3Q20 and 9M20 results

Paris, November 5, 20203Q20 and 9M20 results
Back to profitability and strategic orientations preparing the future
Reported net income at +€39m in 3Q20 and +€152m excluding exceptional items¹
Basel 3 fully-loaded CET1 ratio² at 11.7%, +340bps above regulatory requirementsBACK TO PROFITABILITY AND SOLID CAPITAL POSITIONUnderlying³ net revenues of the businesses excl. CVA/DVA at €1.8bn in 3Q20 (-14% vs 3Q19) and €5.2bn in 9M20 (- 15% vs. 9M19). Activity bouncing back from 1Q20 and 2Q20 levelsCost of risk improving in 3Q20 vs. 2Q20Underlying³ net income at +€152m in 3Q20 (+€39m on a reported basis) and +€75m in 9M20 (€(222)m on a reported basis)Basel 3 FL CET1 ratio² at 11,7% in September 30, 2020 (11.2% proforma). Ratio standing +340bps above regulatory requirements (+290bps proforma) and +150bps above current target of 10.2% (+100bps proforma)STRATEGIC CHOICES TOWARDS SUSTAINABLE VALUE CREATIONLAYING OUT SOLID FOUNDATIONS FOR THE 2021-2024 STRATEGIC PLANSustainable development of our net revenuesAWM – Fostering growth relaysClosing of the Ostrum AM/LBP AM merger, creating a European leader in the management of fixed-income and insurance assets for large institutional clients with close to ~€430bn of assets under management as at end-September. Combined with the ~€630bn of AuM coming from its alpha-generating boutiques, Natixis IM reinforces its diversified positioning with close to €1,100bn of AuM. Besides, DNCA and Thematics see their positioning being reinforced through additional AuM being transferred from Ostrum AMAWM – Evolution of the relationship between Natixis IM and H2O AMNatixis IM and H2O AM are in discussions concerning the progressive and orderly unwinding of their partnership. Such discussions include (i) a possible progressive sale of Natixis IM’s stake in H2O AM and (ii) the orderly assumption by H2O AM of its distribution over a transition period until the end of 2021. Such evolution would be subject to consideration and approval by relevant regulatory authorities. H2O AM will no longer be considered a strategic asset of NatixisCIB – Equity Derivatives repositioning under a lower risk appetiteExit from most complex products and tightened exposure limits on low/medium risk products. These products will essentially be offered to Groupe BPCE retail networks and Natixis’ selected strategic clients, translating into a reduction in the number of clients served from >400 to ~50. Equity net revenues are expected to reach a new run-rate of ~€300m per annum and with an associated reduction in the cost baseBusiness transformation: €350m of cost savings by end-2024Transformation and efficiency program allowing for ~€350m of recurring cost savings to be generated by 2024 (~€270m of related one-off investment expenses over 4Q20-2023) notably including the transformation of the CIB Equity businessFinancing the energy transition and reducing the cost of riskActive -20% reduction in the overall Oil & Gas exposure since the beginning of the year through a repositioning of the trade finance activity (-35%). Complete exit from shale oil and shale gas by 2022 with a -25% reduction in exposure already achieved over 2020. Besides an expected reduction in the through-the-cycle cost of risk, such an active management of the loan portfolio should help accelerate Natixis’ green transition to address clients’ needs and through the development of its Green Weighting FactorCapital management: long-term growth and shareholder return capacityWith a Basel 3 FL CET1 ratio² at 11.7% as at end-September and 11.2% proforma for the front-loading of all regulatory impacts expected by the end of 2021, Natixis has enough room for maneuver in order to ensure the development of its businesses and its dividend distribution capacity. Natixis intends to resume dividend distribution in the first semester of 2021 (subject to ECB recommendations) and actively manage its capital position with a ~200bps CET1 buffer above its regulatory requirementsFigures restated as communicated on April 20, 2020 following the announced disposal of a 29.5% stake in Coface. See page 16 for the reconciliation of the restated figures with the accounting view ¹ See page 6 ² See note on methodology ³ Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for the Cost income ratio, RoE and RoTE
