9 months and third quarter of 2019 results

Tuesday 29 October 2019

Financial Communication

On Thursday 31st October, Amundi publishes its financial results, with a sharp growth for the first nine months 2019. These results are partly due to a recovery in activity despite a volatile market environment and, also to the control of the operating expenses thanks to the full impact of synergies associated with Pioneer.

  

Key figures Amundi's results 2019 9 first months and Q3

  

Solid operating performances

First nine months of 2019  

Accounting net income1 at the end of September 2019 was €697m, a substantial increase of +5.2% compared to 9M 2018, benefiting from a recovery in business activity in Europe in Q3 and a control of the costs.

Adjusted net income2, Group share totaled €735m, an increase of +1.9% compared to 9M 2018:

  • Net revenues increased by +1.4% compared to 9M 2018, to €1,989m
  • Cost/income ratio maintained at an excellent level of 51.1% (-0.2 point on 9M 2018) ; one of the lowest of the industry thanks, notably, by the successful integration of Pioneer

  

Third quarter of 2019

Amundi has delivered excellent operating performances2 with sharp growth (+9.7% vs. Q3 2018) in its operating income (GOI3) which totalled €321m. This performance is partly due to a recovery in activity (very high net inflows) and also the full impact of synergies associated with Pioneer.

As a result,Q3 2019 accounting net income4 was €218m, up +4.0% on Q3 2018.

Adjusted net income2 totaled €230m, stable compared to Q3 2018.

  

Record business activity

First nine months of 2019

Net inflows5 for the first nine months of the year totaled +€31bn6, on the back of a very strong third quarter.

Activity was fairly evenly distributed between the different segments: 

  • Both the Retail (+€14.2bn6) and Institutional (+€16.7bn) segments had increasing flows, and the Institutional segment was primarily driven by MLT assets (+€27bn6).
  • From a geographical standpoint, flows were well balanced between France (+€17.3bn) and International markets (+€13.7bn6).

  

Third quarter of 2019

Total net flows for the third quarter of 2019 were well oriented (+€42.7bn7). Indeed, in a European asset management sector where inflows are gradually improving8, Amundi recorded the best quarterly inflows since its creation, with:  

  • Solid high net inflows in MLT assets, at +€25.3bn7
  • A significant improvement of Retail flows (+€17.8bn7), especially driven by JVs (+€14bn7) and third party distributors (+€4bn), 
  • Treasury Products recording net inflows again (+€17.4bn).

Moreover, passive management, ETFs, and smart beta had another quarter of strong growth with +€4.3bn9 in net inflows, bringing AuM to €122bn9 at end-September 2019.

  

Thus, Amundi’s assets under management5 totalled €1,563m as of 30 September 2019, a +5.1% increase compared to the end of June 2019, and a +9.7% rise from the end of December 2018, thanks to a recovery in inflows and a positive market effect.

  

Amundi posted very solid operating performances for the third quarter of 2019. Net inflows amounted to +€42.7bn, a record level, driven by all expertises and all client segments. Gross Operating Income posted an almost 10% increase, thanks to a buoyant activity, and to the impact of synergies associated with the integration of Pioneer. With this integration complete, Amundi is now fully focused on its development.

Yves Perrier, CEO

Download the Press Release   

Download the Slides of the results

  

1. Accounting data: including amortisation of the distribution contracts and, in 2018, including costs associated with the integration of Pioneer

2. Adjusted data: excluding amortisation of the distribution contracts and, in 2018, excluding costs associated with the integration of Pioneer

3. GOI: Gross Operating Income

4. Accounting data: including amortisation of the distribution contracts and, in 2018, including costs associated with the integration of Pioneer     

5. Assets under management and net inflows include assets under advisory and assets distributed and take into account 100% of assets under management and net inflows on the Asian JVs. For Wafa in Morocco, assets are reported on a proportional consolidation basis

6. Including a new +€14.6bn mandate for the JV in India 

7. Including a new +€14.6bn mandate attributed by several pension funds to the JV in India

8. Source: Amundi and Broadridge Financial Solutions - FundFile & ETFGI/Open-ended funds (excluding discretionary mandates and special investor funds) at the end of August 2019: cumulative net flows as of the end of August 2019 of +€160bn, with an improvement in Q3 2019 (July and August) including a substantial money-market component

9. Excluding JV