Today, Friday 9th of February, Amundi publishes its annual and 4th quarter results for 2017: High net inflows and good income in 2017.
Key figures
Year 2017
The year 2017 finishes on a very strong activity, with assets under management rising to €1.426tn1 and results up significantly thanks to the integration of Pioneer and to robust activity
The increase of AuM benefits from the contribution of Pioneer's assets (+€242.9bn; consolidated from H2 2017), strong inflows (+€70.6bn2) and a favorable market effect (+€26.7bn), particularly in equities.
Combined net inflows of€70,6bn2
Net inflows were strong and diversified. Each client segment, management expertise and region recorded positive net inflows. These were largely driven by strong trends in Retail (70% of the total), the International segment (73%) and medium/long-term products (51%).
Indeed, the Retail segment has seen substantial activity, with net inflows in 2017 of +€49.6bn, achieved across all distribution channels, compared to +€31.5bn in 2016.
The Institutionals and Corporates segment recorded solid net inflows (+€21bn in 2017). This figure nonetheless represents a decline from 2016 level (+€28.9bn), a fact attributable to the €6.9bn mandate reinternalized by the ECB in Q1 2017. Excluding this impact, net inflows were almost stable.
All asset classes contributed to net inflows in 2017.
Amundi's net inflows reach €131 bn2 in 2 years (2016-2017), exceeding the target of €120bn over 3 years announced at the time of the IPO in November 2015.
Combined income increased significantly3
The combined results3, which are used to appraise the Group's performance on a comparable basis, increased significantly thanks to solid gains in revenues (including a high level of performance fees and financial revenues) and the improved cost/income ratio.
- Net revenues4 amounted to €2,722m, up +7.5% on 2016, in line with the increase in assets under management. Performance fees (€180m) recorded strong growth amidst a particularly favourable market environment. Amundi also benefited from considerably high financial revenues (€95m) associated with asset disposals.
- Operating expenses5 remained under control, increasing only +2.1%; the result was a cost/income ratio6 of 52.4%, a 2.8-point improvement which included the initial impacts of synergies. This cost/income ratio also exceeds the target announced in November 2015 of not exceeding 55%.
- Taking into account a tax charge6 of €393m, adjusted net income, Group share amounted to €918m, an increase of +14.1% on 2016.
An attractive dividend policy
The Board of Directors has decided to propose a dividend of €2.50 per share in cash at the General Meeting to be held on 15 May 2018, i.e. an increase of +13.6% vs. 2016.
This proposed dividend represents a pay-out ratio of 65% of the Group's share of net income excluding integration costs (based on the number of shares at end-2017), and a 3.3% yield based on the share's closing price at end-January 2018.
This dividend pay-out ratio exceeds the objective set-up in November 2015, which anticipated a ratio of 60%.
Q4 2017 performance in line with the first nine months
Net inflows were strong (+€13.1bn), led by Retail and MLT Assets (+€10.4bn).
Combined results increase on the 4th Quarter 4
At €751m, net revenues4 were up 11.6%. This result is linked to growth in assets under management and strong results for performance fees (€82m) and financial revenues (€34m, attributable to disposals of minority interests). Thanks to a moderate increase in operating expenses5 (+2.9%), the cost/income ratio4 improved by 4.3 points to 50.8%. After tax4, adjusted net income, Group share was €269m (+22%).
1. Assets under management and inflows include assets under advisory and assets sold and take into account 100% of assets under management and inflows on the Asian JVs. For Wafa in Morocco, assets are reported on a proportional consolidation basis
2. Combined data in 2016 and 2017
3. The combined figures aim at presenting economic trends for Amundi after the integration of Pioneer for full years 2016 and 2017. Combined figures therefore include 12 months of Pioneer data.
4. Adjusted figures exclude amortisation of distribution contracts and costs associated with the integration of Pioneer which are exceptional.
5. Excluding costs associated with the integration of Pioneer Investments
6. Excluding integration costs and amortisation of distribution contracts