We advise and support our clients throughout the world in pursuit of the success of their projects. Our teams are geared to constructing a lasting relationship with each client, founded on mutual confi dence.
Between November 18, 2006 and December 5, 2006, CNCE and and BFBP each held a 34.44% stake in Natixis.
1 PRESENTATION OF NATIXIS2016 Key figures 10 REGISTRATION DOCUMENT 2016 - Natixis 2016 Key figures1.3
incorporates the businesses of its financial investments. Solutions & Insurance and Specialized Financial Services - and businesses - Corporate & Investment Banking, Investment Natixis offers its clients the expertise of its three core
See Chapter 5 of this Registration Document - note 16.2 of the Appendices to the consolidated financial statements.(1)
Global assets under distribution represent more than 30% of Natixis Global Asset Management’s total assets, proving the effectiveness of this distribution channel.
Natixis Global Asset Management brand via international marketing and public relations initiatives that have enhanced the
The European Asset Management business posted €411.2 billion in assets under management at end-2016 versus €390.6 billion in 2015, an increase of 5%. This was primarily the result of positive inflow and market effects.
Gross inflows from Groupe BPCE’s banking networks reached €1.1 billion in 2016, with assets rising to a total of €7.6 billion (figures include the transfer of a percentage of assets from the networks to Natixis Global Asset Management’s distribution platform).
Business owners and senior executives in France and abroad represent the core target markets of Private Banking teams in charge of direct customers (€7.5 billion in assets under
Investment Banking: this business line was created toa reinforce strategic dialog with clients by offering them the optimal combination of solutions to meet their financing needs; Mergers & Acquisitions: developing business to bettera support clients in their M&A transactions.
In the credit business, through a cross-functional approach to securitization, asset and liability management, advisory services and portfolio restructuring (Global Structured Credit & Solutions – GSCS), Natixis offers its clients innovative, cutting-edge solutions to meet requirements related to the evolving external environment and issues like balance sheet reduction, the use of resources, obtaining alternative financing and more. Natixis has a strong presence among clients in Europe and the United States. It is ranked as the ninth-largest loan contributor to US CMBS transactions (source: Commercial Mortgage Alert) and the sixth-largest arranger of US CLOs (source: Thomson Reuters). In early 2016, Natixis decided to expand its franchises in Asia with the creation of a team based in Hong Kong. This strategy has already yielded results on an operational level, with a capital call financing transaction finalized for a major Private Equity firm in Singapore. Natixis its GSCS product range.
19REGISTRATION DOCUMENT 2016 - Natixis clients in Asia, the Americas and Europe. Natixis has adopted a expertise of the derivatives markets teams, combined with that of the financing and economic research teams.
Global Markets Research increased the number of its publications (especially cross-expertise) and investment recommendations and held more conferences to give clients access to cross-disciplinary expertise based on joint analyses
example, Natixis financed a number of transactions conducted within a privatization framework, such as the financing of the Transgrid and Ausgrid transmission networks and the Port of Melbourne in Australia, as well as greenfield projects including the financing of the Hawaiki submarine cable linking New Zealand and the United States.
Natixis is a leader on the equity capital markets in France. In 2016, it was again ranked No. 1 bookrunner in France for capital
In accordance with the objectives of the New Frontier strategic plan, Natixis has become, in the span of four years, a major player in mergers and acquisitions in France, ranking fourth in terms of number of completed deals in 2016 (source: Thomson Reuters). The bank has established a strong presence among major corporate clients in France, developing a regular dialog with them. In 2015, the bank continued its development in France with mid-caps and investment funds, acquiring Leonardo & Co., now called Natixis Partners.
CEGC ranks second in the French market for mortgage guarantees for individuals and guaranteed nearly €29 billion in loans in 2016 in a market underpinned by continuing low interest rates resulting in a high percentage of loan renegotiations.
CEGC Conseil, a dedicated intermediation subsidiary, offers new real estate insurance products, particularly in construction insurance.
Natixis Lease’s specialization in financing companies and professionals as well as its in-depth knowledge of professional real estate, give it a better understanding of customer expectations in the Banque Populaire, Caisse d’Epargne and Natixis networks.
At the end of 2016, managed financing totaled €886 million, up 12% compared to 2015. In descending order, the loans went to financing cinematographic works, television programs and movie theaters. In 2016, Natixis Coficiné managed a total of nearly €600 million in new loans.
In 2016, Natixis Interépargne consolidated its leading position in employee savings account administration in France, with over 2.8 million employee accounts under management, i.e. a market share of 28.2% (source: AFG at June 30, 2016).
With Fit to Win, Coface has set itself a target to deliver a return on average tangible equity (ROATE) of at least 9% over the cycle after optimizing its capital model.
Over the year 2016, which marked the start of Coface’s transformation, the group posted revenues of €1,411 million, down 3.6% (excluding exchange rate effects) on 2015. The loss ratio net of reinsurance was 65.5%, within the target range, and
Two information meetings about Natixis, organized in partnership with the Federation of Individual Investors and Investment Clubs (F2iC), were held respectively in Montpellier and Annecy. In
chosen through an application process that includes following a call for applications sent via the usual interviews. A third of its members are renewed each year, communications media used to inform shareholders.
MANAGEMENT AND OVERSIGHT 2.3 OF CORPORATE GOVERNANCE 61 Board of Directors2.3.1 62
Georges-Erice De La Brunière – Asset Management and Private Banking - Banque Privée 1818
(1) The term “Chief Executive Offi cer” is not used as it is defi ned in Article L.225-66 of the French Commercial Code.Attendants to the Board Independent Director
Alain Denizot Stéphanie Paix * Chairman of the Committee 5 Members 6 Members 6 Members 5 Members
(until 07.31.2013), then Chairman 10.03.2014) company (from 06.30.2014 until and Chairman of the Board of the a
Supervisory Board of BPCE (from Non-voting member of the a of Natixis Interépargne (from Member of the Board of Directors a
Investissement (until 07.12.2013) 07.12.2013), Bpifrance Bpifrance Participations (until Member of the Board of: a
of the APG/SGA (2) Audit Member of the Board and Member a 12.31.2014) Committee (from 05.21.2014 to
Director First appointed: AGM of 05.19.2015 Term expires: 2019 AGM (b)
Financement transition from 12.14.2015 to 06.30.2016): Finorpa Conseil, Finorpa Permanent Representative of CENFE, Chairman (Regional Boarda
Committee and Risk Committee (since 10.05.2016) Member of the Board of Banque Palatine, Member of the Audita of offices held Compliance with rules governing the number AFEP-Medef code: compliant French Monetary and Financial Code: compliant
Privée, SA CAHPP (until 2012) Fédération Hospitalisation Member of the Board of: a of Banque Populaire Chairmen Secretary of the Conference a
Strategic Committee*: Department at Lazard in London, before being appointed as Head of manager, and then as Assistant Director in the Mergers & Acquisitions
Foncia Groupe (since February 2012) Member of the Supervisory Board of: Eurazeo (1)(since 05.07.2010),a
Compensation Committee (since 2014) Member and Chairman of the Korian Medica SA (1) Appointments anda of offices held Compliance with rules governing the number AFEP-Medef code: compliant French Monetary and Financial Code: compliant
financing; bank audits. Key advisory skills: extensive knowledge of retail banking and business
Member of the BPCE Audit a * Member of the Audit Committee until 02.09.2017. (c) 2020 AGM convened to approve the financial statements for the year ending 12.31.2019. (2) Company outside Groupe BPCE.
