Financial communication 2023 first 9 month and 3rd quarter results

On Friday 27^th of October, Amundi publishes its results for the third quarter of 2023, with net income of 290 M€^1,2 up +3% vs. third quarter of 2022.

This result can be explained, on the one hand, by a new increase in revenue, notably due to good resistance of management fees, and on the other hand, by its operational efficiency, with expenses increasing more moderately than revenue, in a context of inflation.

Assets under management reach €1,973bn at 30/09/2023, up on the quarter and over one year.

Investors remain cautious and this resulted in low inflows on the asset management market in Europe, with slightly positive inflows in open-ended funds³. It was higher than in the previous quarter but it remained mainly driven by treasury products and passive managemen

Amundi’s assets under management at 30 September 2023 were up +4.1% year on year (compared with end-September 2022) and up +0.6% this quarter (compared with the end of June 2023), at €1,973bn. The market effect was virtually neutral during the quarter (-€1.7bn) and positive year-on-year.

Amundi generated high net inflows of +€13.7bn, positive in both medium/long-term assets and treasury products, in the Retail, Institutional and JV segments.

By client segment, Retail recorded positive net inflows of +€2.0bn, characterised as in previous quarters by a high level of risk aversion. It reflects strong inflows in treasury products and conversely limited outflows in medium/long-term assets, broken down by type of client:

• The Third-Party Distributors recorded strong activity in ETFs/index funds as well as treasury products;
• The Partner Networks excluding Amundi BOC WM continued to capitalise on the success of structured products and recorded a renewed interest in treasury products;
• In China, Amundi BOC WM experienced outflows, as the confirmed ramp-up of the new open-ended fund offering was unable to offset the maturity of term funds this quarter.

Lastly, the Institutionals segment recorded strong net inflows, at +€9.3bn, especially in medium/long-term assets. On the other hand, Crédit Agricole and Société Générale Insurers continued their redemptions, linked, as in previous quarters, to the withdrawals of traditional life insurance policies by their clients.

In the third quarter of 2023, adjusted net income² reached €290m, up +3.0% on the third quarter of 2022. This result was achieved thanks to a further increase in revenues, in particular due to the resilience of management fees despite the risk-off environment, and operational efficiency, which enabled a smaller annual increase in expenses than revenues, despite the inflationary environment.

Adjusted net revenues² amounted to €780m, up +2.9% compared to the third quarter of 2022.

• Net management fees held up well over one year, at €737m, down -1.4% compared to the third quarter of 2022, which had benefited from non-recurring items;
• Performance fees totalled €10m, compared to €13m in the third quarter of 2022. This was due to the adoption of a prudent investment policy in uncertain markets.
• Amundi Technology’s revenues, at €14m, continued to grow: +13% compared to the third quarter 2022;
• Finally, net financial and other income amounted to €19m, thanks to positive rates of return on the investment of net cash.

The very good control of operating expenses² helped to contain the increase in costs below that of revenues, at only +2.3% compared to the third quarter of 2022. As in previous quarters, the impact of inflation, which stands at 4.3% year-on-year in the eurozone⁴, and development investments were largely absorbed by productivity gains and synergies generated by the integration of Lyxor, which have now been almost entirely realised.

This good cost control, which was confirmed again this quarter, reflects Amundi's agility in adjusting its cost base, and the Group has the best cost/income ratio² in the sector at 54.4%, a slight improvement compared to the third quarter of 2022.

Adjusted net earnings per share² was €1.42 in the third quarter of 2023.

Amundi is continuing its Ambitions 2025 strategic plan:

• Passive management recorded strong inflows this quarter of +€10.8bn, in index/smart beta products and in ETFs;
• In Asia, inflows reached +€3.4bn, driven by the JV in India, the start of stabilisation of JVs in China and strong activity in Singapore, Japan and Taiwan;
• In Responsible Investment, Amundi Transition Energétique⁵, in association with several Crédit Agricole Regional banks, launched in September a new infrastructure fund to finance local production and consumption of renewable energies in the French regions; it is the third fund of this type in the Alba 2 investment program. In addition, the range of funds that are part of the Net Zero trajectory⁶ now covers five asset classes and includes new funds this quarter, the objective being to achieve a full range by 2025. Finally, the share of ETFs tracking responsible investment indices has reached 32% of the range⁷, compared with 27% at the end of 2022 and on track to reach the target of 40% by 2025.