3Q20 and 9M20 results: Back to profitability and strategic orientations preparing the future

BACK TO PROFITABILITY AND SOLID CAPITAL POSITION

Underlying³ net revenues of the businesses excl. CVA/DVAat €1.8bn in 3Q20 (-14% vs 3Q19) and €5.2bn in 9M20 (- 15% vs. 9M19). Activity bouncing back from 1Q20 and 2Q20 levels

Cost of risk improving in 3Q20 vs. 2Q20

Underlying³ net income at +€152m in 3Q20 (+€39m on a reported basis) and +€75m in 9M20 (€(222)m on a reported basis)

Basel 3 FL CET1 ratio² at 11,7% in September 30, 2020 (11.2% proforma). Ratio standing +340bps above regulatory requirements (+290bps proforma) and +150bps above current target of 10.2% (+100bps proforma)

STRATEGIC CHOICES TOWARDS SUSTAINABLE VALUE CREATION LAYING OUT SOLID FOUNDATIONS FOR THE 2021-2024 STRATEGIC PLAN Sustainable development of our net revenues

AWM - Fostering growth relays

Closing of the Ostrum AM/LBP AM merger, creating a European leader in the management of fixed-income and insurance assets for large institutional clients with close to ~€430bn of assets under management as at end-September. Combined with the ~€630bn of AuM coming from its alpha-generating boutiques, Natixis IM reinforces its diversified positioning with close to €1,100bn of AuM. Besides, DNCA and Thematics see their positioning being reinforced through additional AuM being transferred from Ostrum AM

AWM - Evolution of the relationship between Natixis IM and H2O AM

Natixis IM and H2O AM are in discussions concerning the progressive and orderly unwinding of their partnership. Such discussions include (i) a possible progressive sale of Natixis IM's stake in H2O AM and (ii) the orderly assumption by H2O AM of its distribution over a transition period until the end of 2021. Such evolution would be subject to consideration and approval by relevant regulatory authorities. H2O AM will no longer be considered a strategic asset of Natixis

CIB - Equity Derivatives repositioning under a lower risk appetite

Exit from most complex products and tightened exposure limits on low/medium risk products. These products will essentially be offered to Groupe BPCE retail networks and Natixis' selected strategic clients, translating into a reduction in the number of clients served from >400 to ~50. Equity net revenues are expected to reach a new run-rate of ~€300m per annum and with an associated reduction in the cost base

Business transformation: €350m of cost savings by end-2024

Transformation and efficiency program allowing for ~€350m of recurring cost savings to be generated by 2024 (~€270m of related one-off investment expenses over 4Q20-2023) notably including the transformation of the CIB Equity business

Financing the energy transition and reducing the cost of risk

Active -20% reduction in the overall Oil & Gas exposure since the beginning of the year through a repositioning of the trade finance activity(-35%). Complete exit from shale oil and shale gas by 2022 with a -25% reduction in exposure already achieved over 2020. Besides an expected reduction in the through-the-cycle cost of risk, such an active management of the loan portfolio should help accelerate Natixis' green transition to address clients' needs and through the development of its Green Weighting Factor

Capital management: long-term growth and shareholder return capacity

With a Basel 3 FL CET1 ratio² at 11.7% as at end-September and 11.2% proforma for the front-loading of all regulatory impacts expected by the end of 2021, Natixis has enough room for maneuver in order to ensure the development of its businesses and its dividend distribution capacity. Natixis intends to resume dividend distribution in the first semester of 2021 (subject to ECB recommendations) and actively manage its capital position with a ~200bps CET1 buffer above its regulatory requirements

'Natixis has taken a number of strategic and operational decisions in order to prepare the future. Our goal is to get Natixis back onto a path of sustainable value creation. Growth in our Asset Management division will be boosted by the operational merger between La Banque Postale AM and Ostrum AM, which has increased our assets under management to close to 1.1 trillion euros, and by the decision to evolve our relationship with H2O AM. Meanwhile, the results of our Corporate & Investment Banking business will become steadier through the adjustment of our Equity Derivatives positioning and through the reduction of our exposure to the Oil & Gas sector. These decisions mark an important step in Natixis' development and growth and pave the way for the preparation of our 2024 strategic plan, to be published in early June 2021.

The past quarter also marked a return to positive earnings for Natixis with Insurance and Payments recording solid growth, Asset & Wealth Management holding up well, notably in terms of assets under management, and Corporate & Investment Banking revenues normalizing. In such an extraordinary health and economic context, I would like to pay tribute to the commitment and dedication of Natixis' teams to serving our clients and supporting the financing of the economy as well as reaffirm the confidence I have in Natixis' ability to fulfill its ambitions.'

Nicolas Namias, Natixis Chief Executive Officer

Footnotes

Figures restated as communicated on April 20, 2020 following the announced disposal of a 29.5% stake in Coface. See page 16 for the reconciliation of the restated figures with the accounting view ¹ See page 6 ² See note on methodology 3 Excluding exceptional items. Excluding exceptional items and excluding IFRIC 21 for the Cost income ratio, RoE and RoTE

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