NATIXIS -2020 Universal Registration Document

LEGAL AND GENERAL INFORMATION Glossary

Acronym/Term

Definition

CNCE CNlL

Caisse Nationale des Caisses d’Epargne

Commission Nationale de l’Informatique et des Libertés (an independent administrative authority protecting privacy and personal data) The Natixis Code of Conduct (Ethical Principles) reflects Natixis’ DNA. It gathers all of our rules of conduct and good practices in different areas: respect for client interests, professional ethics and accountability in relationships with colleagues, shareholders, etc. and, more broadly, with society, and protection of the reputation of Natixis and Groupe BPCE. The Code of Conduct applies to all Natixis employees, entities and affiliates over the world, across all business lines. It also applies to our suppliers and all our business partners in their dealings with Natixis.

Code of Conduct

Collateral

A transferable asset or guarantee pledged to secure reimbursement on a loan in the event that the borrower fails to meet their payment obligations. Measure of an insurance company’s profitability expressed in terms of the ratio of total costs (incurred losses + expenses) divided by total revenue.

Combined ratio

COMEX

Executive Committee

Commodity

Raw material

Common Equity Tier 1 ratio Ratio of Common Equity Tier 1 (CET1) capital to risk-weighted assets. The CET1 ratio is a solvency indicator used in the Basel 3 prudential accords. Company-controlled stock A company’s ownership share of its own equity, held via its direct or indirect control of one or more other companies. Company-controlled stock does not bestow voting rights and is not included in the calculation of earnings per share. Corporate Finance company Cost of risk in basis points A measure calculated by dividing the net expense of commercial risk by outstanding loans at the beginning of the period.

A ratio indicating the share of net banking income (NBI) used to cover operating expenses (the Company’s operating costs). It is calculated by dividing operating costs by net revenues.

Cost/income ratio

Coverage

Coverage in terms of client support.

Covered bond

A bond for which the reimbursement and payment of interest is backed by returns on a high-quality asset portfolio, often a portfolio of mortgage loans, which serves as collateral. The issuer often manages the payment of cash flows to investors ( obligations foncières in France, Pfandbriefe in Germany). This product is mainly issued by financial institutions. Commercial paper. In the United States, commercial paper is a negotiable debt instrument issued by corporations on the money market.

CP

CPI

Consumer Price Index

CPM CRD

Credit Portfolio Management

Capital Requirements Directive (EU Directive)

CRD III

An EU Directive under which the proposals of the Basel Committee were transposed in July 2010 and enacted as of December 31, 2011. In July 2009, the Basel Committee published a new set of proposals known as Basel 2.5 on the topic of market risk. The aim was to better account for default and credit migration risk on assets in the trading book (both tranched and untranched assets) and to reduce the procyclicality of value at risk.

CRD IV

A European Directive that enacts the proposals of the Basel 3 framework into French law.

Credit and counterparty risk The risk of loss from the inability of clients, issuers or other counterparties to honor their financial commitments. Credit risk includes counterparty risk related to market transactions and securitization. Credit default swap (CDS) A bilateral financial contract whereby the protection buyer periodically pays a premium to the protection seller,

who in turn promises to compensate for any losses on a reference asset (a bond issued by a government, financial institution or company) upon the occurrence of a credit event (bankruptcy, default, deferred payment or restructuring). This is an insurance mechanism to protect against credit risk. A financial product whose underlying asset is a credit obligation or debt security (bond). The purpose of the credit derivative is to transfer credit risk without transferring the asset itself for hedging purposes. One of the most common forms of credit derivatives is the credit default swap (CDS).

Credit derivative

CRM CRR CVA

Comprehensive Risk Measure

Capital Requirement Regulation (EU regulation)

Credit valuation adjustment, i.e. the expected loss related to counterparty’s default risk. The CVA aims to account for the fact that the full market value of the transactions cannot be recovered. The method for determining the CVA is primarily based on the use of market inputs in connection with the practices of market professionals.

CVaR

Credit Value at Risk

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NATIXIS UNIVERSAL REGISTRATION DOCUMENT 2020