Financial communication 2023 1st half and 2nd quarter results

On Friday 28^th of July, Amundi publishes its results for the second quarter of 2023, with net income of 320 M€^1,2 up +19% vs. Q2 2022.

This result is explained by improved margins and good cost control. A good adaptation of the offer to the needs of investors, who are still mostly risk averse, has also resulted in a good commercial dynamic with positive inflows both in medium-long-term assets and in treasury products.

Assets under management reach €1,961bn at 30/06/2023, up on the quarter and over one year.

Investors maintained a cautious approach, resulting in weak inflows on the asset management market in Europe, with inflows in open-ended funds³ coming out slightly positive, +€23bn in the second quarter, driven by treasury products (+€8bn) and passive management (+€39bn), while medium- and long-term active management saw outflows over the quarter and half-year.

In the second quarter of 2023, adjusted net income⁴ reached €320m, up +19.0% versus Q2 2022, and +6.7% compared to Q1 2023.

This high level of profitability stems from an increase in revenues, despite rampant risk aversion, and a further improvement in operating efficiency, resulting in a more moderate increase in expenses than in revenues, despite an inflationary environment.

Adjusted net revenues⁴ rose to €823m, up +9.2% compared to Q2 2022, and +3.7% compared to Q1 2023, based on:

• The increase of adjusted net revenues⁴ to €823m, up +9.2% compared to Q2 2022, and +3.7% compared to Q1 2023.
• Net management fees increased year-on-year up +1.6% year-on-year
• Strong performance on Amundi Technology's revenues (+31% compared to Q2 2022), following the trend of previous quarters and confirming the development of this activity;
• Performance fees (€51m) whose more than doubled compared to Q2 2022 (€24m), ;
• And finally, financial and other income was positive (€13m).

Very strong control of operating expenses⁴ (€430 million) resulted in an increase of just +2.1% in costs compared to the second quarter of 2022, much lower than the increase in revenues.

As in previous quarters, inflation (at 5.5% year-on-year in the eurozone⁵ for example) and development investments were largely absorbed by productivity gains and the continued synergies generated by Lyxor's integration.

In the second quarter, on an annual basis, more than 80% of the final target of €60m in synergies were achieved, ahead of schedule announced at the time of the acquisition.

In addition to synergies, cost control continued to reflect Amundi's agility in adjusting its cost base, reflected in a cost/income ratio among the best for the sector: 52.3%, adjusted data⁴.

Net earnings per share in the second quarter 2023 reached €1.50.

In the first half of 2023, adjusted net income  amounted to €620m, up +4.5%, reflecting the same trends as in the second quarter:

• An increase adjusted net revenue 1.8% versus the first half of 2022, driven like in the second quarter by financial and other income driven like in the second quarter by financial and other income;
• Adjusted expenses⁴ were well under control, at €856m.

Adjusted gross operating income⁴ totalled €762m, up +2.3% compared to the first half of 2022.

Net earnings per share in the first half of 2023 amounted to €2.90.

Amundi's assets under management at 30 June 2023 rose +1.9% year-on-year (compared to end-June 2022) and +1.4% quarter-on-quarter (compared to end-March 2023) to €1,961bn.

In the second quarter, the European asset management market was impacted by the risk-off environment, posting very modest total inflows, and also by significant outflows from active management. Against this backdrop, Amundi generated positive inflows, both in Medium/Long-Term Assets assets⁶ and treasury products, in the Retail and Institutional segments.

In total, inflows amounted to +€3.7bn, of which +€2.2Bn in Medium/Long-Term Assets, +€2.4bn in treasury products, and outflows of ‑€0.9bn for the JVs⁷ due entirely, like in the first quarter, to redemptions by large institutions at ABC-CA (China).

By client segment, Retail: posted positive inflows of +€2.1bn, reflecting the particularly high level of risk aversion for this client base, The Institutional segment also posted positive inflows, at +€2.4bn.

Amundi is forging ahead with the Ambitions 2025 development plan:

• Amundi Technology saw its revenues increase by more than 30% in the quarter and the half-year compared to the same periods last year, gaining 3 new clients over the quarter (in Europe outside France) and 7 over the half-year (including 6 outside France);
• In India, the SBI MF JV maintained very strong development, with a high level of inflows and net income over the quarter;
• In Responsible Investment, the range of funds in line with the Net Zero⁸ trajectory now covers five asset classes, with the objective of achieving a comprehensive range by 2025, and the share of ESG ETFs reached 30% of the range⁹, compared to 27% at the end of 2022 and on track to achieve the 40% target by 2025.