2011 and Fourth Quarter 2011 Results

Paris, France, February 23, 2012

Good 2011 results, with net income (Group share) of €1,562m, thanks to the profound change in Natixis’ business model

Robust operating performances: pre-tax profit1 stable vs 2010 at €2,241m Core Tier 1 ratio of 10.2%2 as of December 31, 2011 (Basel 2.5)

Cash dividend of €0.10 per share3 proposed. Per-share yield: 4.2%.4  Payout ratio: 24%

Robust operating performances despite the deterioration in the environment

  • Net revenues:1 €6,717m, up 3% vs 2010
  • Pre-tax profit:1 €2.2bn, stable vs 2010
  • Net income (Group share): €1,562m in 2011 (down 10% vs 2010) and €302m in Q4-11, with a limited impact of non-operating items

Core Tier 1 ratio of 10.2%2 as of December 31, 2011 (Basel 2.5), +370 basis points2,5 over three years

  • Significant reduction in liquidity needs6 over three years (-37%)
  • Reduction of 39% in risk-weighted assets7 over three years
  • Implementation of the P3CI transaction on January 6, 2012

New Deal plan: profound change in the business model

  • Continued refocus of CIB. Accelerated development of the originate-to-distribute model, translating into resilient performances: pre-tax profits of €979m in 2011 and €151m in Q4-11. ROE up in 2011 vs 2010, despite a decrease in CIB revenues.
  • Success of the multi-boutique asset management model, with centralized distribution: €3.7 billion in net inflows in 2011, in a very difficult market.
  • Revenue synergies with the BPCE networks ahead of target.

Laurent Mignon, CEO of Natixis, said: “The 2011 results demonstrate Natixis’ ability to generate recurring performances in a difficult environment. Our business model has changed considerably since mid-2009, thanks to the implementation of the New Deal strategy. The financial structure has strengthened significantly as a result of a deliberate policy of reducing risk-weighted assets initiated in 2009 and intensified in the summer of 2011, restored profitability and the implementation of the P3CI transaction with BPCE. In 2012, we will continue to adapt our business model, with our plan to further reduce liquidity needs and risk-weighted assets. All these actions and the mobilization of our teams will enable us to meet Basel III capital requirements as of 1 January 2013.”

The Board of Directors approved Natixis’ annual financial statements for 2011 on February 22, 2012. The economic and financial environment was much more difficult than in 2010, and the second half of 2011 was marked in particular by the intensification of the sovereign debt crisis in Europe. The financial markets were focused on developments in the European crisis, experiencing a very difficult year overall in 2011, in both the equity markets (the Euro Stoxx 50 index fell by 17.05% between December 31, 2010 and December 31, 2011, with the Euro Stoxx Banks down 37.63%) and the credit markets, where spreads were very wide (the iTraxx Main hit a yearly high of 207bp on November 23, 2011).

In this context, the implementation of the New Deal strategy continued. It has resulted in a profound transformation of Natixis’ business model, with the following key changes:

  • A very sizeable reduction in liquidity needs1 (-37%) and risk-weighted assets2 (-39%) over three years in an environment of increased regulatory constraint. More generally, the New Deal strategy is based on a significant reduction in the consumption of scarce resources (capital and liquidity), while maintaining Natixis’ revenues at a satisfactory level.
  • A significant reinforcement of the financial structure since beginning 2009, with a Core Tier One ratio of 10.2%3 as of December 31, 2011, a gain of 370 basis points3,4 since December 31, 2008. This marked improvement has resulted from a proactive reduction of risk-weighted assets, a significant enhancement of profitability and the implementation of the P3CI transaction on January 6, 2012.
  • Robust operating performances in 2011 despite the worsening business environment, especially in H2-11. 2011 net revenues totaled €6.7 billion, an increase of 3%, which is a good performance (excluding non-operating items,5 net revenues were down 1%). The pre-tax profit6 totaled €2.2 billion, stable at the 2010 level, reflecting tight management of operating expenses and control of provision for credit loss.

Several strategic moves were made in 2011:

  • The operational implementation of the plan to further reduce risk-weighted assets (€10 billion as of end-20137) and liquidity needs8 (€15 billion-20 billion as of end-2013) began in July 2011.
  • The refocus of Corporate and Investment Banking on its core clients continued, and the development of the originate-to-distribute model accelerated with the ramp-up of the debt platform. In 2011, key competitive positions and rankings improved. In particular, Natixis was named the best bank for Covered Bonds (The Cover/Euroweek Covered Bond Awards).
  • The success of Natixis’ strategy in asset management was confirmed, with net inflows of €3.7 billion in 2011. This success validates our strategy which combines the multi-boutique model (diversification of management expertise) with the centralized distribution platform.
  • Specialized Financial Services continued their growth, working closely with BPCE’s retail banking networks. Distribution of products and services within the networks has intensified, particularly in Consumer Finance and Factoring. The pooling of platforms continued in Payments. In 2011, GCE Car Lease was integrated into Natixis Lease.
  • Revenue synergies with the BPCE networks are running ahead of target, with a cumulative €274 million as of December 31, 2011, thanks largely to the strength of Specialized Financial Services.
  • Coface completed its strategic refocus on its credit insurance business.

In a difficult environment, Natixis’ earnings per share came to €0.43 in 2011, vs €0.46 in 2010. The payment of a dividend of €0.10 per share, in cash, will be proposed at the General Shareholders’ Meeting (May 29, 2012). This represents a payout ratio of 24%, illustrating the reinforcement of Natixis’ financial structure and its satisfactory financial results.

1. Excluding GAPC, income from discontinued operations and restructuring costs. 2 Adjusted for the implementation of the P3CI transaction and factoring in the impact of CRD3. 3 Subject to approval by the General Shareholders’ Meeting of May 29, 2012. 4 .Based on a share price of €2.36. 5 Pro forma the prudential treatment of the CCIs as assets risk-weighted at 370%. 6 CIB and GAPC assets to be refinanced (short and long term). 7 Excluding the prudential treatment of CCIs as assets risk-weighted at 370% and excluding the impact of CRD3.

The consolidated results of Natixis were approved by the Board of Directors on February 22, 2012. The auditing of the consolidated financial statements for the year ended December 31, 2011 has been largely completed. The auditor’s reports certifying the financial statements will be issued after verification of the management report and the implementation of procedures required to finalize the registration document.

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