Amundi:1 st quarter 2017 results A good first quarter
Net earnings up 13.2% [1]
| Activity | Assets under management: €1,128bn [2] at 31 March 2017, +4.2% vs. 31 December 2016 Strong net inflows 2 : €32bn, i.e. 3% of AUM at end-December 2016 Medium/long-term assets net inflows [3] : +€10.6bn |
| Results | Net revenues of €432m, up +9.3% vs. Q1 2016 2.2-point improvement in cost/income ratio to 51.5%1 Net earnings (Group share): €147m 1 , up +13.2% vs. Q1 2016 |
| Capital | Highly successful €1.4bn capital increase Amundi has now become the largest market cap (€12,1bn [4] ) of all European asset managers and ranks No. 5 worldwide |
Paris, 28 April 2017
Amundi's Board of Directors met on 27 April 2017, under the chairmanship of Xavier Musca, to review the financial statements for the first quarter of 2017.
Commenting on the figures, Yves Perrier, CEO, said:
"Amundi's solid results in the first quarter of 2017 demonstrate its capacity to generate profitable growth on a recurrent basis. The forthcoming integration of Pioneer Investments, which should be effective around the end of the 1 st half, will extend this trend and reinforce Amundi's leadership in Europe."
Business activity: AUM of €1,128bn and net inflows of €32bn in Q1 2017
Amundi's assets under management amounted to €1,128bn at 31 March 2017, reflecting good business activity (net inflows of +€32.5bn in the first quarter 2017) and a positive market effect (+€12.5bn) owing to more favourable market conditions.
The net inflows of +€32.5bn amount to 3% of assets under management at the beginning of the period. Business was driven by strong sales activity that remains well balanced between the two client segments: Retail and Institutional investors.
The Retail segment enjoyed a strong level of activity with net inflows of +€15.4bn in Q1 2017 , generated by all distribution channels. Net inflows primarily came from joint-ventures in Asia (+€8.1bn) and third-party distributors (+€4.9bn), with a particularly solid performance in Europe. International networks generated positive net inflows (+€1.0bn, in particular from Italy), as did the French networks (+€1.3bn), confirming the trend seen in the second half of 2016.
The Institutional segment once again recorded high net inflows of +€17.1bn in Q1 2017, mainly driven by treasury products. Net inflows from Corporate clients were up sharply, remaining at a high level in France and achieving a strong momentum in Europe (especially in the United Kingdom and the Netherlands).
In the first quarter of 2017, net inflows were mainly concentrated on treasury products, with medium/long-term assets accounting for +€10.6bn. Positive net inflows were observed across all traditional asset classes, in both active and passive management strategies. Investor interest in new types of investment management expertise was confirmed and net inflows were high, in particular in Real Estate (+€1.1bn) and ETFs (+€4.2bn), which are important growth drivers. For real, alternative and structured assets, net inflows were negative owing to the end of an ABS [5] portfolio management mandate for the ECB (€6.9bn), which took the management of this portfolio back in-house; excluding the impact of this mandate, net inflows on this asset class were positive.
From a geographical perspective, net inflows were strong in all regions, with France accounting for a greater share this quarter thanks to significant investments in treasury products. International activities generated 36% of total net inflows in the first quarter of 2017, amounting to +€11.7bn, an increase of +26% on the first quarter of 2016. Over one year, international assets under management increased by 32%, and they now represent 29% of Amundi's total AUM, and 44% of AUM excluding Crédit Agricole and Société Generale insurance companies.
A sharp increase in net earnings to €147m [6] in Q1 2017 (+13.2%); solid revenue growth and an improved cost/income ratio (-2.2 points 8 )
Amundi's performance in Q1 2017 continued to follow a steady growth trajectory. Net earnings Group share were up +13.2% on the first quarter of 2016, excluding €3.5m (net of tax) in expenses related to the forthcoming integration of Pioneer Investments. This strong performance was driven by a +9.3% (+7.2% excluding scope effect [7] ) increase in revenues (to €432m), in line with the growth in assets under management over 12 months. Operating expenses came to €223m [8] (+4.9% and +2.5% excluding scope effect 7 ), leading to a 2.2-point 8 improvement in the cost/income ratio, which stood at 51.5%.
The share of net income of equity-accounted entities rose to €8m. Taking into account a tax charge of €68m, net earnings Group share amounted to €147m 6 , an increase of +13.2% compared to the first quarter of 2016. Published net earnings (which includes costs related to the integration of Pioneer Investments) amounted to €143m, up +10.4% on Q1 2016.