“Natixis has taken a number of strategic and operational decisions in order to prepare the future. Our goal is to get Natixis back onto a path of sustainable value creation. Growth in our Asset Management division will be boosted by the operational merger between La Banque Postale AM and Ostrum AM, which has increased our assets under management to close to 1.1 trillion euros, and by the decision to evolve our relationship with H2O AM. Meanwhile, the results of our Corporate & Investment Banking business will become steadier through the adjustment of our Equity Derivatives positioning and through the reduction of our exposure to the Oil & Gas sector. These decisions mark an important step in Natixis’ development and growth and pave the way for the preparation of our 2024 strategic plan, to be published in early June 2021.The past quarter also marked a return to positive earnings for Natixis with Insurance and Payments recording solid growth, Asset & Wealth Management holding up well, notably in terms of assets under management, and Corporate & Investment Banking revenues normalizing. In such an extraordinary health and economic context, I would like to pay tribute to the commitment and dedication of Natixis’ teams to serving our clients and supporting the financing of the economy as well as reaffirm the confidence I have in Natixis’ ability to fulfill its ambitions.“Nicolas Namias, Natixis Chief Executive Officer
3Q20 RESULTSOn November 5^th, 2020, the Board of Directors examined Natixis’ third quarter 2020 results.Underlying net revenue evolution highlights Natixis’ resilient business model, recovering from the impacts of the late 1Q20 market dislocation (mainly in Asset Management), 2Q20 lockdown measures (mainly in Payments) as well as 1H20 dividend cancellations and uncertainty regarding the shape of the economic recovery (mainly in CIB).Underlying expenses are down -6% YoY in 3Q20 reflecting the cost flexibility embedded in the Asset management multiboutique model (-14% YoY) as well as ongoing cost discipline across the board. The underlying cost/income ratio¹ stands at 78.3% in 3Q20 vs. 72.8% in 3Q19.Underlying cost of risk has improved QoQ although reflecting higher impairments mainly across energy exposures as well as an increase in non-performing loans vs. 3Q19. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 123bps in 3Q20 (o/w ~90% of COVID-19 related impacts such as IFRS9, fraudulent credit files and airlines).Coface net contribution based on a ~13% residual stake (vs. ~42% in 3Q19).Net income (group share), adjusted for IFRIC 21 and excluding exceptional items reached €105m in 3Q20. Accounting for exceptional items (€(113)m net of tax in 3Q20) and IFRIC 21 impact (€47m in 3Q20) the reported net income (group share) in 3Q20 is at €39m.Natixis’ underlying RoTE¹ reached 2.4% in 3Q20 excl. IFRIC 21.¹See note on methodology. Excluding exceptional items and excluding IFRIC 21
The sensitivity test that had been carried out for the 1Q20 et 2Q20 results has been updated with data as at end-September 2020. This would notably include the projection of a ~10% drop in the 2020 French GDP (~5% recovery in 2021) and severe assumptions across sectors of expertise incl. oil price ~$40/bbl. and significant haircuts to asset prices on real assets (e.g. ~45% for aircrafts and ~30% for real estate). In such a scenario, the cost of risk could continue to progressively improve below 100bps regarding the full-year 2021.Natixis’ exposure to the Oil & Gas sector stood at ~€10.0bn of net EAD¹ (Exposure at Default) as at 30/09/2020 (~60% Investment Grade) of which ~€0.8bn across US independent producers and service companies which have a more limited absorption capacity of lower oil price. As at 30/09/2020, the exposure to Aviation stood at ~€4.4bn of net EAD¹, was well diversified across more than 30 countries (none of which exceeding 20% of the exposure), secured for ~75% and majority Investment Grade. The exposure to Tourism & Leisure stood at ~€1.9bn of net EAD as at 30/09/2020, with ~95% being in the EMEA region, geared towards industry leaders.Outlook
Natixis’ future financial performances may be impacted by the latest developments linked to the COVID-19 context and the uncertainties it creates. For instance, they could be affected by the lockdown measures taken in various geographies and their potential implications on macroeconomic scenarios, the behavior of sectors/counterparts to which Natixis is exposed that could impact credit risk estimates and capital consumption, market levels impacting valuations and solvency through related CET1 items and RWA, goodwill depreciation or depreciation of associates’ value, or securities…Main observable impacts from the COVID-19 context in 9M20 (excluding items classified as exceptional, see page 6)²P&L : ~€65m of 9M20 impacts recoverable upon market conditions (seed money, XvA)Capital : ~50bps of 9M20 impacts recoverable upon market conditions and over time (OCI, PVA, Market RWA, state guaranteed loans)¹ Energy & Natural Resources + Real Assets perimeters ² Not exhaustive ³ Management data, gross. ~€0.2bn RWA impact from state-guaranteed loans as at end 3Q20 o/w close to nil related to the guarantee not being effective yet as at 30/09/20
