NATIXIS_REGISTRATION_DOCUMENT_2017

OVERVIEW OF THE FISCAL YEAR Management report at December 31, 2017

CONSOLIDATED RESULTS 4.1.3

Change 2017/2016 %

2016 pro forma

(in millions of euros)

2017

%*

Net revenues

9,467 8,810

8,718 7,995

8.6%

9.4%

o/w main business lines*

10.2%

11.0%

Expenses

(6,632)

(6,238)

6.3%

7.0%

Gross operating income Provision for credit losses

2,835 (258) 2,577

2,480 (305) 2,174

14.3%

15.4%

(15.5)%

Net operating income

18.5%

Associates

26 48

13

Gains or losses on other assets Change in value of goodwill

175 (75)

4

0

Pre-tax profit

2,651 (789) (192) 1,669 70.1% 16,352

2,287 (822)

15.9%

Taxes

Minority interests

(90)

Net income (Group share)

1,374 71.6% 16,384

21.4%

Cost/income ratio Equity (average)

ROE

9.6%

7.9% 9.9%

ROTE

11.9%

At constant exchange rates. * 

Analysis of changes in the main items comprising the consolidated income statement Net revenues Natixis’ net revenues stood at €9,467 million at December 31, 2017, up 9.4%from2016 at constantexchangerates. At €8,810 million, net revenues generated by the main business lines (1) were up 11.0% at constant exchange rates versus 2016. The different divisions posted higher revenues overall: an increaseof 16% at constantexchangerates for Asset & Wealth Management, 10% for Corporate & Investment Banking;12%for Insuranceand 2% for the SFS division. The CorporateCenter’s net revenues stood at €657 million in 2017, of which €624 million for Coface. They include -€104 million for the return of foreign-currencyDSNs to the historic exchangerate, versus€9 million in 2016. Meanwhile, revenue synergies achieved with the BPCE networksexceededthe strategicplan’s targets. Operating expenses and headcount Recurringexpenses totaled €6,632million, up 7.0%at constant exchange rates compared to 2016. At constant exchange rates, costs increased 11% for the Asset & Wealth Management division, 8% for the CIB division, 16% for the Insurancedivision and 6% for SFS. Corporate Center expenses were down €883 million in 2017 compared to €948 million in 2016. They include €484 million in expenses for Coface and €121 million for the SingleResolutionFund contribution.

Headcount was up 1% year-on-year,as the headcountincrease in the business lines (+4%) was partially offset by the drop in Coface’sheadcount(-7%) and by the scope effect resultingfrom the disposal of CorporateData Solutions,while the headcountin the supportdepartmentswas up 6% (IT, controlfunctions). Gross operating income Gross operating income stood at €2,835 million in 2017, up 15.4%at constantexchangerates versus2016. Pre-tax profit The provisionfor credit losses was €258 million in 2017, down 15.5% compared to 2016. The provision for credit losses of the main business lines as a percentage of assets amounted to 23 basispoints in 2017 versus34 basis points in 2016. Revenues from Associates climbed to €26 million in 2017 versus€13 million in 2016. Gains or losses on other assets reached €48 million in 2017, including €21.5 million following the disposal of the Ellisphere subsidiary(FinancialInvestments)in the first half of the year and €18 million following the liquidationof a holding company in the second half of the year. This item totaled €175 million in 2016, mainly due to the capital gain on the sale of the Montmartre building(€97million)withinthe CorporateCenter. Change in the value of goodwill was nil in 2017. In 2016, this line item consisted of a goodwill impairment loss of €75 million on Coface. Pre-tax profit therefore amounted to €2,651 million in 2017 versus€2,287million in 2016.

Under the New Dimension plan’s presentation of the divisions, the notion of “Net revenues generated by the main business lines” now includes (1) the Asset & Wealth Management, CIB, Insurance and SFS divisions, and no longer includes Coface.

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Natixis Registration Document 2017