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NATIXIS : THIRD-QUARTER 2017 AND NINE-MONTH 2017 RESULTS

Paris, November 7, 2017

Third-Quarter 2017 and Nine-Month 2017 Results

NET INCOME up 29% to €383m in 3Q17 and 31% to €1.151bn in 9M17

3Q17 Net revenues up 10% across core businesses, fueled by inveST. solutions

INVESTMENT SOLUTIONS: improving fee rates in Asset Management and sound performance in insurance

  • Asset Management: Net revenues up 18% in 3Q17 with fee rates expansion in both Europe and the US driven by a positive mix effect. Net inflows of €3bn in 3Q17 (including €5bn on long-term products) and AuM standing at €813bn at end-September 2017 (including €23bn transfer out of CNP life insurance assets). Strategic reinforcement in the Asia-Pacific region with the acquisition of a 51.9% stake in Australian asset manager Investors Mutual Ltd.
  • Insurance: Overall turnover of €2.5bn, up 31% vs. 3Q16, excluding reinsurance agreement with CNP. Acquisition of the remaining 40% of BPCE Assurances from Macif and Maif(1).

CIB: acceleration in investment banking activities and m&a

  • Global finance & Investment banking: Net revenues down slightly in 3Q17 (-1% YoY) and up 8% in 9M17. Investment Banking and M&A revenues up 13% in 3Q17 (+44% in 9M17 of which +82% for M&A).
  • Global markets: Net revenues up 17% (excluding CVA/DVA) in 9M17, despite a slowdown in 3Q17 (-9% YoY due to last year's relatively high basis of comparison as 3Q16 benefited from post Brexit volatility).

SFS: net revenues up 5% vs. 3Q16

  • Strong business momentum in Specialized financing (Net revenues up 6% YoY in 3Q17).
  • Revenues from Payments up 4% vs. 3Q16. Finalization of the Dalenys acquisition.

sharp increase in profitability in 3Q17 and 9M17(2)

  • Core businesses net revenues up 10% in 3Q17 (€2.1bn) and 12% in 9M17 (€6.6bn)
  • Cost-income ratio improving by 250bps vs. 9M16 at 68.1%
  • Marked contraction in the cost of risk for core businesses to 14bps in 3Q17 and 23bps in 9M17
  • Core businesses ROE of 13.2% in 3Q17 (+90bps vs. 3Q16) and 15.1% in 9M17 (+210bps vs. 9M16)
  • Natixis ROTE of 10.3% in 3Q17 (+130bps vs. 3Q16) and 12.2% in 9M17 (+230bps vs. 9M16)

further decline in rwa and Reinforcement of the cet1 ratio

  • €111.7bn of RWA, down 3% since the beginning of the year. CET1 ratio(3) of 11.5% at end-September 2017 (+20bps vs. end-June 2017) factoring in a minimum dividend payout of 50%.

(1) Transaction announced on September 7, 2017 and subject to approval from ACPR (2) Excluding exceptional items and the IFRIC 21 impact for cost income ratio, ROE, and ROTE (2) Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise - no phase-in except for DTAs on loss carry-forwards (4) Subject to confirmation of the pre-notification received from the ECB

The Board of Directors approved Natixis' accounts for the third quarter of 2017 on November 7, 2017.

For Natixis, the main features of 3Q17 were:

  • a 10% YoY increase in net revenues for core businesses, to €2.068bn. Partly driven by a positive momentum at Coface, Natixis grew overall revenues 15% YoY to €2.205bn.

The Investment Solutions business experienced a 17% YoY increase in revenues fueled by solid activity levels and improved product-mix in both Asset Management (net revenues +18% YoY to €716m) and Insurance (net revenues +12% YoY to €174m).

Asset Management recorded €3bn of net inflows in 3Q17, with €5bn inflows on high value-added long-term products outweighing €2bn outflows on money-market products. Assets under management reached €813bn at end-September, including the transfer out of €23bn of CNP Assurances assets during the quarter.

In Insurance, overall turnover (excluding reinsurance agreement with CNP) progressed 31% YoY to €2.5bn, driven by a sound momentum in all segments.

Net revenues from Corporate & Investment Banking rose 4% YoY. Excluding non-recurring items, they declined 5% YoY to €787m. 3Q17 witnessed lower client activity in capital markets relative to 3Q16 which benefited from the high volatility sparked by the Brexit vote at the end of June 2016. Investment Banking and M&A fared well, with revenues expanding 13% YoY.

Specialized Financial Services grew net revenues 5% to €341m, with Specialized Financing rising 6% and Financial Services 3%.

  • a cost-income ratio, excluding IFRIC21(1), of 70% in 3Q17, down 80bps YoY,
  • a drop of provisions for credit losses across core businesses to €28m vs. €62m in 3Q16, reflecting a significant improvement in Corporate & Investment Banking,
  • a 29% growth in net income (group share) to €383m,
  • core businesses ROE(1) of 13.2% excluding IFRIC 21,
  • a CET1 ratio(2) of 11.5% at end-September 2017,
  • a leverage ratio(1) of 4.2% à end-September 2017.

Laurent Mignon, Natixis Chief Executive Officer, said: "Our solid third-quarter results and good performances since the start of 2017 testify to the success of our New Frontier strategic plan due for completion at year-end. During the course of the plan, we have achieved our goal of becoming an exclusively client-focused bank that delivers high value-added and non-capital intensive solutions. We have expanded our international footprint in asset management and Corporate & Investment Banking, set up a single insurance arm to serve Groupe BPCE and its two large networks, and continued to develop synergies with them in terms of services and specialized financings.
I would like to thank all of our staff for their work and general dynamism during this period. Their efforts have ensured Natixis is now widely recognized for the strength of its expertise, and enjoys both financial solidity and strong profitability. These achievements provide a sound basis to begin executing on our new strategic plan which will be unveiled on November 20."

  1. See note on methodology
  2. Based on CRR-CRD4 rules published on June 26, 2013, including the Danish compromise without phase-in except for DTAs on tax-loss carryforwards


1 - Natixis 3Q17 and 9M17 results

€m 3Q17 3Q17 o/w
recurring
o/w
exceptional
9M17 9M17 o/w
recurring
o/w
exceptional
reported vs. 3Q16 reported vs. 9M16
Net revenues 2,205 15% 2,231 (26) 6,961 12% 7,047 (86)
o/w core businesses 2,068 10% 2,068 6,585 12% 6,585
Expenses (1,530) 6% (1,515) (15) (4,895) 7% (4,842) (54)
Gross operating income 674 41% 715 (41) 2,066 27% 2,205 (139)
Provision for credit losses (55) (20)% (55) (193) (21)% (193)
Pre-tax profit 623 21% 664 (41) 1,917 29% 2,056 (139)
Income tax (181) (2)% (194) 13 (650) 15% (695) 45
Minority interests (59) 73% (59) (116) (116)
Net income - group share 383 29% 411 (28) 1,151 31% 1,245 (94)

1.1 exceptional items

€m 3Q17 3Q16 9M17 9M16
Exchange rate fluctuations on DSN in currencies
(Net revenues)
Corporate
center
(26) (3) (86) (10)
Transformation & Business Efficiency Investment costs(1)
(Expenses)
Business lines & Corporate center (15) (35)
Non-recurring additional Corporate Social Solidarity Contribution resulting from agreement with CNP
(Expenses)
Insurance (19)
Goodwill impairment on Coface
(Change in value of goodwill)
Financial investments (75)
SWL litigation
(Net revenues)
CIB (69) (69)
FV adjustment on own senior debt
(Net revenues)
Corporate
center
(110) (136)
Gain from disposal of operating property assets
(Gain or loss on other assets)
Corporate
center
97 97
Impact in income tax 13 29 45 41
Impact in minority interests 44
Total impact in net income (gs) (28) (56) (94) (109)

  1. o/w €9m in Corporate Center in 3Q17 and €25m in 9M17

1.2 3Q17 results

Excluding exceptional items(1) 3Q17 3Q16 3Q17
€m vs. 3Q16
Net revenues 2,231 2,106 6%
o/w core businesses 2,068 1,955 6%
Expenses (1,515) (1,447) 5%
Gross operating income 715 659 9%
Provision for credit losses (55) (69) (20)%
Pre-tax profit 664 601 10%
Income tax (194) (213) (9)%
Minority interests (59) (34) 73%
Net income - (gs) - restated 411 354 16%
€m 3Q17 3Q16 3Q17
vs. 3Q16
Restatement of IFRIC 21 impact (42) (39)
Net income - (gs) - restated excl. 369 315 17%
IFRIC impact
ROTE excl. IFRIC 21 impact 10.3% 9.0% +1.3pp

  1. See page 3

Unless stated otherwise, the following comments refer to results excluding exceptional items (see detail p3).

Natixis posted €2.231bn in net revenues in 3Q17, a 6% increase YoY.

Net revenues from core businesses also progressed 6% YoY, reaching €2.068bn. Asset Management (+18%), Insurance (+12%) and Specialized Financing (+6%) all experienced significant growth.
One year after the launch of the Fit-to-Win strategic plan, Coface registered a marked improvement in activity levels. Coface net revenues were up 35% YoY in 3Q17 and fueled a 25% increase in revenues from the Financial Investments segment.
Operating expenses came out at €1.515bn in 3Q17, a 5% YoY increase that is below revenue growth, resulting in a cost-income ratio excluding IFRIC 21 falling 80bps vs. 3Q16 to 70%.

Gross operating income rose 9% to €715m in 3Q17 vs. 3Q16.

Provisions for credit losses declined 20% YoY to €55m despite a €22m provision allocated to the general reserve in the Corporate Center. Expressed in basis points relative to the loan book (excluding credit institutions), provisions for credit losses across core businesses worked out to 14bps in 3Q17 vs. 30bps in 3Q16, the marked improvement being fueled by Corporate & Investment Banking.

Tax expense dropped 9% YoY in 3Q17, with the effective tax rate equating to 29%.
The 73% YoY rise in minority interests stemmed from the much-improved contribution from Coface and higher performance fees generated by certain European asset management affiliates.

Net income (group share) adjusted for IFRIC 21 impacts and excluding exceptional items came out at €369m in 3Q17, a 17% YoY increase. Including exceptional items (-€28m impact net of tax in 3Q17) and IFRIC 21 (+€42m impact in 3Q17), reported net income (group share) progressed 29% YoY to €383m.

Excluding IFRIC 21, Natixis' ROTE equated to 10.3% and core businesses ROE amounted to 13.2%, up 130bps and 90bps respectively, relative to 3Q16.

1.3 9M17 results

Excluding exceptional items(1) 9M17 9M16 9M17
€m vs. 9M16
Net revenues 7,047 6,414 10%
o/w core businesses 6,585 5,964 10%
Expenses (4,842) (4,574) 6%
Gross operating income 2,205 1,839 20%
Provision for credit losses (193) (245) (21)%
Pre-tax profit 2,056 1,679 22%
Income tax (695) (608) 14%
Minority interests (116) (84) 38%
Net income - (gs) - restated 1,245 987 26%
€m 9M17 9M16 9M17
vs. 9M16
Restatement of IFRIC 21 impact 42 39 7%
Net income - (gs) - restated excl. 1,287 1,026 25%
IFRIC impact
ROTE excl. IFRIC 21 impact 12.2% 9.9% +2.3pp

  1. See page 3

Unless stated otherwise, the following comments refer to results excluding exceptional items (see detail p3).

Natixis posted net revenues of €7.047bn in 9M17, a 10% increase compared to the year-earlier period.

During the first nine months of the year, core businesses net revenues increased by 10% to €6.585bn, driven by solid performances in Global Markets in 1H17 and robust momentum in Asset Management and Insurance since the beginning of the year.

Net revenues from Financial Investments inched up 1% YoY and reflected the completion of the process of divesting Corporate Data Solutions entities in 2Q17 and the continued improvement in Coface revenues since the beginning of the year, testifying to the measures implemented as part of the Fit-to-Win strategic plan.

Operating expenses amounted to €4.842bn vs. €4.574bn in 9M16.

The cost-income ratio excluding IFRIC 21 fell 2.5pp YoY in 9M17 and reached 68.1%.

Gross operating income rose 20% YoY to €2.205bn.

Natixis overall provisions for credit losses totaled €193m, a 21% decrease relative to 9M16. This drove a 22% improvement in pre-tax profit to €2.056bn during the same period.

The effective tax rate of 34% in 9M17 is in line with the annual trajectory.

Net income (group share), adjusted for IFRIC 21 impacts and excluding exceptional items, came out at €1.287bn in 9M17, a 25% increase YoY. Including exceptional items (-€94m impact net of tax in 9M17) and IFRIC 21 (-€42m impact in 9M17), reported net income (group share) progressed 31% YoY to €1.151bn.

Excluding IFRIC 21, Natixis' ROTE equated to 12.2% and core businesses ROE amounted to 15.1%, up 230bps and 210bps respectively, relative to 9M16.

2 - Financial structure

Natixis' Basel 3 CET1 ratio(1) worked out to 11.5% at September 30, 2017.

Based on a Basel 3 CET1 ratio of 11.3% at June 30, 2017, the respective impacts in the third quarter of 2017 were as follows:

  • effect of allocating net income (group share) to retained earnings in 3Q17: +34bps,
  • planned dividend for 3Q17: -16bps,
  • RWA, FX and other effects: +3bps.

Basel 3 capital and risk-weighted assets(1) amounted to €12.9bn and €111.7bn respectively at September 30, 2017.

EQUITY CAPITAL - TIER ONE CAPITAL - BOOK VALUE PER SHARE

Equity capital (group share) totalled €19.7bn at September 30, 2017, of which €2.1bn was in the form of hybrid securities (DSNs) recognized in equity capital at fair value (excluding capital gain following reclassification of hybrids).

Core Tier 1 capital (Basel 3 - phase-in) stood at €12.8bn and Tier 1 capital (Basel 3 - phase-in) at €14.6bn.

Natixis' risk-weighted assets totalled €111.7bn at September 30, 2017 (Basel 3 - phase-in), breakdown as follows:

  • Credit risk: €78.0bn
  • Counterparty risk: €7.2bn
  • CVA risk: €2.2bn
  • Market risk: €10.3bn
  • Operational risk: €14.0bn

Under Basel 3 (phase-in), the CET1 ratio amounted to 11.4%, the Tier 1 ratio to 13.1% and the total solvency ratio to 15.3% at September 30, 2017.

Book value per share was €5.54 at September 30, 2017 based on 3,136,961,140 shares excluding treasury stock (the total number of shares stands at 3,137,360,238). Tangible book value per share (after deducting goodwill and intangible assets) was €4.43.

LEVERAGE RATIO (2)

The leverage ratio worked out to 4.2% at September 30, 2017.

OVERALL CAPITAL ADEQUACY RATIO
As at September 30, 2017, the financial conglomerate's capital excess was estimated at around €3bn.

  1. Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in except for DTAs on tax-loss carryforwards
  2. See note on methodology
  3. - results by Business line

Investment Solutions
Data excludes exceptional items(1)

€m 3Q17 3Q16 3Q17
vs. 3Q16
9M17 9M17
vs. 9M16
9M17 vs. 9M16. constant
exchange
rate
Net revenues 940 804 17% 2,750 12% 12%
o/w Asset management 716 609 18% 2,079 12% 12%
o/w Insurance 174 155 12% 538 13%
o/w Private Banking 36 34 7% 100 (1)%
Expenses (622) (558) 11% (1,866) 8% 8%
Gross operating income 318 246 29% 884 21% 20%
Provision for credit losses 0 0 0
Gain or loss on other assets 0 0 9 (52)%
Pre-tax profit 319 249 28% 902 19% 19%
Cost/income ratio(1) 66.7% 69.8% -3.1pp 67.7% -2.3pp
ROE after tax(1) 15.2% 12.9% +2.3pp 14.7% +1.0pp

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost-income ratio and ROE

During 3Q17, the Investment Solutions business recorded a significant revenues increase in Asset Management (net revenues +18% YoY), partly driven by improved fee rates in both Europe and the US, and in Insurance (+12% YoY), fueled by solid activity levels in both life and non-life segments.

On a year-on-year basis, net revenues from Investment Solutions progressed 17% in 3Q17 and 12% in 9M17 to reach €940m and €2.750bn respectively. Over the same periods, operating expenses increased by 11% and 8% respectively, resulting in a 3.1pp drop in the cost-income ratio in 3Q17 and 2.3pp in 9M17, excluding IFRIC 21 impacts.

Gross operating income improved 29% YoY in 3Q17 and 21% in 9M17.

The "Gain or loss on other assets" line included €9m of proceeds from the divestment of the Caspian private equity funds in 1Q17.

ROE after tax and excluding IFRIC 21 amounted to 15.2% in 3Q17, up 2.3pp compared to 3Q16. The 9M17 ratio was 1.0pp higher than in 9M16.

Net revenues from Asset Management progressed 18% YoY in 3Q17 to reach €716m (+21% at constant exchange rates) and included increases of 40% in Europe to €228m and 6% in the US to €393m.

Expenses remained under control, rising 13% in 3Q17 and 8% in 9M17 relative to the respective year-earlier periods.
Gross operating income advanced 29% in 3Q17 and 21% in 9M17.

In 3Q17, margins excluding performance fees reached 30.1bps (+2.2bps YoY) and progressed by 1.8bps in Europe to 14.5bps and 0.9bps in the US to 39.3bps. In 9M17, margins worked out to 28.8bps, up 0.5bps YoY.

This margin growth was driven by an improved mix linked to the €3bn overall net inflows recorded in 3Q17, resulting from €2bn outflows on money-market products and €5bn inflows on long-term products. Out of these inflows, €4bn were booked by European affiliates on higher value-added products such as alternative funds, equities and real assets.

Assets under management amounted to €813bn at end-September. During the quarter, positive market effects (impact of +€13bn) offset negative exchange-rate movements (impact of -€14bn). The decline in AuM relative to June 30 is linked to the transfer out of €23bn of CNP life insurance assets, with a limited impact on revenues of -€1.6m for a full year.

Natixis announced on October 3, 2017 the acquisition of a majority stake (51.9%) in Investors Mutual Limited (IML) in Australia, which becomes a new affiliate of Natixis Global Asset Management.
With IML, a well-established asset manager with AuM of AU$9.1bn (€6.1bn), Natixis Global Asset Management achieves its first major acquisition in Australia and increases its exposure to the local retail market and the Australian superannuation industry. In addition, with IML, Natixis Global Asset Management is reinforcing its distribution platform in Australia, following the establishment of an office in Sydney in 2015. This marks an important step in Natixis Global Asset Management's ambition to expand its presence in Australia and APAC as a whole.

