First Quarter 2020 Results

Paris, May 6, 2020

1Q20 results
Positive earnings capacity¹ despite an unprecedented market context
Reported net income at €(204)m in 1Q20 impacted by the Coface transaction announcement² as well as IFRIC 21
Basel 3 fully-loaded CET1 ratio¹ at 11.4%, +310bps above regulatory requirements

Quarter marked by mechanical market effects (linked to the COVID-19 context) thus mostly reversible:

• ~€(290)m net revenue impact o/w ~€160m reversible (XvA, seed money in asset management)
• ~(90)bps CET1 ratio impact o/w ~70bps reversible (OCI, PVA, Market and CVA RWA)

A DIVERSIFIED ASSET-LIGHT MODEL DEDICATED TO CLIENTS’ NEEDS

UNDERLYING NET REVENUES³ EXCLUDING CVA/DVA AT €1.9BN IN 1Q20 (-3% YOY)

AWM: Resilient results, fee rate and flow dynamics

Strength of our active asset management model with underlying net revenues³ flat YoY in 1Q20 despite some mark-downs on the seed money portfolio. Revenue growth of +9% YoY excluding the seed money contribution i.e. +4pp above expense growth

Average fee rate slightly down to 29bps over the quarter due to a mix effect following the drop in equity markets

Net outflows on LT products limited to ~€(5)bn in North America and ~€(2)bn in Europe (excluding Life Insurance General Accounts)

Outlook: Pursue the development of a truly global and diversified model, building up on key strategic initiatives (e.g. LBPAM) and already successful growth relays (e.g. WCM, Mirova and Thematics) while maintaining good cost management and flexibility in order to adapt to the environment. Good 2Q20 start so far

CIB: Strong revenue diversification together with a tight control on expenses

Supporting clients with more than €9bn financing granted since the beginning of the COVID-19 crisis as at 30/04/20⁴

Underlying net revenues³ impacted by the COVID-19 context in 1Q20, notably across market activities through elevated CVA/DVA effects and mark-downs (Equity dividends). Strong FICT performance with revenues up +46% YoY and from Investment banking/M&A, up +19%. Global finance activity impacted by lower syndication fees in March

Costs under control, down -5% YoY at constant exchange rate in 1Q20

Cost of risk increase in 1Q20 due to higher provisioning, notably across energy exposures

Outlook: Ongoing cost saving efforts to mitigate the combined effect of lower revenues and higher cost of risk. Under severe assumptions, notably including a -9% drop in the 2020 French GDP and a -4% cumulative drop over 2020-2021, cost of risk for the rest of the year could be along the lines of 1Q20 or moderately above

Insurance: Particularly resilient model, driver of growth and profitability

Underlying net revenues³ up +5% YoY in 1Q20 with a limited impact of market volatility

Underlying RoE³ at ~33% in 1Q20

Outlook: Limited impacts from the current environment expected on the 2020 Gross operating income

Payments: Value creation accelerating through the beginning of 2020

Underlying net revenues³ up +9% YoY in 1Q20 of which +13% in January/Febru             ary

Underlying RoE³ at ~15% in 1Q20

Outlook: 2020 net revenues are expected to continue to exhibit positive momentum vs. 2019

SOLID BALANCE SHEET AND REINFORCED FINANCIAL STRENGTH

Basel 3 FL CET1 ratio¹ at 11.4% as at March 31, 2020, vs. 11.3% at 2019 year-end. Ratio +310bps above regulatory requirements which are now established at 8.29%, down -120bps vs. January 1^st, 2020. Following this capital requirement reduction, mainly driven by the CRD V article 104 being brought forward, Natixis is now targeting a Basel 3 FL CET1 ratio¹ of 10.2% for the 2020-2021 period

Liquidity: LCR ratio >100% as at March 31, 2020 through an efficient joint funding platform together with BPCE. Besides, >70% of assets on balance sheet have a duration < 1 year. This short-term balance sheet should potentially limit IFRS 9 provisioning based on lifetime expected loss

Positive earnings capacity¹ of +€60m in 1Q20 despite volatile items impacting the quarter

Figures restated as communicated on April 20, 2020 following the announced disposal of a 29.5% stake in Coface. See page 15 for the reconciliation of the restated figures with the accounting view ^[1] See note on methodology ² See page 5 ³ Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for the Cost income ratio, RoE and RoTE. See note on methodology ⁴ Management data

“Since the beginning of the COVID-19 crisis, our employees have been fully mobilized to support our clients and the real economy. They have been working very efficiently, and we have been able to function in a very satisfactory way, thanks to our early adoption of remote working practices. I pay tribute to the commitment and professionalism of our incredible teams, which has equally been noted by our clients.

Despite the crisis, operating revenues and expenses across our businesses are largely stable compared with last year. In Asset & Wealth Management, strong declines in financial markets reduced our assets under management and led us to mark down our seed money portfolio, but client outflows were limited and the fee rate was close to flat, demonstrating the relevance of our multi-boutique offering to our clients. In Corporate & Investment Banking, we recorded strong results for fixed income, investment banking and M&A, while other businesses were impacted negatively by the environment, including financing and equity derivatives. Insurance and Payments both recorded a solid quarter marked by increased revenue and profit, and the fundamentals of both businesses remain strong even as confinement measures will reduce activity in the short-term.

Our results in the first quarter of 2020 were characterized by the unprecedented environment, which had a significant asset and liability mark-to-market effect under IFRS rules, reversible depending on market evolution and that has a noticeable impact on our accounts. Despite such effect, our earnings capacity remains positive taking into account the exceptional impact stemming from the sale of a ~30% stake in Coface at a pre-crisis price and if we smooth over the year the regulatory taxes and contributions that we pay upfront every first quarter.

Our results demonstrated the robustness of our diversified business model as well as our solid capital and liquidity positions. Natixis' CET1 ratio is well above regulatory requirements and our liquidity is assured through our joint funding platform with BPCE. The measures that have been announced by the ECB also allow us to reduce our CET1 target by 100 basis points to 10.2% for the period 2020-2021. Our excess capital position will be assessed upon this level across the two coming years.

The current COVID-19 crisis is strong and its economic consequences remain uncertain. In such a context, we have decided to push back the announcement of our next strategic plan until the end of 2021. In the meantime, we will continue to focus on creating value for our stakeholders by generating diversified revenues, further reducing our operating expenses and, above all, serving our clients during this period when they most need support and advise.”

François Riahi, Natixis Chief Executive Officer

1Q20 RESULTS

On May 6^th, 2020, the Board of Directors examined Natixis’ first quarter 2020 results.

