Paris, April 17, 2012
Preparation of Q1-12 financial disclosures
Natixis herewith sets out certain standards used in determining the results of the businesses. Natixis also herewith specifies the treatment of the P3CI transaction that will be applied for financial disclosures as of Q1-12.
1/ Change in the standards used to determine the pro forma 2011 results provided in the appendices
1.1 Change in normative capital allocation
In the context of strengthened capital requirements, the normative allocation of capital to Natixis' businesses shall henceforth be based on 9% of average risk-weighted assets, vs. 7% in 2011.
Moreover, consumption of capital related to securitizations which are deducted from Tier 1 regulatory capital shall be allocated to the businesses.
1.2 Other standards used in determining the results of the businesses
· Retail Banking via the Cooperative Certificates of Investment ("CCIs")
As of 2012, Retail Banking income shall be measured on the basis of the contribution to Natixis' results: equity accounting of the networks' results, accretion profit, revaluation adjustment and cost of carrying the CCIs(1).
· Organizational change
- As part of the reinforcement of the "originate-to-distribute" model of the CIB, skills in respect of active portfolio management have been assembled in Global Structured Credit Solutions ("GSCS"), whose revenues shall be split 50/50 between FIC-T and Structured Financing.
- The residual results of the medium- to long-term Treasury activity, after reallocation to the businesses via internal transfer pricing, shall henceforth be housed in the Corporate Center, and no longer allocated to the CIB (FIC-T business line).
(1) The CCIs are financed out of capital in accordance with their consumption of regulatory capital (excluding the P3CI transaction) and, for the remainder, out of long-term debt.
2/ Accounting of the P3CI transaction (implemented on January 6, 2012 - details published in 3Q11 and 4Q11 results presentation)
· As of Q1-12:
- P3CI interest expenses in the income statement (€272 million per annum before tax, net of repayment of senior debt) shall be recognized in Natixis' net revenues (Corporate Center). Such cost shall be allocated analytically to the core businesses (CIB, Investment Solutions and SFS) and Retail Banking, in proportion to their normative capital as of December 31, 2011. The analytical cost breakdown by business is as follows: €139m for CIB, €31m for Investment Solutions, €30m for SFS and €72m for Retail Banking.
- the saving in respect of risk-weighted assets (€25.6 billion) shall be converted into normative capital equivalent and allocated to the core businesses (CIB, Investment Solutions and SFS) and Retail Banking, in proportion to their normative capital as of December 31, 2011.
· As a reminder:
- concurrently with the implementation of the P3CI transaction, Natixis repaid €2.3 billion of deeply subordinated notes ("DSNs"), the interest of which was deducted from consolidated capital.
- the net impact of the implementation of the P3CI transaction, after repayment of the DSNs and senior debt, is -€11 million on net attributable income.
Appendices (non-audited)
- Appendix 1: Pro forma 2011 breakdown by business division
- Appendix 2: Pro forma quarterly and annual 2011 results
Contacts
Investor Relations:
natixis.ir@natixis.com
T + 33 1 58 32 06 94
