NATIXIS - Universal registration document and financial report 2019

5 FINANCIAL DATA

Consolidated financial statements and notes

losses recorded following the sale of financial assets at amortized cost and (versus -€4 million at December 31, 2018) and -€3 million of losses related to the sale of debt securities at amortized cost (versus +€1 million at December 31, 2018). 7.6 Income and expenses from other operations mainly comprise income and expenses relating to finance leases and investment property. Other income and expenses

7.5

Net gains or losses resulting from the derecognition of financial instruments at amortized cost

This line item includes gains and losses resulting from the derecognition of debt securities and loans and receivables recognized at amortized cost, including the impact of hedging instruments. At December 31, 2019, net gains or losses resulting from the derecognition of instruments at amortized cost include -€7 million in

31/12/2019

31/12/2018

Income Expense

Net

(in millions of euros)

Income Expense

Net

Finance leases

0 0 0

188

(187)

1 4 6

Investment property

12

(8)

Sub-total real estate activities (a)

0

0

200 122 349 671

(195)

Operating leases

30

30 54 85

(94)

28 65 99

Other related income and expenses (b)

221 251

(167) (167)

(284) (573)

TOTAL

At December 31, 2018, real estate operations were exclusively carried by the SFS division’s retail banking entities. (a) At December 31, 2018, the SFS business lines recognized in non-current assets held for sale as at December 31, 2018 contributed a total of €21 million to other (b) income and expenses (of which +€237 million in income and -€216 million in expenses).

Operating expenses 7.7 Operating expenses mainly comprise payroll costs, including wages and salaries net of rebilled expenses, social security expenses and employee benefits such as pensions (defined benefit plans), and expenses relating to share-based payment recognized in accordance with IFRS 2. A breakdown of these expenses is provided in Note 12.

This item also includes all administrative expenses and external services.

(in millions of euros)

Notes

31/12/2018

31/12/2019

Payroll costs

12.2

Wages and salaries (a)

(2,830)

(2,861)

o/w share payments (b)

(54)

(46)

Pension benefits and other long-term employee benefits

(285) (606) (136) (117)

(251) (657) (152) (136)

Social security expenses

Incentive and profit-sharing plans

Payroll-based taxes

Other (c)

(6)

(4)

Total payroll costs

(3,980)

(4,061)

Other operating expenses Taxes other than on income (d)

(315)

(347)

External services

(1,870)

(2,137)

Other

(43)

(23)

Total other operating expenses

(2,228) (6,208)

(2,508)

TOTAL (6,569) Of which €7.5 million in respect of the Competitiveness and Employment Tax Credit (CICE) at December 31, 2018. The CICE was eliminated from January 1, 2019. (a) The amount recognized for 2019 in respect of the retention and performance plans includes an expense of €44 million (versus €27 million at December 31, (b) 2018) for the portion of compensation paid in cash and indexed to the Natixis share price and an additional expense of €10 million (versus €17 million at December 31, 2018) for the portion of compensation settled in Natixis shares; Of which €1.8 million at December 31, 2018 related to the Coface restructuring plan; (c) Of which a contribution of €169.7 million to the Single Resolution Fund (SRF) at December 31, 2019, versus €163.8 million at December 31, 2018; (d) Of which the Social Security and Solidarity Contribution (C3S) for €33.8 million at December 31, 2019, versus €37.7 million at December 31, 2018.

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019