€m		1Q20 restated	1Q19 restated		1Q20 o/w underlying	1Q19 o/w underlying		1Q20 vs. 1Q19 restated		1Q20 vs. 1Q19 underlying
Net revenues		1,750	1,957		1,733	1,938		(11)%		(11)%
o/w businesses excl. CVA/DVA		1,850	1,911		1,857	1,911		(3)%		(3)%
Expenses		(1,582)	(1,597)		(1,579)	(1,580)		(1)%		0%
Gross operating income		167	360		153	358		(53)%		(57)%
Provision for credit losses		(193)	(31)		(193)	(31)
Net operating income		(26)	330		(40)	328		(108)%		(112)%
Associates and other items		(8)	685		6	3
Pre-tax profit		(34)	1,015		(34)	330		(103)%		(110)%
Income tax		(13)	(201)		(9)	(122)
Minority interests		(39)	(65)		(39)	(32)
Net income - group share excl. Coface net contribution		(87)	749		(82)	177		(112)%		(146)%
Coface net contribution		(118)	15		1	16
Net income - group share incl. Coface net contribution		(204)	764		(81)	192		(127)%		(142)%

Underlying net revenues impacted by the following lumpy items, all directly or indirectly linked to the COVID-19 context for a total amount of ~€(290)m:

• AWM: €(34)m mark-down impact on the seed money portfolio (post overlay) due to the sharp drop in market levels in March;
• CIB: €(55)m CVA/DVA (Credit/Debit Value Adjustment) impact due to spreads widening on the back of perceived counterparty credit risk deterioration as at March 31, 2020 vs. December 31, 2019. €(130)m impact from dividend mark-downs across Equity following corporates’ 2019 dividend cancellation and the related sharp moves of dividend future curves;
• Corporate Center: €(71)m FVA (Funding Value Adjustment) impact due to the increase in funding costs on the market.

Underlying expenses are flat YoY and even down -1% at constant FX in 1Q20 reflecting ongoing cost discipline. The underlying cost/income ratio¹ stands at 81.9% in 1Q20 vs. 73.2% in 1Q19.

Underlying cost of risk at €(193)m in 1Q20 reflecting higher provisioning, mainly across energy exposures. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 117bps in 1Q20 (~45bps excl. COVID-19 direct related impacts and frauds).

Natixis’ internal models are based on inputs close to the latest SSM macroeconomic baseline scenario purposely released for the current situation and with a pessimistic scenario now weighted at 100% in IFRS 9 models. The short duration balance-sheet means potentially limited “cliff effect” from Stage 1 exposures (12-m EL) transitioning to Stage 2 (lifetime EL). As such, cost of risk impacts could be mostly derived from individual jumps to default that could nonetheless be limited by governments’ supporting measures which overall impact will be assessed over time. A sensitivity test has been carried out based on a severe macroeconomic scenario. This would notably include the projection of a ~9% drop in the 2020 French GDP (cumulative ~4% drop for 2020-2021) and severe assumptions across sectors of expertise incl. only modest oil price recovery towards early April levels and significant haircuts to asset prices on real assets (e.g. ~30-40% for aircrafts and ~15% for real estate). In such a scenario, the cost of risk for the rest of the year could be along the lines of 1Q20 or moderately above.

Natixis’ exposure to the Oil & Gas sector stood at ~€10.1bn of net EAD² (Exposure at Default) as at 31/03/2020 (~60% Investment Grade) of which ~€2.5bn across independent producers and service companies which have a more limited absorption capacity of lower oil price (o/w ~€1.1bn in the US, portfolio which positioning is to be reviewed in line with Natixis’ CIB green strategy). As at 31/03/2020, the exposure to Aviation stood at ~€4.5bn of net EAD², was well diversified across more than 30 countries (none of which exceeding 20% of the exposure), secured for ~80% and majority Investment Grade. The exposure to Tourism & Leisure stood at ~€1.7bn of net EAD as at 31/03/2020, with 94% being in the EMEA region, geared towards industry leaders and with limited non-performing assets (~2%).
Coface underlying net contribution reached €1m in 1Q20 based on a ~13% residual stake (vs. ~42% in 1Q19) (see press release dated 20/04/2020).

Net income (group share), adjusted for IFRIC 21 and excluding exceptional items reached +€60m in 1Q20. Accounting for exceptional items (€(123)m net of tax in 1Q20) and IFRIC 21 impact (€(141)m in 1Q20) the reported net income (group share) in 1Q20 is at €(204)m.

Natixis’ underlying RoTE¹ reached 0.8% in 1Q20 excl. IFRIC 21.

Natixis is now targeting a Basel 3 CET1 fully-loaded ratio of 10.2% for 2020-2021 (see note on methodology): the previous target was a 2020 one and was set at 11.2% against a CET1 ratio requirement of 9.47% as at January 1^st, 2020. Such a requirement now stands at 8.29% following the various measures announced during the first quarter: lowered countercyclical buffers, notably in France and the U.K. for the main ones, for an estimated impact of ~20bps and; CRD V (Capital Requirement Directive V) article 104 brought forward for an estimated impact of ~100bps. The latter impact, which is structural, leads Natixis to set a new target at 10.2% for the period 2020-2021. With a CET1 ratio of 11.4% as at March 31, 2020, Natixis stands +310bps above these new regulatory requirements and +120bps above its new target.

The New Dimension 2020 targets now being void considering the deterioration of the economic and financial outlook linked to the COVID-19 context and the uncertainties it creates (for instance: macroeconomic scenarios and the behavior of sectors/counterparts to which Natixis is exposed that could impact credit risk estimates, market levels impacting valuations including for non-listed assets, goodwill depreciation or depreciation of associates’ value, or securities, etc.), new 2021 targets in addition to the CET1 ratio one will be presented by the end of 2020. A new medium-term plan will be unveiled before 2021 year-end.

Main observable impacts from the COVID-19 context in 1Q20 (excluding items classified as exceptional, see page 5)³

Net revenues		Cost of risk		Capital
AWM		The main direct impact from the COVID-		CET1 Capital
€(34)m impact from seed money		19 context on Natixis’ 1Q20 cost of risk		~€(510)m
portfolio mark-downs		comes from IFRS 9 provisioning based		Impact from lower OCI
		on scenario reweighting (pessimistic		and higher Prudent Value deduction
CIB		now at 100%) to reflect the
€(55)m CVA/DVA impact		evolution of the macroeconomic context
				RWA
€(130)m impact from dividend mark-		Besides, oil price pressures		~€3.2bn
downs on equity products after		have also added to the demand shock		Impact from higher Market RWA (~€1.0bn),
corporates’ 2019 dividend cancellation		ensued from the COVID-19 economic		CVA RWA (~€0.5bn) and
(Global markets - Equity)		slowdown, notably in Asia, indirectly		Credit RWA due to RCF drawdowns4
		leading to individual cost of risk		(~€1.7bn)
Corporate center		increases and notably some frauds
€(71)m FVA impact
~€(290)m		~€(115)m		~(90)bps
~€160m mechanically linked to 1Q market evolution that should recover over time				~70bps mechanically linked to 1Q market evolution that should recover over time

