Natixis: Third Quarter 2019 Results

Paris, November 7, 20193Q19 results
Delivering growth across the board, robustness reinforced
Reported net revenues up +6% YoY in 3Q19 and +7% underlying¹
Reported net income at €415m in 3Q19 vs. €358m in 3Q18, +16% YoY
Low sensitivity to the rate environment with only 8% of revenues coming from Net Interest Income in 9M19
BUSINESSES WELL DIVERSIFIED AND ALL GROWING IN THE THIRD QUARTER
3Q19 UNDERLYING NET REVENUES¹ AT €2.2BN, UP +7% YOYAWM: Strong growth in net revenuesStrength of our active asset management model focused on alpha generation with underlying net revenues¹ up +12%
YoY in 3Q19 (+7% in 9M19) in part driven by high levels of performance fees that reached €192m this quarter (€362m in 9M19). Revenue growth in line with cost growth at constant exchange rate in both 3Q19 and 9M19Average fee rate in line with New Dimension target at ~30bps in 9M19 despite a negative mix effect in 3Q19Strong AuM growth of +3% over the quarter to reach €921bn despite modest outflows on LT products (~€4bn), notably in North America, in part offset by positive net inflows in Europe and the success of affiliates such as Mirova on ESGCIB: Strong positive jaws effect thanks to growing revenues and cost controlUnderlying net revenues¹ up +3% YoY in 3Q19 primarily driven by Global finance (+8% YoY). Growth of Global markets activities (+3% YoY) and of our Green & Sustainable Hub. Leading innovation in sustainable finance with the roll-out of Natixis’ Green Weighting Factor initiativeCosts under control, down at constant exchange rate by -2% YoY in 3Q19 and -3% in 9M19Cost of risk increasing vs. 3Q18 (decreasing vs. 2Q19)Insurance: Continued growth momentumUnderlying net revenues¹ up +7% YoY with a positive jaws effect both in 3Q19 and 9M19Underlying RoE¹ ~30% in 9M19, largely in line with the target set for New Dimension by 2020Payments: Continued growth with positive jawsUnderlying net revenues¹ up +9% YoY in 9M19 with a positive jaws effect both in 3Q19 and 9M19Increase in business volumes from Dalenys & PayPlug, up more than +20%SUSTAINABLE VALUE CREATION AND FINANCIAL STRENGTHOrganic capital creation of ~30bps in 3Q19 and ~100bps in 9M19. Basel 3 FL CET1 ratio² at 11.5% as at September 30, 2019, well above our 2020 targetUnderlying net income¹ at €400m in 3Q19 and €955m in 9M19Underlying RoTE¹ at 9.5% in 3Q19 and 10.2% in 9M19 considering a normalized cost of risk of ~30bpsREINFORCING ROBUSTNESS THROUGH SEVERAL MEASURESFocus on the development and the reinforcement of existing expertise rather than on potential acquisitions while maintaining Natixis’ dividend policy. This translates into the reinforcement of the 2020 Basel 3 FL CET1 ratio target² from 11% to 11.2% (see page 3)Reinforcement of Natixis Investment Managers’ multi-boutique model with various initiatives aimed at strengthening governance and risk controls (see page 3)Evolution to Natixis’ governing bodies (see ad hoc press release) and implementation of transversal organizational projectsFigures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view [1] Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for cost/income, RoE and RoTE (see note on methodology) ² See note on methodology“In the third quarter of 2019 our revenues grew in line with or faster than our costs in each of our businesses demonstrating our agility and the flexibility of our cost base as well as the relevance of our business model. Natixis is only lightly exposed to the low interest rate environment – net interest income represented only 8% of our revenues in the first nine months of 2019 – result of our asset light strategy and a major advantage in the current context. Having profoundly transformed our businesses, and facing a fast evolution in the environment, we have chosen to further strengthen our robustness, having notably announced today a series of measures to support this objective. We meanwhile remain focused on implementing our strategic plan New Dimension, which is proving itself to be highly suited to the current environment”.
