NATIXIS :4Q17 AND 2017 RESULTS

World News: . []

Paris, February 13, 2018

net revenues +9% in 2017 At €9.5bn, GOI +19% at €3bn and businesses' roe At 13.8%

Significant increase in net revenues, above €3.1bn (+22% in 4Q17 and +15% in 2017)

Fee rate increase in both Europe and North America: 31.5bps overall in 4Q17 (+3.4bps YoY)

Positive net inflows momentum for long-term products: +€10bn in 4Q17 (+€27bn in 2017)

      $1trn assets under management as at December 31, 2017 (€831bn)

Net revenues (ex CVA/DVA desk) up +9% in 2017, of which +11% in Global markets

Strong momentum in IB and M&A: Net revenues up +27% in 2017, of which +47% in M&A

Global finance: Net revenues increased +12% in 4Q17, notably driven by a dynamic new loan production

RWA decreased -11% in 2017 and profitability increased significantly (+250bps)

Net revenues up +12% in 2017 and +11% in 4Q17

Life Insurance: ~€10bn premiums in 2017 (+53%), AuM at €54.7bn of which €12.6bn in unit-linked products

Net revenues from SFS up +3% in 4Q17 and +2% in 2017

Successful mandatory takeover bid on Dalenys and exclusivity agreement for the acquisition of Comitéo

€446m revenue synergies with Groupe BPCE networks as at end 2017, beyond the €400m initial target

Expenses came out at €1.7bn in 4Q17, up +4% YoY, translating into a 3pp and a at 71.2%, excluding IFRIC 21.

The cost of risk amounted to €65m in 4Q17, slightly up YoY. Expressed in basis points of loans outstanding (excluding credit institutions), the businesses' cost of risk worked out to 22bps in 4Q17. .

The 4Q17 tax rate notably benefited from a ~€100m positive impact from the US tax reforms (write-down of deferred tax liabilities). The marked YoY increase in minority interests reflected solid growth in Coface's contribution and a high level of performance fees generated by some European Asset Management affiliates.

Net income (group share), adjusted for IFRIC 21 and excluding exceptional items, came out at €428m in 4Q17, a +24% YoY increase. Accounting for exceptional items (+€48m impact net of tax in 4Q17) and IFRIC 21 (+€42m impact in 4Q17), the reported net income (group share) increased +5% YoY to €518m in 4Q17.

Revenues from Asset & Wealth Management (AWM) were up a (+28% at constant exchange rate), notably fueled by improved margins and higher AuM. vs. 4Q16 and including rises of +37% to €334m in Europe and +8% to €408m in North America. Net revenues from Wealth management increased +20% YoY.

In Asset management in 4Q17, overall and rose +2.8bps to 16.7bps in Europe and +1.5bps to 39.5bps in North America. Margin growth resulted from an improved product mix and the integration of Investors Mutual Limited (IML) in Australia.

Net revenues from Global markets were adversely affected by lower client activity in Rates and Equity Derivatives as well as lower volatility in the latter business and in FX. This translated into YoY revenues declines of -8% in FICT to €288m and -4% in Equity to €144m. Within Global finance, robust particularly in US Real Estate, drove a +12% YoY rise in revenues to €358m. Revenues generated by Investment banking and M&A amounted to €74m in 4Q17, down on the year-earlier level, due notably to less transactions closed in ECM.

Global turnover excluding the reinsurance agreement with CNP amounted to €2.8bn in 4Q17. It included rises of +9% in Life/Personal protection and of +6% in Property & Casualty.

SFS' expenses increased +10% YoY in 4Q17, though rose only +2% at constant scope. The cost/income ratio excluding IFRIC 21 and Payments acquisitions worked out to 67.3% in 4Q17.

The cost of risk stood at €24m and was adversely impacted during the quarter by model updates.

Within Payments, the January 16, 2018 also saw Most BPCE banks will be ready to propose SCT Inst-based services in April 2018.

Coface's turnover reached €340m in 4Q17, up +2% at constant scope and exchange rate. to 76.1%, on the back of reduced claims (loss ratio of 41.8% vs. 68.0% in 4Q16) and a tight grip on expenses (cost ratio of 34.3% vs. 32.0% in 4Q16).

During 4Q17, thereby generating a €74m capital gain. The deal lowered RWA by -€0.8bn and will have no impact on Natixis' P&L going forward.

Expenses came out at €6.5bn in 2017, up +5% YoY, translating into a 4pp and a at 68.9%.

The 2017 tax rate notably benefited from a positive impact from the US tax reforms recognized in 4Q17. The marked YoY increase in minority interests reflected solid growth in Coface's contribution and a high level of performance fees generated by some European Asset Management affiliates.

In Asset management,

Expenses increased +10% during the year, translating into a 5pp below 70% for 2017 (72.9% in 2016).

Within Global marketsnotably buoyed by the US and APAC platforms (+20% in 2017), whilst The US and APAC platforms lifted their contribution to CIB overall revenues from 35% in 2016 to 38%.

Fixed costs excluding regulatory projects increased +3% during the year, while the cost/income ratio improved slightly relative to 2016.

The cost of risk fell -41% versus the 2016 figure and

Global turnover excluding the reinsurance agreement with CNP increased +46% YoY in 2017 to €11.7bn, of which €10.3bn for Life/Personal protection and €1.4bn for Property & Casualty.

Based on a Basel 3 fully-loaded CET1 ratio of 10.4% at December 31, 2016, the respective impacts of 2017 were as follows:

Book value per share was €5.18 at December 31, 2017(post dividends) based on 3,135,928,302 shares excluding treasury stock (the total number of shares stands at 3,137,360,238). Tangible book value per share (after deducting goodwill and intangible assets) was €3.96.

This media release may contain objectives and comments relating to the objectives and strategy of Natixis. Any such objectives inherently depend on assumptions, project considerations, objectives and expectations linked to future and uncertain events, transactions, products and services as well as suppositions regarding future performances and synergies.

No Insurance can be given that such objectives will be realized. They are subject to inherent risks and uncertainties, and are based on assumptions relating to Natixis, its subsidiaries and associates, and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in Natixis' principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those implied by such objectives.

Information in this media release relating to parties other than Natixis or taken from external sources has not been subject to independent verification, and Natixis makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions herein. Neither Natixis nor its representatives shall be liable for any errors or omissions, or for any prejudice resulting from the use of this media release, its contents or any document or information referred to herein.

Included data in this press release have not been audited.

NATIXIS financial disclosures for the fourth quarter 2017 are contained in this press release and in the presentation attached herewith, available online at in the "Investors & shareholders" section.

The conference call to discuss the results, scheduled for Wednesday February 14, 2018 at 9:00 a.m. CET, will be webcast live on (on the "Investors & shareholders" page).

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Globe Newswire: 16:36 GMT Tuesday 13th February 2018

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