Other offices held in 2016: President of Henri Proglio Consulting SAS (since 01.09.2015)a
Member of the Board of: EDF a International SAS (2) (since
Foncière et Technique de la Région Parisienne (2) (AFTRP) (since 2007)
Norbert Ségard, Secretary of State for Foreign Trade, and then for Post and Telecommunications. In 1986 he took over as Head of audiovisual operations at Lyonnaise des Eaux. In 1987 he was appointed Deputy CEO of Métropole Télévision M6 where he has served as Chairman of the
of offices held Compliance with rules governing the number AFEP-Medef code: compliant French Monetary and Financial Code: compliant
In accordance with the “apply or explain” rule provided for in Article L.225-37 of the French Commercial Code and addressed in Article 27.1 of the AFEP-Medef code, Natixis believes that its practices comply with the recommendations of the AFEP-Medef code. However, certain recommendations could not be implemented for the reasons given in the table below: Audit Committee (Article 15.1 of the Code)
Pursuant to the new Article L.511-99 of the French Monetary and Financial Code, the Board of Directors, in view of the report by during their term of office. Furthermore, in accordance with the must own at least one hundred and forty (140) Company shares
one thousand (1,000) Company shares within 18 months of Directors (see 2.3.1.2-C), the Directors are asked to hold at least over the age of 70 is limited to one-third of the number of In accordance with the law, the number of directors who are of 70 at December 31, 2016.
In accordance with the law and the bylaws, the Chairman of the Board or the Chief Executive Officer are required to work. He chairs General Shareholders’ Meetings. The Chairman needed to carry out their duties.
Natixis’ share capital and the existence of any potential conflicts share capital or voting rights, the Board shall, based on a report member’s independence, taking into account the structure of from the Appointments Committee, systematically review the either a direct or indirect capacity, may be considered Directors representing major shareholders in Natixis or BPCE, in control Natixis. However, above the 10% threshold of Natixis independent if these shareholders do not participate in the
recommending or ordering that a transaction be performed ona rights) and any derivative whose underlying assets are the rights that may be detached from those securities (e.g. pre-emptive or securities issued by Natixis.
Directors must refrain from acting in conflict of interest with planned transaction or business relationship in which a director Natixis or the companies it controls. Specifically, when there is a or in voting on the plan in question, and the section of the minutes Consequently, he does not participate in the Board’s deliberations, relative to the plan in question is not submitted to him.”
been authorized by the Board over previous fiscal years, which the parties when signing the protocol. Additional costs partly conventions. The Board also approved an amendment to the agreements that no longer met the conditions of regulated specifically the amendment to the protocol for compensation financial conditions of a previously authorized agreement, these agreements. It was nevertheless decided to declassify approval, the Board of Directors upheld the authorization of all of of their purpose, and to requalify as current agreements those certain agreements that had lapsed on account of the realization
agenda in order to be able to review and analyze the topics matters.
Sylvie Garcelon until 02.09.2017) Alain Denizot (position previously held by Member
Review of the business continuity mechanisma Activity and result of compliance controla Compliance risk monitoringa Analysis of changes in the risk profile by areaa 2017 compliance action plana
Henri Proglio Member table on compliance with AFEP-Medef code recommendations in Committee is chaired by an independent director. (see Summary
half the total number of members, as recommended by the directors on the Compensation Committee is not greater than composition (50% independent, 50% non-independent), and the AFEP-Medef corporate governance code. It has a balanced
Other Report on the audit carried out by BPCE’s Internal Audit Department on the regulated categories of a staff.
In 2016, the Committee focused on the following areas: directors Selecting/appointing
As Natixis’ decision-making body, the Senior Management members of the Senior Management Committee and the heads Lastly, Natixis has an Executive Committee comprising the
OGMs are held annually and their purpose is to inform objective is to give an opinion on the financial statements of the shareholders about the running of the Company. Their principal and to set the dividend and the conditions for its payment. previous fiscal year, to determine the appropriation of earnings, non-voting members as well as to appoint or re-appoint Statutory OGMs may also be used to appoint or re-appoint directors and
This proxy may not represent another person. may always represent a shareholder at Shareholders’ Meetings.
Any shareholders holding more than 1% of the voting rights, and having already declared their statutory threshold crossing, may
Annual allocated variable compensation in € Fixed compensation + fringe benefits in €
Laurent Mignon receives a family allowance (€2,969 in 2016), in accordance with the same rules as those applied to Natixis
In addition, under social protection €15,895 in benefits in kind were declared.
AMF TABLE NO. 7R Free shares that became transferable during the period for each executive corporate officer
Compensation Committee and the achievements observed by the Compensation Based on the criteria set by the Board of Directors following the proposal of the
Ban on hedging period. vesting period of components of deferred variable compensation and during the lock-up The CEO is prohibited from using hedging or insurance strategies, both during the
96 REGISTRATION DOCUMENT 2016 - Natixis approved by the General Shareholders’ Meeting relating to related-party agreements and commitments procedures
Accounting, Legal Department, etc.). validates or records the transactions (Middle Office,
Collective provisions formed according to three criteria: In addition to specific provisions, Natixis also sets aside provisions are based on groups of homogeneous assets and provisions to cover country risk and sector risk. These collective ratings for loans to private individuals and professionals;a sector risk;a geographic risk for other counterparties (corporate,a sovereign, etc.).
subject to rules and limits set by the ALM Committee. These comprise the market activities and the activities of the
As part of the regulatory process introduced by the Single Supervisory Mechanism regarding the internal control systems control procedures. There is a particular focus on accounting and financial procedures of all consolidated entities, whether or of credit institutions, Natixis’ Internal Audit Department uses the results of the periodic audits it performs to assess internal not they have credit institution status.
copy of all internal audit reports issued by Natixis’ Internal Audit Department, in accordance with the provisions approved by the
The climate risks having a direct impact on Natixis are addressed in the Business Continuity Plan (BCP), which
Professional standards require that we implement procedures management procedures in respect of the preparation and processing of the accounting and financial information. These aimed at assessing the fairness of the information provided in the Chairman’s report regarding internal control and risk procedures primarily consisted in: obtaining an understanding of the internal control and riska management procedures relating to the preparation and based, and the existing documentation; processing of the accounting and financial information on which the information presented in the Chairman’s report is obtaining an understanding of the work involved in thea preparation of this information and the existing documentation; control procedures relating to the preparation and processing of the accounting and financial information that we may have determining whether any significant weaknesses in the internala disclosed in the Chairman’s report. noted during the course of our assignment are properly processing of the accounting and financial information contained in the report prepared by the Chairman of the Board of Directors information provided regarding the company’s internal control and risk management procedures relating to the preparation and in accordance with Article L. 225-37 of the French Commercial Code.