In Insurance, overall turnover excluding reinsurance agreement with CNP amounted to €8.9bn in 9M17, up 63% YoY. Growth was driven by increases of 11% in the Personal Protection and Payment Protection segment and 8% in the Property & Casualty segment. In Life Insurance, turnover jumped 84% YoY in 9M17, reflecting the successful rollout of the new product range in the Caisse d'Epargne networks.

Unit-linked instruments accounted for 49% of Life Insurance net inflows in 9M17 (+15pp YoY) and 35% of gross inflows, well above the 28% average for the market as a whole (source: FFA at end-September 2017).

Insurance AuM expanded 15% and reached €53bn at end-September 2017.

On September 7, 2017, Natixis announced the signature of an agreement(1) for Natixis Assurances to acquire 40% of BPCE Assurances from Macif (25%) and Maif (15%). Following this transaction, Natixis Assurances will be BPCE Assurances' sole shareholder.
BPCE Assurances is France's third-largest bancassurer(2) and markets Property & Casualty insurance products for Caisses d'Epargne customers and health insurance products for Caisses d'Epargne and Banque Populaire customers.

  1. Completion of the transaction subject to approval from the France's Autorité de Contrôle Prudentiel et de Résolution (2) Argus de l'Insurance - 2016 bancassurance rankings



Corporate & Investment Banking
Data excludes exceptional items(1)

€m 3Q17 3Q16 3Q17 9M17 9M17
vs. 3Q16 vs. 9M16
Net revenues 787 826 (5)% 2,803 12%
Net revenues excl. CVA/DVA 780 813 (4)% 2,774 13%
o/w Global Markets 361 397 (9)% 1,500 17%
o/w Global Finance & IB 406 412 (1)% 1,279 8%
Expenses (500) (468) 7% (1,614) 10%
Gross operating income 288 358 (20)% 1,189 15%
Provision for credit losses (16) (50) (67)% (94) (46)%
Pre-tax profit 274 310 (12)% 1,103 27%
Cost/income ratio(1) 64.6% 58.0% +6.6pp 57.2% -1.0pp
ROE after tax(1) 11.5% 11.5% stable 15.5% +4.1pp

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost-income ratio and ROE

After the robust momentum observed in 1H17, net revenues from Corporate & Investment Banking declined in 3Q17 relative to 3Q16. The slowdown came from Capital Markets whilst Investment Banking and M&A activities continued to make strong progress. For 9M17 as a whole, CIB posted €2.803bn in net revenues, up 12% YoY.

International platforms raised their contribution to overall CIB revenues from 54% in 9M16 to 57% in 9M17, driven by strong momentum on the Asia-Pacific platform, where revenues climbed 44% YoY in 9M17.

Operating expenses amounted to €1.614bn in 9M17 vs. €1.462bn a year earlier while the cost-income ratio excluding IFRIC 21 declined 1.0pp YoY to 57.2%.

Gross operating income made solid progress, advancing 15% YoY to €1.189bn in 9M17, despite a lower 3Q17.

Provisions for credit losses continued to come down to reach €16m in 3Q17 (-67% vs. 3Q16) and €94m in 9M17 (-46% vs. 9M16).

Pre-tax profit climbed 27% YoY in 9M17.

ROE after tax and excluding IFRIC 21 came out unchanged at 11.5% in 3Q17 relative to a year earlier and rose 4.1pp again on a YoY basis in 9M17, thanks notably to a tight grip on RWAs (-7% YoY).

Excluding CVA/DVA effects, net revenues from Global Markets increased 17% YoY to €1.500bn in 9M17. This growth was achieved despite a slowdown in 3Q17, particularly in FIC-T, due to last year's relatively high basis of comparison as 3Q16 benefited from the volatility that followed the Brexit vote at end-June 2016.

FIC-T posted net revenues of €259m in 3Q17 and €1.017bn in 9M17 (+13% vs. 9M16). The Rates segment saw revenues increase 31% YoY in 9M17, fueled by robust client activity. The Securities Financing Group(1) and GSCS segments also performed strongly over the period, expanding revenues by 39% and 10% respectively.

Equities grew net revenues by 26% YoY in 9M17, despite weak volatility in 3Q17 which led to a 4% decline in revenues vs. 3Q16.

Net revenues from Global Finance & Investment Banking progressed 8% YoY in 9M17 to reach €1.279bn and were relatively stable YoY in 3Q17.

Within Global Finance, origination activities lifted revenues 11% YoY in 9M17. New structured financing production remained relatively flat during the period, though GEC and Real Estate Finance both enjoyed strong momentum. Aviation, Export & Infrastructure finance also fared very well in 3Q16 (new production up 47% in 3Q17 vs. 3Q16).

Investment Banking and M&A expanded revenues by 44% in 9M17 vs. 9M16, with M&A standalone showing an 82% increase during the same period.

(1) Merger of the Fixed Income and Treasury businesses' repo and collateral management activities


Specialized Financial Services
Data excludes exceptional items(1)

€m 3Q17 3Q16 3Q17 9M17 9M17
vs. 3Q16 vs. 9M16
Net revenues 341 325 5% 1,032 2%
Specialized financing 214 203 6% 651 4%
Financial services 126 122 3% 381 stable
Expenses (227) (215) 5% (685) 4%
Gross operating income 114 110 4% 347 stable
Provision for credit losses (13) (12) 10% (49) 17%
Pre-tax profit 101 98 3% 298 (12)%
Cost/income ratio(1) 67.2% 67.0% +0.2pp 66.1% +0.9pp
ROE after tax(1)(2) 14.5% 14.4% +0.1pp 14.8% -1.5pp

  1. See note on methodology and excluding IFRIC 21 impact on the calculation of the cost-income ratio and ROE
  2. Excluding capital gain on real-estate asset in 2Q16

Net revenues from Specialized Financial Services grew 5% YoY in 3Q17, with Specialized Financing rising 6% and Financial Services 3% in the same period. For 9M17 as whole, net revenues increased 2% to €1.032bn.

In 3Q17, revenues progressed 13% YoY in Sureties & Guarantees and 6% in Leasing and Consumer Finance. Employee Savings Schemes and Payments improved net revenues by 6% and 4% respectively, during the same period.

