NATIXIS_REGISTRATION_DOCUMENT_2017

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

At €1,328 million, Global Finance including GTB (Global TransactionBanking) increased its revenues by 4.9% compared to 2016 at constantexchangerates. In origination, new business increased by 4.0% compared to 2016 with a particularlystrong uptrend in structuredfinance and especially in real estate finance in the US. Origination revenues rose compared to 2016, as substantial fees and commissions were recorded for the period in the infrastructure,aviation and real estate finance segments. Commodity Trade Finance remained strong in 2017, boosted by an increase in drawn outstandingsin responseto better per barrel oil prices compared to the year before. Revenues from Investment Banking including M&A activities were up 27.9% at constant exchange rates compared to 2016 for accumulatedrevenuesof €362 million, includingscope effect for the consolidationof US subsidiaryPeter J. Solomoncompany (PJSC) revenues since the end of the second quarter of 2016. The Investment Banking business also benefited from strong growth in Strategic and Acquisition Finance, brisk trade on the equity capital markets when European banks carried out several capital increases in the first half of 2017, and robust M&A activity,drivenby NatixisPartnersFranceand Spain. In 2017 Corporate & Investment Banking’s expenses totaled €2,194million, up 7.9%comparedto 2016 at constantexchange rates. Gross operatingincome amountedto €1,387million, up 14.6% compared to 2016. The cost/incomeratio was 61.3% in 2017, up 1.3 pointscomparedto 2016 (62.6%). At €115 million, the provision for credit losses fell 40.9% comparedto 2016 which saw higher levels of provisioningon oil sector exposuresdue to the sharp decline in the price per barrel that lasteduntil early 2016. ROE after tax totaled 13.5% in 2017, up 3.5 points comparedto 2016 (10.0%), thanks to a decrease in risk-weighted assets (RWA)togetherwith higherearnings.

Revenues from Fixed Income, Forex, Credit, Commodities and Treasury activities stood at €1,317 million in 2017, up 6.9% on 2016. The following changes were observed in each segment: revenues from Fixed Income and Forex were down 2.4%. a Fixed Income grew 7.1% thanks to very strong sales momentum,especially in Asia, while Forex was down 24.1%. Weaker currency volatility in 2017, compared to 2016 which was characterizedby deep uncertaintysurroundingBrexit and the US electionsat the end of the year, reducedflow volumes; revenues from Credit activities were up 10.2% compared to a 2016. The business recorded ongoing growth in securitization activities,in both Europeand the US, while the roll-outof these activitiesin Asia continued; Revenues from repo activities were up 19.1% compared to a 2016, poweredby strong business in both France and the US, and taking into account increasedrevenuesfrom the solutions offering. Strategic and Acquisition Finance revenues rose thanks to positivemarket conditionsthat helped generate high transaction volumesduringthe period. Revenues from syndication on the bond market were down compared to 2016, including an increase in revenues generated on the primary bond market. The dynamism of the first half of 2017 was more than offset by a slowdown in market-making activity for sovereign debt on the secondarymarket, due to the uncertainty surrounding the French election results in the first half of the year. At €599 million, Equity revenuesgrew by 21.4%year-on-yearat constant exchange rates, buoyed by Equity Derivatives, with strong performance from the Solutions activities, thanks to the consolidation and international roll-out of its offering and of EquityFinance.

Insurance 4.1.4.3

2017

2016 pro forma

Change (%)

(in millions of euros)

Net revenues

734

655

12.0% 16.2%

Expenses

(439)

(378)

Gross operating income Provision for credit losses

295

277

6.4%

0

0

Pre-tax profit

308

287

7.5%

Cost/income ratio Equity (average)

59.8%

57.6%

863

808

ROE

22.1%

20.8%

In terms of business levels , the sales momentum in all the Insurancesegmentswas particularlyrobust in 2017. With €9.5 billion in direct business premiums, life insurance inflows were up by 59% compared to 2016 as a result of the market roll-out of savings policies (life insurance and accumulation policies) in the Caisse d’Epargne network, with 2017 being the first full year of distribution.In 2017 inflowswere more directed at unit-linked assets, thanks to the launch of the

new Sélectiz range. Premiumson unit-linkedassets totaled €3.3 billion (+160%) and made up 35% of total gross inflows, up 14 points year-on-year and 7 points higher than the market rate Premiums on Personal Protection and Payment Protection insurance (€820 million)continued to increase at a steady pace (+8%). (late-Novemberdata).

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Natixis Registration Document 2017