• Amundi: Q1 2023 Results

    Источник: Nasdaq GlobeNewswire / 28 апр 2023 00:01:47   America/Chicago

    Amundi: First quarter 2023 results

    A high net income1,2 at €300 million

    Results Adjusted net income1,2 of €300 million, thanks to a diversified profile and operational efficiency

    • Resilient management fees Q1/Q1 despite unfavourable market impacts
    • Good cost control in an inflationary environment
    Cost/income ratio at 53.6%2
       
    Activity Healthy inflows for Retail and the JVs in India and Korea

    • Retail (excluding JV et Amundi BOC WM): +€4.3 billion, including +4.2 in MLT assets3, thanks to the success of the offers adapted to the new context: structured products and Buy & Watch bond funds
    • SBI MF (India) +€2.8 billion and NH-Amundi (Korea) +€1.6 billion
    Total flows (-€11.1 billion) impacted by redemptions for very-low-margin institutional assets
       
    Continued development initiatives Amundi Technology: 4 new clients in Q1

    Fund Channel: closing of the transaction with CACEIS, which acquires 33.33% of FC’s capital to develop fund execution and offer an integrated service to distributors

    Responsible investment: €822 billion in assets under management as at 31 March 2023, extension of the range of funds aligned to a Net Zero trajectory4

    Paris, 28 April 2023

    The Amundi Board of Directors meeting of 27 April 2023, chaired by Yves Perrier, approved the financial statements for Q1 2023.

    CEO Valérie Baudson stated:

    “Amundi delivered a good performance in the first quarter of 2023, in an uncertain market environment.

    Our adjusted net income remained stable at €300 million compared to the fourth quarter of 2022, thanks to the resilience of our revenues and good cost control. The productivity gains and continued synergies generated by the integration of Lyxor have enabled us to absorb the effects of inflation while continuing to invest.

    I would also like to underline the healthy inflows of our Retail activities over the quarter, whether for our partner networks in France and abroad or for our third-party distributors”.

    * * *

    A market context remaining uncertain

    Over one year, the equity and bond markets5 were down -5% and -12% respectively. Despite a rebound during the first quarter (+9% on average for the quarter compared to Q4 2022), the equity markets remain volatile.

    1. Results

    A healthy financial performance for the first quarter

    Adjusted data6

    Adjusted net income6 reached €300 million in Q1 2023, essentially stable compared to Q4 2022, and down -7.5% from Q1 2022, in line with the unfavourable evolution of the market.

    This strong performance is explained by the diversification of Amundi's activities and its operational efficiency, and is reflected in revenue resilience and good cost control.

    Net revenue5 amounted to €794 million, down -4.9% from Q1 2022 but stable (+0.4%) relative to Q4 2022.

    • Net management fees were sustained at a high level: €736 million, down -3.9% year-on-year, to be compared to a -5.9% average drop in assets under management excluding JVs over the same period, reflecting the higher margins thanks to the mix effect; net management fees increased by +2.3% compared to Q4 2022;
    • Revenue growth for Amundi Technology was robust (+35% compared to Q1 2022), at €13 million, confirming its development;
    • Performance fees (€28 million) were down significantly compared to the high comparison base in Q1 and Q4 2022 (respectively €71 million and €63 million);
    • Finally, net financial and other income was positive (€16 million), thanks to both the return to positive yields on the net cash and positive mark-to-market of the investment portfolio in the quarter.

    Operating costs5 were well under control at €425 million, an increase of only +0.6% compared to Q1 2022, in a context of high inflation.

    Inflation, development investments, and the unfavourable exchange rate effect were largely absorbed by productivity gains and the pursuit of synergies generated by the integration of Lyxor.

    In this context, the very moderate increase in costs over one year, well below the inflation rates seen in most of the countries where Amundi operates, reflects the agility Amundi’s to adjust its cost base, delivering the best cost/income ratio in the sector again this quarter: 53.6%6.

    Gross operating income5 (GOI) amounted to €369 million, down -10.5% from Q1 2022 and -2.5% from Q4 2022.

