NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Parent company financial statements and notes

- due to a stressed market environment that generated significant fluctuations, the “volatility” factor was also remarked for all of the transactions involved.

This situation affected Natixis’ revenues in fiscal year 2020, with a decrease in thelevel of remarks in the second half of the year.

Note 2

Accounting principles and valuation methods

Natixis’ separate financial statements have been prepared and are presented in accordance with regulation No. 2014-07 (amended) of the Autorité des Normes Comptables (ANC – French accounting standards authority) dated November 26, 2014 relating to the financial statements of companies in the banking sector and regulation No. 2014-03 (amended) relating to the French General Accounting Plan (PCG – Plan comptable général). Financial statements for foreign subsidiaries, prepared in accordance with local rules, are restated in accordance with generally accepted accounting principles in France for the preparation of individual financial statements. The financial statements for the fiscal year are presented in identical format to those for the previous fiscal year. Generally accepted accounting principles have been applied in compliance with the principle of prudence based on the following principles: going concern; V consistency of accounting methods from year to year; V principle of periodicity. V However, Natixis applied for the first time on December 31, 2020 ANC regulation No. 2020-10 of December 22, 2020 which amends ANC regulation No. 2014-07 on the presentation of securities loans on the balance sheet. This change consists in presenting under “Other liabilities” the debt representing the securities borrowed, less the value of the securities borrowed (classified as trading securities on the balance sheet), and the value of the securities borrowed that have been loaned out (also classified as trading securities on the balance sheet). Details of these changes are presented in notes 6 and 16. In addition, at December 31, 2020, Natixis modified: the presentation in the income statement of negative interest, V which is now included: in the “Interest and similar expenses” item when it relates to a V financial asset, in the “Interest and similar income” item when it relates to a V financial liability. At December 31, 2019, negative interest was presented net of positive interest on financial assets and liabilitiesr,espectively; the presentation of conditional derivatives purchased or sold with V a staggered or paid premium. Before this changewas applied, the amountsof premiumsaccrued and premiums outstanding were respectively presented in the balance sheet under “Miscellaneous debtors” and “Miscellaneous creditors”, separately from the sections on options purchased or sold to which they relate. As these premiums are inseparable from derivatives, their presentation on the balance sheet has been modified: the amount of premiums remaining to be paid and the amount of premiums remaining to be received are now included in the value of the conditional derivatives purchased or sold to which they relate (see Note 2.16) .

Advances to banks

2.1

and customer loans Advances to banks cover all receivables other than those represented by a security, held in connection with banking transactions with credit institutions, including subordinated loans and reverse repo stock and securities. They are broken down between demand loans and deposits and term loans and time deposits. Customer loans comprise loans to economic operators other than banks, with the exceptions of those represented by a security, and reverse repo stock and securities. They are broken down by type of loan (current accounts overdrawn, commercial loans, cash loans, equipment loans, export credit, subordinated loans, etc.). Accrued interest is credited to the correspondingreceivables item on the income statement. Fees earned on the granting or acquisition of loans, as well as marginal transaction costs, are recognized using the effective interest rate actuarial method over the effective life of the loan. Recognition is shown as net interest income in net revenues. Fees and transaction costs to be recognized are included in the relevant loan book. Loans that have been granted on an irrevocable basis but have not yet given rise to any transfer of funds are included in off-balance sheet items under “Financing commitments given”. Performing and non-performing loans are identified separately. Loans for which there is an identified credit risk, regardless of any guarantees, which makes it probable that Natixis will be unable to recover all or part of the amount owed by the counterpartyunder the terms and conditions of the loan agreement, are considered to be non-performing.In particular, loans that include payments over three months overdue are classified as non-performing loans. Non-performing loans are receivables for which an event of default has been identified as defined in Article 178 of Regulation (EU) No. 575/2013 and the provisions of Regulation (EU) No. 2018/1845 of the European Central Bank on the threshold for assessing the significance of arrears on credit obligations, applicable no later than December 31, 2020. The definition of defaulted loans ispecified by: the introduction of a relative threshold and an absolute threshold, V to be applied to payment arrears to identify default situations; clarificationof the criteria for the return to sound outstandingswith V the imposition of a probationary period (12 months for restructured assets and three months for other assets); and the introductionof explicit criteria for classifyingrestructuredloans V as default. Loans accelerated by the lender and loans classified among non-performingloans for more than one year for which a write-off is planned are deemed to be irrecoverable.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020