9M20 RESULTSUnderlying net revenues are down -16% YoY in 9M20. They are impacted by the following lumpy items, all directly or indirectly linked to the COVID-19 context for a total amount of ~€(337)m and with progressive normalization throughout the year:AWM: €(33)m mark-down impact on the seed money portfolio (post overlay) including both listed and private assets;CIB: €(28)m CVA/DVA (Credit/Debit Value Adjustment) impact due to spreads widening on the back of perceived counterparty credit risk deterioration as at September 30, 2020 vs. December 31, 2019. €(272)m impact from dividend mark-downs across Equity following corporates’ 2019 dividend cancellation and the related sharp moves of dividend future curves;Corporate Center: €(4)m FVA (Funding Value Adjustment) impact due to the 1Q20 increase in funding costs on the market, almost entirely reversed in 2Q20/3Q20;Underlying expenses are down -5% YoY, demonstrating Natixis’ ability to adjust to its environment and with further efficiency gains to be realized up to ~€350m throughout 2021-2024 (~€120m to be realized over 2021, ~€250m over 2022, ~€310m over 2023 and ~€350m over 2024) with ~€270m of one-off investment costs classified as exceptional items (~€75m over 4Q20, ~€85m over 2021, ~€45m over 2022 and ~€60m over 2023). Natixis’ underlying cost income ratio¹ reaches 81.1% in 9M20 (72.1% in 9M19).Underlying cost of risk reflecting the COVID-19 context (~€515m related impacts) mainly through some IFRS 9 provisioning, cases of fraud (essentially across energy exposures) as well as increasing non-performing loans. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 139bps in 9M20 (o/w ~75% of COVID-19 related impacts such as IFRS9, fraudulent credit files and airlines).Coface net contribution based on a ~13% residual stake (vs. ~42% in 9M19) reached €7m in 9M20.Net income (group share), adjusted for IFRIC 21 and excluding exceptional items reached €122m in 9M20. Accounting for exceptional items (€(298)m net of tax in 9M20 and IFRIC 21 impact (€(47)m in 9M20) the reported net income (group share) in 9M20 is at €(222)m.Natixis’ underlying RoTE¹ reached 0.2% in 9M20 excl. IFRIC 21.¹See note on methodology. Excluding exceptional items and excluding IFRIC 21

3Q20 & 9M20 RESULTS
Exceptional items€586m positive net impact from the disposal of the retail banking activities in 1Q19: €697m capital gain minus €78m income tax minus €33m minority interests¹ 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 9M20 Coface capital loss is classified in “Gain or loss on other assets” and the 3Q20 Coface residual stake impairment in “Associates”. See page 16 for the reconciliation with the accounting view. 3Q20 capital loss relating to the sale of a 29.5% stake in Coface to Arch Capital Group at a revised price of €9.95 per share vs. €10.70 announced in the press release dated 25/02/2020
Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see details page.6)Asset & Wealth ManagementAsset management net revenues excluding performance fees down by -6% YoY in 3Q20, combined with a strong cost flexibility and a drop in expenses of -14% YoY (-13% YoY in 3Q20 for AWM). Asset Management underlying revenues benefited from a €18m mark-ups on the seed money portfolio, reversing part of the €(51)m mark-downs taken in 1H20 (vs. an overall contribution of €12m in 3Q19).Asset management overall fee rate excluding performance fees remained stable 3Q20 vs. 2Q20 and remained at ~28bps YTD. For European affiliates, it stood ~15bps (~26bps excl. Life Insurance General Accounts) and for North American affiliates it stood at ~35bps. Asset management performance fees reached €33m in 3Q20 vs. €192m in 3Q19 (o/w €125m from H2O).Asset management AuM are up +3% QoQ at constant exchange rate to reach €910bn as at end-September 2020 (o/w ~€20bn for H2O AM). Besides the flow dynamics described below, 3Q20 AuM were impacted by a €24bn positive market effect and a negative €(20)bn FX effect.Asset management net inflows reached ~€2bn, with continued good momentum for North American affiliates (~€2bn net inflows) essentially across fixed income and growth equity strategies. Across European affiliates, Mirova continues to attract positive net inflows on its equity strategies, allowing for some offset to net outflows on fixed income products at other affiliates. Added to that is the success for Private equity and notably Vauban (infrastructure) which also gathered positive net inflows in the quarter. Net outflows at H2O AM were <€1bn on previously suspended funds following their reopening (over October 13 - October 31.Natixis IM is well positioned to capture growth coming from ESG (~€2bn net inflows across open-end funds with French SRI label in 3Q20) as well as from Asian clients (>€5bn net inflows YTD) and is fostering the development of DNCA and Thematics with respectively ~€7bn (equity and convertible bonds) and ~€1bn (equity) additional AuM coming from Ostrum AM following the merger project with LBP AM.