NATIXIS_REGISTRATION_DOCUMENT_2017

3 RISKS AND CAPITAL ADEQUACY Capital management and capital adequacy

TRANSITION FROM SHAREHOLDER’S EQUITY TO PRUDENTIAL CAPITAL AFTER APPLYING PHASE-IN ARRANGEMENTS R

12.31.2017

(in millions of euros)

Shareholders' equity Capital

5,020

Issue premium

4,210

Retained earnings

6,235

Treasury shares

(25)

Other, including items of comprehensive income

453

Other instruments to be reclassified as Additional Tier 1 capital

2,232

Net income

1,669

Total shareholders' equity – Group share

19,795

Reclassification as Additional Tier 1 capital

(2,232)

Translation adjustments

17

Restatement of dividend forecast (dividend for previous year)

0

Prudential filters after phase-arrangements Own credit risk: Gain on reclassification of hybrid securities

(170)

Own credit risk: liabilities and derivatives net of deferred taxes

181

Prudent valuation adjustment

(262)

Unrealized gains and losses

16

Total prudential filters

(236)

Deductions after phase-in arrangements Dividend proposed for current year and related expenses

(1,160)

Goodwill Amount as per accounting base

(3,215)

Amount of related deferred tax liabilities

311

Amount included in value of investments in associates

(227)

Intangible assets Amount as per accounting base Minority interests Amount as per accounting base

(511)

137

Prudential adjustment including phase-in arrangements

(137)

Deferred tax assets (tax loss carry-forwards) Amount as per accounting base

(1,490)

o/w portion not including tax loss carry-forwards and impact of netting

700

Prudential adjustment including phase-in arrangements

316

Shortfall of provisions to expected losses

0

Investments in the share capital of financial sector entities

0

Other prudential adjustments including phase-in arrangements

(95)

Total deductions

(5,370)

Total Common Equity Tier 1 (CET1)

11,975

Hybrid capital instruments Amount as per accounting base Other equity instruments

2,232

Residual gain on reclassification as equity

170

Nominal value adjustment during the period

(4)

Early redemption through exercise of call option

0

Leveling due at the grandfathering limit

0

Total hybrid instruments

2,397

Deductions

(22)

Other prudential adjustments including phase-in arrangements

(79)

Total additional Tier 1 capital

2,297

Total Tier 1 capital

14,271

Subordinated debt instruments Amount as per accounting base

3,081

Regulatory adjustment

(126)

Transfer of grandfathering leveling on hybrid capital instruments

0

Total Tier 2 instruments

2,955

Surplus of provisions to expected losses

0

Deductions

(760)

Other prudential adjustments including phase-in arrangements

74

Total Tier 2 capital

2,269

TOTAL PRUDENTIAL CAPITAL

16,540

122

Natixis Registration Document 2017