    The share of net income of equity-accounted companies, reflecting Amundi's share in the net income of minority JVs in India (SBI MF), China (ABC-CA), South Korea (NH-Amundi), and Morocco (Wafa Gestion), was up +11.2% relative to Q1 2022, at €22 million.

    Accounting data

    Net accounting income (group share) was €285 million in the first quarter, including the amortisation of the intangible assets (customer contracts related to the acquisition of Lyxor and the distribution contracts related to previous transactions), ie -€15m after tax in Q1 2023.

    Accounting earnings per share was €1.40.

    1. Activity

    Healthy Retail inflows and favourable business mix

    The assets managed by Amundi as of 31 March 2023 were down -4.3% over one year, but up +1.6% compared to end-2022, at €1,934 billion.

    Retail recorded satisfactory inflows: +€4.3 billion excluding the Chinese subsidiary Amundi BOC WM. As in 2022, inflows mainly came from MLT assets, +€4.2 billion, driven by all segments:

    • The French networks posted net inflows of +€2.7 billion, of which +€0.8 billion in MLT assets and +€1.9 billion in treasury products. MLT inflows were driven, as in H2 2022, by structured products, at +€1.5 billion;
    • Inflows from the International networks (excluding Amundi BOC WM in China) reached +€1.2 billion, entirely in MLT assets; as for the French networks, both structured products (+€0.5 billion) and bond strategies continued their success achieved in the latter part of 2022; the performance was well-diversified by country and network, with healthy inflows particularly in Italy with UniCredit, in the Czech Republic with the Société Générale and UniCredit subsidiaries, and in Spain with Sabadell.
    • Third Party Distribution experienced a reversal of the trend observed in Q4 2022: in the first quarter, total inflows of +€0.4 billion break down into a strong performance of +€2.2 billion in MLT assets, notably in ETFs, and conversely outflows in treasury product; by geography, the good performance of Asia should be noted for the quarter.

    The strong performance for Retail is more than offset, however, by MLT asset outflows in very low margin segments or products, as well as outflows in China, where the asset management market still shows net redemptions in MLT assets; this latter factor also explains the net outflows at our JVs:

    • Outflows for the Institutional segment (-€11.7 billion, of which -€13.7 billion in MLT assets) were largely limited to a few very-low-margin insurance and institutional mandates, in particular in the CA & SG Insurers segment, which experienced redemptions in the traditional life (“euro”) contracts, and a large sovereign client in index management;
    • In China, Amundi BOC WM recorded outflows of -€2.8 billion, still related to maturing term funds, and the ABC-CA JV was impacted by redemptions from large institutions (outflows of -€5.0 billion).

    Excluding the Chinese JV, inflows in the other JVs were very satisfactory, particularly in India (+€2.8 billion) and Korea (+€1.6 billion), both continuing to benefit from strong activity, particularly in MLT assets.

    Total net inflows for the quarter were negative at -€11.1 billion.

    1. Continuing development initiatives

    Several important milestones of the Ambitions 2025 development plan were reached during the first quarter:

    • Amundi Technology saw its earnings increase by +35% compared to Q1 2022 and added 4 new customers, including 3 in Asia. Amundi Technology and HSBC Securities Services in Asia have signed an agreement for the use of the ALTO platform. This is a major new client for the ALTO offering to asset servicers, which already counts CACEIS, Société Générale Securities Services and Bank of NY Mellon among its clients. BNY Mellon has successfully deployed ALTO across 7 of its entities in EMEA;
    • Amundi's fund distribution platform Fund Channel is announcing today the closing of its transaction with CACEIS. The latter is acquiring 33.33% of the capital of Fund Channel, to develop fund execution and offer integrated services to distributors.
    • Assets under management in Responsible Investment reached €822 billion, compared to €800 billion at end-2022, thanks to a positive market effect.        
      As part of its Net Zero commitment, on 17 April Amundi announced the launch of a full range of funds across a wide range of asset classes aligned to a Net Zero trajectory7, targeting a reduction by 30% in carbon intensity in 2025 compared to 2019, and by 60% in 2030.