On the basis of our work, we have no matters to report on the
Cyber risk has become a top priority in the field of operational reputational impacts on all companies, and specifically those in the banking sector. Given the increasing sophistication of risks. A company’s data assets are exposed to new, complex and evolving threats liable to have material financial and of ICT (Information and Communication Technology) risk criminal enterprises behind cyber attacks, the regulatory and supervisory authorities have begun highlighting the importance of its technical infrastructures, business continuity, and data transmission security a top priority, both in terms of
Natixis should prove significantly inaccurate, particularly in the event of major and/or unexpected market trends, or if the certain assets and liabilities. If the values used for these items by to unexpected losses.
117REGISTRATION DOCUMENT 2016 - Natixis business and results the world where it operates; regulatory actions and changes could adversely affect Natixis’
embargoes, information system security, and business continuity. Training on compliance matters is also dispensed to the long-term commitment of the Company’s employees while ensuring appropriate risk management.
Natixis’ risk appetite principles result from the selection and manage risks. Natixis’ overarching strategic guidelines and its capacity to
The bank seeks sustainable and consistent profitability in balance with its consumption of scarce resources (capital, in which it is not fully compliant.
Activities with high risk/return ratios are subject to strict for extreme risk, and very close monitoring.
The purpose of global internal stress tests is to assess the collaboration with Natixis’ various support functions, and are approved by Senior Management.
Regulatory stress tests regulatory exercises were performed in 2014 and in 2016 using the methodology published by EBA for the ECB.
resulting from Natixis’ inability to implement its strategy. Strategy risk is the risk inherent to the strategy chosen ora
Natixis is not subject to this buffer; global systemically important banks (G-SIBs), such as BPCE. a systemic risk buffer, i.e. an additional requirement forj in addition, other mechanisms have been introduced,j compensation (Maximum Distributable Amount, or MDA); Additional Tier One (AT1) subordinated debt and variable including mechanisms to limit dividend payouts, interest on
Acquisitions and disposals of financial investments due to the following factors: The +€3.2 billion rise in credit risk over the period was primarily an increase in outstandings (+€4.0 billion) notably due to aa higher level of activity (+€2.5 billion) and an increase in the book value of investments in insurance companies (+€1.4 billion); the impact of the dollar’s appreciation (+€0.4 billion);a an improvement in risk inputs (improved ratings, shortening ofa maturities), amounting to -€0.9 billion; a guarantee effect of -€0.3 billion.a
Since September 30, 2010, Natixis has used internal rating methods specific to the different asset classes approved by the
follow-up on the decisions made during Committee Meetings are presented at subsequent meetings, particularly if thresholds have been breached and this situation has not been rectified.
The losses and estimates produced by the models are compared based on historical data covering as long a period as possible.
that they reflect the business lines’ actual conditions as accurately as possible. Both the market parameters and the
New scenarios were presented to the Global Risk Committee in 2016. These internal credit stress test scenarios are defined based on: 2017-2019 period: a reference scenario (i.e., a central scenario macroeconomic assumptions prepared in collaboration witha the Economic Research and Country Risks teams and with Groupe BPCE, and comprising three stress scenarios for the and a successful Brexit), one of which was implemented as part of overall stress tests (i.e., economic fragility in Europe together with deflationary tension or, again, Brexit); of slow economic recovery in a context of deflation) and two credit scenarios (i.e., European crises amid rising petrol prices specific business line scenarios to factor in risks that would nota have been covered by the macroeconomic scenarios. Standard scenarios are therefore defined (an average of three per business line) based on business line types (Banks, Corporates, Insurance, Aerospace, etc.).
For the calculation of VaR, the portfolio’s holding horizon is set at one-day VaR by multiplying it by the square root of 10. capital. The 10-day holding period involves extrapolating from the one day for risk monitoring and 10 days for the calculation of
Natixis’ Chief Risk Officer. reported immediately to the business line’s management and to the business line and the Operational Risk Department) are incidents (above the defined threshold or deemed serious by with Groupe BPCE standards (€300,000 gross). All serious
liability, where the guarantee does not extend to permanent establishments in the United States (coverage for US operations is purchased locally by subsidiaries or branches).
The purpose of the overall liquidity risk management policy is to: ensure that Natixis meets its loan commitments whilea ensuring that its funding needs and maturity transformation are in line with the Group’s short- and medium-term refinancing capacities; optimize funding costs within established risk constraints toa help reach profitability targets; observe the internal limits set in close cooperation with BPCEa and adapted to the Group’s ability to meet Natixis’ ultimate liquidity needs; comply with national and international regulatory requirements;a help diversify the sources of funding raised by Groupe BPCEa (by geographic area, product and counterparty); and specifically to promote inflows of non-financial resources.
A governance system (dedicated teams and Committees, activation and de-activation rules, reporting and communication
As indicated in section 9.2.1, since mid-2011 Natixis’ funding structure has been rooted in the organization of a joint refinancing pool shared by Natixis and BPCE, placed under the authority of the Group ALM Committee. This platform was implemented in order to secure the Group’s financing and optimize the management and allocation of liquidity within the Group in accordance with pre-defined rules, to reduce market financing and funding costs.
Under its annual medium-term funding program, in 2016 Natixis raised €18.6 billion in resources with a term of more than one year (versus €14.2 billion in 2015) and an average lifespan of approximately three years. 30% of this program was achieved via structured private placements, with the remainder predominantly provided by BPCE as part of the Group’s medium-term funding
To date, European regulations require: compliance with the LCR as from October 1, 2015; thea minimum requirement, which was initially set at 60%, was 70% on December 31, 2016 and will rise to 80% on January 1, 2017, ultimately reaching 100% on January 1, 2018; applied.
The Delegated Act on the LCR, adopted on October 10, 2014, defined liquid assets and the criteria they must meet to be eligible for the liquidity buffer used to cover funding needs in the event of a short-term liquidity crisis.
