9 first months and 3rd quarter 2018 Results

Friday 26 October 2018

Financial Communication

On Friday 26^th October, Amundi publishes its results for the first nine months of 2018, showing strong growth thanks to a high level of business activity, to good control of operating expenses, mainly attributable to synergies associated with the integration of Pioneer.

Sharp improvement in results

Over 9 months 2018, accounting net income¹ stood at €663m, up by a sharp 40.5% compared with the first nine months of 2017, benefiting from the effects of the integration of Pioneer (consolidated as from 1 July 2017), growth momentum and achievement of synergies targeted when Pioneer was acquired.

Adjusted net income, Group share, totalled €721m compared with the first nine months of 2017, mainly due to^2,3:

• Net asset management revenue that reached €1,968m (+3.2%⁴)
• Operating expenses that fell sharply (€1,005m, down 4.0%³), due to the rapid execution of the Pioneer integration plan (€71m in cost synergies achieved over the first nine months), despite the recognition of external research costs related to MiFID (Markets in Financial Instruments Directive).
• The cost/income ratio that came in at 51.2% (among the lowest in the industry), a 1.9 point³ decrease from the first nine months of 2017

Q3 2018 accounting net income¹ was €209m, a sharp increase of 13.3% compared to Q3 2017, whereas adjusted net income Group share totalled €230m², up 5.8% compared with Q3 2017.

A strong level of activity

Activity in the first nine months of 2018 was characterised by strong net inflows of +€48.5bn (compared to an average target of €50bn per year):

• The Retail segment enjoyed strong momentum (+€30.2bn), with a high level of net inflows driven by all distribution channels.
• Flows in the Institutional segment were strong at +€18.3bn in the first nine months of 2018, with a significant MLT component and robust commercial activity for sovereign and other institutional clients.
• From a geographic viewpoint, net inflows continued to be driven by the International segment with a significant contribution from Asia (+€30.8bn), led by the JVs (China and India), Japan, Hong Kong and Taiwan.
• Finally by asset classes, net inflows consisted primarily of MLT assets (+€42.2bn or 87% of the total), mainly in Multi-asset and Equities.  

In Q3 2018, net inflows reached +€6.1bn, in particular with a high level of inflows from Institutionals.

Amundi's assets under management amounted to €1,475bn at 30 September 2018 (+5.4% vs 30 September 2017), reflecting strong business activity with net inflows of +€48.5bn, with a slightly positive market effect (+€0.6bn).

In a more difficult environment, Amundi’s results over the first nine months of 2018 are sharply up driven by robust business activity and by an improved operational efficiency. These good performances reflect the strength of the Group's business model, based on its business lines diversity (client segments, investment expertise and regions).

Yves Perrier, Amundi's CEO, comments these results

1. After integration costs and amortisation of distribution contracts
2. Adjusted 9M 2018 data: before amortisation of distribution contracts (€53m before tax and €37m after tax) and before costs associated with the integration of Pioneer (€30m before tax and €21m after tax). In Q3 2018: before amortisation of distribution contracts (€18m before tax and €12m after tax) and before costs associated with the integration of Pioneer (€12m before tax and €6m after tax.
3. On a comparable basis in 2017 and 2018: 9 months Amundi + 9 months Pioneer
4. Change using comparable and adjusted 2017 data