    ***

    Amundi's Annual General Meeting will take place on 12 May at 10am CET. As announced on 8 February upon the publication of the results for 2022, the Board of Directors will propose to the General Meeting a cash dividend of €4.10 per share, stable relative to the dividend paid for 2021. This dividend represents a payout ratio of approximately 75% of net accounting income (Group share) in 2022, excluding integration costs, and a yield of 7% based on the closing share price on 25 April 2023.

    Financial disclosure schedule

    • AGM for the 2022 financial year: Friday 12 May 2023
    • Publication of H1 2023 results: 28 July 2023
    • Publication of 9M 2023 results: 27 October 2023

    Dividend schedule (€4.10 per share proposed to the General Meeting of 12 May 2023)

    • Ex-dividend date: Monday 22 May 2023
    • Payment: as from Wednesday 24 May 2023

    ***

    APPENDICES

    Quarterly Statement of income

    (€M) Q1 2023Q1 2022% YoY ch.Q4 2022% QoQ ch.
           
    Net revenue - Adjusted 794 835 -4.9%790 +0.4%
    Net management fees 736 766 -3.9%720 +2.3%
    Performance fees 28 71 -60.0%63 -55.0%
    Technology 13 10 +35.0%15 -12.7%
    Net financial income & other net income 16 (12)NM(7)NM
    Operating expenses - Adjusted (425)(423)+0.6%(412)+3.2%
    Cost income ratio - Adjusted 53.6%50.6%+2.9pp52.1%+1.4pp
           
    Gross operating income - Adjusted 369 412 -10.5%378 -2.5%
    Cost of risk and others (1)(4)-85.0%(4)-87.2%
    Share of net income of equity accounted companies 22 20 +11.2%24 -8.1%
    Income before tax - Adjusted 390 428 -8.9%398 -2.0%
    Corporate tax - Adjusted (91)(103)-11.6%(96)-5.0%
    Non-controlling interests 1 (1)NM0 +75.2%
    Net income group share - Adjusted 300 324 -7.5%303 -1.0%
    Amortisation of intangible assets (net of tax) (15)(15)+0.2%(15)+0.2%
    Integration costs (net of tax) 0 (8)NM(2)NM
    Net income group share 285 302 -5.6%286 -0.4%
    Earnings per share (€) 1.40 1.49 -5.9%1.41 -0.4%

    Change in assets under management from end-2019 to end-March 2023

    (€bn)Assets under managementNet inflowsMarket & Forex effectsScope

    effect    		 % ch. In AuM vs previous quarter
    As at 31/12/20191,653    +5.8%
    Q1 2020 -3.2-122.7 / 
    As at 31/03/20201,527   /-7.6%
    Q2 2020 -0.8+64.9 / 
    As at 30/06/20201,592   /+4.2%
    Q3 2020 +34.7+15.2 +20.78 
    As at 30/09/20201,662   /+4.4%
    Q4 2020 +14.4+52.1 / 
    As at 31/12/20201,729   /+4.0%
    Q1 2021 -12.7+39.3 / 
    As at 31/03/20211,755   /+1.5%
    Q2 2021 +7.2+31.4 / 
    As at 30/06/20211,794   /+2.2%
    Q3 2021 +0.2+17.0 / 
    As at 30/09/20211,811   /+1.0%
    Q4 2021 +65.6+39.1 +1489 
    As at 31/12/20212,064   /+14%
    Q1 2022 +3.2-46.4 / 
    As at 31/03/20222,021   /-2.1%
    Q2 2022 +1.8-97.75 / 
    As at 30/06/20221,925   /-4.8%
    Q3 2022 -12.9-16.3 / 
    As at 30/09/20221,895   /-1.6%
    Q4 2022 +15.0-6.2 / 
    As at 31/12/20221,904   /+0.5%
    Q1 2023 -11.1+40.9 / 
    As at 31/03/20231,934   /+1.6%
             