Weighting refers to the discounts applied to liquid assets and to inflow/outflow rates applied to the cash inflow/outflow base. Non risk-weighted * liquid assets are presented at market value. The non risk-weighted value of cash inflows/outflows is the outstanding value at 30 days or was determined in accordance with the calculation methods recommended by regulations.
a liquidity reserve established in advance to meet a liquiditya crisis similar to the one simulated by the LCR; the amount of this reserve ranges from €20 billion to €30 billion and is mainly reinvested with the ECB and the US Federal Reserve. Since 2015 a portion of assets in this reserve have been under discretionary management with an allocation strategy focused on the list of financial instruments considered as Level 1 and Level 2 HQLA, as defined by LCR regulations in force. The liquidity of the portfolio under discretionary management and
The Treasury Department, which centralizes most positions, also performs yield curve distortion stress tests which are also
Prevention of corruption financial security. Natixis is a signatory to the United Nations The prevention of corruption is handled by an overall system of
Court of Appeal confirmed (like the Commercial Court before it) professional liability in this case. In November 2016, the Paris taken out, for the losses incurred by Natixis as a result of the the liability of the first-line insurers, in the amounts of the policies insurers is ongoing. In January and February 2017, both of the Madoff fraud. The implementation of this ruling by all the both the extent of recovery of assets invested in Natixis’ name
by Natixis minority shareholders and coordinated by the Paris) launched a preliminary investigation into a complaint filed
unfounded and intends to defend itself vigorously. complaint in August 2016, also considers these claims to be
Siena), an Italian foundation, filed a claim against 11 banks, In June 2014, MPS Foundation (Fondazione Monte dei Paschi di
Credit risk hedges and portfolio diversification. Traditionally, Coface makes a insurance policies. Coface manages credit risk through a number Credit risk is the risk of loss generated by the portfolio of of policies relating to products, pricing, monitoring of credit risk of procedures, whose scope includes the approval of the terms distinction between frequency risk and event risk: increase in delinquency by a large number of debtors. This risk frequency risk represents the risk of a sudden materiala instantaneous loss ratio (1) and the monthly indicator that is measured for each region and country by monitoring the
accumulation of losses for the same country. Even risk is country, Coface has implemented a system based on: In addition to weekly and monthly monitoring of each region and the centralization of claims reserves exceeding a certaina underwriting centers), which are then analyzed ex-post to amount per debtor (currently €0.5 million for all of Coface’s
Any modification of the reinsurance program (reinsurers, pricing, structure) is subject to the validation of the Capital and Solvency Management Committee chaired by a director.
At December 31, 2016 exposures to sovereign risk in countries receiving financial aid or facing uncertainties (political, currency, etc.) were as follows: (in millions of euros)
US fund family category of the annual Barron's/Lipper ranking customer segments, with inflows at around €1.5 billion. among its individual, business owner and senior executive Private Banking maintained a solid sales momentum in 2016 and Caisses d’Epargne went from strength to strength in 2016, The commercial cooperation with the Banque Populaire banks
The Corporate & Investment Banking business lines continued to pursue their structural projects in line with strategy targets.
In Capital Markets, Natixis pursued its growth in equity meet customer needs.
made up of the world’s 15 biggest lenders and 15 biggest borrowers (by volume only). The remaining counterparties are in Group 2 (20 lenders The survey distinguishes between Group 1 and Group 2 participants based on the quality and volume of global transactions processed. Group 1 is(1)
Provision for credit losses regained positive territory at €0.5 million attributable to Private Banking.
payment protection insurance premiums maintained a high pace: personal protection insurance premiums were up 4%, and insurance (€759 million, up 8%) continued to grow at a rapid Premiums on Personal Protection and Payment Protection from the boost of France’s Hamon Act, a consumer protection Property and Casualty Insurance business continued to benefit Operating on mature and highly competitive markets, the
In 2016 Corporate & Investment Banking’s expenses totaled rates. €2,032 million, up 9% compared to 2015 at constant exchange
ROE after tax was 11.2% in 2016, up 2 points on 2015 (9.2%).
Coface accounts for 95% of revenue, was down 6%, while factoring 2016 revenue slipped 5% to €1.4 billion. Credit insurance, which on 2015.
previous year following the sale of Natixis’ stake in two off-balance sheet commitments doubled compared to the
the integration of the Mirova funds, RWA decreased €41 million year-on-year, on account of the Mirova funds buyout. Excluding compared to 2015.
subordinated notes issued in dollars, net revenues rose from -€17 million versus -€3 million in 2015. The issuer spread is Net revenues from the Corporate Center came out at Corporate Center expenses were the expenses not re-invoiced to the Natixis business lines.
Provision for credit losses4.1.4.6 -€14.5 million in collective provisions. At December 31, 2015, the provision for credit losses (excluding GAPC) totaled -€290.8 million. The provision for credit losses was -€305.4 million at December 31, 2016, of which -€290.9 million in respect of individual risk and
increase and higher variable expenses related to the rise in net +€114 million in payroll costs due to a significant headcount revenues, +€71 million in external services net of reinvoicing,
Total activity related to relations with shareholders 19 26 (1) (1 057)
+/- Decrease/(increase) in property, plant and equipment and intangible assets (62) (283)
Deferred tax assets and liabilities6.8 275 Accrual accounts, other assets and 6.9 liabilities 276 property intangible assets, investment Property, plant and equipment, 6.10
“Accounting for Acquisitions of Interests in Joint Operations” The amendment to IFRS 11 “Joint Arrangements” entitleda
mismatch in profit or loss. These provisions apply such recognition does not create or increase an accounting
The new standard introduces: a new classification model for financial assets, based on thej type of instrument (debt or equity instrument): instruments whose contractual conditions allow for solely payments of principle and interest at specific dates may be classified at amortized cost (if they are held under a “hold to collect” business model) or at fair value through other comprehensive income (if they are held under a “hold to collect and sell” business model), for debt instruments, the standard revises the distinctionj between amortized cost and fair value, based on the business model for financial assets and their contractual cash flow characteristics. The business model depends on how Natixis manages its financial assets in order to generate cash flow and create value. Only “basic”
In terms of mutual funds and real estate holdings within the scope of Natixis Assurances, the materiality threshold used for inclusion in the consolidation scope is as follows: 0.5% of Natixis Assurances’ investments; total assets or book value of the mutual funds higher thana the total amount of entities excluded from the scope does nota represent more than 5% of total investments.
Natixis exercises joint control when, by virtue of a contractual control over the partnership and when each partner has the ability to prevent the other partners from controlling the arrangement.
