Amundi Results

Results for the first nine months and third quarter of 2016

Paris, France, October 28, 2016 by Amundi

Operational performance in line with the objectives announced at the time of the IPO

Amundi’s Board of Directors convened on 27 October 2016 to review the financial statements for the first nine months and third quarter of 2016.

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

“Amundi's performance at the end of September 2016 is in line with the objectives announced at the time of the IPO, both in terms of inflows and income. The first nine months of 2016 illustrate that Amundi is capable of delivering consistent performance, quarter after quarter, despite a market environment still marked by strong risk aversion on the part of our clients.”

Business activity: assets under management at €1,054bn, with inflows of +€39bn over the first nine months of 2016

Amundi's assets under management were €1,054bn at 30 September 2016, reflecting strong business activity (inflows of +€39.1bn over the first nine months) and a positive market effect (+€21.7bn) and scope effect (+€8.6bn connected to the addition of KBI GI to the consolidation scope on 29 August 2016).

First nine months of 2016

The net inflows of +€39.1bn amount to 5.2%[1] of assets under management at the beginning of the period. Business activity was driven by strong sales momentum, which remains solid in medium/long-term assets: +€25.8bn over the first nine months of the year, equal to 4.3%⁴ of assets under management at the beginning of the period. This increase was observed in all traditional asset classes, both in active and passive management, as well as in real, alternative and structured assets, for which inflows amounted to +€4.6bn in the first nine months.

The Retail segment posted good business activity, with positive inflows of +€14.2bn in the first nine months of 2016 (+€16.7bn excluding treasury). This buoyant performance was primarily driven by the Joint Ventures (+€12.6bn), particularly in Asia, and by third-party distributors (+€5.5bn). Business activity on the French networks was moderately positive on medium- to long-term assets (+€0.6bn in the first nine months).

The Institutionals segment recorded strong inflows, at +€25bn over the first nine months of 2016. Institutionals and sovereigns again account for over 70% of inflows in the segment, with particularly significant inflows in treasury. Business activity remained strong for the CA and SG insurers (+€5.5bn in the first nine months).

From a geographical perspective, the net inflows are primarily attributable to international activities on medium/long-term assets (85% of the total), with 2/3 of these international inflows in Asia and 1/3 in Europe outside France. Thus, year-on-year, total international assets under management (including treasury) were up by +31%.

Third quarter of 2016

Net inflows on medium- to long-term assets remained high (+€8.6bn). Inflows were also particularly strong on treasury (+€13.8bn).

Net income in the first nine months of 2016: €415m; growth in revenue and strict cost control

First nine months of 2016

Amundi's performance continues to follow a regular growth trajectory. Net income was up +5.3% from the first nine months of 2015, in line with the objectives announced at the time of the IPO. This increase was bolstered by a +0.7% growth in revenue (to €1,234m), with a particularly high level of performance fees (€87m). At €642m, operating expenses are under control (-0.7%). As a result, the cost/income ratio improved by 0.7 percentage points to 52.0%.

The share of net income of equity-accounted entities was €21m, an increase of 12.3% from the first nine months of 2015, aided by a strong contribution from the Joint Ventures in Asia.

Taking into account a lower tax charge over the first nine months (-5.3%) resulting from a reduction in the French corporate tax rate, net income Group share amounted to €415m, an increase of +5.3% from the first nine months of 2015. Net earnings per share in the first nine months of 2016 amounted to €2.48.

Third quarter of 2016

Amundi recorded a significant increase in net income Group share (+14.2% compared to the third quarter of 2015). Net revenue was up (+5.1%), and the cost/income ratio improved (-1.1pp) to 52.2%.

Recent growth initiatives

Amundi has continued its policy of strengthening its management expertise to drive future growth:

• An integrated platform dedicated to expertise in real and alternative assets (real estate, private debt, private equity, infrastructure) has been created. Through it, the Group now has a platform enabling investors to benefit from the attractive yields on these asset classes. With €34bn already under management[2], this platform is aiming to double its AUM by 2020.

Accordingly, on 27 October, definitive approval was obtained for combining the real estate management activities of Amundi and Crédit Agricole Immobilier[3] through the merger[4] of their specialised management companies: CAII[5] (€5bn under management) and Amundi Immobilier (€12bn under management). Crédit Agricole Immobilier has exchanged its CAII shares for new Amundi shares[6]. This transaction will create a sizeable player on the European level, with ambitious business development, and will strengthen Amundi's positioning in real estate investment funds, an asset class seeing tremendous growth. Overall, Amundi expects to be managing more than €20bn in real estate by the end of 2016.

• On 29 August, the acquisition of KBI Global Investors[7] was finalised. This Dublin-based asset management company specialised in equity management is seeing rapid growth. This transaction, which is in line with the Group's acquisition policy, offers marketing synergies and immediately increases Amundi’s net earnings per share.

In addition, a Services business line[8] was created to provide management companies and institutional investors with services in IT, market access and fund hosting. Amundi has highly efficient infrastructure, an asset it intends to promote among third parties. The objective is for these activities to represent 5% of net revenue in five years.

Summary income statement

Change in assets under management from 31 December 2014 to 30 September 2016

*The scope effect in Q3 2016 is related to the addition of KBI GI to the consolidation scope.

Details of assets under management and net inflows by client segment

^* French networks: net inflows on medium- to long-term assets +€0.6bn; €0.3bn in the first nine months of 2016 (0 in the first half of the year)

^** Including funds of funds

Note: assets under management include all assets managed and marketed 

Details of assets under management and net inflows by asset class