NATIXIS // 2021 Universal Registration Document

3 RISK FACTORS, RISK MANAGEMENT AND PILLAR III Risk factors

transform the bankingmodel with disintermediationand increased V competition linked to European “open banking” initiatives such as the “PSD2” Payment Services 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; introduce atax on financial transactions at the European level; V impose new obligations following the proposals for measures V published by the European Commission in July 2021 aimed at strengthening the European framework for the fight against money laundering and the financing of terrorism as well as the establishment of a new European agency dedicated to the fight against money laundering. Natixis is also subject to complex and changing tax rules in its various jurisdictions. Changes in the applicable tax rules, uncertainty about the interpretationof such changesor their impactsmay have a negative effect on Natixis’ business, financial position, costs and results. In addition, a number of adjustments, new regulations and postponements regarding the entry into force of certain regulations, notably related to prudential requirements,have been adopted by the national and European authorities in the context of the COVID-19 pandemic. The long-termor temporary nature of these adjustments, novelties and postponements,and more generally the short, medium and long-term impact of the health crisis on regulatory changes, are still uncertain, so it is impossible to determine or measure at this stage their actual impact on Natixis. In this changing legislative and regulatory environment, it is impossible to predict the impact these new measures will have on Natixis. Moreover, Natixis is incurring, and could incur in the future, significant costs to update or develop programs to comply with these new legislative and regulatory measures, and to update or enhance its informationsystems in response to or in preparation for these measures. Despite its efforts, Natixis may also be unable to fully comply with all applicable legislation and regulations and could therefore be subject to financial or administrative penalties. In addition, new legislative and regulatorymeasures could force Natixis to adapt its activities, 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.

Legislative and regulatory measures taken in response to changes in the economic world (technological change, sustainable development, financial crisis, etc.) that could have a significant impact on Natixis and the 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. The financialcrises including those of 2008, the COVID-19pandemic, technological innovation and the challenges posed by sustainable development are examples and are at the origin of many changes. 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, without being exhaustive, some 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 of 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 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. amendments to the regulations on financial products, enhanced information disclosure requirements); strengthen requirements in terms of personal data protection V and cybercrime, in connection with the publication on September 24, 2020 of the proposal for a European regulation on the digital operational resilience of the financial sector, which could, among other things, lead to additional costs related 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;

Risks related to Insurance activities

In 2021, the Net Banking Income (NBI) of the Insurance business stood at €964 million. The Insurance business line net banking income (excludingcross-businessnet revenuesof €13.7million) was split betweenPersonal Insurance for €635.1million and Property and Casualty Insurance for €315.7 million.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2021