The following accounting treatment is applied to business combinations giving rise to control: IFRS 3 before revision if they are prior to January 1, 2010,a except for those that occurred before January 1, 2004. On the initial application date of IFRS, Natixis chose the option offered by IFRS 1 “First-Time Adoption” to not retroactively restate business combinations previous to January 1, 2004 pursuant to IFRS 3; combinations where the acquisition date is the same or later than the adoption date of IFRS 3R.
of the balance sheet if it relates to a controlled entity. It is allocated at the purchase date to one or more cash-generating units (CGUs) expected to benefit from the acquisition and is not amortized. It is tested for impairment at least once per year, and more often where there is objective evidence of impairment. The
and liabilities of the acquired entity is recorded as a deduction from shareholders’ equity. In effect, in using this method, any goodwill and valuation differences resulting from the application of the purchase method are deducted from shareholders’ equity.
Furthermore, at December 31, 2015, Capital Growth Management, a subsidiary of the Investment Solutions division classification as “Non-current assets held for sale”. As the disposal was completed during 2016, with an impact of €17.5 million on “Gains and losses on other assets”, this entity was no longer included in Natixis’ balance sheet as at consolidated using the equity method, was also treated in accordance with IFRS 5, and the stake recorded under “Non-current assets held for sale”. In accordance with IFRS 5, securities were measured at their net book value, without taking into account the share of income generated after the
Disposal of HCP NA LLC and Altus GTS Inc on March 31, 2016.a
Impact of changes to percentage holdings 3.3.2 in subsidiaries still under control
Natixis did not encounter significant restrictions on interests held in joint-ventures and associates held Risks associated with interests 3.4.4 by entities associates.
persons and holds material variable returns). Natixis is a manager and is non-revocable by a limited number of
(Fonds Communs de Placement à Risque – FCPRs – venture investments in unlisted companies via venture capital vehicles As part of its Private Equity operations, Natixis makes equity
The assets of these vehicles, and the liabilities they issue, are
transactions consist in placing the assets of a third-party securitization transactions on behalf of third parties. Thesea
Financial liabilities at fair value through profit or loss (derivatives) 41 182 467 42 733
assets to it or by managing the structured entity’s relevant not to be sponsored by Natixis.
Reported income includes management and incentive fees in which Natixis holds no stake nor any other interest.
Recognition date for securities transactions derecognized on the settlement date, regardless of their Securities bought or sold are, respectively, recognized or accounting category.
hedging rules. To account for these transactions, the subsidiary hedging of its interest rate risk in accordance with fair value The subsidiary Natixis Financial Products LLC documents overall instruments designated for accounting purposes as structural fair European Union. The accounting treatment of derivative financial applies the carve-out provisions of IAS 39 as adopted by the
Control system an independent function. aimed at verifying that fair values are determined or validated by The calculation of fair value is subject to control procedures
Instruments measured using level 2 inputs also include: securities are classified as Level 3 fair value; consensus databases); where these criteria are not met, the directly executable (prices mainly taken from contribution and which are regularly observable without necessarily being forward by a reasonable number of active market makers and whose fair value is determined based on external prices put securities that are less liquid than those classified as Level 1,a market data published by listed peer companies or the multiple determined based on observable market date. E.g. use of securities not quoted on an active market whose fair value isa participants; method from techniques commonly used by market was recorded under Level 2 given the wide bid-ask price Greek and Portuguese sovereign securities, whose fair valuea spread on market prices; on a daily basis, but are subject to regular reporting or offer observable data from recent transactions; shares of UCITS whose NAV is not determined and publisheda
in volatility relative to the exercise price) and to autocorrelation products that are sensitive to volatility smiles (i.e. implied change SBGM and Hunt Kennedy models are used to value fixed-income
CLOs with certain structures based on a series of criteria. A scoring model was used defining the level of risk associated
The discount rate applied for a given loan is the rate at which value is determined on the basis of discounted future cash flows. The majority of Natixis’ loans are variable-rate loans, and their fair the trend in market lending rates and in counterparty risk. variable-rate loans, the contractual rate is adjusted according to counterparty at the reporting date. As these are primarily Natixis would grant a loan with similar characteristics to a similar quoted price is used.
the financial guarantee amounted to €1,183 million. The amount of the premium paid in 2009 by Natixis in return for on a straight-line basis.
capitalization of rents at the market rate combined with a half-yearly basis.
At December 31, 2016, Natixis entered into a sale agreement related to one of its life insurance portfolios and securities
Employee benefits5.15 one of four categories: In accordance with IAS 19, employee benefits are classified in
independent actuaries. actuarial debt. This valuation is carried out on a regular basis by
experience) are booked under items not recycled to comprehensive income among “Gains and losses recognized of differences between actuarial assumptions and actual
Distinction between debt and equity5.16 incorporate a contractual obligation to deliver cash to the holder: In accordance with IAS 32, issued financial instruments are classified as debt or equity depending on whether or not they deeply subordinated notes and preference shares are classifieda in equity in light of the 2009 renegotiation of a clause making the payment of interest non-optional in the event of positive consolidated income and which has since become discretionary; Note 12, “Capital management”.
Stock options offered to employees under the Employee Savings Plan, with a discount compared to the average market price for a as the difference between the fair value of the acquired share, taking into account the lock-up condition and the purchase price paid by the employee on the subscription date, multiplied by the number of shares subscribed.
takes into account any changes in the value of the underlying shares, as well as whether or not the presence conditions and performance criteria have been met.
Changes to the terms and conditions of a cash-settled employee retention and performance plan indexed to the value of the Natixis share which would lead to the latter being reclassified as new employee retention and performance plan settled in shares as at the date of modification. The difference between the recognition in equity and the derecognition of the debt is taken
realized by the deduction of temporary differences or tax loss carryforwards from estimated future taxable income within that time period.
At the reporting date, Natixis assesses whether there is any objective evidence of impairment for loans and receivables, either on an individual basis or collectively by risk category. To aim is to calculate the amount of individual impairment losses), or to adjust the amount of expected losses under the Basel framework, on which the amount of collective provision is based.
identify evidence of impairment, Natixis analyzes trends in a number of objective criteria, but also relies on the judgement of its own expert teams. Similarly, Natixis may use its expert judgement to establish the likely timing of recoveries (where the
In the event of a deferred profit-sharing asset, a recoverability test is carried out to verify that liquidity requirements arising from
Net earnings/(loss) attributable to the Group (in millions of euros) 1,374 1,344
Average number of shares used to calculate earnings/(loss) per share 3,130,758,676 3,121,912,000
The fair value, determined using the method described in Note 5.6, recorded in respect of internal credit risk on Natixis issues totaled €95.1 million at December 31, 2016 (a) versus €49 million at December 31, 2015. Besides changes in the outstanding amount, this difference reflects changes in the Natixis spread since the close of the previous year’s accounts.
has an interest or an obligation, where these latter do not compromise the transfer of virtually all the advantages and risks
value the assets, as described in Note 5.6. The fair value of financial assets carried at fair value in the balance sheet is broken down according to the hierarchy of inputs used to
At December 31, 2015, the deferred day-one margin on TRS and repos linked to a basket of equities, reclassified in Level 3 in the fair value hierarchy during the year (see Note 6.7.5.1), amounted to €35.6 million.
The main features of undated subordinated securities are outlined in Chapter 14 of “Risk Pillar III report 2016”.
Financial liabilities at fair value through profit or loss – fair value option 14 3 79 Securities under the fair value option through profit or loss 3
At December 31, 2015, a €6.7 million reversal was carried out, bringing the cumulative balance of the portfolio-based provision to €4.4 million, - At December 31, 2016, recognized own credit risk adjustments to derivatives (debit valuation adjustments or DVAs) stood at -€22.1 million versus income of
(see Note 7.5). The amount of premium income factors in the implementation of the reinsurance treaties covering 10% of CNP’s savings outstandings
Provisions for impairments of financial assets (532) 258 (51) 22 (303) (586) 293 (46) 70 (269)
Natixis’ German subsidiary is currently subject to an audit covering the 2009 fiscal year was received in December 2016. Natixis Germany intends to contest the proposed adjustment.
State which, if they had been residents of France, could have belonged to a tax consolidation group, contrary to the freedom the tax unduly paid on the 5% share of costs and expenses for a total of €6 million.
Payments: this business line provides payments tools,a check processing; infrastructure and services, including electronic banking, issuance and collection of high-volume electronic transfers and
October 2010 sale to AXA Private Equity of the majority of the proprietary operations in France, the international segment proprietary Private Equity transactions and Natixis’ share of certain sponsored funds not held by Natixis. Since the out in the second quarter of 2015. The teams have extensive
records income on the bank’s portfolio of equity investments not belonging to a division, and the revaluation of the Group’s own
Short-term employee benefits11.2.1 of the end of the reporting period in which the related services were rendered, employee incentives and profit-sharing, meeting
Year of plan Grant date Rights acquisition dates indexed cash unit
- 1% change in rate of increase in healthcare costs (5.81)%
The capital increase in 2016 is linked to: - the allocation of bonus shares to some Natixis employees under the 2012 Retention and Performance Plans, for which payment is share-based (see Note 5.17 and Note 11.2.2.); - the subscription to the share issue reserved for employer shareholding plan.
A financial guarantee is a contract that requires the issuer to compensate the holder of the contract for any loss that the holder incurs because a debtor fails to make payment when due.
The main transactions between Natixis and related parties (BPCE and subsidiaries, Banque Populaire Group including Banque Populaire consolidated by the equity method) are described below: banks and their subsidiaries, Caisse d’Epargne Group including the Caisses d’Epargne and their subsidiaries and all affiliates
which are reported by function in the insurance format and by The main reclassifications concern general operating expenses, type in the banking format.
Investment income (net of expenses) 1,831 1,839 (8) 1,831 1,831 transfers Income and expenses net of reinsurance
Consequently, under IAS 12.51 which takes into account the method used to settle/recover the value of the related assets to measure deferred tax assets and liabilities, the accounting between the consolidated book value under IFRS of the shares and their tax base (where the Company does not control the reversal of this difference).
Services other than the certification of accounts 5,301 41% 7,320 54% (28)% 3,413 37% 3,103 42% 10% 1,854 38% 1,315 30% 41% 10,568 39% 11,738 46% (10)%
In particular, loans that include payments over three months requirements applicable to credit institutions has been identified.
the financial difficulty is addressed before the counterparty is the counterparty being classified in the Basel default category, as rating. The restructuring of a loan does not necessarily result in criteria such as amounts past due for over 30 days or an at risk Financial difficulties are determined by observing a number of
Specific write-downs basis taking into account an analysis of the risk and available collateral.
recognized under the heading “interest and similar expenses” on over the life of the issues in question and the related expense is Issue or redemption premiums on bond issues are amortized
amortizing securities, each periodic payment is broken down into Where perpetual subordinated notes are treated as equivalent to amount, and interest, which is charged to the income statement the repayment of principal, which is deducted from the nominal
The accounting principles applied depend on the instrument trading purposes). involved and the purpose of the transaction (hedging or for
The procedure for setting up the deposit and resolution guarantee fund was changed by a decree dated October 27, resolution authority (Single Resolution Board). The latter may use this fund when implementing resolution procedures.
Purchase price purchase Average price Amount sold or canceled Sale price
value of the securities may be reduced in the event of regulatory capital inadequacy to serve as a new basis for determining will bear their securities at their original nominal value.
(in millions of euros) ≤3 months 3 months-1 year 1-15 years > 5 years Undated Total securities Bonds and other fixed-income
Independent audit, certification and examination of the separate and consolidated accounts 5,3 4,9
Other provisions for contingencies litigation arising from its business activities (paragraph 10 of Note 1, and Note 16 to the parent company financial statements). We
The Company records provisions to cover the contingencies and provisions it considers necessary.
Natixis’ CSR policy is managed by a CSR team that reports to
communicating on the initiatives taken and raising employee team ensures that CSR practices are integrated into Natixis’ businesses and operations. The team is also responsible for
financing to companies whose business is over 50%-reliant on operation coal-fired power plants and/or thermal coal
energy consumption by 2% based on constant scope and In 2017 efforts will be continued with the aim of further reducing 2016 key event 100% renewable electricity
project, the HandiFormaFinance training program, speed These include the Company’s first carbon emissions offset “Engagés” has helped to bring a number of projects to fruition.
2016 key event Natixis partner of the program #JobsForAll – Révélons Tous Nos Talents.
Percentage of women who received training (as a %) (b) 49.2 51.1 50.6
In desktop publishing, paper consumption is stable (173 metric tons in 2016 versus 172 metric tons in 2015).
Energy consumption per workstation (in MWh) excluding data centers 3.04 3.03 3.08 centers Energy consumption per m2 of usable office space (in MWh) excluding data
RESULTS OF THE 2016 NATIXIS (FRANCE) ■ GREENHOUSE GAS EMISSIONS ASSESSMENT (IN METRIC TONS OF CO2 EQ.)
In 2016, business travel decreased with a drop in air travel (-4% compared to 2015) while travel by rail increased (+2%).
committed to promote opportunities to all individuals including In London, disability has legislative protection and Natixis is these employees with the necessary equipment and to provide business days).
number of employees increased, consumption levels remained paper and ink cartridges). The Branch also encourages both its basis, i.e. switch off all lights at night, etc. In Dubai, although the employees and suppliers to adopt green gestures on a day-to-day office building. Most of lighting is LED and ink cartridges are In Moscow, Natixis has opted for more environmentally-friendly recycled.
