NATIXIS - Universal registration document and financial report 2019

4 OVERVIEW OF THE FISCAL YEAR

Management report at December 31, 2019

RWA totaled €155.8 million at December 31, 2019, down 13% compared with 2018 due to distributions and lower valuations. C – Natixis Algérie At constant exchange rates, short-term average outstanding loans rose 8% while medium- and long-term outstanding loans decreased by 8%, penalized by the economic and political situation in Algeria. In the same period, customer deposits increased by 6% due to increased current account inflows as well as new term deposit subscriptions. Off-balance sheet commitments fell by 16%, which was mostly due to guarantee re-issuance and documentary credit because of less foreign corporate investment. Natixis Algérie posted a 12% increase in net revenues to €70.6 million compared with 2018. Excluding the exchange rate effect, net revenues were up 9% with an increase in equity investments and in fee income on forex transactions. Provision for credit losses came out at -€8.4 million versus a net reversal of €2.2 million for 2018.

The combined ratio net of reinsurance was 77.7%, an improvement of 1.9 point related to the favorable development of the net cost ratio (-1.8 point). Net revenues in 2019 totaled €712 million, up 5% (4% at constant scope and exchange rate) compared with 2018. Operating expenses grew 6% compared with 2018 to €517 million and up 4% at constant scope and exchange rate, restated for non-recurring expenses under the Fit To Win plan. B – Natixis Private Equity (run-off) In 2019, Natixis Private Equity (run-off) pursued its disengagement strategy and decreased its engagements by 19%. Compared to 2018, cash-at-risk commitments fell 22% to €52.6 million (mainly due to the depreciation effect of the Venture funds). At €13.6 million, off-balance sheet commitments were down 6% compared with 2018. Net revenues stood at -€10 million (mostly due to the depreciation of venture capital funds), down €10.8 million compared with 2018.

Corporate Center 4.2.2.6

2018 pro forma

Change 2019/2018 Current

2019

(in millions of euros)

Net revenues

59

49

20.9%

Operating expenses

(497) (437)

(497) (448)

0.0%

Gross operating income Provision for credit losses

(2.3)%

1

(14)

Pre-tax profit

258

(453)

(157.0)%

Corporate Center net revenues totaled +€59 million at end-December 2019 versus +€49 million at end-December 2018. Exchange rate fluctuations on deeply subordinated notes issued in V dollars stood at +€19 million in 2019 compared with +€48 million the previous year; FVA hedging was valued at +€17 million in 2019 compared with V -€55 million in 2018; Foreign currency earnings from the repatriation to Natixis S.A. of V accumulated retained income in USD was +€3 million in 2019 from the Dubai branch, compared to +€26 million in 2018 for the New York and Singapore branches. Excluding these items, net revenues reached +€20 million in 2019 compared with +€30 million in 2018; It essentially comprised: revenues from Treasury and ALM operations; and V rebilled expenses from the support functions to entities for the V most part linked to Groupe BPCE. Expenses from the Corporate Center stood at €497 million in 2019 and in 2018. The contribution to the Single Resolution Fund totaled €170 million V for 2019 versus €160 million in 2018;

Excluding this item, expenses totaled €327 million in 2019 versus V €337 million in 2018; they essentially comprised: expenses from the support functions net reallocations to the V Natixis business lines for €108 million in 2019, down €16 million compared with the first half of 2018; this expense balance was rebilled through net revenues at €133 million in 2019 and €130 million in 2018, primarily to the entities of BPCE, as part of the services put in place following the disposal of the retail banking activities to BPCE S.A., cross-business expenses of €105 million, up €7 million compared V with 2018 and linked to various costs. Gross operating income stood at -€437 million in 2019 versus -€448 million in 2018. The provision for credit losses of the Corporate Center reached €1 million. In 2017 it stood at -€14 million which mainly consisted of a €15 million general provision for litigation. Pre-tax profit was positive at +€258 million in 2019 with the contribution of the capital from the disposal of the retail banking activities to BPCE S.A., representing +€697 million recognized under gains on other assets.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019