Operating expenses in Specialized Financial Services increased 5% YoY in 3Q17. After restating for changes in the scope of consolidation, expenses rose 3% and the cost-income ratio excluding IFRIC 21 declined 80bps YoY to 66.2%.

Provisions for credit losses worked out to €13m in 3Q17 and €49m in 9M17.

Pre-tax profit amounted to €101m in 3Q17, up 3% vs. 3Q16.

ROE after tax and excluding IFRIC 21 equated to 14.8% in 9M17 vs. 16.3% in 9M16 excluding the €31m gain on the divestment of a building booked in 2Q16 under "Other assets". ROE was unchanged in 3Q17 at 14.5%.


Financial Investments
Data excludes exceptional items(1)

€m 3Q17 3Q16 3Q17 9M17 9M17
vs. 3Q16 vs. 9M16
Net revenues 171 137 25% 480 1%
Coface 161 119 35% 438 7%
Corporate Data Solutions 0 8 10 (69)%
Other 10 10 3% 31 (8)%
Expenses (135) (151) (11)% (433) (7)%
Gross operating income 36 (14) 47
Provision for credit losses (4) (7) (46)% (14) (56)%
Gain or loss on other assets 0 7 22 27%
Pre-tax profit 33 (17) 57

(1) See note on methodology

Net revenues from Financial Investments grew 25% YoY in 3Q17, buoyed by markedly higher revenues at Coface, testifying to the initial benefits of the measures implemented as part of the Fit-to-Win plan. The strategy of divesting Corporate Data Solutions entities was completed by the sale of Ellisphère in 2Q17 which generated a €22m gain booked under "Gain or loss on other assets".

Pre-tax profit amounted to €57m in 9M17 vs. a €7m loss in 9M16.

In 3Q17, Coface net revenues advanced 56% YoY at constant scope and exchange-rate (+35% in current terms) and reached €163m. Claims expense was well down, particularly in Asia and North America, with the loss ratio falling to 46.3% in 3Q17 vs. 72.4% in 3Q16. The cost ratio worked out to 35.4% vs. 36.9% in 3Q16, excluding the public guarantee management business. All in all, the combined ratio net of reinsurance amounted to 81.6%.

In 9M17, Coface net revenues advanced 19% YoY at constant scope and exchange-rate (+7% in current terms) and reached €439m. Excluding the public guarantee management business - sold on January 1, 2017 - the combined ratio net of reinsurance would have worked out to 89.8% in 9M17, 10pp lower than the 99.8% in 9M16. The loss ratio was down 10.2pp relative to 9M16 at 54.4% thereby leading to a full-year 2017 target of below 54% (vs. 58% previously). Cost savings amounted to €12m in 9M17 and were ahead of the trajectory set out in the plan.

Coface confirmed the objectives included in the strategic plan, namely €30m of cost savings in 2018 and a combined ratio of 83% throughout the cycle.


Appendices

Note on methodology:

The results at 09/30/2017 were examined by the board of directors at their meeting on 11/07/2017.
Figures at 09/30/2017 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.


2016 figures are presented pro forma of new intra-pole organizations:

  1. CIB: The 1H16 quarterly series have been restated for the change in CIB organization announced on March 15, 2016. The new presentation of businesses within CIB mainly takes into account the creation of a new business line: Global Finance & Investment banking housing all financing businesses (structured & plain vanilla financing), as well as M&A, Equity Capital Markets, and Debt Capital Markets.
  2. SFS: Within Financial services, transfer of the Intertitres activity from Employee savings scheme to the Payments business. Employee savings scheme becomes Employee savings plans. The 2016 series have been restated accordingly to this new organization.

2017 presentation: transfer of short term treasury activities run by Treasury & collateral management department from FIC-T in CIB to Financial Management Division in 04/01/2017 in accordance with the French banking law. To ensure comparability, in this presentation CIB refers to CIB including Treasury & collateral management.

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 on preferred shares after tax. 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 on preferred shares after tax. 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 on the basis of 10% 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 3%.

Net book value: calculated by taking shareholders' equity group share, 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:

In €m 09/30/2017
Intangible assets 716
Restatement for Coface minority interest & others (47)
Restated intangible assets 669


In €m 09/30/2017
Goodwill 3,450
Restatement for Coface minority interests (165)
Restatement for Investment Solutions deferred tax liability & others (477)
Restated goodwill 2,808

Own senior debt fair-value adjustment: calculated using a discounted cash-flow model, contract by contract, including parameters such as swaps curve, 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. All impacts since the beginning of the financial year 2016 are recognized in equity, even those that had impacted the income statement in the interim financial statements for March, June and September 2016.

Leverage ratio: based on delegated act rules, without phase-in except for DTAs on tax-loss carryforwards 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 3. 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 and the ROE excluding IFRIC 21 impact calculation in 9M17 takes into account three quarter of the annual duties and levies concerned by this new 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.


3Q17 results: from data excluding exceptional items to reported data

in €m 3Q17 excl.
exceptional items
Exchange rate fluctuations
on DSN in
currencies
Transformation
& Business Efficiency
Investment
costs
3Q17
reported
Net revenues 2,231 (26) 2,205
Expenses (1,515) (15) (1,530)
Gross operating income 715 (26) (15) 674
Provision for credit losses (55) (55)
Associates 5 5
Gain or loss on other assets (1) (1)
Pre-tax profit 664 (26) (15) 623
Tax (194) 8 5 (181)
Minority interests (59) (59)
Net income (group share) 411 (18) (10) 383

9M17 results: from data excluding exceptional items to reported data

in €m 9M17 excl.
exceptional items
Exchange rate fluctuations
on DSN in
currencies
Transformation
& Business Efficiency
Investment
costs
Non-recurring
additional Corporate Social Solidarity Contribution resulting from agreement with CNP
9M17
reported
Net revenues 7,047 (86) 6,961
Expenses (4,842) (35) (19) (4,895)
Gross operating income 2,205 (86) (35) (19) 2,066
Provision for credit losses (193) (193)
Associates 18 18
Gain or loss on other assets 27 27
Pre-tax profit 2,056 (86) (35) (19) 1,917
Tax (695) 28 11 6 (650)
Minority interests (116) (116)
Net income (group share) 1,245 (58) (24) (13) 1,151


