Newsroom

Results for the first nine months and third quarter of 2016

Paris, France, 10/28/16,  by Amundi

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

Business activity

  • Assets under management of €1,054bn[1] at 30 September 2016, +10.8% vs.
    30 September 2015
  • Strong business momentum: net inflows1 of +€22bn in Q3, bringing total net inflows over the first nine months to +€39bn
  • Consistent and sustained net inflows in medium- to long-term assets[2] over the first nine months, and strong inflows on treasury in Q3
  • Scope effect due to the acquisition of  KBI GI on 29 August 2016: +€8.6bn of additional AUM

Results[3]

  • Net revenue up in Q3 2016: €396m (+5.1% vs. Q3 2015)
  • First nine months: €1,234m (+0.7% vs. 9M 2015)
  • Improved cost/income ratio in Q3 2016: 52.2% (-1.1pp vs. Q3 2015)
  • First nine months: 52.0% (-0.7pp vs. 9M 2015)
  • Net income up significantly in Q3 2016: €137m (+14.2% vs. Q3 2015)
  •  First nine months: €415m (+5.3% vs. 9M 2015)
 

[1] Assets under management (including assets marketed) and net inflows include 100% of assets managed by and net inflows from joint ventures, excluding Wafa in Morocco, for which assets under management and net inflows are reported on a proportional consolidation basis.

[2] Medium- to long-term (MLT) assets, excluding treasury products: equities, multi-asset, bonds, real, alternative and structured assets

[3] Unaudited figures

 

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

 

 

(€m)

 

9M 2016

9M 2015

% chg.

 

Q3 2016

Q3 2015

% chg.
vs. Q3 2015

Net revenue

 

1,234

1,226

+0.7%

 

396

377

+5.1%

o/w performance fees

 

87

77

+13.6%

 

34

22

+49.5%

Operating expenses

 

-642

-646

-0.7%

 

-207

-201

+2.9%

Gross operating income

 

592

579

+2.2%

 

189

176

+7.6%

Cost/income ratio (%)

 

52.0%

52.7%

-0.7pp

 

52.2%

53.3%

-1.1pp

Share of net income of equity-accounted entities

 

21

19

+12.3%

 

8

6

+32.7%

Other items

 

0

5

NS

 

-1

0

NS

Pre-tax income

 

613

603

+1.6%

 

197

182

+8.3%

Taxes

 

-196

-208

-5.3%

 

-59

-61

-2.7%

Net income - Group share

 

415

394

+5.3%

 

137

120

+14.2%

Net earnings per share (€)

 

€2.48

€2.36

+5.0%

 

€0.82

€0.72

+13.9%

 

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

 

 

Assets under

 

Market

Scope

(€bn)

management

Inflows

effect

effect

31/12/2014

878

 

 

 

Flows Q1 2015

 

+24.0

+47.5

+5.3

31/03/2015

954

 

 

 

Flows Q2 2015

 

+22.6

-22.9

 

30/06/2015

954

 

 

 

Flows Q3 2015

 

+19.2

-21.2

 

30/09/2015

952

 

 

 

Flows Q4 2015

 

+14.1

+19.0

 

31/12/2015

985

 

 

 

Flows Q1 2016

 

+13.8

-11.6

 

31/03/2016

987

 

 

 

Flows Q2 2016

 

+3.0

+13.6

 

30/06/2016

1,004

 

 

 

Flows Q3 2016

 

+22.3

+19.7

+8.6*

30/09/2016

1,054

 

 

 

*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

 

   

AUM

AUM

% chg.

 

Inflows

Inflows

 

Inflows

Inflows

(€bn)

 

30/09/2016

30/09/2015

vs. 30/09/2015

 

9M 2016

9M 2015

 

Q3 2016

Q3 2015

French networks*

 

97

105

-8.4%

 

-4.2

+2.1

 

-0.2

-0.5

International networks & JVs

 

108

79

+37.6%

 

+12.8

+20.4

 

+2.4

+8.5

Third-party distributors

 

76

64

+19.1%

 

+5.5

+11.8

 

+1.8

+1.6

Retail

 

281

248

+13.3%

 

+14.2

+34.3

 

+4.0

+9.6

Institutionals & sovereigns**

 

266

229

+16.1%

 

+18.1

+20.1

 

+13.5

+6.2

Corporates & Employee Savings Plans

 

88

79

+12.3%

 

+1.3

+4.6

 

+2.6

+0.6

CA & SG insurers

 

419

396

+5.8%

 

+5.5

+6.8

 

+2.2

+2.7

Institutionals

 

773

704

+9.9%

 

+25.0

+31.5

 

+18.3

+9.6

                     

TOTAL

 

1,054

952

+10.8%

 

+39.1

+65.8

 

+22.3

+19.2

O/W JV

 

86

58

+48.0%

 

+12.6

+18.8

 

+2.3

+8.1

* 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

 

 

 

AUM

AUM

% chg.

 

Inflows

Inflows

 

Inflows

Inflows

(€bn)

 

30/09/2016

30/09/2015

vs. 30/09/2015

 

9M 2016

9M 2015

 

Q3 2016

Q3 2015

Equities

 

142

115

+23.1%

 

+7.5

+4.5

 

+1.8

+3.8

Diversified

 

122

113

+8.2%

 

+4.4

+10.9

 

+1.7

+1.1

Fixed income

 

540

488

+10.6%

 

+9.3

+19.0

 

+3.0

+3.7

Real, specialised & structured assets

 

69

65

+6.3%

 

+4.6

+0.6

 

+2.1

-1.0

MEDIUM- TO LONG-TERM ASSETS

 

872

777

+12.1%

 

+25.8

+35.0

 

+8.6

+7.5

Treasury

 

183

174

+4.6%

 

+13.4

+30.7

 

+13.8

+11.7

                     

TOTAL

 

1,054

952

+10.8%

 

+39.1

+65.8

 

+22.3

+19.2

 

Details of assets under management and net inflows by region

 

 

 

AUM

AUM

% chg.

 

Inflows

Inflows

 

Inflows

Inflows

(€bn)

 

30/09/2016

30/09/2015

vs. 30/09/2015

 

9M 2016

9M 2015

 

Q3 2016

Q3 2015

France

 

773

736

+5.0%

 

+17.3

+26.4

 

+15.7

+6.6

Europe excl. France

 

119

91

+30.5%

 

+7.5

+15.5

 

+3.5

+3.1

Asia

 

135

98

+37.3%

 

+13.7

+22.7

 

+1.7

+9.1

Rest of world

 

28

26

+5.6%

 

+0.7

+1.2

 

+1.4

+0.3

                     

TOTAL

 

1,054

952

+10.8%

 

+39.1

+65.8

 

+22.3

+19.2

TOTAL EXCL. FRANCE

 

282

216

+30.6%

 

+21.8

+39.3

 

+6.6

+12.6

 


[1] Annualised

[2] Including commitments

[3] Announced 14 September 2016

[4] Scheduled to occur on 31 October 2016

[5] Crédit Agricole Immobilier Investors

[6] As a result of the transaction, 680,232 new shares were issued, representing a nominal capital increase of €1,700,580. Amundi's share capital is now composed of 167,925,469 shares, amounting to €419,813,672.50. The impact on Amundi's net earnings per share is neutral.

[7] Announced 23 May 2016

[8] Execution, reporting, calculation of risk indicators, asset allocation, etc.

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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