NATIXIS - Universal registration document and financial report 2019

9 LEGAL AND GENERAL INFORMATION Glossary

Acronym/Term

Definition

Net book value

Calculated by taking shareholders’ equity Group share, restated for hybrids and capital gains on reclassification of hybrids as equity instruments. Tangible net book value is corrected for goodwill on associates, restated goodwill and restated intangible fixed assets. This ratio is intended to strengthen the longer-term resilience of banks through additional incentives meant to encourage banks to finance their operations using more structurally stable resources. This long-term structural liquidity ratio, applicable to a one-year period, was formulated to provide a viable structure for asset and liability maturities. A contract whereby two parties to a financial contract (forward financial instrument), securities loan or repurchase agreement agree to settle their reciprocal claims under these contracts through a single consolidated net payment, particularly in the event of default or contract termination. A master netting agreement extends this mechanism to different categories of transactions subject to different framework agreements through one all-encompassing contract.

Net stable funding ratio (NSFR)

Netting agreement

New Deal

A strategic plan implemented by Natixis for the 2009-2012 period.

NGAM

Natixis Global Asset Management

New Frontier

A strategic plan implemented by Natixis for the 2014-2017 period. A strategic plan implemented by Natixis for the 2018-2020 period.

New Dimension

NPE NRE OCI

Natixis Private Equity

French law on New Economic regulations (Loi sur les nouvelles Réglementations Économiques)

Other comprehensive income, which contains the income and expense items (including reclassification adjustments) not included in net income/loss as required or authorized by IFRS.

OECD OFAC OFR OGM

Organization for Economic Cooperation and Development

US Office of Foreign Assets Control

Own Funds Requirement: the amount of capital that is required to be held, i.e. 8% of risk-weighted assets (RWA).

Ordinary General Shareholders’ Meeting

Operational risks (including accounting and environmental risks)

The risk of losses or sanctions arising from the failure of internal systems or procedures, human error or external events.

ORSA

Own Risk and Solvency Assessment. As part of European efforts to reform prudential regulation of the insurance industry, ORSA is an internal process undertaken by the institution to assess risk and solvency. It must show its ability to identify measure and manage factors that could have an impact on its solvency or financial situation.

OTC P&L P3CI

Over-the-counter

Profit & Loss

A loan covering CCIs (cooperative investment certificates).

PD

Probability of default, i.e. the likelihood that a counterparty of the bank will default within a one-year period.

PEC PEP

Permanent employment contract

Politically exposed person

PERP

Retirement Savings Plan (Plan d’Épargne Retraite Populaire).

Personal guarantee

Represented by a surety, independent guarantee or letter of intent. In the context of a surety, the guarantor promises to repay the creditor a debtor’s obligation in the event the debtor is unable to do so itself. An independent guarantee is a commitment through which the guarantor promises to pay an amount, upon first request or pursuant to agreed terms, in consideration of an obligation taken out by a third party. A letter of intent is an agreement to act or refrain from acting that is intended to support a debtor in meeting its commitment. Refers to compliance with current solvency requirements, in accordance with the transitional period for the implementation of Basel 3. Pillar I sets minimum requirements for capital. It aims to ensure that banking institutions hold sufficient capital to provide a minimum level of coverage for their credit risk, market risk and operational risk. The bank can use standardized or advanced methods to calculate its capital requirement. Pillar II establishes a process of prudential supervision that complements and strengthens Pillar I. It includes:- an analysis by the bank of all of its risks, including those already covered by Pillar I;- an estimate by the bank of the capital requirement for these risks;- a comparison by the banking supervisor of its own analysis of the bank’s risk profile with the analysis conducted by the bank, in order to adapt its choice of prudential measures where applicable, which may take the form of capital requirements exceeding the minimum requirements or any other appropriate technique. Pillar III is concerned with establishing market discipline through a series of reporting requirements. These requirements — both qualitative and quantitative — are intended to improve financial transparency in the assessment of risk exposure, risk assessment procedures and capital adequacy. An appraisal by a financing rating agency (Moody’s, Fitch Ratings, Standard & Poor’s) of the creditworthiness of an issuer (company, government or other public entity) or a transaction (bond issue, securitization, covered bond). The rating has a direct impact on the cost of raising capital. An organization that specializes in assessing the creditworthiness of issuers of debt securities, i.e. their ability to honor their commitments (repayment of capital and interest within the contractual period). See PD

Phase-in

Pillar I

Pillar II

Pillar III

Probability of default

Rating

Rating agency

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2019