    Total one year between 31 March 2022 and 31 March 2023: - 4.3%

    • Net inflows        €7.3 bn
    • Market & forex effect        -€79.3 bn

    Breakdown of assets under management & net inflows by client segment10

    (Md€)  AuM
    31.03.2023    		AuM
    31.03.2022    		% ch.
    /31.03.2022    		Net inflows
    Q1 2023    		Net inflows
    Q1 2022
    French networks124122+1.7%+2.7-1.3
    International networks157172-8.6%-1.6+3.5
    o/w Amundi BOC WM413-68.7%-2.8+2.3
    Third-party distributors296322-8.2%+0.4+11.9
            
    Retail  578617-6.4%+1.5+14.1
    Institutionals & Sovereigns (*)472476-0.8%+1.0-3.0
    Corporates9695+1.9%-7.9-13.4
    Employee savings7975+4.9%-0.6-1.3
    CA & SG Insurers416462-9.9%-4.3-1.7
     
    Institutionals 1,0641,108-4.0%-11.7-19.4
    JVs  292296-1.1%-0.8+8.4
    TOTAL  1,9342,021-4.3%-11.1+3.2

    (*) including funds of funds

    Breakdown of assets under management & net inflows by asset class10

    (€bn)  AuM
    31.03.2023    		AuM
    31.03.2022    		% ch.
    /31.03.2022    		Net inflows
    Q1 2023    		Net inflows
    Q1 2022
    Equities  425435-2.3%-2.9+8.2
    Multi-asset  286328-12.9%-7.2+10.9
    Bonds  616661-6.8%-3.2+0.5
    Real, alternative & Structured assets125125+0.6%+0.9+1.4
            
    MLT ASSETS excl. JVs1,4531,549-6.2%-12.4+21.0
    Treasury products excl. JVs189176+7.4%+2.1-26.3
            
    TOTAL ASSETS excl. JVs1,6421,725-4.8%-10.3-5.2
    JVs  292296-1.1%-0.8+8.4
    TOTAL  1,9342,021-4.3%-11.1+3.2
    o/w MLT assets1,7161,812-5.3%-11.3+30.2
    o/w treasury products218209+4.3%+0.3-27.0

    Breakdown of assets under management & net inflows by geographic area10

    (€bn)  Encours
    31.03.2023    		Encours
    31.03.2022    		% var.
    /31.03.2022    		Net inflows
    Q1 2023    		Net inflows
    Q1 2022
    France  903948-4.8%-2.4-22.8
    Italy  197209-5.4%-0.7+3.8
    Europe outside France & Italy343350-2.0%+0.3+8.7
    Asia  371386-4.0%-4.8+14.2
    Rest of the world120128-5.9%-3.4-0.7
            
    TOTAL  1,9342,021-4.3%-11.1+3.2
    TOTAL outside France1,0311,072-3.8%-8.6+26.0

    Breakdown of assets under management & net inflows by management type and asset class11

    (Md€)  AuM
    31.03.2023    		AuM
    31.03.2022    		% ch.
    /31.03.2022    		Net inflows
    T1 2023    		Net inflows
    T1 2022
    Active management1,0271,117-8.1%-13.1+9.1
    Equities  183183-0.2%-1.3-0.7
    Multi-asset  278321-13.5%-7.6+11.0
    Bonds  566612-7.6%-4.2-1.2
    Structured products3332+6.0%+1.1-1.2
    Passive management301307-2.2%-0.2+10.6
    ETF & ETC181190-4.6%+1.9+9.3
    Index & Smart beta119117+1.6%-2.2+1.2
    Real assets & Alternatives9293-1.2%-0.1+2.6
    Real assets6666-0.4%-0,1+2,2
    Alternatives2627-3.4%-0.0+0,4
            
    MLT ASSETS excl. JVs1,4531,549-6.2%-12.4+21.0
    Treasury products excl. JVs189176+7.4%+2.1-26.3
            
    TOTAL ASSETS excl. JVs1,6421,725-4.8%-10.3-5.2
    JVs  292296-1.1%-0.8+8.4
    TOTAL  1,9342,021-4.3%-11.1+3.2
    o/w MLT assets 1,7161,812-5.3%-11.3+30.2
    o/w treasury products218209+4.3%+0.3-27.0

