NATIXIS - Meeting notice combined general shareholder's meeting

CHANGES IN REGULATORY CAPITAL, REGULATORY OWN FUNDS REQUIREMENTS AND RATIOS IN 2018 REGULATORY CAPITAL AND CAPITAL ADEQUACY RATIO The 2018 CET1, TierɄ 1 and total ratios are presented below by major component. The same ratios for 2017 are shown by way of comparison.

In accordance with the BaselɄ 3/CRR regulatory framework, under PillarɄI these ratios must exceed the minimum limits of 4.5%, 6% and 8%, respectively, in addition to the cumulative safety buffers of 6.435%, 7.935% and 9.935%, respectively for 2018, and of 7.06%, 8.56% and 10.56%, respectively for 2019.

TOTAL CAPITAL RATIO

31/12/2018

31/12/2017

(inmillions of euros)

Shareholders’ equity (Group share)

19,916

19,795

Deeply subordinated notes (DSN)

1,978

2,232

Perpetual subordinated notes (PSN)

0

0

Consolidated shareholders’ equity Group share, net of DSNs and PSNs

17,938

17,563

Minority interests (amount before phase-in arrangements)

241

137

Intangible assets

(580)

(511)

Goodwill

(3,330)

(3,131)

Dividends proposed to the General Shareholders’ Meeting and expenses

(944)

(1,160)

Deductions, prudential restatements and phase-in arrangements

(1,374)

(924)

TOTAL COMMON EQUITY TIER 1 CAPITAL

11,951

11,975

Deeply subordinated notes (DSN) and preference shares

2,145

2,397

Additional Tier 1 capital

0

0

Tier 1 deductions and phase-in arrangements

(22)

(101)

TOTAL TIER 1 CAPITAL

14,074

14,271

Tier 2 instruments

3,131

2,955

Other Tier 2 capital

34

0

Tier 2 deductions and phase-in arrangements

(761)

(686)

Overall capital

16,477

16,540

TOTAL RISK-WEIGHTED ASSETS

109,225

110,697

Credit risk-weighted assets (incl. CVA)

84,245

86,182

Market risk-weighted assets

9,635

9,730

Operational risk-weighted assets

15,345

14,784

Capital adequacy ratios Common Equity Tier 1 ratio

10.9%

10.8%

Tier 1 ratio

12.9%

12.9%

Total capital ratio

15.1%

14.9%

The following changes in BaselɄ3/CRR regulatory capital were recorded in 2018, after applying phase-in arrangements: Common Equity Tierǡ1 (CET1) capital totaled €12Ʉbillion at DecemberɄ31, 2018, up €0.1Ʉbillion over the year. Over the course of the year, the increase stemmed notably from the net income net of dividend forecast at €0.6Ʉbillion, the impact of which was partially offset by the increase in regulatory deductions relating to goodwill and intangible assets (impact of -€0.3Ʉbillion), prudential value adjustments (-€0.1Ʉ billion), and deferred tax assets on losses carried forward (-€0.1Ʉbillion).

Tier 1 capital declined by €0.1Ʉbillion, primarily as a result of the early redemption of two issuances for -€0.3Ʉbillion. The balance was primarily due to the change in the phase-in rate applied on items deducted from AT1 capital, as well as the items subject to these provisions. Tier 2 capital was stable at €2.4Ʉ billion, the €0.3Ʉ billion issuance in the fourth quarter having been offset by the change in the excess of provisions over expected losses (-€0.1Ʉbillion) and the impact of phase- in arrangements over the period. At €109.2Ʉbillion, risk-weighted assets decreased by €1.5Ʉbillion in 2018.

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NATIXIS 2019 MEETING NOTICE