NATIXIS_PILLAR_III_2017_EN

3 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY

Changes in regulatory capital, regulatory own fund requirements and ratios in 2017

Changes in regulatory capital, 3.4

regulatory own fund requirements and ratios in 2017

In accordance with the Basel 3/CRR regulatory framework, under Pillar I these ratios must exceed the minimum limits of 4.5%, 6% and 8%, respectively, in addition to the cumulative safety buffers of 5.75%, 7.25% and 9.25%, respectively for 2017, and 6.375%, 7.875% and 9.875%, respectively for 2018.

Regulatory capital and capital adequacy ratio The 2017 CET1, Tier 1 and total capital ratios are presented below by major component. The same ratios for 2016 are shown by way of comparison.

TABLE 5: TOTAL CAPITAL RATIO R

12.31.2017

12.31.2016

(in millions of euros)

Shareholders’ equity (Group share) Deeply subordinated notes (DSN) Perpetual subordinated notes (PSN)

19,795

19,836

2,232

1,611

0

0

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

17,563

18,225

Minority interests (amount before phase-in arrangements)

137

90

Intangible assets

(511)

(521)

Goodwill

(3,131) (1,160)

(2,945) (1,130) (1,245) 12,474

Dividends proposed to the General Shareholders’ Meeting and expenses Deductions, prudential restatements and phase-in arrangements

(924)

Total Common Equity Tier 1 capital

11,975

Deeply Subordinated Notes (DSN) and preference shares

2,397

1,979

Additional Tier 1 capital

0

0

Tier 1 deductions and phase-in arrangements

(101)

(208)

Total Tier 1 capital Tier 2 instruments Other Tier 2 capital

14,271

14,244

2,955

3,082

0

100

Tier 2 deductions and phase-in arrangements

(686)

(628)

Overall capital

16,540

16,799

Total risk-weighted assets Credit risk-weighted assets Market risk-weighted assets Operational risk-weighted assets Capital adequacy ratios Common Equity Tier 1 ratio

110,697 86,182

115,524 90,704 11,111 13,709

9,730

14,784

10.8% 12.9% 14.9%

10.8% 12.3% 14.5%

Tier 1 ratio

Total capital ratio

44

NATIXIS Risk report Pillar III 2017