Newsroom

First quarter 2016 results

Paris, France, 4/29/16,  by Amundi

Buoyant business activity and sustained earnings despite a challenging market environment

Business

  • Strong net inflows[1]: €13.8bn, ie 6%[2] of AuM
  • Well balanced between medium/long-term assets[3] (+€6.9bn) and treasury products
  • Net inflows driven by the Institutional client segment (+€12.0bn)
  • AuM1 at €987bn stable compared to end-2015 due to a negative market effect of €11.6bn over the quarter, offsetting a large share of the net inflows
  • AuM up 3% vs. 31 March 2015

Income

  • Net income Group share: €130m, up +1% vs Q1 2015
  • Net revenue down 3% vs Q1 2015 at €395m, but stable when excluding the market effect
  • Cost/income ratio remains best in class at 53.7% (Q1 2015: 52.7%)

 

Paris, 29 April 2016

Amundi’s Board of Directors, chaired by Jean-Paul Chifflet, met on Thursday, 28 April 2016 to review the financial statements for the first quarter of 2016.

 

Commenting on these results, Yves Perrier, CEO, said:

“The solid net inflows and earnings in the first quarter, achieved in a challenging market environment, are a reflection of the strength of Amundi's business model, based on broad business diversification by expertise, client segment and region.”

 

A challenging market environment

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.

Net inflows of €13.8bn in Q1 2016, equal to 6%[2] of AuM at the beginning of the period

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.

 

Net income Group share was €130m, up +1% vs. the first quarter of 2015

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.

Summary income statement

(€m)

   

Q1  16

Q1  15

% ch.

Net revenues

   

395

408

-3.3%

o/w performance fees

   

18

26

-32.2%

Operating expenses

   

-212

-215

-1.3%

Gross operating income

   

183

193

-5.5%

Cost income ratio (%)

   

53.7%

52.7%

+1.0pt

Other items

   

0

-3

NS

Share of net inc. of equity-accounted entities

   

7

6

+13.0%

Pre tax income

   

189

196

-3.5%

Income tax

   

-59

-68

-12.2%

Net income

   

130

129

+1.1%

Net income Group share

   

130

129

+0.8%

Earnings per share (€)

 

0.77 €

0.77 €

+0.5%

 

Change in assets under management from 31 December 2014 to 31 March 2016

 

 

Assets under

Net

Market

Scope

(€bn)

management

inflows

effect

effect

31/12/2014

877.5

 

 

 

Flows Q1 2015

 

24.0

47.5

5.3

31/03/2015

954.3

 

 

 

Flows Q2 2015

 

22.6

-22.9

-

30/06/2015

954.0

 

 

 

Flows Q3 2015

 

19.2

-21.2

-

30/09/2015

952.0

 

 

 

Flows Q4 2015

 

14.1

+19.0

-

31/12/2015

985.0

 

 

 

Flows Q1 2016

 

13.8

-11.6

-

31/03/2016

987.2

 

 

 

 

Details of assets under management and net inflows by client segment

 

 

 

AuM

AuM

% ch.

 

Net inflows

Net inflows

(€bn)

 

31.03.16

31.12.15

/31.12.15

 

Q1-16

Q1-15

French networks

 

95

102

-7.1%

 

(4.6)1

0.82

International networks & JV

 

95

94

+0.9%

 

3.7

3.0

Third-party distributors

 

67

66

+0.9%

 

2.7

6.1

Retail

 

257

263

-2.2%

 

1.8

9.9

Institutionals & sovereigns

 

245

238

+2.8%

 

8.5

5.4

Corporates & Employee Savings Plans

 

82

87

-5.3%

 

(4.1)

4.2

CA & SG insurers

 

404

398

+1.5%

 

7.6

4.4

Institutionals

 

730

722

+1.1%

 

12.0

14.0

               

TOTAL

 

987

985

+0.2%

 

13.8

24.0

O/W JV

 

74

73

+1.2%

 

3.6

2.5

1 Q1 2016: net inflows on long-term assets: -€0.3bn, net inflows on treasury products from SMEs: -€4.3bn
2 Q1 2015: net inflows on long-term assets: +€1.0bn, net inflows on treasury products from SMEs: -€0.2bn

 

Details of assets under management and net inflows by asset class

 

 

 

AuM

AuM

% ch.

 

Net inflows

Net inflows

(€bn)

 

31.03.16

31.12.15

/31.12.15

 

Q1-16

Q1-15

Equities

 

122

125

-2.5%

 

2.3

(1.2)

Multi-assets

 

116

117

-1.2%

 

1.4

6.4

Bonds

 

498

498

-0.0%

 

1.7

5.9

Specialised & structured

 

65

60

+8.5%

 

1.4

1.1

MEDIUM TO LONG TERM ASSETS

 

800

804

-0.5%

 

6.9

12.2

Treasury

 

187

181

+3.5%

 

7.0

11.8

               

TOTAL

 

987

985

+0.2%

 

13.8

24.0

 

 

 

 

 


[1] Measured as the change in the average closing price from Q1 2015 to Q1 2016: CAC 40 -8.6%, SBF 120 -8.2%, Stoxx 600 -11.2%,
EuroStoxx -10.5%

[2] Annualised, computed on assets under management at beginning of period

[3] Source: Europerformance NMO, open-ended funds under French law, March 2016

[4] Annualised, calculated as the quarter's operating expenses, multiplied by 4, and divided by the quarter's average assets under management, excluding joint ventures

 

 

[1] Assets under management and net inflows include 100% of the assets under management and net inflows of joint ventures, excluding Wafa in Morocco, for which assets under management are reported on a proportional consolidation basis.

[2] Annualised, computed on assets under management at beginning of period

[3] Excluding Treasury products: equities, fixed income, multi assets, guaranteed/structured, alternative and real assets.

Contact
About Amundi

Amundi is Europe’s largest asset manager by assets under management and ranks in the top 10[1] globally. It manages more than 1.470 trillion[2] euros of assets across six main investment hubs[3]. Amundi offers its clients in Europe, Asia-Pacific, the Middle East and the Americas a wealth of market expertise and a full range of capabilities across the active, passive and real assets investment universes. Clients also have access to a complete set of services and tools. Headquartered in Paris, and listed since November 2015, Amundi is the 1st asset manager in Europe by market capitalization[4].

 

Thanks to its unique research capabilities and the skills of close to 4,500 team members and market experts based in 37 countries, Amundi provides retail, institutional and corporate clients with innovative investment strategies and solutions tailored to their needs, targeted outcomes and risk profiles.

 

Amundi. Confidence must be earned.

 

Visit www.amundi.com for more information or to find an Amundi office near you.

 

Footnotes

 

  1. ^ [1] Source IPE “Top 400 asset managers” published in June 2018 and based on AUM as of end December 2017
  2. ^ [2] Amundi figures as of September 30, 2018
  3. ^ [3] Investment hubs: Boston, Dublin, London, Milan, Paris and Tokyo
  4. ^ [4] Based on market capitalization as of September 30, 2018

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