Highlights of the period and outlook
Amundi's capital increase initiated on 14 March 2017 was highly successful. A total of €1.4bn was raised [9] and 33,585,093 new shares were issued on 10 April 2017. The free float now accounts for 29.8% of shares, and Crédit Agricole Group now only holds 70% of the share capital. Since this capital increase, Amundi has become the biggest market capitalisation among asset managers in Europe, and ranks number 5 worldwide, with a market capitalisation of €12.1bn [10] .
The acquisition of Pioneer Investments is still expected to be finalised in mid-2017 as the authorisation process is proceeding on schedule. Preparations for the integration are continuing with progress being made by a number of joint working groups.
Financial communication schedule
18 May 2017: General Shareholders' Meeting
Dividend:
26 May 2017: ex-dividend date
29 May 2017: date on which share accounts will determine holders of shares with dividend rights
30 May 2017 : payment of dividend
28 July 2017: publication of first-half 2017 results
27 October 2017: publication of results for the first nine months of 2017
Amundi's financial disclosures for the first quarter of 2017 consist of this press release and the attached presentation, which are available on http://about.amundi.com.
Summary income statement
| (€m) | Q1 2017 | Q1 2016 | % chg | ||
| Net revenues | 432 | 395 | +9.3%* | ||
| o/w performance fees | 23 | 18 | +29.9% | ||
| Operating expenses | -223 | -212 | +4.9%* | ||
| Gross operating income | 209 | 183 | +14.5% | ||
| Cost inco me ratio (%) | 51.5% | 53.7% | -2.2 pts | ||
| Share of net inc. of equity-accounted entities | 8 | 7 | NS | ||
| Other items | -2 | 0 | NS | ||
| Pre tax income | 215 | 189 | +13.5% | ||
| Income tax | -68 | -59 | +15.2% | ||
| Net income Group share | 147 | 130 | +13.2% | ||
| Pioneer integration costs after taxes | -4 | 0 | NS | ||
| Published Net income Group share | 143 | 130 | +10.4% |
* Excluding scope effect (KBI) : net revenues + 7.2% and operating expenses +2.5%
Change in assets under management from 31 December 2015 to 31 March 2017
| AUM | Market | Scope | |||||
| (€bn) | Inflows | effect | effect | ||||
| 31/12/2015 | 985 | ||||||
| Flows in Q1 2016 | +13.8 | -11.6 | / | ||||
| 31/03/2016 | 987 | ||||||
| Flows in Q2 2016 | +3.0 | +13.6 | / | ||||
| 30/06/2016 | 1,004 | ||||||
| Flows in Q3 2016 | +22.3 | +19.7 | +8.6 | KBI GI | |||
| 30/09/2016 | 1,054 | ||||||
| Flows in Q4 2016 | +23.1 | +0.1 | +5.0 | CAI Investors | |||
| 31/12/2016 | 1,083 | ||||||
| Flows in Q1 2017 | +32.5 | +12.5 | / | ||||
| 31/03/2017 | 1,128 | ||||||
Details of assets under management and net inflows by client segment
| AUM | AUM | % chg. | Inflows | Inflows | |||
| (€bn) | 31/03/2017 | 31/03/2016 | vs. 31/03/2016 | Q1 2017 | Q1 2016 | ||
| French networks* | 103 | 95 | +8.2% | +1.3 | -4.6 | ||
| International networks & JVs | 135 | 95 | +42.2% | +9.1 | +3.7 | ||
| Third-party distributors | 90 | 67 | +34.0% | +4.9 | +2.7 | ||
| Retail clients | 328 | 257 | +27.5% | +15.3 | +1.8 | ||
| Institutionals & sovereigns** | 282 | 245 | +15.2% | +9.1 | +8.5 | ||
| Corporates & employee savings | 111 | 82 | +35.0% | +6.8 | -4.1 | ||
| CA & SG insurers | 407 | 404 | +1.0% | +1.1 | +7.6 | ||
| Institutional clients | 800 | 730 | +9.6% | +17.1 | +12.0 | ||
| TOTAL | 1,128 | 987 | +14.2% | +32.5 | +13.8 | ||
| o/w JVs | 111 | 74 | +50.4% | +8.1 | +3.6 |
* French networks: net inflows on medium/long-term assets +€1.1bn in Q1 2017 (-€0.3bn in Q1 2016).
** Including funds of funds.
Note: assets under management include all assets managed and sold.
