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FY 2018: Sharp improvement in annual results

London, UK, 2/13/19,  by Amundi

FY 2018

Sharp improvement in annual results

Accounting net income of €855m, up 25.5% vs. 2017

 

Successful integration of Pioneer

An acquisition that strengthens Amundi’s business model and its European leadership position

A transaction that creates significant value:

total synergies raised to €175m, vs €150m originally announced

Successful integration of Pioneer

An acquisition that strengthens Amundi’s business model and its European leadership position

A transaction that creates significant value: total synergies raised to €175m, vs €150m originally announced

FY 2018

 Annual results in line with stated targets, despite an unfavourable environment

    • Increase in accounting net income1 (to €855m) of +25.5% vs. 2017 and in accounting EPS   of +19.8%
    • Adjusted net income2 of €946m, up 9% vs 2017 excluding extraordinary financial revenues3 (vs. a target of +7%3)
    • Net asset management revenues almost stable (-0.7% vs. 2017), despite market conditions
    • A cost/income ratio2 of 51.5%, an improvement of 0.9 pt

 Strong net inflows4 (+€42bn), driven mainly by MLT assets5 (+€36bn)

In Q4 2018

 Quarterly adjusted net income remains high (€225m)

    • Compared with an exceptionally high Q4
    • Excluding financial revenues6, adjusted net income was stable compared with Q4 2017
    • A cost/income ratio2 of 52.5%, thanks to lower costs

 Net outflows of -€6.5bn with a resilient Retail activity (+€0.5bn)

Integration
of Pioneer

 A successful transaction: 

    • Bolsters Amundi’s business model in three dimensions: distribution, expertise and talent
    • Executed in record time (18 months)
    • Creates significant value:
      • 2018 adjusted EPS2 up 36% vs. 2016 (> accretion target of 30%7)
      • Total cost synergies raised from €150m to €175m
      • Faster-than-anticipated phasing of synergies

Dividend

 Dividend proposed at the General Meeting: €2.90 per share (+16% vs. 2017)

 

Paris, 13 February 2019

Amundi’s Board of Directors, chaired by Xavier Musca, convened on 12 February 2019 to approve the financial statements for 2018.

Commenting on the figures, Yves Perrier, CEO, said:

“Despite an unfavourable market environment, Amundi's results increased sharply once again in 2018. There are two factors behind this improvement. First, business momentum remained strong, despite the market context, and benefited from Amundi’s significant international presence, particularly in Asia. Second, the Pioneer integration has been a success, and the acquisition has significantly strengthened Amundi's business model; the integration was executed quickly and competently, and therefore the total amount of synergies has been increased to €175m per year ”.

 

 

Footnotes

  1. After integration costs and amortisation of distribution contracts
  2. Before integration costs and amortisation of distribution contracts
  3. Growth rate calculated based on 2017 adjusted and combined net income excluding the exceptionally high level of financial income
  4. Inflows include assets under management, under advisory and assets sold, and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis
  5. MLT : Medium Long-term assets: excluding treasury products
  6. Financial revenues in Q4 2017 included capital gains on disposals, and Mark to Market was negative in Q4 2018 due to the decline in the markets
  7. Accretion target announced on 12/12/2016, including the full-year effect of synergies and excluding integration costs and amortisation of distribution contracts
  8. Comparison with combined 2017 data: 12 months Amundi + 12 months Pioneer

 

 

  1. Growth rate calculated based on 2017 adjusted and combined net income excluding the exceptional level of financial income
  2. Accounting income includes amortisation of distribution contracts and costs associated with the integration of Pioneer. In 2017, Pioneer was consolidated for only six months
  3. Excluding amortisation of distribution contracts and excluding costs associated with the integration of Pioneer
  4. Excluding amortisation of distribution contracts (UniCredit, SG, and Bawag) 
  5. Average margin: net asset management revenue (excluding performance fees)/average assets under management excluding JVs
  6. Excluding costs associated with the integration of Pioneer
  7. MLT : Medium Long-Term assets: excluding treasury products
  8. Including the €6.5bn in assets reinternalised by Fineco in Q3 2018
  9. Source: Amundi and Broadridge Financial Solutions – FundFile & Deutsche Bank ETF /Open funds (excluding discretionary mandates and dedicated funds) at the end of December 2018
  10. Excluding JVs
  11. Source: DB ETF Monthly Review & Outlook, end-December 2018
  12. Excluding the €6.5bn in assets reinternalised by Fineco in Q3 2018
  13. Tangible equity: Group share of equity net of goodwill and intangible
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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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