¹See note on methodology. Excluding exceptional items and excluding IFRIC 21 ² Energy & Natural Resources + Real Assets perimeters ³ Not exhaustive ⁴ Management data, gross

1Q20 RESULTS
Exceptional items

€m		1Q20	1Q19
Contribution to the Insurance solidarity fund (Net revenues)	Insurance	(7)	0
Exchange rate fluctuations on DSN in currencies (Net revenues)	Corporate center	24	19
Real estate management strategy (Expenses)	Business lines & Corporate center	(3)	0
Transformation & Business Efficiency Investment costs (Expenses)	Business lines & Corporate center	0	(17)
Impact of Liban default on ADIR Insurance (Associates)	Insurance	(14)	0
Disposal of subsidiary in Brazil (Gain or loss on other assets)	CIB	0	(15)
Capital gain - Disposal retail banking (Gain or loss on other assets)	Corporate center	0	697
Coface capital loss (Coface net contribution)1	Coface	(112)	0
Coface residual stake impairment (Coface net contribution)1	Coface	(7)	0
Total impact on income tax		(4)	(79)
Total impact on minority interests		0	(34)
Total impact on net income (gs)		(123)	572

€586m positive net impact from the disposal of the retail banking activities in 1Q19: €697m capital gain minus €78m income tax minus €33m minority interests

¹ For financial communication purposes, all impacts related to Coface are shown in a separate P&L line ‘Coface net contribution”. From an accounting standpoint the 1Q20 Coface capital loss is classified in “Gain or loss on other assets” and the 1Q20 Coface residual stake impairment in “Associates”. See page 15 for the reconciliation with the accounting view

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Asset & Wealth Management

€m		1Q20	1Q19	1Q20 vs. 1Q19		1Q20 vs. 1Q19 constant FX
Net revenues		774	773	0%		(2)%
o/w Asset Management1		733	742	(1)%		(3)%
o/w Wealth management		41	31	32%		32%
Expenses		(579)	(553)	5%		3%
Gross operating income		195	220	(12)%		(13)%
Provision for credit losses		1	1
Associates and other items		(2)	(2)
Pre-tax profit		194	219	(12)%
Cost/income ratio2		74.3%	71.0%	3.3pp
RoE after tax2		9.2%	12.1%	-2.9pp

Asset management underlying net revenues have been impacted by €(34)m mark-downs on the seed money portfolio (measured at FVTPL under IFRS 9). P&L impacts from the seed money portfolio flow through the gross operating income without corresponding cost adjustments. Excluding the contribution of the seed money portfolio, AWM net revenues would have been up +9% YoY, generating a positive jaws effect of +4pp.

The Asset management overall fee rate excluding performance fees is at ~29bps in 1Q20 (~30bps in 4Q19) due to a lower share of average AuM in North America. For European affiliates ~15bps and ~27bps excl. Life Insurance General Accounts due to a lower share of average AuM from DNCA, Dorval and H2O. For North American affiliates, it is at ~37bps (flat QOQ) with a lower share of average AuM from Harris in part offset by a higher fee rate. Performance fees reached €49m in 1Q20 vs. €32m in 1Q19.

Asset management net flows on LT products reached ~€(5)bn in North America (fixed income and value equity), ~€(2)bn in Europe’s high-margin strategies (balanced products), ~€(3)bn in Europe’s low-margin strategies (Life Insurance General Accounts) and ~€(1)bn in Asia. Growth equity, real asset and thematic strategies (WCM, Vauban and MV Credit, Mirova, Thematics) continue to exhibit solid dynamics.

Asset management AuM reached €828bn as at March 31, 2020, down QoQ. Negative market effect of €(100)bn, positive FX & perimeter effect of +€11bn, net outflows on LT products as described above and net outflows on money-market products of €(6)bn.

2020 outlook:

• Pursue the development of a truly global and diversified model. Build up on key strategic initiatives (e.g. LBPAM) and already successful growth relays (e.g. WCM, Mirova and Thematics) to provide a broad range of solutions that are relevant to clients’ needs in all market conditions;
• Performance fees are likely to be reduced vs. historical average, mainly at H2O;
• Additional mark-downs on the seed portfolio could materialize across listed assets (linked to the evolution of financial markets) and private assets (e.g. real estate or private equity, linked to the reappraisal of assets under management’s value based on the updated financial situation of the investments);
• Cost flexibility a key asset notably through the mechanical adjustment of the affiliates’ bonus pools;
• Good client activity in 2Q20 so far.

¹ Asset management including Private equity and Employee savings plan ² See note on methodology. Excluding exceptional items and excluding IFRIC 21

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Corporate & Investment Banking

€m		1Q20	1Q19	1Q20 vs. 1Q19		1Q20 vs. 1Q19 constant FX
Net revenues		688	807	(15)%		(16)%
Net revenues excl. CVA/DVA/Other		741	800	(7)%		(9)%
Expenses		(557)	(579)	(4)%		(5)%
Gross operating income		130	228	(43)%		(44)%
Provision for credit losses		(194)	(30)
Associates and other items		2	2
Pre-tax profit		(61)	201	(131)%
Cost/income ratio1		76.9%	68.7%	8.2pp
RoE after tax1		NR	9.6%	NR

Global markets: FICT revenues up a strong +46% YoY due to Rates & FX and with overall YoY revenue growth for the 4^th quarter in a row. Equity revenues at €(32)m despite resilient client activity due to increased hedging cost and a €(130)m impact from dividend mark-downs following corporates’ 2019 dividend cancellation and the related sharp moves of dividend future curves. Such an impact could partly reverse.

Global finance: Net revenues down YoY due to lower syndication fees (essentially in March and in the US) and with new production levels impacted by the March economic backdrop (-8% YoY in 1Q20 for structured financings).

Investment banking/M&A: Net revenues up a solid +19% YoY mainly driven by robust activity across M&A boutiques, mainly Natixis Partners, PJ Solomon and Fenchurch.

Underlying net revenues excl. CVA/DVA and dividend mark-down impact would have been up +7% YoY (o/w +24% for Global markets).

Underlying expenses are down -4% YoY featuring some flexibility without compromising priority investments.

2020 outlook:

• Global markets: 2020 net revenues likely to be impacted by the current environment although Natixis’ positioning should demonstrate its relevance for clients, supporting market share across main areas of expertise;
• Global finance: 2020 net revenues likely to experience lower syndication fees, although partly offset by higher net interest income over time;
• IB/M&A: 2020 activity levels will largely depend on the shape of the recovery although opportunities for client advisory may also arise in the current environment. Natixis’ Green & Sustainable Hub as well as the flexibility offered by the M&A multiboutique model are key assets to leverage on;
• Ongoing efforts from a cost saving standpoint including portfolio reviews.