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 details page 6)Corporate & Investment BankingUnderlying net revenues are on a path to recovery and above both their 1Q20 and 2Q20 levels (despite seasonality) on the back of CVA/DVA impacts being partly reversed in 3Q20 as well as the 1H20 effect of dividend cancellations no longer impacting the top-line.Global markets: FICT revenues are at €216m, down vs. 3Q19 due to a lower contribution from FX and a high base effect for Credit while activity on Rates remained fairly stable. Equity revenues turned back positive at €34m with EQD positioning to be adjusted.Global finance: net revenues are stable QoQ (down YoY on a particularly strong 3Q19) with higher portfolio revenues allowing for some offset to lower syndication fees. Robust dynamics across Infrastructure offsetting lower contributions from Aviation, Real Estate and Energy.Investment banking/M&A: net revenues are up +28% YoY (+19% YoY in 9M20) driven by DCM and a pick-up in M&A activity with strong contributions from PJ Solomon and Fenchurch. IB revenues are increasing in all main geographies with a particularly strong performance from the APAC platform.Underlying expenses are down -2% YoY in 3Q20 despite a higher contribution from the M&A boutiques and down -5% YoY in 9M20.Underlying cost of risk remains elevated although improving QoQ, back close to its 1Q20 levels.Market RWA are normalizing following the 2Q20 technical spike linked to the VaR calculation (~€4bn down QoQ).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 details page 6)InsuranceUnderlying net revenues up +7% YoY in 3Q20 and +8% YoY in 9M20.Underlying cost/income ratio¹ at 55.4% in 3Q20 and 53.0% in 9M20, improving by 0.5pp and 1.7pp respectively vs. prior year periods. Positive jaw effect of +1pp in 3Q20 and +3pp in 9M20.Underlying RoE¹ at 30.5% in 3Q20 and 32.8% in 9M20, up from 26.9% in 3Q19 and 29.2% in 9M19.From a commercial standpoint: €5.9bn gross inflows² and €2.6bn net inflows² for Life insurance in 9M20. Share of unit-linked products in the gross inflows² increasing sharply to ~35% across the two Groupe BPCE networks vs. ~29% in 9M19. P&C premium growth of +6% YoY both in 3Q20 and 9M20.New Dimension 2020 financial targets all expected to be delivered or exceeded.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 details page 6)PaymentsUnderlying net revenues up +14% YoY in 3Q20 and also up YoY in 9M20, positively impacted by a rise in consumption during the summer months as well as the benefits from accelerated payment digitalization:Payment Processing & Services: Number of card transactions processed growing again at +4% YoY in 3Q20 following a sharp decline in 2Q20 due to lockdown. Growth notably coming from the launch of new offers on processing activities;Merchant Solutions: PayPlug strongly benefited from its positioning across small and medium-sized merchants seeking to diversify their distribution channels towards online (business volumes x2.1 YoY in 3Q20 and x2.3 YoY in 9M20). Strong penetration within Groupe BPCE retail networks. Dalenys continued to exhibit good business volume growth at +13% YoY in both 3Q20 and 9M20 despite some sectors still exhibiting subdued volumes (e.g. travel);Prepaid & Issuing Solutions: Meal voucher activity benefiting from eased conditions of use as well as a catch-up effect on reimbursement volumes following the reopening of ventures closed during lockdown such as restaurants.Underlying cost/income ratio¹ at 82.9% in 3Q20, improving by 5.0pp vs. 3Q19 and with a positive jaw effect of +7pp.Underlying RoE¹ at 13.7% in 3Q20, up from 8.0% in 3Q19.¹ 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 details page 6)Corporate CenterUnderlying net revenues are impacted by a positive €14m FVA impact in 3Q20 which is now close to nil YTD following the recovery already experienced in 2Q20 (€53m) from the €(71)m adjustment taken in 1Q20. 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 are largely flat YoY in 3Q20 and down more than -20% YoY in 9M20 (excl. SRF), notably reflecting cost saving efforts being carried out across the organization.