    Methodology & Alternative Performance Measures (APM)

    Accounting and adjusted data

    • Accounting data: in 2022 and Q1 2023, accounting data include the amortisation of intangible assets. In 2022, they also include Lyxor integration costs.
    • Adjusted data: the following adjustments were made to present the most economically accurate income statement: restatement of the amortisation of distribution contracts with Bawag, UniCredit, and Banco Sabadell, and the intangible assets representing the Lyxor’s client contracts recorded as deduction from net income; costs of the Lyxor consolidation in 2022

    In the accounting data, amortisation of distribution contracts:

    • Q1 2022: -€20 m before tax and -€15 m after tax
    • Q4 2022: -€20 m before tax and -€15 m after tax
    • Q1 2023: -€20 m before tax and -€15 m after tax

    Acquisition de Lyxor

    • In accordance with IFRS 3, recognition on Amundi’s balance sheet as of 31/12/2021 of:
      • goodwill in the amount of €652 m;
      • an intangible asset (representing client contracts), of -€40 m before tax (-€30 m after tax), which will be amortised on a straight-line basis over 3 years;
    • In the Group income statement, the above-mentioned intangible asset will be amortised on a straight-line basis over 3 years starting in 2022; the full-year impact of this amortisation will be -€10 m net of tax (i.e. -€13 m before tax). This amortisation will be recognised as a deduction from net income and will be added to the existing amortisation of distribution agreements.
      For Q1 2022, Q4 2022, and Q1 2023 the amortisation expense for this intangible asset was respectively -€2 m (-€3 m before tax).
    • €10 m in integration costs before tax were recorded for Q1 2022 and €2 m for Q4 2022. Integration costs were fully recorded in 2021 and 2022, for a total of €77 m before tax (including €16 m in Q4 2021 and €57 m after tax including €12 m in Q4 2021).

    Alternative Performance Measures12

    To present the most economically accurate income statement, Amundi publishes adjusted data which excludes amortisation of intangible assets and the impact of Affrancamento (see above).

    These adjusted and normalised data are reconciled with accounting data as follows:

    = Accounting data


    = Adjusted data


    (€m) T1 2023 T1 2022 %Var. T1/T1 T4 2022 %Var. T1/T4
               
    Net revenue (a) 773 814 -5.0% 770 +0.5%
    - Amortisation of intangible assets (bef. Tax) -20 -20 +0% -20 +0.0%
    Net revenue - Adjusted (b) 794 835 -4.9% 790 +0.5%
               
    Operating expenses (c) -425 -433 -1.7% -414 +2.6%
    - Integration costs (before tax) 0 -10 / -2 /
    Operating expenses - Adjusted (d) -425 -423 +0.6% -412 +3.2%
               
    Gross operating income (e) = (a) + (c) 348 382 -8.7% 356 -2.0%
               
    Gross operating income - Adjusted (f) = (b) + (d) 369 412 -10.5% 378 -2.5%
    Cost income ratio (%) (c) / (a) 55.0% 53.1% +1.8pp 53.8% +1.2pp
    Cost income ratio - Adjusted (d) / (b) 53.6% 50.6% +1.4pp 52.1% +1.4pp
    Cost of risk & others (g) -1 -4 -85% -4 -87.2%
    Share of net income of equity accounted companies (h) 22 20 +11.2% 24 -8.1%
    Income before tax (i) = (e) + (g) + (h) 370 398 -7.1% 375 -1.5%
               
    Income before tax - Adjusted (j) = (f) + (g) + (h) 390 428 -8.9% 398 -2.0%
               
    Corporate tax (k) -85 -94 -9.8% -89 -4.6%
    Corporate tax - Adjusted (l) -91 -103 -11.6% -96 -5.0%
    Non-controlling interests (m) 1 -1 / 0 /
    Net income group share (o) = (i)+(k)+(m)  285 302 -5.6% 286 -0.4%
               