Management of employee travel use public transportation while saving money. Benefits” system for their commute, which encourages them to Natixis employees in New York use the “WageWorks Commuter
Diversity and equal opportunity opportunities in all the handbooks across the region and in its In the Asia Pacific Region, Natixis refers to diversity and equal diversity and gender equality in all its initiatives. induction process as well. The bank also strives to ensure
Information cannot be totally eliminated. the risk of not detecting a material misstatement in the CSR
Article 7 – Rights and obligations attached to the shares if any were created, each share entitles its owner to a share in Except for the rights which may be granted to preferred shares, the number of shares issued.
Shareholders’ Meeting. leaves office at the end of the next Ordinary General
General Shareholders’ Meeting. He organizes and conducts its work, on which he reports to the their duties.
of April 30, 2009, and the choice of the Senior Management procedure will be made with an ordinary quorum (at least immediately after the Combined General Shareholders’ Meeting By way of exception, the first Board Meeting will be held
exercises those powers within the limits of the corporate purpose and subject to the powers expressly reserved for
Executive Officer. However, the limitation of these powers is not enforceable against third parties.
person and who have not received an admission card by the second business day preceding the General Shareholders’
intermediary acting on behalf of the shareholder. A certificate is also delivered to shareholders who wish to attend the meeting in
name of the shareholder or the name of the registered body of the meeting. They do so by producing a certificate that they attach to the voting form or admission card request in the intermediaries which hold accounts of bearer shares which prove their clients’ status as a shareholder directly to the centralizing
The Board of Directors of Natixis, at its meeting on July 28,a 2016, by virtue of the authorization granted by the General conditions (systematic performance conditions applicable to “regulated” categories of staff).
The vesting period for the final tranche of the total free share grant of 1,724,325 shares, as resolved by the Board of Directors 2013 for the 2013 LTIP, expired on March 1, 2016.
May 19, 2015 (19th resolution), for the launch of the Mauve 2016 employee share ownership plan, with an overall par value and the subscription period for the shares to be issued.
of Natixis recognized Natixis’ capital increase for a total of €26,173,428.38 through the issuance of 7,989,447 new shares
To increase the share capital by issuing shares or securities giving 10% of the share capital (a)
Natixis of which 0.90% held through capital increases reserved for employees, of which 0.76% held outside of employee savings plans by employees (a) and former employees, of which 0.69% held under the BPCE Actions Natixis employee share ownership plan, including bearers of Groupe BPCE shares.
financial delegations and authorizations that provide your Company with the financial means to develop and implement its strategy, (ii) the amendment to Article 11 of the Company’s by-laws (to add to the methods for convening the Board of the following 10 resolutions (resolution thirteen to resolutiona twenty-two) require the approval of the Extraordinary General Shareholders’ Meeting and concern (i) the renewal of all of the
The purpose of these financial delegations and authorizations is to enable your Board of Directors, for a period of 26 months from this meeting, to have flexibility in choosing possible issues and to
shareholders of their preferential subscription rights in favor of the beneficiaries of these issues.
expressly authorized in advance by the General Shareholders’ Meeting, make use of any of these authorizations (with the exception of that set out in resolution twenty) in the event a third party makes a public offer for the company’s shares, until the
Company's to the to the holders of debt allocation capital* and/or entitling securities of shares Issue securities and/or months in one or more stages to decide on such issues, your Board of Directors Can be used by a Overall ceiling: one a euros (€1.5 bn) and a half billion
Capitalization 26 months without the provision for capital to be increased of any "fresh money"
a capital increase Can be used to carry out a as the originally-planned at the same price in applicable to the limit set out at the time of issue regulations
is set, minus 5% after this average has been adjusted, where necessary, to account for the for shares: the weighted average share price of the last three trading sessions on the regulated a NYSE Euronext Paris market prior to the day the subscription price for the capital increase established in the previous point (i.e. the price on the day the securities giving access to capital* giving access to capital* is at least equal to the minimum regulatory price per share as are issued).
(e.g. of bonds redeemable in shares), exchange (e.g. of exchangeable bonds into shares) or take place by way of ordinary conversion (e.g. of convertible bonds into shares), redemption the issue, irrespective of whether shareholders' preferential subscription rights to the securities presentation of a warrant (e.g. bonds with share warrants) or any other manner, over the life of
Resolution five (Opinion on the components with the quorum and majority requirements for ordinary The General Shareholders’ Meeting, deliberating in accordance section 26 of the AFEP-Medef corporate governance Code for business, consulted in accordance with the recommendation in registration document in Chapter 2, Section 2.4 and Chapter 7, Chairman of the Board of Directors, as presented in Natixis’ 2016
Resolution six (Opinion on components components of compensation due or granted in respect of the listed companies of November 2016, hereby approves the fiscal year ended December 31, 2016 to Laurent Mignon, Chief with the quorum and majority requirements for ordinary The General Shareholders’ Meeting, deliberating in accordance section 26 of the AFEP-Medef corporate governance Code for business, consulted in accordance with the recommendation in
Articles L.225-197-1 et seq. of the French Commercial Code, or freely award shares in accordance with the provisions ofj in general, honor obligations related to stock option programsj or a related company based on the provisions of or other share awards to employees or directors of the issuer
authorization, to specify its final terms and conditions if sub-delegate said power, to decide upon and implement this out the buyback program and, in particular, to place any stock necessary and to determine its procedures, in order to carry those established by regulation.
executed in accordance with prudential requirements, such as The Board of Directors will ensure that these buybacks are
Resolution sixteen (Delegation of authority to be given to the Board to decide seq., of the French Commercial Code: accordance with the provisions of Articles L.225-129 et seq., especially L.225-129-2, L.225-135 and L.225-136, and L.228-91 et and the special report of the Statutory Auditors, and in with the quorum and majority requirements for extraordinary business, having reviewed the report of the Board of Directors
The General Shareholders’ Meeting, deliberating in accordance entitle holders to the allotment of debt securities, and/or (iii) securities providing access to shares yet to be issued by the the issue of (i) shares, (ii) shares providing access to other shares, whether these exist or are yet to be issued, or that established with reference to multiple currencies, through capitalization of reserves, retained earnings or premiums.
Delegates to the Board of Directors, with the right to2) sub-delegate said power under the terms set out by law, its capital, of securities giving access to shares not yet issued by the Company; give their holders subscription rights; of the Company's shareholders to waive their preferential right to buy the Company shares to which said securities companies in the Company's group, an obligation on the part
Resolves that the Board of Directors may not, unless10) previously authorized by the General Shareholders' Meeting, use this delegation of authority once a third party has filed a ends; public tender offer to purchase the Company's shares. This prohibition shall stand until the public tender offer period
limits set out in applicable regulations at the time of their issue (as of this date, within 30 days following the end of the without preferential subscription rights, at the same price recorded for the initial issue, within the time frames and authority to decide to increase the number of securities to be issued in the event of Company capital increases with or sub-delegate said power under the terms set out by law, its the overall ceiling or ceilings applicable to the initial issue; Resolves that the par value of capital increases decided2) under this resolution will be applied against the amount of resolution shall be valid for twenty-six (26) months from the date of this meeting.
