NATIXIS_REGISTRATION_DOCUMENT_2017

4 OVERVIEW OF THE FISCAL YEAR Post-closing events

Post-closing events 4.2

Refer to Note 14,“Post-ClosingEvents”,in Chapter 5.1,ConsolidatedFinancialStatementsand Notes.

Information concerning Natixis S.A. 4.3

NATIXIS S.A.’S PARENT COMPANY INCOME STATEMENT 4.3.1

2017

2016

2017/2016

2017/2016

2017/2016

Mainland France

Natixis S.A.

 Mainland

(in millions of euros)

(%)

Branches

(%)

(%)

France Branches 

Natixis S.A.

Net revenues

2,676

(5)

1,317

(0)

3,994

(4)

2,818

1,323

4,141

Operating expenses

(2,021)

6

(619)

(2)

(2,640)

4

(1,905)

(632)

(2,537)

Gross operating income

655

(28)

698

1

1,354

(16)

913

691

1,604

Provision for credit losses

(162)

99

(86) 612

(52)

(248) 1,106

(5)

(81) 831

(180)

(261) 1,343

Operating income Net gains/(losses) on fixed assets

494

(41)

20

(18)

511

320 813 308

(456)

(3)

3

317

(443)

(90) 742 440

(3)

(92)

Pre-tax profit

10

610 (53)

20

1,423

14

509 (75)

1,250

Income tax

(30)

(30)

255

(30)

365

Funding/reversal of funding for general banking risks and

regulated provisions

0

N/A

0

N/A

0

N/A

7

0

7

Net income/(loss)

1,121

(6)

557

28

1,678

3

1,188

434

1,621

At December 31, 2017, Natixis generated gross operating income of +€1,354 million, down -€250 million compared to December 31, 2016, due to a €147 million decrease in net revenues,plus an increaseof €103 millionin operatingexpenses. Net interest income was stable (+€7 million). Net fee and commission income rose by €27 million, resulting from a +€11 million increase in business in Mainland France and an increase of +€16 million in business recorded by foreign branches. This change is mainly attributableto a +€20milliongain in net fee and commission income on futures and forward financial instruments, combined with a +€36 million increase in net fee and commissionincomeon customertransactions,related to the developmentof the “Originateto Distribute”model and advisory services, minus a -€34 million decrease in net fee and commissionincomeon securitiestransactions. Dividends paid by Natixis subsidiaries fell by €307 million. €146 million of this decrease can be attributed to the reduced dividend paid by asset management subsidiary Natixis InvestmentManagers, €42 million to the reduced dividend paid by the Natixis Private Equity subsidiaryand €23 million from the decreaseon behalf of CofaceS.A. Gains on trading book transactions declined by €187 million. Restated for a specific transaction completed in 2016 with a correspondingentry bookedto gains/losseson securitiesheld for

sale, the change in gains on trading book transactionsamounted to +€4 million, i.e. -€22 million for Mainland France activity and +€18millionfor transactionscarriedout by foreignbranches. Furthermore, once restated for the above-mentioned 2016 transaction,the change in net income/(loss)on securitiesheld for sale totaled -€43 million, with no material impact on the 2017 fiscal year. Finally, other income and expenses rose by +€175 million, including +€69 million from provisions for litigation on financial instruments. These provisions had been recorded in 2016, but similar impactswere not recognizedfor 2017. Operatingexpenseswere up €103 million, including+€28 million in payroll costs due to a significant headcount increase and higher variableexpenses,+€56million in externalservicesnet of reinvoicing, and +€9 million in regulatory taxes and costs (including+€6 million for the SingleResolutionFund). Changesin external services were mainly concentrated in external assistance (+€29 million) and consulting fees (+€12 million) related primarily to the development of regulatory projects and real estate leasingexpenses(+12million). The net provision for credit losses was down €14 million to -€248 million(of which -€94 millionfor the branches). The 2016 expense had been affected by efforts to establishprovisionsfor

190

Natixis Registration Document 2017