¹ See note on methodology. Excluding exceptional items and excluding IFRIC 21
Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Insurance

€m		1Q20	1Q19	1Q20 vs. 1Q19
Net revenues		228	218	5%
Expenses		(134)	(125)	7%
Gross operating income		94	93	1%
Provision for credit losses		0	0
Associates and other items		3	0
Pre-tax profit		97	93	5%
Cost/income ratio1		52.2%	51.7%	0.5pp
RoE after tax1		33.0%	33.4%	-0.4pp

Exceptional items identified on page 5: €(7)m impact from the contribution to the insurance solidarity fund to support the economy, mainly micro-enterprises and self-employed (Net revenues); €(14)m impact from the Lebanon default on the value of 34%-owned ADIR Insurance (Associates).

Limited net revenue impact from market volatility thanks to efficient hedging strategy against the drop in equity markets.

Underlying cost/income ratio¹ at 52.2% and underlying RoE¹ at 33.0% in 1Q20.

From a commercial standpoint: €2.6bn gross inflows² in 1Q20 (o/w 37% UL products) and €1.3bn net inflows² (o/w 58% UL) for Life insurance.

2020 outlook:

• Fundamentals remain solid despite a slowdown in commercial activity as of mid-March as a result of lockdown measures being taken in France;
• Expected 2Q20 contribution to the insurance solidarity fund to be similar to the one recorded in 1Q20 (exceptional item);
• Life and Personal protection (~65% of Insurance net revenues): Gross operating income largely secured given the limited sensitivity to a potential further drop in equity markets (~€(15)m for a ~10% drop in the relevant equity indices vs. end-March levels). Gross inflow dynamics and the trade-off between €/UL contracts should not have any significant P&L impact for the rest of the year although the trend is to be monitored over the medium-term;
• P&C (~35% of Insurance net revenues): Gross operating income sensitivity to a ~20% drop in sales 2020 vs. 2019 ~€(5)m-€(10)m. Such a scenario would be consistent with a U-shaped recovery and normalization towards early 4Q20.

¹ See note on methodology. Excluding exceptional items and excluding IFRIC 21 ² Excluding reinsurance agreement with CNP

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Payments

€m		1Q20	1Q19	1Q20 vs. 1Q19
Net revenues		113	103	9%
Expenses		(94)	(88)	7%
Gross operating income		19	16	18%
Provision for credit losses		2	(0)
Associates and other items		0	0
Pre-tax profit		20	16	30%
Cost/income ratio1		82.9%	84.1%	-1.2pp
RoE after tax1		14.9%	12.5%	2.5pp

Strong acceleration across all business lines with net revenues up +13% YoY over the first two months.

Slowdown in activity following the announcement of lockdown measures in France, resulting in the second half of March featuring only minor net revenue growth vs. March 2019 due to:

• Payment Processing & Services: Number of card transactions processed significantly reduced since the 1^st day of lockdown (by ~50%). Revenue impact limited by the business model thanks to some flat fee component in the billing;
• Merchant Solutions: Slowdown in business volumes generated by the fintechs particularly marked across a few sectors (e.g. travel, entertainment). Payplug continued to experience solid growth rates through a more favourable positioning and ramp-up across the banking networks;
• Prepaid & Issuing Solutions: Impact from technical unemployment and the closure of some acceptation venues such as restaurants for meal vouchers.

Underlying cost/income ratio¹ improving to 82.9% (84.1% in 1Q19) with positive jaws and underlying RoE¹ at 14.9% (12.5% in 1Q19).

2020. outlook:

• 2020 net revenues are expected to continue to exhibit positive momentum vs. 2019;
• 2Q20 net revenues to be impacted by the lockdown in France with progressive easing as of mid-May/June and expected normalization in activity levels as of 3Q20. April already featuring some nice rebound vs. the second half of March.

¹ See note on methodology. Excluding exceptional items and excluding IFRIC 21

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)

Corporate Center

€m		1Q20	1Q19	1Q20 vs. 1Q19
Net revenues		(69)	37
Expenses		(215)	(235)	(9)%
SRF		(163)	(170)
Other		(52)	(65)	(20)%
Gross operating income		(284)	(199)	43%
Provision for credit losses		(2)	(1)
Associates and other items		2	2
Pre-tax profit		(284)	(198)	44%

Underlying net revenues impacted by a €(71)m FVA impact (+€16m in 1Q19). As a reminder Funding Value Adjustments materialize through the P&L due to the change in the cost of funding above the risk-free rate for uncollateralized derivative transactions. Such adjustments can be quite volatile and tend to normalize over time.

Underlying expenses excluding SRF contribution are down -20% YoY partly reflecting cost saving efforts being carried out across the organization.

Underlying gross operating income excluding FVA YoY evolution largely in line with 1Q19.

FINANCIAL STRUCTURE

Basel 3 fully-loaded¹
Natixis’ Basel 3 fully-loaded CET1 ratio worked out to 11.4% as at March, 31 2020.

• Basel 3 fully-loaded CET1 capital amounted to €11.3bn
• Basel 3 fully-loaded RWA amounted to €99.3bn

Main 1Q20 CET1 capital impacts:

• +€977m related to the 2019 dividend release
• €(204) related to the reported net income group share
• €(389)m related to OCI evolution on securities
• €(118)m related to the Prudent Value (PVA) evolution
• €(111)m related to DTA evolution
• +€24m related to other effects (e.g. FX)

Main 1Q20 RWA impacts:

• €(1.9)bn from Coface stake reclassification
• +€1.0bn from other Credit RWA incl. +€1.7bn from RCF drawdowns (management data, gross)
• +€1.0bn from Market RWA
• +€0.5bn from CVA RWA
• €(0.3)bn from other impacts (mainly related to franchise mechanisms)

As at March 31, 2020 Natixis’ Basel 3 fully-loaded capital ratios stood at 13.2% for the Tier 1 and 15.5% for the Total capital.

Basel 3 phased-in incl. current financial year’s earnings and dividends¹
As at March 31, 2020, Natixis’ Basel 3 phased-in capital ratios incl. current financial year’s earnings and dividends stood at 11.4% for the CET1, 13.6% for the Tier 1 and 15.9% for the Total capital.

• Core Tier 1 capital stood at €11.3bn and Tier 1 capital at €13.5bn
• Natixis’ RWA totaled €99.3bn, breakdown as follows:
  • Credit risk: €64.1bn
  • Counterparty risk: €7.4bn
  • CVA risk: €1.9bn
  • Market risk: €12.2bn
  • Operational risk: €13.7bn

Book value per share
Equity capital (group share) totaled €19.7bn as at March 31, 2020, of which €2.0bn in the form of hybrid securities (DSNs) recognized in equity capital at fair value (excluding capital gain following reclassification of hybrids).

Natixis’ book value per share stood at €5.57 as at March 31, 2020 based on 3,152,614,037 shares excluding treasury shares (the total number of shares being 3,155,846,495). The tangible book value per share (after deducting goodwill and intangible assets) is €4.32.

Leverage ratio¹

The leverage ratio worked out to 4.5% as at March 31, 2020.

Overall capital adequacy ratio
As at March 31, 2020, the financial conglomerate’s excess capital was estimated at around €3.2bn.

     ¹ See note on methodology

APPENDICES

Note on methodology:

The results at 31/03/2020 were examined by the board of directors at their meeting on 06/05/2020.

Figures at 31/03/2020 are presented in accordance with IAS/IFRS accounting standards and IFRS Interpretation Committee (IFRIC) rulings as adopted in the European Union and applicable at this date

Press release dated 20/04/2020 “Preparation of the 1Q20 Financial Communication”

The 2019 quarterly series have been updated following the February 25, 2020 announcement regarding the sale by Natixis of a 29.5% stake in Coface to Arch Capital Group. This announcement notably translates into the following:

• Natixis losing exclusive control over Coface in the first quarter of 2020 and the recognition of a capital loss at the date of such a loss of control. It is estimated at €112m based on the 2020 sale price;
   
• Application of the IAS 28 standard “Investments in associates and joint ventures” to the residual stake held by Natixis in Coface. For financial communication purposes, the contribution of Coface to Natixis' income statement is isolated on a line "Coface net contribution" (based on a ~42% ownership over 2019 and of ~13% as of the first quarter of 2020) and the Financial investments division no longer exists;
   
• In addition, the value of the retained stake (accounted for under the equity method) will be impacted by a €7m impairment due to the drop in the value of Coface related to the context prevailing at March 31, 2020. For financial communication purposes, these two items – capital loss and residual stake impairment – will be classified as exceptional items in the first quarter of 2020 and both presented within the line "Coface net contribution” (see page 15 for the reconciliation of the restated figures with the accounting view);
   
• The prudential treatment applied to Natixis' stake in Coface resulted in a ~€2bn risk-weighted asset release in the first quarter 2020. Upon closing of the transaction, ~€1.4bn of additional risk-weighted assets should be released i.e. ~€3.5bn in total;
   
• The remaining Financial investments, namely Natixis Algeria as well as the private equity activities managed in run-off, are no longer isolated and are reallocated to the Corporate center, which, as a reminder, gathers the holding and the centralized balance sheet management functions of Natixis.

             
The equity method value of Coface will be re-assessed every quarter depending, among other, on the evolution of the economic context and any change in such a value will be reflected in the P&L line “Coface net contribution”.

Business line performances using Basel 3 standards:

• The performances of Natixis business lines are presented using Basel 3 standards. Basel 3 risk-weighted assets are based on CRR-CRD4 rules as published on June 26th, 2013 (including the Danish compromise treatment for qualified entities).
   
• Natixis’ RoTE is calculated by taking as the numerator net income (group share) excluding DSN interest expenses (the associated tax benefit being already accounted for in the net income following the adoption of IAS 12 amendment). Equity capital is average shareholders’ equity group share as defined by IFRS, after payout of dividends¹, excluding average hybrid debt, average intangible assets and average goodwill
   
• Natixis’ RoE: Results used for calculations are net income (group share), deducting DSN interest expenses (the associated tax benefit being already accounted for in the net income following the adoption of IAS 12 amendment). Equity capital is average shareholders’ equity group share as defined by IFRS, after payout of dividends¹, excluding average hybrid debt, and excluding unrealized or deferred gains and losses recognized in equity (OCI)
   
• RoE for business lines is calculated based on normative capital to which are added goodwill and intangible assets for the business line. Normative capital allocation to Natixis’ business lines is carried out on the basis of 10.5% of their average Basel 3 risk-weighted assets. Business lines benefit from remuneration of normative capital allocated to them. By convention, the remuneration rate on normative capital is maintained at 2%

             

Note on Natixis’ RoE and RoTE calculation: Returns based on quarter-end balance sheet in 1Q20 to reflect the announced disposal of a 29.5% stake in Coface. The €112m net capital loss is not annualized.

^[1] In line with ECB recommendations, the 2019 dividend has been reintegrated into Natixis’ capital and no dividend accrual will be carried out throughout 2020 - see press release dated 31/03/2020
Net book value: calculated by taking shareholders’ equity group share (minus distribution of dividends proposed by the Board of Directors but not yet approved by the General Shareholders' Meeting¹), restated for hybrids and capital gains on reclassification of hybrids as equity instruments. Net tangible book value is adjusted for goodwill relating to equity affiliates, restated goodwill and intangible assets as follows:

€m	31/03/2020
Restatement for Coface minority interests	3,631
Restatement for AWM deferred tax liability & others	(354)
Restated goodwill	3,278

€m	31/03/2020
Intangible assets	653
Restatement for AWM deferred tax liability & others	(9)
Restated intangible assets	644

Own senior debt fair-value adjustment: calculated using a discounted cash-flow model, contract by contract, including parameters such as swap curves and revaluation spread (based on the BPCE reoffer curve). Adoption of IFRS 9 standards, on November 22, 2016, authorizing the early application of provisions relating to own credit risk as of FY16 closing

Phased-in capital and ratios incl. current financial year’s earnings and dividends: based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - phased in. Presentation including current financial year’s earnings and accrued dividend¹

Fully-loaded capital and ratios: based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. Presentation including current financial year’s earnings and accrued dividend¹

Leverage ratio: based on delegated act rules, without phase-in (presentation including current financial year’s earnings and accrued dividend¹ and with the hypothesis of a roll-out for non-eligible subordinated notes under Basel 3 by eligible notes. Repo transactions with central counterparties are offset in accordance with IAS 32 rules without maturity or currency criteria. Leverage ratio disclosed including the effect of intragroup cancelation - pending ECB authorization

Exceptional items: figures and comments on this press release are based on Natixis and its businesses’ income statements excluding non-operating and/or exceptional items detailed page 5. Figures and comments that are referred to as ‘underlying’ exclude such exceptional items. Natixis and its businesses’ income statements including these items are available in the appendix of this press release

Restatement for IFRIC 21 impact: the cost/income ratio, the RoE and the RoTE excluding IFRIC 21 impact calculation in 1Q20 takes into account ¼ of the annual duties and levies concerned by this accounting rule

Earnings capacity: net income (group share) restated for exceptional items and the IFRIC 21 impact

Expenses: sum of operating expenses and depreciation, amortization and impairment on property, plant and equipment and intangible assets

IAS 12: As of 3Q19, according to the adoption of IAS 12 (income taxes) amendment, the tax benefit on DSN interest expenses previously recorded in the consolidated reserves is now being accounted for in the income statement (income tax line). Previous periods have not been restated with a positive impact of €47.5m in 2019, of which €35.9m recognized in 3Q19 (€23.8m related to 1H19).