FINANCIAL STRUCTUREBasel 3 fully-loaded¹
Natixis’ Basel 3 fully-loaded CET1 ratio worked out to 11.7% as at September 30, 2020.Basel 3 fully-loaded CET1 capital amounted to €11.8bnBasel 3 fully-loaded RWA amounted to €100.6bnMain 3Q20 CET1 capital impacts:+€152m related to the underlying net income group share€(113)m related to exceptional items+€70m related to OCI evolution on securities+€34m related to the Prudent Value (PVA) evolution+€152m related to the IPC reintegration (Irrevocable Payment Commitments)€(114)m related to other effects (e.g. foreign exchange impacts)Main 3Q20 RWA impacts:+€0.6bn from Credit RWA incl. €(0.4)bn from RCF drawdowns/new money (management data, gross) and €(0.2)bn from state-guaranteed loans€(3.4)bn from Market RWA€(0.4)bn from CVA RWA+€0.4bn from other impacts (mainly related to franchise mechanisms)As at September 30, 2020 Natixis’ Basel 3 fully-loaded capital ratios stood at 13.4% for the Tier 1 and 15.6% for the Total capital.Proforma for the estimated 4Q20-2021 regulatory impacts related to TRIM Corporates, TRIM Banks, SA-CCR and the prudential treatment of softwares (~60bps cumulative negative impact post mitigation) as well as the impacts coming from projects such as the Ostrum AM/LBP AM merger and Natixis’ sale of a 29.5% stake in Coface, Natixis’ Basel 3 fully-loaded CET1 ratio would stand at 11.2%.Basel 3 phased-in incl. current financial year’s earnings and dividends¹
As at September 30, 2020, Natixis’ Basel 3 phased-in capital ratios incl. current financial year’s earnings and dividends stood at 11.7% for the CET1, 13.8% for the Tier 1 and 16.0% for the Total capital.Core Tier 1 capital stood at €11.8bn and Tier 1 capital at €13.9bnNatixis’ RWA totaled €100.6bn, breakdown as follows:Credit risk: €63.9bnCounterparty risk: €6.9bnCVA risk: €1.3bnMarket risk: €14.8bnOperational risk: €13.7bnBook value per share
Equity capital (group share) totaled €18.9bn as at September 30, 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 €5.32 as at September 30, 2020 based on 3,149,952,017 shares excluding treasury shares (the total number of shares being 3,155,951,502). The tangible book value per share (after deducting goodwill and intangible assets) is €4.09.Leverage ratio¹The leverage ratio worked out to 4.7% as at September 30, 2020.Overall capital adequacy ratio
As at September 30, 2020, the financial conglomerate’s excess capital was estimated at around €3.1bn.     ¹ See note on methodologyNote on methodology:The results at 30/09/2020 were examined by the board of directors at their meeting on 05/11/2020.Figures at 30/09/2020 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 datePress release dated 20/04/2020 “Preparation of the 1Q20 Financial Communication” – amended below for subsequent developmentsThe 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 of €112m based on the 2020 original sale price of €10.70 per share. An additional €34m capital loss was recognized in 3Q20 to reflect the fact that the price of the transaction was revised down to €9.95 per share;
 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) was impacted by a €47m impairment due to the drop in the value of Coface related to the context prevailing at September 30, 2020. For financial communication purposes, these two items – capital loss and residual stake impairment – are being classified as exceptional items since the first quarter of 2020 and both presented within the line “Coface net contribution” (see page 16 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 €146m 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: