutual funds. These guaranteesare executedsolely in the event that the net asset value of each of the units in the fund at maturity is lower than the guaranteed net asset value. These guarantees are recorded as derivatives and are measured at fair value in accordance with the provisions of IFRS 13. Guarantee commitments received There are no IFRS standards covering financial guarantees received (other than derivatives or insurance contracts). In the absence of specific guidance, the accounting treatment applied must be determined by analogy with the accounting treatment prescribed by other standards in similar situations. Accordingly, guarantees receivedmeeting the definition of a financial guarantee for an issuer are accounted for in accordance with: IFRS 9, for guarantees received in respect of financial assets (debt V instruments). The measurement of the expected credit losses associatedwith financial assets must in fact take into account the flows generated by guarantees considered an integral part of the debt instrument; IAS 37, for guarantees received in respect of non-financial liabilities V falling within the scope of IAS 37. b) Financing commitments Financing commitments are irrevocable commitments by Natixis to grant a loan under pre-defined conditions. The vast majority of the financing commitments granted by Natixis give rise to loans granted at market rates at the grant date and recognized at amortized cost. As such, and in accordance with IFRS 9, the commitment to lend and the loan itself are considered successive stages of one and the same instrument. The commitment to lend does not, therefore, fall within the scope of IFRS 9: it is treated as an off-balance sheet transaction and is not revalued. Financing commitments are eligible for the provisioning mechanism under IFRS 9, however (see Note 5.3) . IFRS 9 provides that the issuer of a financing commitment must apply provisioning criteria to loan commitmentsthat do not fall within the scope of this standard. The provisions recognized in respect of these commitments are presented in Note 7.16 “Summary of provisions”.

5.20

Financing and guarantee

commitments a) Financial Guarantees Commitments given

Financial guarantee commitments not classified as derivatives are contracts requiring the issuer to make specific payments to repay the business guaranteed for a loss that it has incurred owing to the failure of a debtor to make the contractual installments due. The exercise of these rights is subject to the occurrence of an uncertain future event.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020