NATIXIS - Universal registration document and financial report 2019

5 FINANCIAL DATA

Consolidated financial statements and notes

The other amendments in “Annual Improvements to IFRSs 2015-2017 cycle” did not have any impact on Natixis’ consolidated financial statements; the amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate V Benchmark Reform” published by the IASB on September 26, 2019. These amendments stipulate the exceptions to the application criteria for hedge accounting provided for under IFRS 9 and IAS 39 and specify the information to be provided on the effects of the benchmark interest rate reform. These amendments were adopted by the European Commission on January 15, 2020. The date of their application was set at January 1, 2020, with an option for early application. Natixis opted for early application at December 31, 2019. Under these amendments, the entities must, in respect of the hedged items and/or the hedging instruments, apply the assumption that the current benchmark rate will not be changed when assessing compliance with the “highly probable” requirement for future hedged cash flows, and conduct prospective tests of the effectiveness of fair value hedging and cash flow hedging. These amendments also authorize hedging relationships to be maintained if retrospective tests fall outside the 80%-125% range during the transition period. However, the inefficiency of hedging relationships continues to be recognized in the income statement. Finally, these amendments stipulate that a company only has to assess whether a risk component designated as a hedged item based on a benchmark rate is separately identifiable on the date that said designation occurs. These amendments apply until such time as uncertainties in relation to the reform are eliminated or the hedging relationships cease to exist. Natixis believes all of these hedging contracts, which have either a Bor or Eonia component, are affected by the reform and may therefore benefit from said amendments for as long as uncertainty remains with regard to the contractual changes to be implemented as a result of the regulations, the replacement index to be applied or the period of application of provisional interest rates. Natixis’ derivative contracts, loan contracts and borrowings are chiefly exposed to the Euribor, Eonia and Libor rates. Hedging derivatives are presented in Note 8.2. Almost all interest rate swaps used in a hedging relationships are indexed to a Bor or Eonia index. The uncertainties arising from the interest rate benchmark reform are presented in Note 6.23. Natixis has not opted for early application of the following standards, which had not yet entered into force at December 31, 2019: the amendment to IAS 1 and IAS 8 “Definition of Material” V adopted by the European Commission on November 29, 2019 with mandatory application from January 1, 2020. These amendments provide clarification of the term “material” in order to facilitate assessments of the significance, or otherwise, of a piece of information, and to improve the relevance of the information presented in the notes to the financial statements; the amendment to the “Conceptual Framework” adopted by the V European Commission on November 29, 2019 with mandatory application from January 1, 2020. The aim of this amendment is to replace existing references to previous frameworks, in respect of several standards and interpretations, with references to the revised conceptual framework.

of the various possible scenarios). IFRIC 23 also calls for the assessment of income tax uncertainties to be monitored. Depending on whether they pertain to current or deferred tax assets or liabilities, tax uncertainties are recognized in the balance sheet under “Deferred tax assets”, “Current tax assets”, “Deferred tax liabilities” and “Current tax liabilities.” The application of IFRIC 23 at January 1, 2019 had no impact on the amount of Natixis’ opening shareholders’ equity or on the presentation of uncertainties over income tax treatments in the financial statements. The process used to collect, analyze and monitor uncertainties over income tax treatments was reviewed, however, in the interest of better documenting the compliance of the accounting and measurement methods applied by Natixis with IFRIC 23 requirements. the amendment to IAS 28 “Long-Term Interests in Associates V and Joint Ventures” adopted by the European Commission on February 8, 2019 with mandatory application in Natixis’ financial statements from January 1, 2019. Long-term interests are items for which settlement is neither planned nor likely to occur in the foreseeable future that form part of the entity’s net investment in the associate or joint venture. The amendment specifies that IFRS 9 “Financial Instruments” (including the provisions related to impairment) apply to financial instruments representing long-term interests in associates or joint ventures where said instruments are not accounted for by the equity method. This amendment had no impact on Natixis’ financial statements; the amendment to IAS 19 “Plan Amendment, Curtailment or V Settlement” adopted by the European Commission on March 13, 2019 with mandatory application in Natixis’ financial statements from January 1, 2019. This amendment states that, when a change to a plan takes place, the amount of any past service cost and net interest subsequent to the change shall be determined based on updated actuarial assumptions used at the date of the change. This amendment had no impact on Natixis’ financial statements. the amendment entitled “Annual Improvements to IFRSs V 2015-2017 cycle” adopted by the European Commission on March 14, 2019. This amendment is part of the annual improvement process that aims to simplify and clarify international accounting standards. The following standards were modified: IFRS 3 “Business Combinations”, IFRS 11 “Joint Arrangements”, IAS 12 “Income Taxes” and IAS 23 “Borrowing Costs.” The amendment to IAS 12 (paragraph 57A) specifies whether the impact of taxes on distributions in respect of instruments and coupons paid and recorded in equity under IAS 32 must be recognized in income, as part of other comprehensive income (OCI) or in equity, depending on the origins of the amounts distributed. Accordingly, if the amounts are treated as dividends (within the meaning of IFRS 9), the tax impact must be recognized in income upon recognition of the liability in respect of the obligation to pay dividends. Where they are not assimilated to dividends, tax impacts are recorded in equity. As such, interest due on perpetual deeply subordinated notes from January 1, 2019 was classified as dividends and the resulting tax saving is henceforth recognized in income. The tax saving on the payment of coupons to holders of such instruments had hitherto been recorded in consolidated reserves. The impact on the income statement came to +€47.6 million at December 31, 2019.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019