NATIXIS - Universal registration document and financial report 2019

4 OVERVIEW OF THE FISCAL YEAR

Management report at December 31, 2019

In additional, business remained buoyant in 2019 both in the division’s historical businesses... driven by strong growth in payment solutions for which transaction V processing volumes continued to rise at a steady pace (+16% for card authorizations and +11% for transaction cards); and by the volume of NIT issuance, up 7%, after the entity was selected V by the SNCF for its staff restaurant vouchers.

... and fintech activities: the growth of volumes collected by PayPlug and Dalenys, for instance, reached record a record 83% and 21% in 2019 year-on-year. This development of the business lines went hand-in-hand with: a 6.4% increase in liquidity needs year-on-year; V the consumption of Basel 3 RWA was stable year-on-year at V €99.0 billion.

Management report 4.2 at December 31, 2019

For the purposes of comparability, the management report as a whole has been restated for the disposal of the retail banking activities to BPCE S.A.

Consolidated results 4.2.1

Change 2019/2018 Current

2019

2018 pro forma

(in millions of euros)

Constant

Net revenues

9,196 8,365

8,749 7,958

5.1% 5.1% 4.3% 7.2%

3.1% 2.9% 2.4% 5.0%

o/w business lines

Operating expenses

(6,632)

(6,357)

Gross operating income Provision for credit losses

2,564 (332) 2,232

2,391 (193) 2,199

72.0%

Operating results

1.5%

Associates

21

29 54

(27.4)%

Gains or losses on other assets Change in the value of goodwill

687

5

0

Pre-tax profit Income taxes

2,945 (669) (380) 1,897 72.1% 11.1% 14.3%

2,281 (673) (303) 1,306 72.7%

29.1% (0.6)% 25.4% 45.2%

Non-controlling interests Net income (Group share)

Cost/income ratio

ROE

9.2%

ROTE

11.8%

The various divisions posted stable or increased revenues. Asset & Wealth Management net revenues gained 4.1% at constant exchange rates. Corporate & Investment Banking net revenues were virtually stable at constant exchange rates. The Insurance and Payments divisions were up 7% and 8.5% respectively. Financial investments net revenues totaled €772 million in 2019, up 4.1% compared with 2018, €712 million of which for Coface. The Corporate Center’s net revenues totaled €59 million in 2019. They include +€19 million for the return of foreign-currency DSNs to the historic exchange rate, versus +€48 million in 2018.

Analysis of changes in the main items comprising the consolidated income statement Net revenues Natixis’ net revenues stood at €9,196 million at December 31, 2019, up 3.1% from 2018 at constant exchange rates. At €8,365 million, net revenues generated by the main business lines were up 2.9% at constant exchange rates versus 2018.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019