^[1] In line with ECB recommendations, the 2019 dividend has been reintegrated into Natixis’ capital and no dividend accrual will be carried out throughout 2020 - see press release dated 31/03/2020
Natixis - Consolidated P&L (restated)

€m	1Q19	2Q19	3Q19	4Q19	1Q20		1Q20 vs. 1Q19
Net revenues	1,957	2,100	2,102	2,326	1,750		(11)%
Expenses	(1,597)	(1,448)	(1,465)	(1,606)	(1,582)		(1)%
Gross operating income	360	653	637	719	167		(53)%
Provision for credit losses	(31)	(109)	(70)	(119)	(193)
Associates	3	8	3	6	(8)
Gain or loss on other assets	682	(7)	9	1	(0)
Change in value of goodwill	0	0	0	0	0
Pre-tax profit	1,015	545	579	607	(34)		(103)%
Tax	(201)	(149)	(114)	(153)	(13)
Minority interests	(65)	(68)	(66)	(96)	(39)
Net income - group share excl. Coface net contribution	749	328	399	358	(87)		(112)%
Coface net contribution	15	18	16	12	(118)
Net income - group share incl. Coface net contribution	764	346	415	371	(204)		(127)%

Figures restated as communicated on April 20, 2020 following the announced sale of a 29.5% stake in Coface. See below for the reconciliation of the restated figures with the accounting view

Natixis - Reconciliation between management and accounting figures

1Q19

€m	1Q19 underlying		Exceptional items		1Q19 restated	Coface restatement	Residual contribution from perimeter sold (ex SFS)	1Q19 reported
Net revenues	1,938		19		1,957	175	22	2,154
Expenses	(1,580)		(17)		(1,597)	(123)	(22)	(1,742)
Gross operating income	358		2		360	52	(0)	412
Provision for credit losses	(31)		0		(31)	(1)	0	(31)
Associates	3		0		3	0	0	3
Gain or loss on other assets	(0)		682		682	0	0	682
Pre-tax profit	330		684		1,015	51	(0)	1,066
Tax	(122)		(79)		(201)	(15)	0	(215)
Minority interests	(32)		(34)		(65)	(21)	0	(86)
Net income - group share excl. Coface net contribution	177		572		749
Coface net contribution	16		(0)		15
Net income - group share incl. Coface net contribution	192		572		764			764

1Q20

€m	1Q20 underlying		Exceptional items		1Q20 restated	Coface restatement	1Q20 reported
Net revenues	1,733		17		1,750	0	1,750
Expenses	(1,579)		(3)		(1,582)	0	(1,582)
Gross operating income	153		14		167	0	167
Provision for credit losses	(193)		0		(193)	0	(193)
Associates	6		(14)		(8)	(6)	(14)
Gain or loss on other assets	(0)		0		(0)	(112)	(112)
Pre-tax profit	(34)		(0)		(34)	(118)	(152)
Tax	(9)		(4)		(13)	0	(13)
Minority interests	(39)		0		(39)	0	(39)
Net income - group share excl. Coface net contribution	(82)		(4)		(87)
Coface net contribution	1		(119)		(118)
Net income - group share incl. Coface net contribution	(81)		(123)		(204)		(204)

Natixis - IFRS 9 Balance sheet

Assets (€bn)	31/03/2020	31/12/2019
Cash and balances with central banks	15.3	21.0
Financial assets at fair value through profit and loss1	223.4	228.8
Financial assets at fair value through Equity	12.3	12.1
Loans and receivables1	126.1	119.2
Debt instruments at amortized cost	1.5	1.6
Insurance assets	103.2	108.1
Non-current assets held for sale	0.5	0.0
Accruals and other assets	15.8	15.7
Investments in associates	0.9	0.7
Tangible and intangible assets	2.0	2.1
Goodwill	3.6	3.9
Total	504.7	513.2
Liabilities and equity (€bn)	31/03/2020	31/12/2019
Due to central banks	0.0	0.0
Financial liabilities at fair value through profit and loss1	216.9	218.3
Customer deposits and deposits from financial institutions1	104.9	102.4
Debt securities	45.3	47.4
Liabilities associated with non-current assets held for sale	0.0	0.0
Accruals and other liabilities	17.3	18.1
Insurance liabilities	95.3	100.5
Contingency reserves	1.4	1.6
Subordinated debt	3.6	4.0
Equity attributable to equity holders of the parent	19.7	19.4
Minority interests	0.3	1.4
Total	504.7	513.2

¹ Including deposit and margin call

Natixis - 1Q20 P&L by business line

€m	AWM		CIB		Insurance		Payments		Corporate Center		1Q20 reported
Net revenues	774		688		221		113		(46)		1,750
Expenses	(579)		(557)		(134)		(94)		(217)		(1,582)
Gross operating income	195		130		87		18		(263)		167
Provision for credit losses	1		(194)		0		2		(2)		(193)
Net operating income	195		(64)		87		20		(265)		(26)
Associates and other items	(2)		2		(11)		0		2		(8)
Pre-tax profit	194		(61)		76		20		(263)		(34)
								Tax			(13)
								Minority interests			(39)
				Net income (gs) excl. Coface net contribution							(87)
						Coface net contribution					(118)
				Net income (gs) incl. Coface net contribution							(204)

Asset & Wealth Management

€m	1Q19	2Q19	3Q19	4Q19	1Q20		1Q20 vs. 1Q19
Net revenues	773	932	945	1,109	774		0%
Asset Management1	742	900	908	1,061	733		(1)%
Wealth management	31	32	37	48	41		32%
Expenses	(558)	(605)	(648)	(681)	(579)		4%
Gross operating income	216	327	297	428	195		(10)%
Provision for credit losses	1	(2)	(8)	2	1
Net operating income	216	325	289	430	195		(10)%
Associates	0	0	0	0	0
Other items	(2)	(2)	8	1	(2)
Pre-tax profit	214	323	297	432	194		(10)%
Cost/Income ratio	72.1%	64.9%	68.5%	61.4%	74.8%
Cost/Income ratio excl. IFRIC 21	71.6%	65.1%	68.7%	61.5%	74.3%
RWA (Basel 3 - in €bn)	12.5	13.7	13.4	14.0	14.0		13%
Normative capital allocation (Basel 3)	4,364	4,407	4,555	4,581	4,604		6%
RoE after tax (Basel 3)2	11.5%	15.1%	13.3%	19.0%	9.0%
RoE after tax (Basel 3) excl. IFRIC 212	11.8%	15.0%	13.3%	19.0%	9.2%

^[1] Asset management including Private equity and Employee savings plan
² Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