Natixis - Consolidated

in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q17
vs. 3Q16
9M16 9M17 9M17
vs. 9M16
Net revenues 2,063 2,211 1,924 2,520 2,347 2,410 2,205 15% 6,198 6,961 12%
Expenses (1,605) (1,522) (1,447) (1,664) (1,771) (1,594) (1,530) 6% (4,574) (4,895) 7%
Gross operating income 458 689 477 856 576 815 674 41% 1,624 2,066 27%
Provision for credit losses (88) (88) (69) (60) (70) (67) (55) (20)% (245) (193) (21)%
Associates 8 7 4 (6) 7 6 5 6% 19 18 (4)%
Gain or loss on other assets 29 31 104 12 9 18 (1) 164 27 (84)%
Change in value of goodwill 0 (75) 0 0 0 0 0 (75) 0
Pre-tax profit 407 564 516 801 523 772 623 21% 1,486 1,917 29%
Tax (172) (211) (184) (255) (214) (255) (181) (2)% (567) (650) 15%
Minority interests (34) 28 (34) (50) (28) (29) (59) 73% (40) (116)
Net income (group share) 200 381 298 496 280 487 383 29% 879 1,151 31%

Natixis - Breakdown by Business division in 3Q17

in €m Investment
Solutions
CIB SFS Financial
Investments
Corporate
Center
3Q17
reported
Net revenues 940 787 341 171 (34) 2,205
Expenses (624) (502) (228) (135) (41) (1,530)
Gross operating income 315 285 113 36 (75) 674
Provision for credit losses 0 (16) (13) (4) (22) (55)
Net operating income 315 268 100 33 (97) 619
Associates 2 3 0 0 0 5
Other items (1) 0 0 0 0 (1)
Pre-tax profit 316 271 100 33 (98) 623
Tax (181)
Minority interests (59)
Net income (gs) 383

IFRIC 21 effects by business line

Effect in Expenses
in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17
Investment Solutions (11) 4 4 4 (28) (1) 9(2) 9(2) (4) (9)
CIB (31) 10 10 10 (28) 9 9 (10) (9)
Specialized Financial Services (7) 2 2 2 (6) 2 2 (2) (2)
Financial Investments (2) 1 1 1 (1) 0 0 (1) 0
Corporate center (57) 1 28 28 (92) 34 29 (28) (29)
Total Natixis (107) 18 45 45 (156) 55 50 (45) (50)
Effect in Net Revenues
in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17
Specialized Financial Services (Leasing) (2) 1 1 1 (1) 0 0 0 0
Total Natixis (2) 1 1 1 (1) 0 0 0 0

  1. -€14m in recurring expenses and -€14m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP
  2. €4.7m in recurring expenses and €4.7m in non-recurring expenses linked to the additional Corporate Social Solidarity Contribution resulting from agreement with CNP

Investment Solutions

in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q17
vs. 3Q16
9M16 9M17 9M17 vs. 9M16
Net revenues 825 832 804 904 891 920 940 17% 2,460 2,750 12%
Asset Management 626 623 609 689 667 696 716 18% 1,858 2,079 12%
Private Banking 34 33 34 35 34 30 36 7% 101 100 (1)%
Insurance 167 156 155 169 187 177 174 12% 478 538 13%
Expenses (590) (579) (558) (623) (645) (620) (624) 12% (1,727) (1,890) 9%
Gross operating income 234 253 246 280 246 299 315 28% 733 860 17%
Provision for credit losses 0 0 0 0 0 0 0 0 0
Net operating income 234 253 246 281 246 300 315 28% 734 860 17%
Associates 4 2 5 (10) 4 3 2 (59)% 11 9 (13)%
Other items 18 (2) (2) 2 9 0 (1) 14 8 (47)%
Pre-tax profit 256 253 249 273 259 302 316 27% 759 877 16%
Cost/Income ratio 71.6% 69.6% 69.4% 69.0% 72.4% 67.5% 66.5% 70.2% 68.7%
Cost/Income ratio excluding IFRIC 21 effect 70.2% 70.0% 69.8% 69.4% 69.3% 68.5% 67.5% 70.0% 68.4%
RWA (Basel 3 - in €bn) 16.4 17.0 17.3 18.1 18.0 17.4 17.6 2% 17.3 17.6 2%
Normative capital allocation (Basel 3) 4,350 4,381 4,467 4,491 4,641 4,609 4,477 stable 4,399 4,575 4%
ROE after tax (Basel 3)(1) 13.9% 14.0% 13.1% 12.3% 12.6% 14.4% 15.3% 13.7% 14.1%
ROE after tax (Basel 3) excluding IFRIC 21 effect(1) 14.5% 13.8% 12.9% 12.1% 14.3% 13.8% 14.7% 13.7% 14.3%

  1. Normative capital allocation methodology based on 10% of the average RWA-including goodwill and intangibles

Corporate & Investment Banking

in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q17
vs. 3Q16
9M16 9M17 9M17 vs. 9M16
Net revenues 782 887 757 896 984 1,032 787 4% 2,426 2,803 16%
Global Markets 407 507 410 477 608 553 368 (10)% 1,324 1,529 15%
FIC-T 291 319 291 317 397 361 259 (11)% 901 1,017 13%
Equity 123 154 106 150 176 205 102 (4)% 384 483 26%
CVA/DVA desk (7) 33 13 10 36 (13) 7 (47)% 39 29 (25)%
Global Finance & Investment Banking 362 407 412 412 400 472 406 (1)% 1,181 1,279 8%
Other 12 (26) (65) 7 (25) 7 13 (79) (5) (94)%
Expenses (512) (482) (468) (569) (563) (552) (502) 7% (1,462) (1,617) 11%
Gross operating income 270 405 289 327 421 481 285 (1)% 964 1,187 23%
Provision for credit losses (71) (53) (50) (21) (29) (48) (16) (67)% (175) (94) (46)%
Net operating income 198 352 239 306 392 432 268 12% 789 1,092 38%
Associates 3 4 3 3 3 3 3 (13)% 11 8 (26)%
Other items 0 0 0 0 0 0 0 0 0
Pre-tax profit 202 356 242 309 394 435 271 12% 800 1,100 38%
Cost/Income ratio 65.5% 54.4% 61.8% 63.5% 57.2% 53.4% 63.8% 60.3% 57.7%
Cost/Income ratio excluding IFRIC 21 effect 61.5% 55.5% 63.2% 64.7% 54.4% 54.3% 65.0% 59.9% 57.3%
RWA (Basel 3 - in €bn) 67.0 68.8 64.9 66.1 64.4 61.3 60.4 (7)% 64.9 60.4 (7)%
Normative capital allocation (Basel 3) 6,935 6,772 7,064 6,672 6,805 6,641 6,317 (11)% 6,924 6,588 (5)%
ROE after tax (Basel 3)(1) 7.9% 14.2% 9.3% 13.6% 16.1% 18.0% 11.7% 10.4% 15.3%
ROE after tax (Basel 3) excluding IFRIC 21 effect(1) 9.1% 13.8% 8.9% 13.2% 17.2% 17.6% 11.3% 10.5% 15.5%