Details of assets under management and net inflows by asset class
| AUM | AUM | % chg. | Inflows | Inflows | |||
| (€bn) | 31/03/2017 | 31/03/2016 | vs. 31/03/2016 | Q1 2017 | Q1 2016 | ||
| Equities | 162 | 122 | +33.6% | +2.0 | +2.3 | ||
| Multi asset | 132 | 116 | +14.0% | +4.4 | +1.4 | ||
| Bonds | 551 | 498 | +10.7% | +10.3 | +1.7 | ||
| Real, alternative and structured assets | 74 | 65 | +14.4% | -6.1* | +1.4 | ||
| MEDIUM TO LONG TERM -ASSET | 919 ** | 800 | +14.9% | +10.6 | +6.9 | ||
| Treasury | 208 | 187 | +11.4% | +21.9 | +7.0 | ||
| TOTAL | 1,128 | 987 | +14.2% | +32.5 | +13.8 |
* Impact of the termination of an ABS portfolio management mandate for the ECB (€6.9bn), which took the management of this portfolio back in-house.
**O/w €94bn in our international joint ventures
Details of assets under management and net inflows by region
| AUM | AUM | % chg. | Inflows | Inflows | |||
| (€bn) | 31/03/2017 | 31/03/2016 | vs. 31/03/2016 | Q1 2017 | Q1 2016 | ||
| France | 799 | 738 | +8.3% | +20.8 | +4.5 | ||
| Europe excl. France | 134 | 104 | +28.9% | +2.5 | +4.0 | ||
| Asia | 163 | 119 | +36.6% | +8.0 | +5.0 | ||
| Rest of world | 31 | 26 | +20.4% | +1.2 | +0.3 | ||
| TOTAL | 1,128 | 987 | +14.2% | +32.5 | +13.8 | ||
| TOTAL EXCL. FRANCE | 328 | 249 | +31.7% | +11.7 | +9.3 |
About Amundi
Listed since November 2015, Amundi is Europe's largest asset manager in terms of AUM*, with over €1,100 billion worldwide. With seven investment hubs located in the world's leading financial centres, Amundi's in-depth research and market experience has earned the trust of its clients. Amundi is the trusted partner of 100 million retail clients, 1,000 institutional clients and 1,000 distributors in more than 30 countries, and designs innovative, high-performing products and services tailored to the specific needs and risk profiles of these types of clients.
Visit amundi.com for more information or to find the Amundi team closest to you.
Amundi Scope - Data at 31 March 2017 - * No.1 in total assets under management of investment companies with their main headquarters in continental Europe - Source: IPE "Top 400 Asset Managers" published in June 2016, based on assets under management at 31 December 2015.
| Press contact: | |
| Natacha Andermahr | |
| Tel. +33 1 76 37 86 05 | |
| natacha.andermahr-sharp@amundi.com |
Investor contacts:
Anthony Mellor Tel. +33 1 76 32 17 16 anthony.mellor@amundi.com
Annabelle Wiriath Tel. +33 1 76 32 59 84 annabelle.wiriath@amundi.com
DISCLAIMER:
This document may contain projections concerning the financial situation and results of the activities and business lines of Amundi. The figures given do not constitute a "forecast" as defined in Article 2.10 of Commission Regulation (EC) No. 809/2004 of 29 April 2004.
This information is based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context. As such, the projections and results indicated may not necessarily come to pass due to unforeseeable circumstances.
Furthermore, the financial information given is based on estimates, particularly when measuring market value and asset depreciation.
The reader should take all of these uncertainties and risks into consideration before forming their own opinion.
The figures presented were prepared in accordance with IFRS guidelines as adopted by the European Union and applicable as of this date. The financial information given does not constitute financial statements for an interim period as defined in IAS 34 ("Interim Financial Reporting"), and has not been audited.
The information contained in this presentation, to the extent that it relates to parties other than Amundi or comes from external sources, has not been independently verified, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any negligence or loss that may result from the use of this presentation or its contents, or anything related to them, or any document or information to which the presentation may refer.
[1] Excluding costs associated with the integration of Pioneer Investments amounting to €5.4m before tax and €3.5m after tax.
[2] Assets under management and inflows include assets under advisory and assets sold, and take into account 100% of inflows and assets managed by the Asian JVs. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
[3] Medium/long-term (MLT) assets, excluding treasury products: equities, multi-asset, bonds, and real, alternative and structured assets.
[4] At 25 April 2017.
[5] Asset Backed Securities.
[6] Excluding costs associated with the integration of Pioneer Investments amounting to €3.5m after tax.
[7] Scope effect related to the acquisition of KBI
[8] Excluding costs associated with the integration of Pioneer Investments amounting to €5.4m before tax.
[9] Gross amount, including additional share premium.
[10] At 25 April 2017.
Attachments:
