Corporate First quarter 2016 results

The first quarter saw both a market downturn and an increase in market volatility. The equity markets in France and Europe as a whole were an average of 8% to 11% weaker^[1] than in Q1 2015, due to concerns about the global economy and the low prices of commodities, particularly oil. On the bond markets, yields remained low and the average 3-month Euribor rate dropped into negative territory between the two periods.

In an unfavourable market environment, Amundi continued to benefit from its business model, based on diversification by expertise, client segment and region, and its business continued to grow.

Sales trends remained positive with net inflows of €13.8bn over the first quarter of 2016, equal to 6%⁵ of assets under management at the beginning of the period.

These inflows were driven by the Institutional client segment (+€12.0bn), which continues to benefit from the Group's positive sales momentum.

In the Retail client segment, net inflows slowed (+€1.9bn) as risk aversion grew in response to the market environment. The results were uneven:

• The French networks saw inflows and outflows that were nearly equally balanced between  medium/long-term assets (-€0.3bn), with net outflows at the end of the quarter on money market instruments for SME clients (-€4.3bn overall). In a French market that remains challenging, Amundi increased its market share^[3], which rose to 28.3% (+1.9 percent points  year-on-year);

• The other distribution channels (International Networks including JVs and Third-Party Distributors) saw positive momentum (net inflows of +€6.4bn).

   

Net inflows remained balanced between treasury products (+€7.0bn) and medium/long-term assets (€6.9bn), with positive contributions from all asset classes.

Finally, net inflows remained concentrated in the international segment (+€9.3bn, or 68% of total net inflows), evenly spread between Europe outside France (+€4.0bn) and Asia (+€5.0bn) as the contribution from Asian joint ventures remained strong (+€3.6bn mainly Asia).

Overall, assets under management remained near-stable over the quarter at €987bn (+0.2% vs 31 December 2015), with the negative market effect of -€11.6bn offsetting the positive net inflows.

Year-on-year, assets under management were up 3.5%, with net inflows of €69.7bn and a market effect of -€36.7bn.

Despite an unfavourable market environment, net income Group share, at €130m, was up slightly (+0.8%) compared to the first quarter of 2015, reflecting the following developments:

• revenues were stable when excluding the negative market effect of -€14m vs Q1 2015: net fee and commission income held up well, but performance fees came in at €18m, down by €8m vs Q1 2015;
• operating expenses were down 1.3%: this change is mainly the result of adjusting variable compensation to match changes in revenue; costs were equal to 9.3^[4] bp of assets under management vs 9.6 bp in average in fiscal year 2015;
• the cost/income ratio, at 53.7%, was up one point from the first quarter of 2015 due to the unfavourable effect on revenues from the market downturn; however it remains at a very good level;
• tax expenses recorded over the quarter were down 12.2%, due primarily to the corporate tax cut in France; this resulted in an effective tax rate of 32.4%.

The Board of Directors, at its meeting on 28 April 2016, also took note of the resignation of Jean-Paul Chifflet from his positions as Chairman of the Board and Director, effective at the end of the Board meeting. The Board decided to replace him as Director by co-opting Michel Mathieu, Deputy CEO of Crédit Agricole S.A. in charge of the International Retail Banking business line and CEO of LCL, and to appoint Xavier Musca, Deputy CEO of Crédit Agricole S.A., to the position of Chairman of the Board.

Amundi’s financial information for the first quarter 2016 consists of this press release and the related presentation, available on our website http://about.amundi.com.