7 LEGAL INFORMATIONDraft resolutions of the Combined General Shareholders’ Meeting of May 23, 2017 476 REGISTRATION DOCUMENT 2016 - Natixis amounts necessary to pay up said shares; in the event that new shares are issued, apply, if applicable,j to reserves, retained earnings or issue premiums, the of shares that will be effectively subscribed to, record the completion of capital increases up to the amountj new capital resulting from these capital increases, related share premiums and deduct the amounts required to bring the legal reserve from this amount to one-tenth of the if applicable, apply the cost of the capital increase against thej sign any agreements and carry out any transactions andj formalities directly or indirectly through a representative, including carrying out formalities related to the capital increases and amending the bylaws accordingly, associated rights or those due to the capital increases; issued under this delegation of authority and the exercise of decisions and carry out any formalities that are appropriate for the issue, listing and financial servicing of securities in general, enter into agreements to ensure the proposedj issues are successfully completed, take any measures and day, the unused part of the prior delegation of authority of the same nature granted to the Board of Directors by the
Statutory Auditors’ special report 7.6 on related-party agreements financial statements for the fiscal year ended December 31,
The income recognized by Natixis in respect of this agreement amounted to €92,500.00 for the fiscal year ended December 31, several commitment and guarantee Terminated or expired letters of joint and 6.
from the Chief Executive Officer of CDC dated October 12, 2004, enforce their rights directly against CDC until the maturity of the an agreement with CDC Finance-CDC IXIS and CNCE.
June 30, 2009, following the clear failure to pay the amounts due in relation to the assets on the contractually agreed payment of a portfolio of assets held by Natixis Real Estate Capital Inc. at date.
Heading Registration document page number 15.1. Amount of compensation and benefits in kind 81 to 96 15.2. Total amounts paid accrued by the issuer to provide pension, retirement or similar benefits 328-329 16. Administrative and management bodies practices 16.1. Date of expiration of current terms of office 36 to 60 16.2. Service contracts with members of the administrative bodies 80 16.3. Information about the issuer’s Audit Committee and Compensation Committee 71 to 75 16.4. Statement as whether or not the issuer complies with the corporate governance regime 61 17. Employees 17.1. Number of employees 411 17.2. Directors’ shareholdings and stock options 93; 447-448 17.3. Arrangements for involving employees in the issuer’s capital 250-251 18. Major shareholders 18.1. Shareholders owning more than 5% of the share capital or voting rights 449 18.2. Different voting rights of the aforementioned shareholders 451 18.3. Control of the issuer 451 18.4. Arrangements, known to the issuer, the operation of which may at a subsequent date result in a change in its control 19. Related-party transactions N/A
20. and profits and losses Financial information concerning the issuer’s assets and liabilities, financial position 20.1. Historical financial information 204 to 348; 351 to 355 20.2. Pro forma financial information 10-11; 304 to 306 20.3. Financial statements 204 to 348; 315 to 355 20.4. Auditing of historical annual financial information 349-350; 391-392 20.5. Age of latest financial information 349-350; 391-392 20.6. Interim financial and other information N/A
Information relative to the locations and activities in each country or territorya 335 to 341 4. Declaration by the person responsible for the registration document 484 5. Statutory Auditors’ report on the financial statements 391-392 6. Statutory Auditors’ report on the consolidated financial statements 349-350 7. Statutory Auditors’ special report on related-party agreements and commitments 477 to 482 8. Fees paid to the Statutory Auditors 334 9. management (Article L.225-37 of the French Commercial Code) Report by the Chairman of the Board on corporate governance, internal controls and risk 10. Statutory Auditors’ report on the Chairman’s report 109
Art. 444 a), b) and c) Standardized approach NX11BIS - EAD by exposure class and by agency – Table 12 44
Art. 453 d) NX17 - Secured exposure by rating and by type of guarantor
8 ADDITIONAL INFORMATIONCross-reference table between articles of the CRR, Basel Committee/ EBA tables and statements, and the Pillar III report 492 REGISTRATION DOCUMENT 2016 - Natixis
Page of document Registration article 455 (c) Article 105 and using the Internal Models Approach (IMA) (EBA) EU MRB A - Qualitative disclosures for banks measuring market risk
Subject Title of table report Pillar III Page of document Registration
Capital management adequacy and capital categories consolidation and the mapping of financial statementscategories with regulatory risk Table 1 : (EU LI1): Differences between accounting and regulatory scopes of 27-28 125-126 of phase-in arrangements Table 2 : Transition from accounting capital to regulatory capital after application 30 128
Table 19 : (EU CRB – C): Geographical breakdown of exposures 56 type Table 20 : (EU CRB – D): Concentration of exposures by industry or counterparty 57
Risk management governance and strategy 5 Organization of risk management and control 12-13 119-120 6 Risk management strategy and implementation 13-14 120-121 7 Principal risks, risk appetite and risk management 14 121 121, 140-141,
Changes in the supervisory framework for banks, incorporating the lessons drawn from the 2007-2008 financial crisis, meant to complement the Basel II accords by enhancing the quality vary according to the economic cycle) and reinforces requirements for financial institutions deemed to be systemically important.
Basel Committee published a new set of proposals known as Basel 2.5 on the topic of market
Expected Loss Best Estimate, i.e. the institution’s best estimate of expected loss for unexpected losses during the recovery period.
EURIBOR Euro Interbank Offered Rate, the benchmark interest rate on the eurozone's money market.
Liquidity In a banking context, liquidity refers to a bank’s ability to cover its short-term commitments. Liquidity also refers to the degree to which an asset can be quickly bought or sold on a market without a substantial reduction in value.
LTRO Long-Term Refinancing Operation, i.e. a long-term loan issued to banks by the ECB.
Phase-in period for the implementation of Basel III. Refers to compliance with current solvency requirements, in accordance with the transitional
Spread on a risk-free loan with the same duration. The difference between the actuarial rate of return on a bond and the actuarial rate of return
To date there are 29 such institutions. published in November 2011. The FSB updates this list in November of each year. methodology and the additional loss absorbency requirement” and identified in a list
Transformation risk with longer maturities. than liabilities. Negative term transformation occurs when assets are financed by liabilities and interest rate risks. Positive term transformation occurs when assets have a longer maturity maturities, they naturally tend to incur transformation risk, which in turn is a source of liquidity Because banks’ traditional activity is to make longer-term use of liabilities with short The risk associated with assets that are financed by liabilities with different maturities.