NATIXIS -2020 Universal Registration Document

5 FINANCIAL DATA

Consolidated financial statements and notes

If the sale has not taken place within twelve months of classification in “Non-current assets held for sale”, the asset or group of assets ceases to be classified in this category, barring special circumstances independent of Natixis’ control. The subsidiaries for which Natixis has committed to a plan to sell assets are listed in Note 2.6 “Subsidiaries held for sale”. A discontinued operation is a clearly identifiable component of an entity that either has been disposed of, or is classified as held for sale, and: representsa separate major line of business or geographicarea of V operations; without constituting a separate major line of business or V geographic area of operations, the component is part of a single coordinatedplan to dispose of a separatemajor line of businessor geographic area of operations; or is a subsidiary acquired exclusively with a view to resale. V Assets and liabilities relating to discontinued operations are accounted for in the balance sheet in the same way as groups of assets held for sale. Gains or losses from these operations are presented on a separate line of the income statement and include the post-tax gain or loss resulting from operations discontinued before disposal and from the sale or valuation of assets or groups of assets held for sale at fair value less selling costs. value through profit or loss These are financial liabilitiesheld for trading (includingderivatives)or classified in this category on a voluntary basis at initial recognition using the fair value option available under IFRS 9. Cash guarantee deposits and margin calls with collateral status set up in connection with repurchase agreements and derivative transactions recognized in instrumentsat fair value through profit or loss are also included in financial liabilities held for trading, as they are closely linked to the activities or instruments that they cover and are an integral part of the business model of the activity to which they relate. Securities valued under this irrevocable option fall into one of the following three categories: instruments that are part of a group of financial assets measured V and managedat fair value: the option applies to liabilitiesmanaged and measured at fair value, provided the management follows a fair value risk management policy; instruments showing an accounting mismatch with a related V financial asset/liability: applying the option enables the elimination of accounting mismatches stemming from the application of different valuation rules to instruments managed under a single strategy; hybrid instruments with one or more significant, separable V embedded derivatives: an embedded derivative is the component of a financial or non-financial hybrid instrument that qualifies as a derivative. The option allows the entire instrument to be measured at fair value, and therefore avoids the need to extract, recognize or separately measure the embedded derivative. Financial liabilities in this category are carried at fair value at the reportingdate and shown in the balance sheet as “Financial liabilities at fair value through profit or loss”. Changes in fair value are recognized in income for the period under “Net gains or losses on financial instruments at fair value through profit or loss”, except for changes in fair value attributable to own credit risk on financial Financial liabilities at fair 5.9

liabilities at fair value through profit or loss, as such recognitiondoes not create or increase an accounting mismatch. Changes in value attributable to own credit risk are recorded under “Revaluation of own credit risk on financial liabilities at fair value through profit or loss” under “Gains and losses recognized directly in other comprehensive income”. In the event of early redemption of financial liabilities designated at fair value through profit or loss, realized fair value gains or losses attributable to own credit risk are directly transferred from “Revaluationof own credit risk on financial liabilitiesdesignatedat fair value throughprofit or loss” to “Consolidated reserves” under equity. 5.10 Debt originated by Natixis that is not classified within financial liabilities at fair value through profit or loss is measured using the amortized cost method and recognized in the balance sheet under “Deposits from banks”, “Customer deposits”, “Debt securities in issue” or “Subordinated debt”. On initial recognition, debt securities are measured at their issue price including transaction costs. They are subsequently measured at amortized cost, with issue expenses recognized over the term of the instruments used. 5.11 Natixis derecognizesall or part of a financial asset if the contractual rights over the cash flows from the financial asset expire. Natixis also derecognizesall or part of a financial asset if these contractual rights or substantially all of the risks and rewards of ownership are transferred. If Natixis has neither transferred the contractual rights nor substantially retained all of the risks and rewards, Natixis then determineswhether it has transferred control of the asset. If control is considered to have been relinquished, the financial asset is derecognized. If the Group retains control of the asset, it remains on the balance sheet to the extent of Natixis’ “continuinginvolvement”. Continuing involvement is evidenced by the existence of contractual conditions such as: an option or obligation to repurchase the assets transferred; V collection of financial compensation linked to the performance of V the asset transferred. A financial liability is derecognized when it is settled, canceled or expires. Repurchase agreements a) Assignor Securities sold are not derecognized. Natixis recognizes a liability representing the commitment to return funds received (“Securities sold under repurchase agreements”). b) Assignee Securities bought are not recognized but a receivable due from the assignee is recorded representing the funds lent. The amount disbursed in respect of the asset is recognized under “Securities acquired under repurchase agreements”. At subsequent reporting dates, the securities continue to be valued by the assignor in accordance with the rules applicable to the category in which they were initially classified. In the assignee’s accounts, the amount receivable from the assignor continues to appear in the balance sheet. Liabilities Derecognition

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020