Corporate & Investment Banking

€m	1Q19	2Q19	3Q19	4Q19	1Q20		1Q20 vs. 1Q19
Net revenues	807	847	784	899	688		(15)%
Global markets	366	419	344	381	279		(24)%
FIC-T	251	304	258	306	367		46%
Equity	125	117	94	81	(32)		(126)%
CVA/DVA desk	(9)	(3)	(8)	(6)	(55)
Global finance1	337	333	369	369	302		(10)%
Investment banking2	87	90	73	145	104		19%
Other	16	6	(2)	5	2
Expenses	(582)	(523)	(527)	(602)	(557)		(4)%
Gross operating income	225	324	256	297	130		(42)%
Provision for credit losses	(30)	(104)	(59)	(118)	(194)
Net operating income	195	219	197	179	(64)		(133)%
Associates	2	3	2	2	2
Other items	(15)	0	(0)	(0)	(0)
Pre-tax profit	183	222	200	181	(61)		(134)%
Cost/Income ratio	72.2%	61.8%	67.3%	67.0%	81.1%
Cost/Income ratio excl. IFRIC 21	69.1%	62.7%	68.3%	67.9%	76.9%
RWA (Basel 3 - in €bn)	62.0	61.1	62.3	62.2	65.4		5%
Normative capital allocation (Basel 3)	6,634	6,740	6,734	6,768	6,757		2%
RoE after tax (Basel 3)3	7.6%	9.6%	8.5%	7.8%	-2.8%
RoE after tax (Basel 3) excl. IFRIC 213	8.6%	9.2%	8.2%	7.5%	-1.6%

^[1] Including Film industry financing ² Including M&A
³ Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

Insurance

€m	1Q19	2Q19	3Q19	4Q19	1Q20		1Q20 vs. 1Q19
Net revenues	218	207	205	216	221		1%
Expenses	(125)	(116)	(112)	(125)	(134)		7%
Gross operating income	93	92	93	90	87		(6)%
Provision for credit losses	0	0	0	0	0
Net operating income	93	92	93	90	87		(6)%
Associates	0	5	1	4	(11)
Other items	0	(0)	0	0	(0)
Pre-tax profit	93	96	94	94	76		(18)%
Cost/Income ratio	57.5%	55.8%	54.6%	58.1%	60.6%
Cost/Income ratio excl. IFRIC 21	51.7%	57.8%	56.6%	60.1%	53.9%
RWA (Basel 3 - in €bn)	8.0	7.9	8.4	8.3	7.6		(5)%
Normative capital allocation (Basel 3)	858	942	926	978	965		12%
RoE after tax (Basel 3)1	29.4%	28.4%	27.7%	26.4%	20.7%
RoE after tax (Basel 3) excl. IFRIC 211	33.3%	27.2%	26.4%	25.2%	25.0%

¹ Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

Payments

€m	1Q19	2Q19	3Q19	4Q19	1Q20		1Q20 vs. 1Q19
Net revenues	103	105	103	111	113		9%
Expenses	(88)	(94)	(93)	(96)	(94)		8%
Gross operating income	16	11	10	15	18		16%
Provision for credit losses	(0)	(1)	(1)	(0)	2
Net operating income	16	10	9	15	20		28%
Associates	0	0	0	0	0
Other items	0	0	0	(0)	0
Pre-tax profit	16	10	9	15	20		28%
Cost/Income ratio	84.8%	89.6%	90.1%	86.1%	83.8%
Cost/Income ratio excl. IFRIC21	84.1%	89.8%	90.3%	86.3%	83.2%
RWA (Basel 3 - in €bn)	1.1	1.2	1.1	1.1	1.1		3%
Normative capital allocation (Basel 3)	356	373	385	384	391		10%
RoE after tax (Basel 3)1	12.0%	7.3%	6.5%	10.9%	14.3%
RoE after tax (Basel 3) excl. IFRIC 211	12.5%	7.1%	6.3%	10.7%	14.7%

Standalone EBITDA calculation
Figures excluding exceptional items²

€m	1Q19	2Q19	3Q19	4Q19	1Q20
Net revenues	103	105	103	111	113
Expenses	(88)	(94)	(91)	(93)	(94)
)Gross operating income - Natixis reported excl. exceptional items	16	11	13	18	19
Analytical adjustments to net revenues	(1)	(1)	(1)	(1)	(1)
Structure charge adjustments to expenses	6	5	5	5	(6)
Gross operating income - standalone view	20	15	17	22	24
Depreciation, amortization and impairment on property, plant and equipment and intangible assets	4	4	3	4	4
EBITDA - standalone view	24	19	20	26	28

EBITDA = Net revenues (-) Operating expenses. Standalone view excluding analytical items and structure charges

^[1] Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles ² See page 5

Corporate Center

€m	1Q19	2Q19	3Q19	4Q19	1Q20		1Q20 vs. 1Q19
Net revenues	55	10	64	(10)	(46)
Expenses	(244)	(110)	(84)	(102)	(217)		(11)%
SRF	(170)	0	0	(0)	(163)
Other	(74)	(110)	(84)	(102)	(54)		(26)%
Gross operating income	(188)	(100)	(20)	(112)	(263)		40%
Provision for credit losses	(1)	(3)	(2)	(2)	(2)
Net operating income	(190)	(103)	(22)	(114)	(265)		39%
Associates	(0)	0	(0)	(0)	0
Other items	699	(5)	1	(0)	2
Pre-tax profit	509	(108)	(21)	(114)	(263)		(152)%
RWA (Basel 3 - in €bn)	8.8	9.2	9.8	9.4	9.1		3%

€697m capital gain coming from the disposal of the retail banking activities in 1Q19

€bn	1Q19	2Q19	3Q19	4Q19	1Q20
Coface RWA (Basel 3)	3.9	3.8	3.8	4.0	1.9

1Q20 results: from data excluding non-operating items to reported data

€m	1Q20 underlying		Contribution to the Insurance solidarity fund	Exchange rate fluctuations on DSN in currencies	Real estate management strategy	Impact of Liban default on ADIR Insurance	Coface goodwill impairment	Coface residual stake impairment		1Q20 restated
Net revenues	1,733		(7)	24						1,750
Expenses	(1,579)				(3)					(1,582)
Gross operating income	153		(7)	24	(3)	0	0	0		167
Provision for credit losses	(193)									(193)
Associates	6					(14)				(8)
Gain or loss on other assets	(0)									(0)
Pre-tax profit	(34)		(7)	24	(3)	(14)	0	0		(34)
Tax	(9)		2	(7)	1					(13)
Minority interests	(39)									(39)
Net income - group share excl. Coface net contribution	(82)		(5)	17	(2)	(14)	0	0		(87)
Coface net contribution	1						(112)	(7)		(118)
Net income - group share incl. Coface net contribution	(81)		(5)	17	(2)	(14)	(112)	(7)		(204)

Figures restated as communicated on April 20, 2020 following the announced sale of a 29.5% stake in Coface. See page 15 for the reconciliation of the restated figures with the accounting view

Natixis - 1Q20 capital & Basel 3 financial structure
See note on methodology - Irrevocable Payment Commitment (IPC) deduction disclosed as part of the ratio as of 2Q19

Fully-loaded          

€bn	31/03/2020
Shareholder’s Equity	19.7
Hybrid securities(2)	(2.2)
Goodwill & intangibles	(3.8)
Deferred tax assets	(0.8)
Dividend provision	0.0
Other deductions	(1.6)
CET1 capital	11.3
CET1 ratio	11.4%
Additional Tier 1 capital	1.8
Tier 1 capital	13.1
Tier 1 ratio	13.2%
Tier 2 capital	2.2
Total capital	15.3
Total capital ratio	15.5%
Risk-weighted assets	99.3

Phased-in incl. current financial year’s earnings and dividends

€bn	31/03/2020
CET1 capital	11.3
CET1 ratio	11.4%
Additional Tier 1 capital	2.2
Tier 1 capital	13.5
Tier 1 ratio	13.6%
Tier 2 capital	2.3
Total capital	15.8
Total capital ratio	15.9%
Risk-weighted assets	99.3

IFRIC 21 effects by business line

Effect on expenses

€m	1Q19	2Q19	3Q19	4Q19	1Q20
AWM	(4)	1	1	1	(4)
CIB	(24)	8	8	8	(28)
Insurance	(13)	4	4	4	(15)
Payments	(1)	0	0	0	(1)
Corporate center	(119)	40	40	40	(113)
Total Natixis	(161)	54	54	54	(161)

Normative capital allocation and RWA breakdown - 31/03/2020

€bn	RWA EoP	% of total	Goodwill & intangibles 1Q20	Capital allocation 1Q20	RoE after tax 1Q20
AWM	14.0	16%	3.1	4.6	9.0%
CIB	65.4	74%	0.2	6.8	-2.8%
Insurance	7.6	9%	0.1	1.0	20.7%
Payments	1.1	1%	0.3	0.4	14.3%
Total (excl. Corp. center)	88.2	100%	3.7	12.7

RWA breakdown (€bn)	31/03/2020
Credit risk	64.1
Internal approach	53.1
Standard approach	11.0
Counterparty risk	7.4
Internal approach	6.5
Standard approach	0.9
Market risk	12.2
Internal approach	6.9
Standard approach	5.3
CVA	1.9
Operational risk - Standard approach	13.7
Total RWA	99.3

Fully-loaded leverage ratio¹
According to the rules of the Delegated Act published by the European Commission on October 10, 2014, including the effect of intragroup cancelation - pending ECB authorization

€bn	31/03/2020
Tier 1 capital1	13.5
Total prudential balance sheet	403.8
Adjustment on derivatives	(61.6)
Adjustment on repos2	(24.8)
Other exposures to affiliates	(49.3)
Off balance sheet commitments	35.6
Regulatory adjustments	(6.2)
Total leverage exposure	297.5
Leverage ratio	4.5%

^[1] See note on methodology. Without phase-in - supposing replacement of existing subordinated issuances when they become ineligible
² Repos with clearing houses cleared according to IAS32 standard, without maturity or currency criteria
Net book value as at March 31, 2020

€bn	31/03/2020
Shareholders’ equity (group share)	19.7
Deduction of hybrid capital instruments	(2.0)
Deduction of gain on hybrid instruments	(0.1)
Distribution	0.0
Net book value	17.6
Restated intangible assets1	(0.6)
Restated goodwill1	(3.3)
Net tangible book value2	13.6
€
Net book value per share	5.57
Net tangible book value per share	4.32

1Q20 Earnings per share

€m	31/03/2020
Net income (gs)	(204)
DSN interest expenses on preferred shares adjustment	(33)
Net income attributable to shareholders	(237)
Earnings per share (€)	(0.08)

Number of shares as at March 31, 2020

	31/03/2020
Average number of shares over the period, excluding treasury shares	3,151,459,265
Number of shares, excluding treasury shares, EoP	3,152,614,037
Number of treasury shares, EoP	3,232,458

Net income attributable to shareholders

€m	1Q20
Net income (gs)	(204)
DSN interest expenses on preferred shares adjustment	(33)
RoE & RoTE numerator	(237)

^[1] See note on methodology ² Net tangible book value = Book value – goodwill - intangible assets

RoTE¹

€m	31/03/2020
Shareholders’ equity (group share)	19,675
DSN deduction	(2,122)
Dividend provision	0
Intangible assets	(644)
Goodwill	(3,278)
RoTE Equity end of period	13,630
Average RoTE equity (1Q20)	13,630
1Q20 RoTE annualized with no IFRIC 21 adjustment	(4.5)%
IFRIC 21 impact	141
1Q20 RoTE annualized excl. IFRIC 21	(0.4)%

RoE¹

€m	31/03/2020
Shareholders’ equity (group share)	19,675
DSN deduction	(2,122)
Dividend provision	0
Unrealized/deferred gains and losses in equity (OCI)	(143)
RoE Equity end of period	17,410
Average RoE equity (1Q20)	17,410
1Q20 RoE annualized with no IFRIC 21 adjustment	(3.5)%
IFRIC 21 impact	141
1Q20 RoE annualized excl. IFRIC 21	(0.3)%

Doubtful loans²

€bn	31/12/2019 Proforma Coface	31/03/2020
Provisionable commitments3	2.0	2.1
Provisionable commitments / Gross debt	1.7%	1.7%
Stock of provisions4	1.4	1.5
Stock of provisions / Provisionable commitments	70%	73%

^[1]See note on methodology. Returns based on quarter-end balance sheet in 1Q20 to reflect the announced disposal of a 29.5% stake in Coface. The €112m net capital loss is not annualized

²On-balance sheet, excluding repos, net of collateral ³Net commitments ⁴Specific and portfolio-based provisions

Disclaimer

This media release may contain objectives and comments relating to the objectives and strategy of Natixis. Any such objectives inherently depend on assumptions, project considerations, objectives and expectations linked to future and uncertain events, transactions, products and services as well as suppositions regarding future performances and synergies.

No Insurance can be given that such objectives will be realized. They are subject to inherent risks and uncertainties, and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those implied by such objectives.

Information in this media release relating to parties other than Natixis or taken from external sources has not been subject to independent verification, and Natixis makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions herein. Neither Natixis nor its representatives shall be liable for any errors or omissions, or for any prejudice resulting from the use of this media release, its contents or any document or information referred to herein.

Included data in this press release have not been audited.

NATIXIS financial disclosures for the first quarter 2020 are contained in this press release and in the presentation attached herewith, available online at www.natixis.com in the “Investors & shareholders” section.

The conference call to discuss the results, scheduled for May 7, 2020 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the “Investors & shareholders” page).

Contacts:

Investor Relations:	[e-mail]		Press Relations:	[e-mail]
Damien Souchet	T + 33 1 58 55 41 10		Daniel Wilson	T + 33 1 58 19 10 40
Noemie Louvel	T + 33 1 78 40 37 87		Sonia Dilouya	T + 33 1 58 32 01 03
Souad Ed Diaz	T + 33 1 58 32 68 11		Vanessa Stephan		T+ 33 1 58 19 34 16

www.natixis.com

Our information is certified with blockchain technology. Check that this press release is genuine at www.wiztrust.com.

Attachment

• PR 1Q20