NATIXIS_REGISTRATION_DOCUMENT_2017

FINANCIAL DATA Consolidated financial statements and notes

12.31.2017

12.31.2016

Income

Expenses

Net

Income

Expenses

Net

(in millions of euros)

Interbank transactions Customer transactions Securities transactions

4

(34)

(30) 711 (28) 330

2

(30) (18)

(29) 643 (18) 324

707 153 381 457

4

661 132 369 379

(181)

(150)

Payment services Financial Services

(51)

(45)

(745)

(287) 3,463

(671)

(292) 3,074

Fiduciary transactions

3,463

0

3,074

0

Financing, guarantee, securities and derivative commitments (a)

275 337

(138)

137

225 323

(141) (954)

84

Other

(1,063)

(726)

(631)

Total (b) 3,154 The premium, which amounted to €6.4 million at December 31, 2017 versus €7.4 million at December 31, 2016, paid to BPCE in respect of the (a) guarantee given against the former GAPC hive-off assets classified as “Loans and receivables” and “Available-for-sale financial assets” is recognized in expenses pro rata to the write-back of the provisions and the discounts recognized in respect of reclassifications during the period. The €0.4 million charge for pro rating the premium at December 31, 2017 (€75 million in 2016) is recognized under “Guarantee commissions” in 2017 and under “Provision for credit losses” in 2016. Of which -€765 million in net fees in December 2017 versus -€604 million in December 2016 for insurance activities. (b) Gains and losses on financial instruments at fair value through profit or loss 7.3 This item includes gains and losses on financial assets and liabilities at fair value through profit or loss, whether held for trading or designatedat fair value throughprofit or loss, includinginterest. Hedging derivatives include changes in the fair value of derivatives classified as fair value hedges, excluding interest, plus the symmetricalrevaluationof the items hedged.They also includethe “ineffective”portionof cash flowhedges. 5,777 (2,208) 3,569 5,164 (2,011)

5

12.31.2017

12.31.2016

(in millions of euros)

Net gains/(losses) on financial assets and liabilities excluding hedging derivatives

2,783 2,351

2,115 1,983 1,791

Net gains/(losses) on financial assets and liabilities held for trading (a)

o/w derivatives not eligible for hedge accounting

(2,373)

Net gains/(losses) on other financial assets and liabilities under the fair value option through profit or loss (b)

495 (63)

41 91

Other

Hedging instruments and revaluation of hedged items

1 2

3 1 2

Ineffective portion of cash flow hedges (CFH) Ineffective portion of fair value hedges (FVH) Changes in fair value of fair value hedges Changes in fair value of hedged items

(1) 48

(15)

(49)

18

Total (c)(d)

2,784

2,119

“Net gains/(losses) on financial assets and liabilities held for trading” include: (a) - impairments taken against the fair value of CDS entered into with monoline insurers: a decrease of €7 million in cumulative impairments was recognized (income) during 2017, versus income of €18.6 million at December 31, 2016 (excluding the currency impact and the impact of the BPCE guarantee), bringing cumulative impairments to €63.2 million at December 31, 2017 versus €72.9 million at December 31, 2016; - a reversal of the full portfolio-based provision recorded on exposures in respect of CDPCs (Credit Derivative Product Companies) was recorded at December 31, 2017 in the amount of €0.6 million. December 31, 2016, a €3.8 million reversal was carried out, bringing the cumulative balance of the portfolio-based provision to €0.6 million; At - at December 31, 2017, recognized own credit risk adjustments to derivatives (debit valuation adjustments or DVA) stood at -€54.7 million versus an expense of -€22.1 million at December 31, 2016. Furthermore, credit risk adjustments related to the valuation of counterparty risk (credit valuation adjustments or CVA) on financial assets amounted to €78.2 million (income) at December 31, 2017 versus an expense of -€20.6 million at December 31, 2016; - the Funding Valuation Adjustment (FVA) used on uncollateralized derivatives or imperfectly collateralized derivatives is also recognized on this line in the amount of €24.7 million (income) at December 31, 2017 versus income of €67.6 million at December 31, 2016. Income of €47.1 million was recorded at December 31, 2016 corresponding to the recycling of foreign exchange gains and losses arising on the (b) reimbursement by certain entities of capital in foreign currencies or equity items treated as capital. Insofar as the expenses and income presented in the income statement are classified by type and not by function, the net income of activities on (c) financial instruments at fair value through profit and loss should be considered as a whole. The results presented above do not include the refinancing cost of these financial instruments, which is recorded in interest income or expenses. of which €891 million for insurance activities at December 31, 2017, versus €253 million at December 31, 2016. (d)

287

Natixis Registration Document 2017