NATIXIS_REGISTRATION_DOCUMENT_2017

3 RISKS AND CAPITAL ADEQUACY

Overall interest rate, liquidity and structural foreign exchange risks

BREAKDOWN OF GROSS FUNDING STRUCTURE BY ■ CURRENCY, AT CURRENT USD EXCHANGE RATES – 12.31.2016

2017 NET MLT FUNDING PROGRAM ■

13% Other long-term loans (incl. Natixis Deposit fund financing)

7% Other currencies

2% Pfandbrief Bank funding

32% Natixis EMTNs

46% USD

47% EUR

53% Loans from BPCE

Under its annual medium-termfunding program, in 2017 Natixis raised €12.2 billion net in resources with a term of more than one year (versus €17.3 billionin 2016). 32% of this programwas achieved via structured private placements, with the remainder predominantly provided by BPCE as part of the Group’s medium-term funding policy approved by the Group ALM Committee.

2016 NET MLT FUNDING PROGRAM ■

12% Other long-term loans (incl. consumer finance)

2% Pfandbrief Bank funding

25% Natixis EMTNs

62% Loans from BPCE

Bank funding

While the EuropeanCentralBank (ECB) has yet to start raising its key rates, it cut in half its asset purchasing program (to €30 billiona month)effectivethe beginningof 2018. For now, the impact of these moves by central banks on long rates has remained modest and yield curves have significantly flattened, suggestingthat the markets are awaiting the moment when economic activity calls for significant, long-lasting monetarystimulus. Investor interest in bank issues has remained strong in this context of regular and abundant liquidity. Search for yield in moneymarket funds in the current low interestrate environment favors liabilities with maturities above six months. Natixis has scaled down the use of its refinancing programs. Outstandings on its short-termprograms fell by €13.42 billioncompared with the end of 2016 (a reduction of €5.45 billion on CDs and €7.97 billion on ECP), reflecting a reduction in its external financingrequirements.

Short-term funding The year 2017 was marked by strong global growth, with inflationremainingmoderatein the developedeconomies. The stock markets rose throughout the year, boosted by prospects of lower taxes and deregulation by the US administration. One notable highlight was the relatively mild reaction by the financial markets to political shakeups like the French elections, geopoliticaltension between the United States and North Korea and difficultiesfaced by the Trumpadministration. The dangersof suddendeflationsubsidedover the year, allowing central banks to proceed more confidently with the monetary policy normalization called for by the current economic environment. The Federal Reserve hiked its key rate on three occasions in 2017, raising it to 1.5%, while the Bank of England made do with just one 0.25% increase.

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Natixis Registration Document 2017