François Riahi, Natixis Chief Executive Officer

3Q19 RESULTSOn November 7, 2019, the Board of Directors examined Natixis’ third quarter 2019 results.Natixis’ underlying net revenues are up +8% YoY across the businesses with AWM up +12% YoY (mainly driven by performance fees), Payments up +8% YoY, Insurance up +7% YoY and CIB up +3% YoY.Underlying expenses are up +6% YoY reflecting solid revenue growth across the businesses, mainly in Asset management due to the flexible structure of the cost base. Investments (e.g. strategic projects, support functions) keep on being made while maintaining a tight cost control (e.g. CIB expenses down YoY despite top-line growth). Positive or neutral jaw effect across all business lines at constant exchange rate and cost/income ratio improvement. The underlying cost/income ratio¹ is at 72.6%, down -70bps vs. 3Q18.The underlying loan loss provisioning decreased QoQ although up YoY on a very low basis, above its normalized level. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 41bps in 3Q19 (32bps on a 12-month rolling basis) vs. ~30bps normalized.Net income (group share), adjusted for IFRIC 21 and excluding exceptional items reached €353m in 3Q19. Accounting for exceptional items (+€15m net of tax in 3Q19), and IFRIC 21 impact (+€47m in 3Q19) the reported net income (group share) in 3Q19 is at €415m.Businesses’ underlying RoE¹ reached 11.6% in 3Q19.Natixis’ underlying RoTE¹ reached 9.5% in 3Q19 excl. IFRIC 21.Reinforcement of the 2020 Basel 3 CET1 FL ratio target (see note on methodology) to 11.2% i.e. a +20bps increase vs. previous target of 11.0%:decrease in Natixis’ 2018-2020 M&A budget from ~€1bn to ~€0.8bn (of which ~€0.5bn already invested) with a focus on existing perimeter in the current environment;dividend policy unchanged with a minimum 60% pay-out ratio and distribution of excess capital;increased robustness in the context of regulatory changes to materialize over the years to come, allowing Natixis to ensure sustainable value creation                  
Enhanced governance and control framework at Natixis Investment managers: In addition to previously announced appointment of newly-created position of COO, internal review leading to a number of initiatives including:split of Natixis IM risk and compliance functions;creation of NIM Head of Risk role separate from NIM Head of Compliance and with all affiliates to have a named CRO in addition to a named CCO;risk monitoring framework to evolve for a more comprehensive view into current/evolving risks at the level of each affiliate¹ See note on methodology. Excluding exceptional items and excluding IFRIC 21

9M19 RESULTS¹Natixis’ underlying net revenues are higher vs. 9M18 for the vast majority of the businesses with Payments up +9% YoY, AWM up +7% YoY, Insurance up +7% YoY and IB/M&A up +2% YoY. 9M19 revenue evolution to be put in the context of a historically high 1H18, particularly 1Q18 for Global markets and 2Q18 for Global finance; these two activities featuring growth in 3Q19.Underlying expenses are well under control and up +2% YoY at constant exchange rate reflecting solid revenue growth across most businesses, investments being made (e.g. strategic projects, support functions) and the increase in the SRF contribution. CIB costs down -3% YoY at constant exchange rate. The underlying cost/income ratio² is at 72.0%, up +250bps vs. 9M18.The underlying loan loss provisioning increased vs. a low 9M18 due to a large single file impact in 2Q19. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses’ underlying cost of risk worked out to 43bps in 9M19.Underlying tax rate at ~27% in 9M19. YoY increase in minority interests mainly due to a higher performance from some European AM affiliates.Net income (group share), adjusted for IFRIC 21 and excluding exceptional items reached €1,002m in 9M19. Accounting for exceptional items (+€571m net of tax in 9M19) and IFRIC 21 impact (-€47m in 9M19), the reported net income (group share) in 9M19 is at €1,526m.Businesses’ underlying RoE² reached 12.2% in 9M19.Natixis’ underlying RoTE² reached 9.8% in 9M19 excl. IFRIC 21 and 10.2% with a normalized cost of risk³.¹ Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view ² See note on methodology. Excluding exceptional items and excluding IFRIC 21 ³ Normalizing the 9M19 cost of risk at 30bps3Q19 & 9M19 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 interestsTRANSFORMATION & BUSINESS EFFICIENCYInvestment costs by reporting line Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)Asset & Wealth ManagementUnderlying net revenues from Asset & Wealth Management (AWM) are up +12% YoY in 3Q19 (+10% at constant exchange rate), illustrating the resilience of our multi-boutique model focused on alpha generation. Asset management (excl. Employee savings plan) underlying net revenues, including performance fees, are up +9% YoY in North America (€450m) and up +26% in Europe (€303m) in 3Q19 (+1% at €1,222m and +20% at €837m in 9M19 for North America and Europe respectively). Wealth management net revenues are up +3% YoY in 3Q19.The Asset management overall fee rate excluding performance fees is at ~30bps in 9M19, in line with 1H19 levels and with New Dimension target (slightly down QoQ due to mix effect). For European affiliates, it is at ~16bps in 9M19 and ~28bps excl. Life Insurance General Accounts. For North American affiliates, it is at ~38bps vs. ~40bps in 9M18 mainly due to a lower share of average AuM from Harris following the 4Q18 market effect. Performance fees reached €192m in 3Q19 and €362m in 9M19 (~15% of AM revenues vs. ~13% in FY18) mainly driven by H2O and AEW.Asset management net flows on LT products reached ~ €(4)bn in 3Q19 more than offset by supportive market and FX impacts. The trend improved throughout the quarter: from >€(2)bn in July to ~€(0.5)bn in September. In Europe, ~€2bn net inflows on LT products in 3Q19 mainly driven by Real asset strategies and Mirova. In North America, a bit more than ~€(5)bn net outflows in 3Q19 primarily driven by Harris and Loomis Fixed income strategies. WCM equity strategies providing a growth relay to Harris in the 3Q19 environment.Asset management AuM reached €921bn as at September 30, 2019 and are up +3% QoQ (+14% YTD), above their 4Q18 average level both for Europe and North America. On top of the net flows on LT products described above, 3Q19 was also marked by ~(1)bn net outflows on low-margin money-market products, a positive market effect of +€9bn and a positive FX/perimeter effect of +€20bn. H2O AuM stand at ~€28bn vs. ~€26bn at end-June driven by a strong market effect. Wealth management AuM reached €30.3bn as at September 30, 2019 with €0.9bn positive net inflows this quarter.Underlying expenses growing in line with the revenues (+10% in 3Q19 and +3% in 9M19, both at constant exchange rate) reflecting in part the variable structure of the cost base in AM (higher performance fees) and investments being made in new initiatives and digitalization/IT as well as MIFID 2 impact.The underlying cost of risk is attributable to a wealth management file.The underlying RoE² reached 13.4% in 3Q19 and 13.5% in 9M19.¹ 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 BankingUnderlying net revenues are up +3% YoY in 3Q19. Revenue evolution largely driven primarily by Global finance, up +8% YoY in 3Q19 and secondarily by Global markets, up +3% YoY. Investment banking/M&A has been impacted by some delay in fee recognition expected for 4Q19.Global markets net revenues up +3% YoY in 3Q19. 9M19 revenue evolution balanced between FICT and Equity and reflecting a high base, especially in 1Q18. FICT net revenues up +2% YoY in 3Q19 despite tough market conditions and very volatile long-term interest rates. Continued good performance in Credit especially in the US. Less favorable environment for Rates given flat yield curve at unprecedented levels with less jumbo transactions although client activity remains stable. Good performance from FX with major currencies regaining volatility. Equity net revenues down a modest €3m YoY in 3Q19. Good performance from the US and continued diversification with solid commercial successes, especially in Convertibles and Green finance. Global finance net revenues up +8% YoY and +11% QoQ with all Real Assets business lines featuring YoY growth (Aviation, Real Estate and Infrastructure) and slightly lower revenues from Energy & Natural Resources. Focus on distribution after several quarters of very strong loan origination. Distribution rate on Real Assets at ~64% in 3Q19, up +1pp YoY and significantly up QoQ. Investment banking and M&A net revenues up +2% YoY in 9M19 and down YoY in 3Q19. Good contributions from our APAC M&A boutiques. Proportion of revenues generated from service fees at ~38% in 3Q19 and ~40% in 9M19².Underlying expenses are well under control and down -2% YoY at constant exchange rate in 3Q19 (-3% YoY in 9M19). This reflects lower variable costs and ongoing initiatives to improve efficiency despite investments being made to develop our sectorial approach as well as control functions.Underlying cost of risk is up vs. a very low 3Q18 and is above its normalized level.Underlying RoE¹ of 8.6% in 3Q19 and 9.2% in 9M19. Normalizing for the cost of risk³, the 9M19 RoE would have reached ~10%. RWA are up +2% YoY in 3Q19, in line with New Dimension guidance.¹ See note on methodology. Excluding exceptional items and excluding IFRIC 21 ² ENR, Real Assets, ASF ³ Normalizing the cost of risk at 30bps

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)InsuranceBanking viewUnderlying net revenues up +7% YoY both in 3Q19 and 9M19 with growth across the board.Underlying expenses up +6% YoY both in 3Q19 and 9M19, translating into a positive jaw effect and a cost/income ratio improvement, broadly in line with the 2020 target of ~54%.Underlying gross operating income up +8% YoY both in 3Q19 and 9M19.Underlying RoE¹ at 29.2% in 9M19 largely in line with the 30% target set for New Dimension by 2020.Insurance viewGlobal turnover² €2.9bn in 3Q19, up +5% YoY (+3% in 9M19 at €9.5bn).Life and Personal protection: €2.5bn earned premiums² in 3Q19, up +4% YoY (+2% in 9M19).Total AuM² at €66.5bn as at end-September 2019, up +2% QoQ and +11% YTD, driven by €1.2bn of net inflows² in 3Q19 (€4.5bn YTD).
 Unit-linked AuM² at €16.5bn as at end-September 2019, up +4% QoQ and +17% YTD, driven by €0.4bn of net inflows² in 3Q19 (37% of total net inflows). UL products accounted for 28% of gross inflows in 3Q19, above the French market³.
 Personal protection: earned premiums up +8% YoY in 3Q19 at €0.2bn (+11% in 9M19).P&C: €0.4bn earned premiums in 3Q19, up +9% YoY (+6% in 9M19). The combined ratio reaches 92.3% in 9M19
(+0.4pp YoY).The non-life equipment rate at the end of September is at 26.8% (+0.3pp QoQ) for Banques Populaires and at 29.8% (+0.3pp QoQ) for Caisses d’Epargne.¹ See note on methodology. Excluding exceptional items and excluding IFRIC 21 ² Excluding reinsurance agreement with CNP ³ Source: FFA

Unless specified otherwise, the following comments and data refer to underlying results, i.e. excluding exceptional items (see detail p5)PaymentsUnderlying net revenues up +9% YoY in 9M19 and +8% in 3Q19 (residual perimeter effects left). ~40% of 9M19 revenues realized with direct clients (+2pp vs. 9M18).Payment Processing & Services: Steady +4% YoY revenue growth in Natixis Payments’ historical activities in 3Q19 (+5% in 9M19). Number of card transactions processed up +13% YoY in 3Q19 (+10% in 9M19). Pioneer in the implementation of SWIFT gpi for instant cross-border payments, a key solution for CIB Trade & Treasury Solutions clients.
 Merchant Solutions: Solid business volumes generated by Dalenys and PayPlug, up +20% YoY in 3Q19 (+23% in 9M19). Partnership between PayPlug and Shopify to foster business growth with French and Italian SMEs.
 Prepaid & Issuing Solutions: Robust growth in 3Q19 driven by meal vouchers (+8% YoY) and the contribution of our Benefits & Rewards activity (Titres Cadeaux and Comitéo). Number of mobile payments more than x2.6 vs. 3Q18.¹ 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)Financial InvestmentsThe net combined ratio of Coface¹ reached 78.1% in 3Q19 vs. 82.8% in 3Q18 (76.8% 9M19 vs. 79.0% 9M18) with a cost ratio moving from 34.4% to 31.0% (from 34.0% 9M18 to 31.7% 9M19) and a loss ratio moving from 48.5% to 47.1% (from 45.0% 9M18 to 45.1% 9M19).Corporate CenterUnderlying net revenues from the Corporate Center of €2m in 3Q19.Underlying expenses excluding SRF contribution up +€10m YoY in 3Q19 mainly due to various positive elements impacting 3Q18.Underlying pre-tax profit contribution broadly unchanged YoY in 9M19 excl. SRF.¹ Reported ratios, net of reinsurance FINANCIAL STRUCTUREBasel 3 fully-loaded ratios¹
Natixis’ Basel 3 fully-loaded CET1 ratio worked out to 11.5% as at September 30, 2019.Basel 3 fully-loaded CET1 capital amounted to €11.4bnBasel 3 fully-loaded RWA amounted to €98.8bnBased on a Basel 3 fully-loaded CET1 ratio of 11.5% as at June 30, 2019, the respective 3Q19 impacts were as follows:3Q19 results: +43bps3Q19 ordinary dividends: -22bps3Q19 RWA and other effects: -13bpsBasel 3 regulatory ratios¹
As at September 30, 2019, Natixis’ Basel 3 regulatory capital ratios stood at 10.5% for the CET1, 12.7% for the Tier 1 and 15.0% for the total capital ratio.Core Tier 1 capital stood at €10.4bn and Tier 1 capital at €12.5bnNatixis’ RWA totaled €98.8bn, breakdown as follows:Credit risk: €66.2bnCounterparty risk: €7.0bnCVA risk: €1.6bnMarket risk: €10.7bnOperational risk: €13.3bnBook value per share
Equity capital (group share) totaled €19.3bn as at September 30, 2019, 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 €5.44 as at September 30, 2019 based on 3,150,728,343 shares excluding treasury shares (the total number of shares being 3,153,078,482). The tangible book value per share (after deducting goodwill and intangible assets) is €4.14.Leverage ratio¹The leverage ratio worked out to 4.2% as at September 30, 2019.Overall capital adequacy ratio
As at September 30, 2019, the financial conglomerate’s excess capital was estimated at around €3.3bn (based on own funds including current financial year’s earnings).     ¹ See note on methodologyNote on methodology:The results at 30/09/2019 were examined by the board of directors at their meeting on 07/11/2019.
