NATIXIS_REGISTRATION_DOCUMENT_2017

5 FINANCIAL DATA

Consolidated financial statements and notes

NOTES TO THE INCOME STATEMENT

NOTE 7

Interest margin 7.1 “Interest and similar income” and “Interest and similar expenses” comprise interest on fixed-income securities recognized as available-for-salefinancial assets, and interest on loans and receivablesto and frombanks and customers. These line items also include interest on held-to-maturity financialassets.

Financial assets and liabilities valued at amortized cost give rise to the recognition of interest calculated using the effective interestratemethod. Negativeinterestis deductedfrom interestincomewhen income from a financial asset debt instrument is negative and is deducted from interest expenseswhen income from a financial liabilitydebt instrumentis positive.

12.31.2017

12.31.2016

Income

Expenses

Net

Income Expenses

Net

(in millions of euros)

Central banks

339

(122) (369)

217 770

173

(89)

84

Securities

1,139 3,824

1,192 3,389

(318)

874

Loans and receivables

(1,820)

2,004 (284) 1,975

(1,198)

2,191 (320) 2,175

Banks

508

(793)

370

(690) (497)

Customers

2,991

(1,016)

2,672

Finance leases

325

(11) (87)

313 (87)

347

(11)

336

Subordinated debt Hedging instruments

0

1

(139) (713)

(138) (374)

544

(792)

(247)

339

Interest accrued on impaired loans and receivables (incl. restructured items)

34

0

34

17

0

17

Total (a)

5,880

(3,191)

2,689

5,111

(2,457)

2,654

Of which €1,371 million of NII in December 2017 versus €1,330 million in December 2016 for insurance activities. (a) 

Net fee and commission income 7.2 The method of accountingfor fees and commissionsreceived in respect of services or financial instruments depends on the ultimate purpose of the services rendered and the method of accounting for the financial instruments to which the service relates. Fees and commissions for one-off services, such as business provider commissions, are recognized in income as soon as the service is provided. Fees and commissions for ongoing services such as guarantee commissions or managementfees are recognizedover the serviceperiod.

Fiduciaryor similar fees and commissionsare those that result in assets being held or invested on behalf of individual customers, pension schemes or other institutions. In particular, trust transactions cover asset management and custody activities performedon behalf of third parties. Fees and commissionsthat form an integral part of the effective yield on an instrument,such as fees on financing commitments given or loan set-up fees, are recognized and amortized as an adjustmentto the effectiveinterestrate over the estimatedterm of the applicable loan. These fees and commissions are recognized as interest income rather than fee and commission income.

286

Natixis Registration Document 2017