Operating expenses were stable (€336m, -0.2% vs. Q1 2018), with synergies related to the integration of Pioneer offsetting reinvestments of growth as well as unfavourable foreign exchange and price effects.
Consequently, the cost-to-income ratio stood at 50.9%, near-stable compared to Q1 2018 and a significant 1.6-point improvement compared to Q4 2018. Gross operating income stood at €323m.
In light of the (increased) contribution from equity-accounted entities (primarily the Asian joint ventures) to income, and a virtually identical tax charge of -€94m, adjusted net income, Group share totalled €247m, up +3.2% compared to Q1 2018 and +10.0% compared to Q4 2018.
Retail
The Retail segment posted a recovery in MLT assets (+€2.4bn in Q1 2019 vs. +€0.1bn in Q4 2018), driven by International Networks (+€2.6bn) thanks to discretionary portfolio management in Italy, and by Asian joint ventures (+€0.8bn, particularly in India and Korea). However, there were moderate outflows in French networks, a trend reflected in the decline in the Unit-Linked[7] share of gross inflows from life insurance policies (24% in January-February vs. 28% in 2018).
Net outflows from treasury products (-€7.8bn) were significant at the end of the quarter in the French Networks, third-party distributors and JVs.
Net outflows from Retail totalled -€5.4bn for the quarter.
Institutionals
This quarter was characterised by robust net inflows in MLT assets, totalling +€6.0bn excluding the reinternalisation of an Italian mandate (-€6.3bn).
Net inflows in CA & SG Insurance Mandates were brisk and driven by subscriptions to euro-denominated life insurance contracts.
Also of note were the substantial net outflows from money-market products in the Corporates segment at the end of the quarter.
Net outflows from the Institutional segment totalled -€1.5bn for the quarter.
By asset class, MLT inflows were evenly distributed, driven by all areas of expertise. Structured products had notable success in meeting clients` need for protection.
From a geographic standpoint, 70%[8] of net inflows in MLT assets were achieved outside of France.
***
Financial communication schedule
-
16 May 2019: General Shareholders` Meeting for FY 2018
-
24 May 2019: Ex-dividend date
-
28 May 2019: Dividend payout date
-
31 July 2019: Publication of first-half 2019 results
-
31 October 2019: Publication of results for the first nine months of 2019
***
| €m | | Q1 2019 | | Q1 2018 | | Q1/Q1 change | | Q4 2018 | | Q1 2019 /
Q4 2018 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| Adjusted net revenue1 | | 659 | | 663 | | -0.6% | | 620 | | +6.2% |
| Net asset management revenue | | 641 | | 667 | | -4.0% | | 638 | | +0.5% |
| o/w net management fees | | 621 | | 615 | | +0.9% | | 617 | | +0.6% |
| o/w performance fees | | 20 | | 52 | | -61.7% | | 21 | | -2.8% |
| Net financial income and other net income1 | | 18 | | (5) | | NS | | (18) | | NS |
| Adjusted operating expenses2 | | (336) | | (336) | | -0.2% | | (326) | | +3.0% |
| | | | | | | | | | | |
| Adjusted gross operating income1, 2 | | 323 | | 326 | | -0.9% | | 294 | | +9.8% |
| Adjusted cost/income ratio1,2 | | 50.9% | | 50.7% | | +0.2 pts | | 52.5% | | -1.6 pts |
| Cost of risk & Other | | 5 | | (4) | | NS | | (13) | | NS |
| Equity-accounted entities | | 13 | | 12 | | +8.4% | | 12 | | +8.8% |
| Adjusted income before taxes1,2 | | 341 | | 334 | | +2.1% | | 293 | | +16.5% |
| Adjusted taxes | | (94) | | (95) | | -0.9% | | (68) | | +38.3% |
| Adjusted net income, Group share2,3 | | 247 | | 240 | | +3.2% | | 225 | | +10.0% |
| Amortisation of distribution contracts after tax | | (13) | | (12) | | +0.7% | | (12) | | +0.7% |
| Pioneer integration costs after tax | | 0 | | (6) | | NS | | (21) | | NS |
| Net income, Group share | | 235 | | 221 | | +6.4% | | 192 | | +22.4% |
1- Excluding amortisation of UniCredit, SG, and Bawag distribution contracts.