Figures at 30/09/2019 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 dateChanges in Natixis’ account presentation following the disposal of the retail banking activities to BPCE S.A.Employee savings plan is reallocated to Asset & Wealth ManagementFilm industry financing is reallocated to Corporate & Investment BankingInsurance is not impactedPayments becomes a standalone business lineFinancial Investments are isolated and include Coface, Natixis Algeria and the private equity runoff activities. The Corporate Center is refocused on Natixis’ holding and ALM functions and carries the Single Resolution Fund contribution within its expenses                         Additional impacts on the quarterly series from the disposal of the retail banking activities to BPCE S.A.New support function services provided by Natixis to the activities sold (TSA / SLA), as well as the cancellation of services or analytical items that have been made obsolete following such a disposal are factored inThe reclassification as Net revenues of the residual IT and logistic services that continue to be provided to the activities sold. Such services now being provided to entities that do not fall under Natixis’ scope of consolidation anymore, they have been reclassified as Net revenues instead of expense deductionsThe implementation of introductory fees between the Natixis CIB Coverage and the entities soldIn order to ensure comparability between the 2018 and 2019 quarterly series, these impacts have been simulated retroactively as of January 1st, 2018, even though they only impact the published financial statements as of their implementation date in 2019. These items essentially impact the Corporate Center and more marginally the CIB. The others business lines are unimpactedBusiness 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 26^th, 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 dividends, 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 dividends, 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 based on 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: Calculations based on quarter-end balance sheet in 1Q19 to reflect the disposal of the retail banking activities. The €586m net capital gain is not annualized. Adoption of IAS 12 amendment effective as of 3Q19 (see below for additional comments), with no impact on the RoE/RoTENet book value: calculated by taking shareholders’ equity group share (minus distribution of dividends proposed by the Board of Directors and submitted to the approval of the General Shareholders’ Meeting on May 28, 2019), 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: 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 FY2016 closing.Regulatory (phased-in) capital and ratios: based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise – phased in. Presentation excluding current financial year’s earnings and accrued dividend (based on a 60% pay-out¹)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 dividend (based on a 60% pay-out¹)Leverage ratio: based on delegated act rules, without phase-in (presentation including 9M19 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 authorizationExceptional 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 releaseRestatement for IFRIC 21 impact: the cost/income ratio, the RoE and the RoTE excluding IFRIC 21 impact calculation in 9M19 takes into account ¾ of the annual duties and levies concerned by this accounting rule. The impact for the quarter is calculated by difference with the former quarterEarnings capacity: net income (group share) restated for exceptional items and the IFRIC 21 impactExpenses: sum of operating expenses and depreciation, amortization and impairment on property, plant and equipment and intangible assetsIAS 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 €35.9m in 3Q19, of which €23.8m related to 1H19¹ Pay-out ratio based on reported net income group share minus DSN interest expenses (the associated tax benefit being already accounted for in the net income following the adoption of IAS 12 amendment) and excluding the €586m net capital gain from the disposal of the retail banking activities

Natixis – Consolidated P&L (restated)Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See below for the reconciliation of the restated figures with the accounting viewNatixis – Reconciliation between management and accounting figures9M189M19
Natixis – IFRS 9 Balance sheet¹ Including deposit and margin callNatixis – 3Q19 P&L by business lineAsset & Wealth Management[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[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

Insurance¹Normative capital allocation methodology based on 10.5% of the average RWA-including goodwill and intangibles

PaymentsStandalone EBITDA calculation
Figures excluding exceptional items²EBITDA = 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

Financial investmentsCorporate Center€697m capital gain coming from the disposal of the retail banking activities in 1Q19
3Q19 results: from data excluding non-operating items to reported data9M19 results: from data excluding non-operating items to restated data
Figures restated as communicated on April 11, 2019 following the disposal of the retail banking activities. See page 14 for the reconciliation of the restated figures with the accounting view Natixis – 3Q19 capital & Basel 3 financial structure
See note on methodology – Irrevocable Payment Commitment (IPC) deduction disclosed as part of the ratio as of 2Q19Fully-loaded          Regulatory  IFRIC 21 effects by business lineEffect in ExpensesHistorical figures restated for the disposal of the retail banking activitiesNormative capital allocation and RWA breakdown – 30/09/2019  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[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 September 30, 20199M19 Earnings per shareNumber of shares as at September 30, 2019Net income attributable to shareholders[1] See note on methodology ² Net tangible book value = Book value – goodwill – intangible assetRoTE¹RoE¹Doubtful loans²[1]See note on methodology. Returns based on quarter-end balance sheet to reflect the disposal of the retail banking activities. The €586m net capital gain is not annualized 2 On-balance sheet, excluding repos, net of collateral 3 Net commitments 4 Specific and portfolio-based provisions

DisclaimerThis 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 third quarter 2019 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 November 8, 2019 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the “Investors & shareholders” page).Contacts:www.natixis.com    AttachmentPR 3Q19