  1. Normative capital allocation methodology based on 10% of the average RWA-including goodwill and intangibles


Specialized Financial Services

in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q17
vs. 3Q16
9M16 9M17 9M17 vs. 9M16
Net revenues 343 341 325 341 344 347 341 5% 1,009 1,032 2%
Specialized Financing 214 211 203 210 219 217 214 6% 628 651 4%
Factoring 38 39 40 43 40 40 39 (2)% 117 118 1%
Sureties & Financial Guarantees 55 43 46 45 54 46 52 13% 144 151 5%
Leasing 51 58 48 53 54 60 51 6% 158 165 5%
Consumer Financing 65 66 64 64 66 66 67 6% 194 199 2%
Film Industry Financing 5 6 5 6 5 7 5 3% 16 17 9%
Financial Services 129 130 122 131 125 129 126 3% 381 381 stable
Employee savings plans 22 25 20 21 21 22 21 6% 67 65 (4)%
Payments 83 81 80 86 81 83 83 4% 244 248 2%
Securities Services 24 23 23 24 23 23 22 (3)% 70 68 (2)%
Expenses (225) (220) (215) (220) (232) (227) (228) 6% (661) (686) 4%
Gross operating income 118 121 110 122 113 120 113 3% 348 346 (1)%
Provision for credit losses (13) (17) (12) (16) (21) (14) (13) 10% (41) (49) 17%
Net operating income 105 104 98 106 92 105 100 2% 307 297 (3)%
Associates 0 0 0 0 0 0 0 0 0
Other items 0 31 0 0 0 0 0 31 0
Pre-tax profit 105 135 98 106 91 105 100 2% 338 297 (12)%
Cost/Income ratio 65.7% 64.6% 66.2% 64.4% 67.3% 65.5% 66.8% 65.5% 66.5%
Cost/Income ratio excluding IFRIC 21 effect 63.4% 65.4% 67.0% 65.1% 65.3% 66.2% 67.4% 65.2% 66.3%
RWA (Basel 3 - in €bn) 13.7 14.8 14.6 15.4 15.2 16.0 15.7 8% 14.6 15.7 8%
Normative capital allocation (Basel 3) 1,629 1,626 1,730 1,709 1,885 1,813 1,827 6% 1,662 1,841 11%
ROE after tax (Basel 3)(1) 16.9% 21.8% 14.8% 16.2% 13.2% 15.8% 14.7% 17.8% 14.6%
ROE after tax (Basel 3) excluding IFRIC 21 effect(1) 18.3% 21.3% 14.4% 15.8% 14.3% 15.5% 14.4% 17.9% 14.7%

  1. Normative capital allocation methodology based on 10% of the average RWA-including goodwill and intangibles


Financial Investments

in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q17
vs. 3Q16
9M16 9M17 9M17 vs. 9M16
Net revenues 183 155 137 224 153 156 171 25% 475 480 1%
Coface 156 133 119 197 131 146 161 35% 409 438 7%
Corporate data solutions 15 9 8 10 10 0 0 32 10 (69)%
Others 12 12 10 18 11 10 10 3% 34 31 (8)%
Expenses (162) (153) (151) (174) (151) (147) (135) (11)% (466) (433) (7)%
Gross operating income 21 1 (14) 50 2 9 36 9 47
Provision for credit losses (6) (18) (7) (6) (5) (5) (4) (46)% (31) (14) (56)%
Net operating income 15 (17) (20) 44 (3) 4 33 (22) 34
Associates 0 0 (3) 1 0 0 0 (3) 1
Other items 11 (75) 7 0 0 22 0 (57) 22
Pre-tax profit 27 (91) (17) 45 (2) 26 33 (82) 57

Corporate center

in €m 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17
Net revenues (69) (3) (100) 155 (25) (45) (34) (172) (104)
Expenses (116) (87) (55) (78) (180) (48) (41) (259) (270)
Gross operating income (185) (91) (155) 77 (205) (93) (75) (431) (374)
Provision for credit losses 2 0 0 (18) (15) 0 (22) 2 (37)
Net operating income (183) (91) (155) 59 (220) (93) (97) (429) (411)
Associates 0 0 0 0 0 0 0 0 0
Other items 0 2 99 10 1 (4) 0 100 (3)
Pre-tax profit (183) (89) (56) 68 (220) (97) (98) (328) (414)


Regulatory capital in 3Q17 & financial structure Basel 3

Regulatory reporting, in €bn
Shareholder's equity group share 19.7
Goodwill & intangibles (3.3)
Dividend (0.6)
Other deductions (0.7)
Hybrids restatement in Tier 1(1) (2.3)
CET1 Capital 12.8
Additional T1 1.9
Tier 1 Capital 14.6
Tier 2 Capital 2.4
Total prudential Capital 17.0
(1) Including capital gain following reclassification of hybrids as equity instruments


In €bn 3Q16
CRD4 phased
4Q16
CRD4 phased
1Q17
CRD4 phased
2Q17
CRD4 phased
3Q17
CRD4 phased
CET1 Ratio 11.3% 10.8% 10.9% 11.2% 11.4%
Tier 1 Ratio 12.8% 12.3% 12.8% 13.1% 13.1%
Solvency Ratio 15.1% 14.5% 15.1% 15.4% 15.3%
Tier 1 capital 14.5 14.2 14.6 14.7 14.6
RWA 113.1 115.5 114.1 112.6 111.7


In €bn 3Q16 4Q16 1Q17 2Q17 3Q17
Equity group share 19.1 19.8 20.5 19.5 19.7
Total assets(1) 522 528 509 510 513