2- Excluding costs associated with the integration of Pioneer
| | | | AuM | AuM | % chg. vs. | | Inflows | Inflows | Inflows | |
| (€bn) | | | 31/03/2019 | 31/03/2018 | 31/03/2018 | | Q1 2019 | Q1 2018 | Q4 2018 | |
| French networks | | | 105 | 108 | -2.5% | | -3.1 | +2.6 | +0.5 | |
| International networks | | | 123 | 121 | +1.4% | | +2.3 | +2.9 | -0.8 | |
| JVs | | | 147 | 129 | +14.2% | | -2.8 | +12.1 | +2.6 | |
| Third-party distributors | | | 181 | 177 | +2.3% | | -1.9 | +4.1 | -1.8 | |
| Retail | | | 556 | 534 | +4.0% | | -5.4 | +21.7 | +0.5 | |
| Institutionals* & sovereigns | | | 367 | 366 | +0.0% | | -1.5** | +14.4 | -10.4 | |
| Corporates | | | 62 | 74 | -15.5% | | -5.9 | +2.2 | +1.8 | |
| Employee Savings | | | 57 | 55 | +3.9% | | -0.5 | -0.1 | -0.1 | |
| CA & SG insurers | | | 435 | 423 | +2.8% | | +6.4 | +1.5 | +1.7 | |
| Institutionals | | | 920 | 918 | +0.3% | | -1.5 | +18.1 | -7.0 | |
| | | | | | | | | | | |
| TOTAL | | | 1,476 | 1,452 | +1.7% | | -6.9 | +39.8 | -6.5 | |
| Average AuM (excl. JVs) | | | 1,312 | 1,323 | -0.9% | | | | | |
* Including funds of funds
** Including the reinternalisation of an Italian mandate for -€6.3bn in Q1 2019
| | | | AuM | AuM | % chg. vs. | | Inflows | Inflows | Inflows | |
| (€bn) | | | 31/03/2019 | 31/03/2018 | 31/03/2018 | | Q1 2019 | Q1 2018 | Q4 2018 | |
| Equities | | | 250 | 234 | +7.1% | | +1.4 | +8.9 | -2.2 | |
| Multi-asset | | | 259 | 256 | +1.1% | | -2.4* | +5.8 | -1.7 | |
| Bonds | | | 668 | 658 | +1.6% | | +1.5 | +13.3 | -3.4 | |
| Real, alternative and structured assets | | | 78 | 70 | +12.1% | | +1.6 | +0.1 | +1.4 | |
| MLT ASSETS | | | 1256 | 1,218 | +3.1% | | +2.1 | +28.1 | -5.9 | |
| Treasury products | | | 220 | 235 | -6.1% | | -9.0 | +11.7 | -0.6 | |
| TOTAL | | | 1,476 | 1,452 | +1.7% | | -6.9 | +39.8 | -6.5 | |
* Impact of the reinternalisation of an Italian Multi-asset mandate for -€6.3bn in Q1 2019
| | | | AuM | AuM | % chg. vs. | | Inflows | Inflows | Inflows | |
| (€bn) | | | 31/03/2019 | 31/03/2018 | 31/03/2018 | | Q1 2019 | Q1 2018 | Q4 2018 | |
| France | | | 838* | 851 | -1.5% | | -0.6 | +14.3 | -5.0 | |
| Italy | | | 169 | 178 | -4.9% | | -3.8** | +4.1 | -1.0 | |
| Europe excl. France and Italy | | | 165 | 149 | +10.6% | | -2.7 | +2.5 | +5.5 | |
| Asia | | | 207 | 190 | +8.9% | | -5.2 | +14.8 | -4.0 | |
| Rest of world | | | 97 | 85 | +15.0% | | +5.4 | +4.0 | -1.9 | |
| TOTAL | | | 1,476 | 1,452 | +1.7% | | -6.9 | +39.8 | -6.5 | |
| TOTAL excl. France | | | 638 | 602 | +6.1% | | -6.3 | +25.5 | -1.5 | |
* Of which €419bn for CA & SG insurers
** Impact of the reinternalisation of an Italian Multi-asset mandate for -€6.3bn in Q1 2019
Methodological appendix
-
Q1 2019 Income statement
-
Accounting data
In Q1 2019, information corresponds to data after amortisation of distribution contracts (in Q1 2019 and Q1 2018) and after integration costs related to Pioneer (in Q1 2018).
-
Adjusted data
To present an income statement that is closer to the economic reality, the following adjustments have been made:
-
In Q1 2019: restatement of amortisation of distribution contracts (deducted from net revenues) with SG, BAWAG and UniCredit.
-
In Q1 2018: restatement of Pioneer-related integration costs and amortisation of distribution contracts (deducted from net revenues) with SG, BAWAG and UniCredit.
Costs associated with the integration of Pioneer Investments:
Amortisation of distribution contracts:
-
Reminder of amortisation of distribution contracts with UniCredit
When Pioneer was acquired, 10-year distribution contracts were entered into with UniCredit networks in Italy, Germany, Austria, and the Czech Republic; the gross valuation of these contracts came to €546m (posted to the balance sheet under Intangible Assets). At the same time, a Deferred Tax Liability of €161m was recognised. Thus the net amount is €385m which is amortised using the straight-line method over 10 years, as from 1 July 2017.
In the Group`s income statement, the net tax impact of this amortisation is €38m over a full year (or €55m before tax), posted under "Other revenues," and will be added to existing amortisations of the SG and Bawag distribution contracts of €12m after tax over a full year, or €17m before tax.
-
Alternative Performance Indicator[9]
To present an income statement that is closer to the economic reality, Amundi publishes adjusted data which are defined as follows: they have excluded costs associated with the integration of Pioneer and amortisation of the distribution contracts with SG, Bawag and UniCredit since 1 July 2017 (see above).
These combined and adjusted data are reconciled with accounting data as follows:
| | | Q1 2019 | | Q1 2018 |
| €m | | | | |
| | | | | |
| Net revenues (a) | | 641 | | 645 |
| + Amortisation of distribution contracts before tax | | 18 | | 18 |
| Adjusted net revenues (b) | | 659 | | 663 |
| | | | | |
| Operating expenses (c) | | -336 | | -345 |
| + Pioneer integration costs before tax | | 0 | | 9 |
| Adjusted operating expenses (d) | | -336 | | -336 |
| | | | | |
| Gross operating income (e) = (a)+(c) | | 306 | | 299 |
| | | | | |
| Adjusted gross operating income (f) = (b)+(d) | | 323 | | 326 |
| Cost/income ratio (c)/(a) | | 52.3% | | 53.6% |
| Adjusted cost/income ratio (d)/(b) | | 50.9% | | 50.7% |
| Cost of risk & Other (g) | | 5 | | -4 |
| Equity-accounted entities (h) | | 13 | | 12 |
| Income before tax (i) = (e)+(g)+(h) | | 323 | | 307 |
| | | | | |
| Adjusted income before tax (j) = (f)+(g)+(h) | | 341 | | 334 |
| Taxes (k) | | -89 | | -87 |
| Adjusted taxes (l) | | -94 | | -95 |
| Net income, Group share (i)+(k) | | 235 | | 221 |
| | | | | |
| Adjusted net income, Group share (j)+(l) | | 247 | | 240 |
About Amundi
Amundi is Europe`s largest asset manager by assets under management and ranks in the top 10[10] globally. It manages 1,476 billion[11] euros of assets across six main investment hubs[12]. Amundi offers its clients in Europe, Asia-Pacific, the Middle East and the Americas a wealth of market expertise and a full range of capabilities across the active, passive and real assets investment universes. Clients also have access to a complete set of services and tools. Headquartered in Paris, Amundi was listed in November 2015.
Thanks to its unique research capabilities and the skills of close to 4,500 team members and market experts based in 37 countries, Amundi provides retail, institutional and corporate clients with innovative investment strategies and solutions tailored to their needs, targeted outcomes and risk profiles.
Amundi. Confidence must be earned.
Visit www.amundi.com for more information or to find an Amundi office near you.
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| Press contact: | Investor contacts: |
| Natacha Andermahr | Anthony Mellor Thomas Lapeyre |
| Tel. +33 1 76 37 86 05 | Tel. +33 1 76 32 17 16 Tel. +33 1 76 33 70 54 |
| natacha.andermahr-sharp@amundi.com | anthony.mellor@amundi.com thomas.lapeyre@amundi.com |
DISCLAIMER:
This document may contain projections concerning Amundi`s financial situation and results. The figures given do not constitute a "forecast" as defined in Article 2.10 of Commission Regulation (EC) No. 809/2004 of 29 April 2004.
This information is based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context. As such, the projections and results indicated may not necessarily come to pass due to unforeseeable circumstances. The reader should take all of these uncertainties and risks into consideration before forming their own opinion.
The figures presented were prepared in accordance with IFRS guidelines.
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 independently verified, 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 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 the document may refer.
[1] Adjusted data: excluding amortisation of the distribution contracts and, in 2018, excluding costs associated with the integration of Pioneer.
[2] Assets under management and net inflows include assets under advisory and assets sold, and take into account 100% of assets under management and net inflows on the Asian JVs. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
[3] Medium-Long-Term (MLT) Assets excluding treasury products: equity, fixed income, real, alternative and structured assets.
[4] Including amortisation of distribution contracts.
[5] Adjusted data: excluding amortisation of the distribution contracts and, in 2018, excluding costs associated with the integration of Pioneer.
[6] Medium-Long-Term (MLT) Assets excluding treasury products: equity, fixed income, real, alternative and structured assets.
[7] French market figures. Source: FFA
[8] Excluding reinternalisation of an Italian mandate
[9] Please refer to section 4.3 of the 2018 Registration Document filed with the French AMF on 08/04/2019
[10] Source IPE "Top 400 asset managers" published in June 2018 and based on AUM as of end December 2017
2 Amundi figures as of March 31, 2019
[12] Investment hubs: Boston, Dublin, London, Milan, Paris and Tokyo
Amundi PR Q1 2019 results.pdf
This announcement is distributed by West Corporation on behalf of West Corporation clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Amundi via GlobeNewswire
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