Key figures
New strides in development, in line with the priorities of our 2025 Ambitions plan
As in the first few months of the year, we continued during the second quarter to implement our 2025 Ambitions development plan, in accordance with its strategic objectives.
In Asia:
Our assets under management increased by +19% year-on-year, to €451bn, quadrupling from the time of our listing in 2015. These assets under management now include nearly €100bn in direct distribution, alongside the success of the JVs.
We have operations in most major countries in the region, and all these countries made positive contributions to the first-half net inflows: India, China, Hong Kong, South Korea, Singapore and Japan.
These net inflows reached +€22bn for first half, 10% of assets under management annualised, split between JVs at +€16bn and direct distribution at +€6bn.
Sales performance relies on major distribution partnerships with top-tier local banks1 and on trusting relationships with major institutions on the continent; We are rolling out our comprehensive range of expertise in both active and passive solutions (including ETFs), as well as our technology offering, with a first client signed in China;
In Third-Party Distribution:
Our assets under management grew by +18% year-on-year, to €359bn, now representing 55% of the Retail segment (versus less than 20% at the time of listing in 2015, 40% in 2020). Despite risk aversion, net inflows of this customer segment exceeded +€12bn over the half year. Net inflows were positive for all markets: France, Italy, Germany, United Kingdom, Asia, United States and the rest of the world.
In real assets:
Closing the acquisition of Alpha Associates on 2 April made it possible to create Amundi-Alpha Associates, a business line covering the Group's entire multi-asset range in private assets, and to roll out this offering to institutional distribution teams; new strategies are also being launched.
In passive management:
Our assets grew by +23% year-on-year to €382bn, in part thanks to net inflows of +€8.5bn in the first half, of which +€9.5bn in ETFs.
Amundi Technology:
Amundi Technology benefited from accelerating investments, bolstering its development; revenues grew by +22% H1/H1, and seven new clients were signed over the half year.
Responsible investment:
New responsible investment funds have been added to the broad range available, with the launch of an SRI ETF in partnership with the Latin American Reserve Fund, and the “Amundi Private Equity Just Transition2” impact fund with Banque des Territoires.
External operations:
In addition to the closing of the acquisition of Alpha Associates, the definitive agreement to establish a strategic partnership with Victory Capital, a US asset manager, was signed on 8 July. The closing of the transaction is expected in early 2025; it aims at creating a larger US investment platform to serve the clients of both companies; Amundi would thus have a greater number of US and global management expertise to offer its clients. The transaction, which involves no disbursement of cash, is expected to bring a low single-digit accretion for Amundi shareholders, with an increase of the in the contribution of our US operations to the adjusted net income and EPS.
High net inflows in Medium/Long-Term assets and in Asia, offsetting seasonal outflows in Treasury
At 30 June 2024, our assets under management rose +9.9% compared to end-June 2023 and +1.9% compared to end-March 2024, to €2,156bn, a historic high.
In the second quarter of 2024, the market and forex effect amounted to +€16.6bn (+€141.6bn year-on-year), with the integration of Alpha Associates adding +€8bn in assets under management and Amundi generating positive net inflows of +€15.5bn, of which:
- strong inflows of +€15.1bn in Medium/Long-Term assets3.
- seasonal outflows, -€11.2bn, in treasury products3.
- Finally, JVs4 continued their solid sales momentum, with net inflows of +€11.6bn.
Net inflows by client segment:
Retail recorded net inflows of +€2.2bn, of which +€1.7bn in Medium/Long-Term assets, with contrasting developments from one sub-segment to another:
- A very good quarter for Third-Party Distributors, with total net inflows (+€5.4bn), concentrated in passive strategies and treasury products.;
- French (-€2.4bn) and International Networks excluding Amundi BOC WM (-€1.2bn), on the other hand, saw their activity levels affected by risk aversion from their clients, particularly due to competition from other savings products with a low risk profile: regulated savings (Livret A) and the return to attractive levels of returns for traditional life insurance products in France, and the issue of new government bonds in; the Sabadell network, however, continued its momentum (+€0.6bn);
- in China, Amundi BOC WM posted positive net inflows this quarter (+€0.4bn), thanks to an acceleration in subscriptions to open-ended funds.
