NATIXIS_REGISTRATION_DOCUMENT_2017

3 RISKS AND CAPITAL ADEQUACY Capital management and capital adequacy

projecting capital requirements specific to business line a activity, within the framework of Natixis’ overall capital adequacypolicy; anticipating regulatory changes and their impact on Natixis’ a variousbusinesslines.

implementinga system for analyzing the capital consumption a of the businesses and their profitability on the basis of Basel 3/CRRrisk-weightedassets; allocatingcapital to the businesslines, within the frameworkof a strategic plan and annual budget procedures, taking into account business requirements, profitability and balance betweenthe core businessdivisions.

Outlook The European MREL ratio introduced by the BRRD directive is applicable to Natixis, unless otherwise stipulated, according to the methodsstill to be definedby the SingleResolutionBoard Together with Groupe BPCE as a whole, Natixis contributed to collecting detailed information on liabilities, as required by the

SRB in 2017. As the BRRD directive is currently under review, the mechanisms for managing and preparing for this new ratio are not yet finalized.

BASEL 3 RWA BY MAIN NATIXIS BUSINESS (NX02) R

Basel 3 RWA

(in millions of euros)

Division

Total

Credit  (a)

Market  (b)

Operational

Corporate & Investment Banking (c) Asset & Wealth Management

58,991 11,652

42,931

8,739

7,321 4,717

6,935 7,201

Insurance

7,201

Specialized Financial Services

16,681 16,172 110,697 115,524

14,426 13,492 84,985 86,968

2,255

Corporate Center (d)

 2,189

491

TOTAL AT 12.31.2017 TOTAL AT 12.31.2016

10,928 14,847

14,784 13,709

Including counterparty risk. (a) Including settlement-delivery risk of €1,198 million in CVA RWA. (b) Including Treasury & Collateral Management (c) Including Financial Investments (d)

OTHER REGULATORY RATIOS 3.4.6

Large exposures ratio Regulationson the monitoringof large exposureswere revisedin 2014 and are now part of the CRR. They aim to prevent an excessive concentrationof risks for sets of counterpartiesthat are related in such a way that if one encountered financial problems, the others would also be likely to experiencefunding or repayment problems. The standard is based on a standing obligation:all risks associatedwith a single counterpartymay not exceed25%of the bank'stotal capital.Natixiscompliedwith this requirementin 2016.

Leverage ratio The Basel Committee has set up a system for managing leverage risk. The system was included in the CRR, defining leverage as being equal to Tier 1 capital divided by on-balance sheet exposures (after certain restatements, notably on derivatives and repurchase agreements) and off-balance sheet exposures (after applying balance sheet equivalent conversion factors). The CRR was amended by a Delegated Act, which entered into force on March 31, 2015. The reporting templates that take those amendmentsinto account have only been used since September 30, 2016, in accordance with the implementationdeadlines. Under Pillar II, the leverageratio must be calculatedand reported to the regulator as of January 1, 2014. Its publication is mandatoryas of January 1,2015. Natixis is already prepared to calculate and publish its leverage ratio (accordingto the rules set out in the DelegatedAct) and to implement the balance sheet oversight needed to converge towardsthe target ratio under consideration.

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Natixis Registration Document 2017