2021 1st Quarter results

Paris, Thursday 29 April 2021

Financial Communication

Key Figures - Results Q4 and annual 2020

On Thursday, April 29, Amundi publishes strong results for the first quarter of 2021, with a good level of inflows in medium to long term assets (MLT)1-2, and assets under management3 reaching €1,755 billion as of March 31, 2021, up +14.9% year-on-year.

Very good first-quarter 2021 results

Amundi's quarterly net income4 of €309m was the highest since the company’s IPO. Growth in net income was very strong, compared to both first-quarter 2020 (+50.1%) and fourth-quarter 2020 (+7.1%). This growth was due to a positive jaw effect between sharply rising revenues and controlled costs.

Revenues benefit from improved market conditions and business dynamics:

  • Net asset management fees were up significantly compared to both Q1 2020 (+5.1%) and Q4 2020 (+5.6%), partly due to the increase in the equity market average (+11% Q1/Q1 and +10% Q1/Q4 for the EuroStoxx Index) and partly to vigorous inflows on Retail and MLT assets for several quarters.
  • Performance fees reached a record high (€111m vs. €42m in Q1 2020 and €94m in Q4 2020), reflecting the bullish markets and good investment performances.
  • These improved market conditions drove the positive change in net financial income compared to Q1 2020, during which the abrupt market downturn affected the voluntary investment portfolio and seed money.

Operating expenses were under control (€376m). Their increase (+13.6% compared to Q1 2020 and +1.5% compared to Q4 2020) was driven by:

  • increased provisions for variable compensation, owing to growth in operating income;
  • the scope effect compared to Q1 2020 (+€12m).

The result was a very good cost/income ratio5 of 48.8%, vs. 54.1% in Q1 2020 and 50.7% in Q4 2020.

Given the buoyant activity of the equity-accounted companies (mainly the Asian joint ventures), their contribution to income increased to €18m vs. €14m in Q1 2020.

High level of MLT and Retail asset activity

Amundi’s assets under management totalled €1,755bn at 31 March 2021, an increase of +14.9% year-on-year and +1.5% vs. the end of December 2020.

The quarter was marked by robust inflows in MLT assets (+€9.8bn excluding JVs), driven in particular by Retail, and by outflows on treasury products (-€18.6bn excluding JVs) after several consecutive quarters of inflows, and in line with the prevailing European asset management market trend.

In the JVs, activity was mixed: healthy inflows in MLT assets, and expected outflows on Channel business in China.

In total, net flows amounted to -€12.7bn over the quarter:

  • Retail: Inflows were buoyant once again on Medium/Long-Term Assets (+€7.8bn), driven by all customer segments, specifically third-party distributors (+€4.3bn, with both active and passive management). In the French and international networks, inflows remained robust, particularly in Italy and Spain (Banco Sabadell).
    The new Chinese subsidiary Amundi BOC Wealth Management had a good start to business activity in its partner Bank of China's networks: +€0.9bn in inflows in three months.
  • Institutionals: This quarter was characterised by +€2.0bn in inflows on MLT assets (vs. an -€11.8bn outflow in Q1 2020) driven by all institutional client segments. In Treasury products, outflows totalled -€18.2bn after two consecutive quarters of high inflows (+€34.7bn in H2 2020).
  • JVs: The Indian JV continued its growth momentum with high inflows (+€3.0bn in MLT assets), leading to a gain in market share. In China (ABC network), activity was mixed, with Mutual Fund flows still solid at +€2.1bn, and ‑€7.0bn in expected outflows on low-margin products (Channel Business) due to regulatory changes, (vs. ‑€16.5bn in Q4).
    In total, inflows in JVs were -€4.0bn, including +€3.0bn on MLT assets and -€7.0bn on Channel Business.

 

 Solid inflows on MLT assets were driven by most expertise:

  • Active management recorded high flows (+€5.9bn), driven mainly by Multi-asset and Equities expertise; bond management was affected by changes in interest rates.
  • The trend in Real and Structured Assets continued, with +€1.6bn in net inflows in Q1 2021 (bringing AuM to more than €95bn at end-March 2021). Net inflows on Private Equity were particularly strong (+€1.0bn, i.e. €10bn in AuM at end-March 2021).
  • Passive management, ETFs and smart beta had a good first quarter with +€2.3bn in net inflows, bringing AuM to €171bn at end-March 2021. With inflows of +€3.3bn in Q1 2021 in ETPs5, Amundi is the number five provider in Europe6. In total, ETP assets were €71bn at 31 March 2020 (ranked fifth in Europe6).

     

General Meeting and dividend

Due to the current Covid-19 pandemic and in accordance with the provisions adopted by the Government, Amundi's Ordinary and Extraordinary General Meeting will take place on 10 May 2021 at 9:30 a.m. without the physical presence of shareholders.

However, the Board of Directors wished to preserve the interests of the shareholders this year, and allow them to attend and participate in the Meeting remotely in real time via videoconference. Attendees will be able to vote remotely in real time on the draft resolutions, and ask questions in writing or orally during the open discussion period.

The change in governance announced on 10 February will take effect on the same day: Valérie Baudson will become Chief Executive Officer of Amundi, and Yves Perrier will become Chairman of the Board of Directors.

Dividend schedule

The Board of Directors will propose a cash dividend of €2.90 per share at the General Meeting. This dividend offer represents a payout ratio of 65% of the accounting net income Group's share and a 3.9% yield based on the share price on 27 April 2021 (at market close). 

  • Detachment:  13 May 2021
  • Payout: as from 17 May 2021

 Amundi recorded very good performances in the first quarter of 2021: results improved substantially, inflows on MLT assets were strong and operational efficiency continued to improve. The strategic initiatives launched in 2020 (the partnership with Banco Sabadell, the joint venture with Bank of China, and Amundi Technology) are starting to bear fruits. The acquisition of Lyxor will be a new driver of growth.
Such strong performances prove that, since its creation, Amundi's development strategy has been relevant, consistently implemented, and disciplined in its execution. This strategy has made Amundi the European leader and a recognised global player
As I prepare to hand over general management to Valérie Baudson, and succeed Xavier Musca as Chairman of the Board of Directors, I would like to thank Xavier for his support, and all of Amundi's employees for their contribution to the company's success.

Comments Yves Perrier, Amundi’s CEO

1. Excluding JVs.
2. Medium/Long-Term Assets: excluding treasury products.
3. Assets under management and net inflows including Sabadell AM as of Q3 2020, BOC WM as of Q1 2021, include assets under advisory and assets marketed and take into account 100% of the Asian JVs’ assets under management and net inflows. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
4. Adjusted data: excluding amortisation of distribution contracts. See page 7 of the Press Release for definitions and methodology. 
5. ETP: Exchange Traded Products, including ETF (Exchange Traded Funds) and ETC (Exchange Traded Commodities), such as ETC Gold.
6. Source:  ETF GI, end of March 2021


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