NATIXIS - Universal registration document and financial report 2019

FINANCIAL DATA Consolidated financial statements and notes

Note 7

Notes to the income statement

Interest margin 7.1 “Interest and similar income” and “Interest and similar expenses” comprise interest on fixed-income securities recognized as “Financial assets at fair value through other comprehensive income” and “amortized cost”, and interest on loans and receivables to and from banks and customers. Financial assets and liabilities valued at amortized cost give rise to the recognition of interest calculated using the effective interest rate method.

This line item also includes interest on hedging derivatives. Interest income also consists of interest on non-SPPI debt instruments not held under a trading model (classified by default as instruments at fair value through profit or loss).

31/12/2019

31/12/2018

Income Expense

Net

(in millions of euros)

Income Expense

Net

Financial assets and liabilities at amortized cost

3,452

(2,683)

769 253

3,463

(2,256)

1,207

Central banks

346

(93) (92)

342

(136)

206

Interest on securities

87

(5)

76

(72)

4

Receivables, loans and borrowings

3,019

(1,447)

1,571 (516) 2,082

3,045

(1,395) (1,003)

1,650 (747) 2,060

Banks

306

(823) (624)

256

Customers

2,706

2,452

(392)

Finance leases

6

6

337

337

Debt securities and subordinated debt

(1,031)

(1,031)

(653)

(653)

Lease liabilities (a)

(20)

(20)

Financial assets at fair value through other comprehensive income

5

104 104

104 104

97 96

97 96

Interest on securities Loans and receivables

0

0

0

0

Financial instruments to be valued at fair value through profit or loss

56 39 17

56 39 17

81 61 20

81 61 20

Loans and receivables Interest on securities Hedging derivatives

336

(461)

(126)

414

(602)

(188) 1,196

TOTAL (b)

3,948

(3,144)

803

4,054

(2,859)

The impacts associated of the first-time application of IFRS 16 are addressed in Note 2. (a) At December 31, 2018, the SFS division’s retail banking entities recognized in assets held for sale contributed +€426.1 million to the interest margin. (b)

283

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019