  1. Statutory balance sheet

Breakdown of risk-weighted assets
In €bn
09/30/2017
Credit risk 78.0
Internal approach 62.1
Standard approach 15.9
Counterparty risk 7.2
Internal approach 6.3
Standard approach 0.9
Market risk 10.3
Internal approach 4.2
Standard approach 6.1
CVA 2.2
Operational risk - Standard approach 14.0
Total RWA 111.7

Leverage ratio
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 09/30/2017
Tier 1 capital (1) 14.8
Total prudential balance sheet 420.5
Adjustment on derivatives (45.5)
Adjustment on repos (2) (27.3)
Other exposures to affiliates (29.9)
Off balance sheet commitments 37.2
Regulatory adjustments (4.0)
Total leverage exposures 351.0
Leverage ratio 4.2%

(1) Without phase-in except for DTAs on tax loss carryforwards - 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


Normative capital allocation and RWA breakdown at end-September 2017 - under Basel 3

in €bn RWA
(end of period)
In % of
the total
Average
Goodwill and
intangibles
Average
capital allocation
beginning of period
ROE
after tax
in 9M17
CIB 60.4 60% 0.2 6.6 15.3%
Investment Solutions 17.6 18% 2.8 4.6 14.1%
SFS 15.7 16% 0.3 1.8 14.6%
Financial Investments 6.3 6% 0.1 0.7
TOTAL (excl. Corporate Center) 100.0 100% 3.4 13.7

Net book value as of September 30, 2017

in €bn 09/30/2017
Shareholders' equity (group share) 19.7
Deduction of hybrid capital instruments (2.1)
Deduction of gain on hybrid instruments (0.3)
Net book value 17.4
Restated intangible assets(1) 0.7
Restated goodwill(1) 2.8
Net tangible book value(2) 13.9
in €
Net book value per share(3) 5.54
Net tangible book value per share(3) 4.43

(1) See note on methodology (2) Net tangible book value = Book value - goodwill - intangible assets (3) Calculated on the basis of 3,136,961,140 shares - end of period

Earnings per share (9M17)

in €m 09/30/2017
Net income (gs) 1,151
DSN interest expenses on preferred shares after tax (71)
Net income attributable to shareholders 1,080
Average number of shares over the period, excluding treasury shares 3,135,812,983
Earnings per share (€) 0.34


Net income attributable to shareholders


in €m 3Q17 9M17
Net income (gs) 383 1,151
DSN interest expenses on preferred shares after tax (25) (71)
ROE & ROTE numerator 358 1,080


NATIXIS ROTE
in €m 09/30/2017
Shareholders' equity (group share) 19,730
DSN deduction (2,342)
Dividends provision(1) (540)
Intangible assets (669)
Goodwill (2,811)
ROTE Equity end of period 13,368
Average ROTE equity (3Q17) 13,328
3Q17 ROTE annualized 10.8%
Average ROTE equity (9M17) 13,305
9M17 ROTE annualized 10.8%


NATIXIS ROE
in €m 09/30/2017
Shareholders' equity (group share) 19,730
DSN deduction (2,342)
Dividends provision(1) (540)
Exclusion of unrealized or deferred gains and losses
recognized in equity (OCI)
(503)
ROE Equity end of period 16,345
Average ROE equity (3Q17) 16,359
3Q17 ROE annualized 8.8%
Average ROE equity (9M17) 16,455
9M17 ROE annualized 8.7%

(1) Dividend based on 50% of the net income attributable to shareholders

Balance sheet

Assets (in €bn) 09/30/2017 12/31/2016
Cash and balances with central banks 41.2 26.7
Financial assets at fair value through profit and loss 180.2 187.6
Available-for-sale financial assets 57.2 55.0
Loans and receivables 173.8 199.1
Held-to-maturity financial assets 1.9 2.1
Accruals and other assets 51.6 50.5
Investments in associates 0.7 0.7
Tangible and intangible assets 2.4 2.5
Goodwill 3.5 3.6
Total 512.5 527.8


Liabilities and equity (in €bn) 09/30/2017 12/31/2016
Due to central banks 0.0 0.0
Financial liabilities at fair value through profit and loss 141.8 146.2
Customer deposits and deposits from financial institutions 194.4 187.9
Debt securities 32.1 48.9
Accruals and other liabilities 42.9 48.7
Insurance companies' technical reserves 74.7 68.8
Contingency reserves 1.9 2.0
Subordinated debt 3.7 4.2
Equity attributable to equity holders of the parent 19.7 19.8
Minority interests 1.3 1.3
Total 512.5 527.8

Doubtful loans (inc. financial institutions)

In €bn 3Q16 4Q16 1Q17 2Q17 3Q17
Doubtful loans(1) 4.2 4.1 4.0 3.8 3.5
Collateral relating to loans written-down(1) (1.6) (1.5) (1.4) (1.2) (1.0)
Provisionable commitments(1) 2.6 2.6 2.6 2.6 2.4
Specific provisions(1) (1.7) (1.7) (1.6) (1.7) (1.6)
Portfolio-based provisions (1) (0.4) (0.4) (0.4) (0.4) (0.4)
Provisionable commitments(1)/ Gross debt 2.2% 2.0% 2.1% 2.4% 2.1%
Specific provisions/Provisionable commitments(1) 64% 65% 64% 64% 65%
Overall provisions/Provisionable commitments(1) 79% 81% 79% 80% 81%
(1) Excluding securities and repos


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 third quarter 2017 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 Wednesday November 8th, 2017 at 9:00 a.m. CET, will be webcast live on www.natixis.com (on the "Investors & shareholders" page).

Contacts:

Investor Relations: investorelations@natixis.com Press Relations: relationspresse@natixis.com
Pierre-Alexandre Pechmeze T + 33 1 58 19 57 36 Elisabeth de Gaulle T + 33 1 58 19 28 09
Damien Souchet T + 33 1 58 55 41 10 Olivier Delahousse T + 33 1 58 55 04 47
Souad Ed Diaz
Brigitte Poussard

T + 33 1 58 32 68 11
T + 33 1 58 55 59 21



Sonia Dilouya T + 33 1 58 32 01 03

www.natixis.com

Attachments:

http://www.globenewswire.com/NewsRoom/AttachmentNg/99b5eb77-cf9d-4348-8f7a-ad11edc40fe5

Source:Natixis