    Net income group share - Adjusted (p) = (j)+(l)+(m) 300 324 -7.5% 303 -1.0%

    Shareholder structure

     31 December 202131 December 202231 March 2023
        
     Number of shares%

    capital    		Number of shares%

    capital    		Number of shares%

    capital
    Crédit Agricole Group141,057,39969.46 %141,057,39969.19 %141,057,39969.19 %
    Employees1,527,0640.75 %2,279,9071.12 %2,238,5081.10 %
    Treasury shares255,7450.13 %1,343,4790.66 %1,331,6800.65 %
    Free float60,234,44329.66 %59,179,34629.03 %59,232,54429.06 %
    Number of shares at end of period203,074,651100.0 %203,860,131100.0 %203,860,131100.0 %
    Average number of shares for the period202,793,482202,793,482203,414,667/203,860,131/
    • Average number of shares on a pro-rata basis
    • The capital increase reserved for employees took place on 26/07/2022. 0.5 million shares were created, bringing the portion of capital owned by employees to 1.10% on 31/03/2023.

    About Amundi

    Amundi, the leading European asset manager, ranking among the top 10 global players13, offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €1.9 trillion of assets14.

    With its six international investment hubs15, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

    Amundi clients benefit from the expertise and advice of 5,400 employees in 35 countries.

    Amundi, a trusted partner, working every day in the interest of its clients and society.

      

    Press contact:        
    Natacha Andermahr 
    Tel. +33 1 76 37 86 05
    natacha.andermahr@amundi.com 

    Investor contacts:
    Cyril Meilland, CFA
    Tel. +33 1 76 32 62 67
    cyril.meilland@amundi.com 

    Thomas Lapeyre
    Tel. +33 1 76 33 70 54
    thomas.lapeyre@amundi.com 

    DISCLAIMER:

    This document may contain projections concerning Amundi's financial situation and results.
    The figures provided do not constitute a “forecast” as defined in Commission Delegated Regulation (EU) 2019/980.

    This information is based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context. As such, the projections and results indicated may not necessarily come to pass due to unforeseeable circumstances. The reader should take all of these uncertainties and risks into consideration before forming their own opinion.

    The figures presented were prepared in accordance with IFRS guidelines as adopted by the European Union. Data including Lyxor in 2021, before the integration in the accounts as from 1 January 2022, (with assumptions about the restatement of certain activities retained by SG).

    The information contained in this presentation, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this presentation or its contents, or anything related to them, or any document or information to which the presentation may refer.

    1 Attributable net income
    2 Adjusted data: excludes amortisation of intangible assets, and in 2022 Lyxor integration costs (see note p. 8)
    3 MLT: Medium/Long Term
    4 All Net Zero Ambition passive management funds comply with the EU’s CTB/PAB criteria
    5 Quarterly averages, Bloomberg Global Aggregate for bonds and 50% MSCI World + 50% Eurostoxx 600 composite index for equities
    6 Adjusted data: excludes amortisation of intangible assets and in 2022 Lyxor integration costs (see note p. 8)
    7 All Net Zero Ambition passive management funds comply with the EU’s CTB/PAB criteria
    8 Sabadell AM
    9 Lyxor, consolidated on 31/12/2021
    10 Assets under management and net inflows, including assets under advisory and marketed assets, and comprising 100% of net inflows and the assets managed by the Asian JVs. For Wafa Portfolio Management in Morocco, assets under management and inflows are reported on a proportional consolidation basis
    11 Assets under management and net inflows, including assets under advisory and marketed assets, and comprising 100% of net inflows and the assets managed by the Asian JVs. For Wafa Portfolio Management in Morocco, assets under management and inflows are reported on a proportional consolidation basis
    12 See also Section 4.3 of the 2022 Universal Registration Document filed with the AMF on 7 April 2023
    13 Source: IPE “Top 500 Asset Managers” published in June 2022, based on assets under management as at 31/12/2021
    14 Amundi data as at 31/03/2023
    15 Boston, Dublin, London, Milan, Paris and Tokyo


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