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Amundi: Third quarter and nine-month 2024 results
Amundi: Third quarter and nine-month 2024 results
Net income up +16% Q3/Q3 and record assets under management at €2.2 trillion
Paris, 30 October 2024
Amundi's Board of Directors met on 29 October 2024 under the chairmanship of Philippe Brassac, and reviewed the financial statements for the third quarter and the first 9 months of 2024.
Valérie Baudson, Chief Executive Officer, said:
« Amundi's results in the third quarter of 2024 demonstrate our ongoing strategic progress and continued growth potential. Our Q3 net profit of €337m, increased by +16% compared to the same period in 2023 and exceeded one billion euros over 9 months. Assets under management reached a record level of €2.2 trillion.
We have been able to support our clients whatever their profile and needs, which has resulted in a high level of net inflows in our strategic development areas, namely Asia, Third-Party Distributors, and ETFs.
By putting clients at the heart of our strategy and by continuing to develop the areas of expertise that primarily seek to meet their needs, we are ideally positioned to seize growth opportunities in the savings industry. »
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Further progress in achieving our 2025 Ambitions plan
Q3 2024 saw key areas of focus under the "2025 Strategic Ambitions" plan contribute to activity and earnings growth.
Activity
Market environment
In the third quarter of 2024, equity markets increased by +1.1% in average compared to the previous quarter and by +15.6% compared to Q3 2023. The European bond markets also rose, reflecting the shift in monetary policy and the ECB's decision to cut rates. Year-on-year, our benchmark index increased by +6.3% in Q3 2024 compared to Q3 2023 and by +2.1% compared to Q2 2024. The market effect is therefore positive on the evolution of Amundi's revenues and net income.
When compared to the 2021 averages used as a reference for the 2025 Ambitions plan, the market effect is only slightly positive.
The European asset management market continues its gradual recovery. Open-ended fund volumes , at +€213bn in the third quarter, continued to be driven by treasury products (+€93bn) and passive management (+€75bn). Nevertheless, the third quarter recorded positive flows in medium- to long-term active management for the second quarter in a row (+€45bn), driven by fixed income strategies (+€69bn).
High level of activity over the quarter in MLT assets , assets under management at a record level of €2.2tn
Activity this quarter continues to be marked, like the rest of the European market, by risk aversion among retail clients. However, Amundi performed well , driven in particular by ETFs, bond solutions, third-party distributors and Asia. Excluding the exceptional exit from a low-income insurance mandate , net inflows were positive in all major medium- to long-term areas of expertise (passive, active, structured products and real assets), in all client segments (Retail, Institutional and JV), and in all major markets (France, Italy, Germany, Asia and the United States).
Amundi's assets under management at 30 September 2024 increased by +11.1% year-on-year (compared to the end of September 2023) and by +1.6% quarter-on-quarter (compared to the end of June 2024), to €2,192bn, an all-time high.
In the third quarter of 2024, the market and currency effect amounted to +€32.5bn (+€175.9bn over a year) and Amundi generated positive net inflows of +€2.9bn . As announced at the time of the second quarter results publication, this amount includes the exit of a low-income multi-asset mandate with a European insurer, of €11.6bn.
Adjusted for this exit , net inflows for the quarter were +€14.4bn of which +€9.1bn in MLT Assets . It was positive in active management (+€4.3bn) and ETFs (+€7.8bn), partially offset by outflows from index strategies. Structured products and real and alternative assets also recorded positive net inflows (+€0.8bn), while treasury products were flat (+€0.1bn).
Finally, the JVs continued their solid commercial momentum, with net inflows of +€5.3bn , reflecting a positive contribution from India (SBI MF, +€6.0bn) and South Korea (NH-Amundi, +€0.4bn), partially offset this quarter by slight net outflows in China (ABC-CA) despite continued open-ended net inflows.
By Client Segment, Retail recorded net inflows of +€6.3bn , of which +€1.3bn in MLT assets , with contrasting developments according to the sub-segments :
Excluding the loss of the low-income insurance mandate already mentioned , the Institutional segment recorded very positive inflows in MLT Assets (+€7.8bn) , in all sub-segments: Institutional & Sovereigns with +€4.4bn, CA & SG insurance mandates with +€2.4bn thanks to the continued recovery of the traditional life insurance Euro contracts this quarter, Corporates and Employee Savings (+€1.0bn) thanks to net inflows in short-term bond products from corporates. Net outflows in Treasury Products ( -€4.9bn ) are to a large extent seasonal.
Results
Sustained growth in net income, +16% Q3/Q3 to €337m, and more than €1bn in the 9 months of 2024
Adjusted data
In the third quarter of 2024, adjusted net income reached €337m , up +16.1% compared to the third quarter of 2023. Since the second quarter, it includes Alpha Associates, whose acquisition was finalised in early April.
The growth in net income was mainly due to organic revenue growth , amplified by operating efficiency , which led to a positive jaws effect, and by the very strong momentum of Asian JVs . These results were achieved against the backdrop of continued client risk aversion, and inflation.
Adjusted net revenues reached €862m, up +10.5% compared to the third quarter of 2023.
The increase in operating expenses , by +7.4% compared to the third quarter of 2023, to €456m, remains lower than the increase in revenues (+10.5%) over the same period, thus generating a positive jaws effect which reflects the Group's operational efficiency.
The increase is mainly due to:
The Cost income ratio improved to 52.9% in adjusted data compared to the same quarter last year, and remains in line with the 2025 target and at the best level in the industry.
The Adjusted gross operating income (EBIT) amounted to €406m , up +14.2% compared to the third quarter of 2023, reflecting double-digit revenue growth amplified by operational efficiency.
Income from equity-accounted companies , which reflects Amundi's share of the net income of minority JVs in India (SBI MF), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion), was up +36.5% compared to the third quarter of 2023, to €33m , representing 10% of adjusted net income, reflecting the good level of activity in India and Korea.
Adjusted earnings per share in the third quarter of 2024 reached €1.65, up +16.0% .
Accounting data in the third quarter of 2024
Accounting Net income Group share amounted to €320m and includes non-cash charges related to acquisitions, in particular the amortisation of intangible assets related to distribution and client contracts (-€24m before tax in the quarter including the corresponding new charges related to Alpha Associates, see details in p. 11), representing a total of -€17m after tax.
Accounting earnings per share in the third quarter of 2024 reached €1.56 .
In the first 9 months of 2024, a djusted net income amounted to €1,005m , up +10.4% , reflecting the same trends as in the third quarter:
Adjusted gross operating income was €1,217m , up +8,9% compared to the first 9 months of 2023, showing a higher growth rate than revenue growth thanks to operating efficiency.
Income from equity-accounted companies increased by +28.6% compared to the first 9 months of 2023, to €94m .
Adjusted earnings per share for the first 9 months of 2024 reached €4.91 , up +10.1% compared to the first 9 months of 2023.
Accounting data for the first 9 months of 2024
Accounting Net income Group share amounted to €956m and includes non-cash charges related to acquisitions, in particular the amortisation of intangible assets related to distribution and client contracts (-€68m before tax in the 9 months including the corresponding new charges related to Alpha Associates, see details on p. 11), representing a total of -€49m after tax in the first 9 months of 2024.
Accounting earnings per share for the first 9 months of 2024 reached €4.67 .
To be noted for the fourth quarter and full-year 2024
Success of the capital increase reserved for employees - The capital increase reserved for employees "We Share Amundi", announced on 23 September 2024, is expected to be completed tomorrow, 31 October 2024. This operation offered for the seventh consecutive year a subscription of shares at a discount.
It was once again a great success this year: more than 2,000 employees in 15 countries subscribed to this capital increase, for a total amount of €36.3m. This represents nearly two out of three employees in France and more than two out of five worldwide.
This transaction, which is in line with the existing legal authorisations voted by the Shareholders' Meeting on 12 May 2023, reflects Amundi's desire to involve its employees not only in the development of the Company but also in the creation of economic value.
The impact of this transaction on earnings per share will be very limited: the number of shares to be created will be 771,628 (i.e. ~0.4% of the share capital before the transaction).
This issue will bring the number of shares making up Amundi's share capital to 205,419,262 as of 31 October 2024, i.e. a share capital increased to €513,548,155.
Employees will now hold around 1.7% of Amundi's capital, compared to 1.3% before the transaction. In the fourth quarter of 2024, the Amundi Group will record in its consolidated financial statements a charge relating to the subscription discount of €12.3m before tax.
On the basis of the Finance Bill presented by the French government, an exceptional tax contribution on the profits of large companies would apply to Amundi, whose turnover in France for tax purposes is more than €3bn.
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APPENDICES
Adjusted income statement of the first 9 months of 2024 and 2023
Adjusted income statement of the third quarter of 2024
Evolution of assets under management from the end of 2020 to the end of September 2024
Total over one year between September 30, 2023 and September 30, 2024: +11.1%
Details of assets under management and net inflows by client segments
Details of assets under management and net inflows by asset classes
Details of assets under management and net inflows by management type and asset classes
Details of assets under management and net inflows by geographical areas
Methodology Appendix
Accounting & adjusted data
Accounting data - These include the amortization of intangible assets, recorded as other income, and since Q2 2024, other non-cash expenses spread according to the schedule of payments of the earn-out until the end of 2029; these expenses are recognized as deductions from net income, in finance costs.
The aggregate amounts of these items are as follows for the different periods under review:
There were no significant integration costs recorded in the third quarter as a result of the acquisition of Alpha Associates
Adjusted data - in order to present an income statement closer to economic reality, the following adjustments are made: restatement of the amortization of distribution contracts with Bawag, UniCredit and Banco Sabadell, intangible assets representing the client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates; such depreciation and amortization and non-cash expenses are recorded as a deduction from net revenues.
Acquisition of Alpha Associates
In accordance with IFRS 3, recognition of Amundi's balance sheet as at 01/04/2024:
In the Group's income statement, the following is recorded:
In Q3 2024 , the amortization of intangible assets was -€1.9m before tax (-€1.5m after tax) and non-cash expenses were -€1.4m before tax (i.e. -€1.1m after tax). Over the first 9 months of 2024 , these expenses are respectively -€3.8m and -€2.9m (-€6.6m in total), since they only started in Q2.
Alternative Performance Measures
In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that excludes the depreciation of intangible assets and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates.
Adjusted, normalized data are reconciled with accounting data as follows:
Shareholding
Average number of shares on a pro rata basis.
Financial communication calendar
About Amundi
Amundi, the leading European asset manager, ranking among the top 10 global players , offers its 100 million clients - retail, institutional and corporate - a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages close to €2.2 trillion of assets .
With its six international investment hubs , financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.
Amundi clients benefit from the expertise and advice of 5,500 employees in 35 countries.
Amundi, a trusted partner, working every day in the interest of its clients and society.
Press contacts:
Natacha Andermahr
Tel. +33 1 76 37 86 05
natacha.andermahr@amundi.com
Corentin Henry
Tel. +33 1 76 36 26 96
corentin.henry@amundi.com
Investor contacts:
Cyril Meilland, CFA
Tel. +33 1 76 32 62 67
cyril.meilland@amundi.com
Thomas Lapeyre
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com
Annabelle Wiriath
Tel. + 33 1 76 32 43 92
WARNING
This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.
This document may contain forward looking statements concerning Amundi's financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.
These forward looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward looking statement will come to fruition, and Amundi's actual financial position and results may differ materially from those projected or implied in these forward looking statements. [In particular, conditions to completion of the announced transaction between Amundi and Victory Capital, may not be satisfied and such transaction may not be completed on schedule, or at all; risks relating to the expected benefits or impact of the transaction on Victory Capital's and Amundi's respective businesses are contained in their respective public filings.]
Amundi undertakes no obligation to publicly revise or update any forward looking statements provided as at the date of this document. Risks that may affect Amundi's financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.
The figures presented were prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date. The financial information set out herein do not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.
Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.
The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.
Net income Group share
Adjusted data: excluding amorti s ation of intangible assets relat ing to distribution and c lient contracts
as well as other non-cash charges relat ing to the acquisition of Alpha Associates recorded in net financial income (see note p.
11 )
Assets under management and flows including a ssets under advisory,
marketed assets and funds of funds, and taking into account 100% of Asian JV 's assets and flows ; for Wafa Gestion in Morocco,
they are reported in proportion to Amundi's
holding in the capital of the JV
As announced at the time of the publication of the Q2 results, exit in Q3 from a large
low-income mandate (€11.6 billion) with a European insurer, in multi-asset; including this exit, net inflows were positive by +€2.9bn in Q3 and +€35bn over 9 months
Medium-Long Term Assets
Excluding JV s
Extraordinary General Meeting of Shareholders of Victory Capital, held on
11 October 2024
Source: TrackInsight Q3 2024
Classified as article 8 or 9 of the SFDR regulation of the European Union
Including JV: €234bn in assets, +€12bn
net inflows over 9 months and +€1bn in Q3
50% MSCI World + 50% Eurostoxx 600 composite index for equity markets, average values over each period considered
Bloomberg Euro Aggregate for bond markets, average values over each reporting period
Source: Morningstar FundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data as of the end of June 2024.
Assets under management and flows including a ssets under advisory,
marketed assets and funds of funds, and taking into account 100% of Asian JV 's assets and flows ; for Wafa Gestion in Morocco,
they are reported in proportion to Amundi's
holding in the capital of the JV
Anniversary dates of the funds triggering the recognition of these fees
Source: Morningstar Direct, Broadridge FundFile - Open-ended funds and ETFs, global fund scope, September 2024; as a percentage of the assets under management of the funds in question; the number of Amundi open-ended funds rated by Morningstar was 1063 at the end of September 2024. © 2024 Morningstar, all rights reserved
Assets under management and flows including a ssets under advisory,
marketed assets and funds of funds, and taking into account 100% of Asian JV 's assets and flows ; for Wafa Gestion in Morocco,
they are reported in proportion to Amundi's
holding in the capital of the JV
Lyxor, integrated as of 31/12/2021
Assets under management and flows including a ssets under advisory,
marketed assets and funds of funds, and taking into account 100% of Asian JV 's assets and flows ; for Wafa Gestion in Morocco,
they are reported in proportion to Amundi's
holding in the capital of the JV ; as of 01/01/2024, reclassification of short-term bond strategies (€30 billion in outstandings) as Bonds previously classified as Treasury until that date; Outstanding amounts up to that date have not been reclassified in these tables
See also the section 4.3
of the 2023 Universal Registration Document filed with the AMF on April 18, 2024
Source: IPE "Top 500 Asset Managers" published in June 2024, based on assets under management as at 31/12/2023
Amundi data at 30/09/2024
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