The Institutional segment also recorded very positive net inflows in Medium/Long-Term Assets (+€13.4bn) in all sub-segments: Employee Savings (+€3.6bn), thanks to employee share ownership transactions, CA & SG Insurers’ Mandates, with +€3.4bn thanks to the turnaround of the traditional life/euro contracts market, and above all, Institutionals & Sovereigns for +€6.5bn. On the other hand, treasury products experienced strong seasonal outflows (-€11.7bn), traditionally linked to the dividend payment period resulting in a need for cash among companies.
It should be noted that the Institutional segment should be losing a large European insurance mandate by the end of the year as the result of a re-internalization decision. This mandate of approximately €12bn generates low revenues.
A sustained net income growth, which reached a high level in both the second quarter and first half
Net income in the second quarter
In the second quarter of 2024, our adjusted net income6 reached €350m, up +9.4% compared to the second quarter of 2023, and +10.2% compared to the first quarter of 2024. This incorporates Alpha Associates, the acquisition of which was closed in early April, and consolidated for the first time in the second quarter.
The rise in net income is essentially due to organic revenue growth, amplified by operational efficiency, which helped generate a positive jaws effect, and by the very strong momentum of the Asian JVs. However, these results were achieved in a context of continued risk aversion and inflation.
Our adjusted net revenues6 rose to €887m, up +7.7% compared to the second quarter of 2023, and +7.7% compared to the first quarter of 2024.
The increase in operating expenses6, +7.0% compared to the second quarter of 2023 to €461m, remained below revenue growth (+7.7%) over the same period; this is mainly attributable to:
- the first-time consolidation of Alpha Associates;
- provisions for individual variable compensation, in line with the growth of operating income;
- and finally, accelerated investment in development initiatives in accordance with the growth drivers of the 2025 Ambitions Plan, particularly technology.
The residual increase in expenses following these items is below inflation recorded in the eurozone7, reflecting constant productivity gains that made it possible to partially finance the development investments and curb the effects of inflation.
Adjusted net earnings per share6 in the second quarter of 2024 reached €1.71, an increase of +9.0%.
Net income in the first half
In the first half of 2024, adjusted net income amounted to €668m, up +7.7%, reflecting the same trends as in the second quarter:
Adjusted gross operating income6 totaled €811m, up +6.5% compared to the first half of 2023.
Net earnings per share in the first half of 2024 amounted to €3.11.
Valérie Baudson, Chief Executive Officer, stated
“Amundi achieved very good performance in the second quarter of 2024, both in terms of activity, with net inflows of over +€15bn, and financial income, with net income that grew by +9% compared to the same period in 2023.
Since the beginning of the year, the momentum of inflows has been particularly significant with our Third-Party distributor clients as well as in Asia. The breadth of our offering has been a major asset to meet the different needs of our clients, whether through our active management solutions, in particular fixed income, our structured products, or our passive management funds.
Our assets under management reached a new all-time high, at €2,156bn at end-June 2024."
1 SBI in India, ABC and BOC in China, NH in South Korea, Resona in Japan, Standard Chartered in 13 Asian and African countries, DBS in Singapore, etc.
2 Investments in SMEs offering decarbonisation solutions with a social inclusion project, with an IRR target of 12% to 14%.
3 Excluding JVs
4 Net inflows, including assets under advisory and marketed assets and funds of funds, and taking into account 100% of the net inflows of the JV in Asia; for Wafa Gestion in Morocco, the net inflows are reported in proportion to Amundi’s holding in the capital of the JV
6 Adjusted data: excluding the amortisation of intangible assets and other non-cash charges relating to the acquisition of Alpha Associates, recorded under net financial income
7 Source: Eurostat, 2.5% in underlying inflation