NATIXIS -2020 Universal Registration Document

4 OVERVIEW OF THE FISCAL YEAR

Management report at December 31, 2020

excluding this item, expenses totaled €294 million in 2020 versus V €371 million in 2019; they essentially comprised: expenses from the support functions net reallocations to the V Natixis business lines for €147 million in 2020, down €74 million compared to 2019 due to the savings in the crisis context; this expense balance of €109 million in 2020, was essentially rebilled to the entities of BPCE, as part of the services put in place following the sale of the retail banking business to BPCE S.A., cross-business expenses of €120 million, up €14 million V compared to 2019, essentially related to tax items. Gross operating income stood at -€514 million at end-2020 versus -€420 million at end-2019. Corporate Center cost of risk , was -€8 million in 2020, as in 2019, and mainly related to Algeria. Pre-tax profit was -€508 millionat end-2020 versus +€267 millionat end-2019with the contributionof the capital from the disposal of the retail banking activities to BPCE S.A., representing +€697 million recognized under gains on other assets.

C – Cross functions Cross-business functions net revenues totaled -€114 million at end-December 2020 versus +€59 million at end-December 2019. exchange rate fluctuations on deeply subordinatednotes issued in V dollars stood at -€86 millionat end-2020 compared to +€19 million the previous year. FVA hedging was valued at +€10 millionat end-2020 compared to V +€17 million at end-2019. Excluding these items, net revenues reached -€38 million in 2020 compared with +€23 million in 2019; it essentially comprised: revenues from Treasury and ALM operations were down, as the V amortizationsof the balance ended, and also due to exchange and interest rate effects; rebilled expenses from the support functions to entities for the V most part linked to Groupe BPCE. Corporate Center expenses totaled €460 million at the end of 2020 versus €540 million at the end of 2019. the contribution to the Single Resolution Fund totaled €165 million V for 2020 versus €170 million in 2019.

Cost of risk 4.2.2.6 The provision for credit losses was -€851 million at December 31,

credit losses was -€330 million at December 31, 2019, of which 2020, of which -€685 millionwere in respect of non-performingloans -€345 million were in respect of non-performing loans and and -€166 million in respect of performing loans. The provision for €15 million in respect of performing loans.

Total provision for credit losses by division

(in millions of euros)

31/12/2019

31/12/2020

(27)

(8)

Asset & Wealth Management Corporate and investment banking

(819)

(312)

Insurance Payments

0 3

0

(2) (8)

Other

(8)

TOTAL PROVISION FOR CREDIT LOSSES

(851)

(330)

Coface entities

0

(2)

TOTAL PROVISION FOR CREDIT LOSSES

(851)

(332)

Total provision for credit losses by geographic area (2019 excluding Coface)

(in millions of euros)

31/12/2019

31/12/2020

EMEA

(386)

(193)

Central and Latin America

(83)

(33) (96)

North America Asia and Oceania

(153) (229) (851)

(8)

(330)

TOTAL PROVISION FOR CREDIT LOSSES

240

NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020