Amundi: Q1 2022 Results
A solid quarter in a less favourable environment
Robust inflows1 in MLT2 assets excl. JVs (+€21bn), particularly in Retail
Net income up +5% vs. Q1 20213, 4
| Business activity |
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| Results |
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| Lyxor |
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| Responsible Investment6 |
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| Russia/Ukraine |
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Paris, 29 April 2022
Amundi’s Board of Directors, chaired by Yves Perrier, convened on 28 April 2022 to review the financial statements for the first quarter of 2022.
Commenting on the figures, Valérie Baudson, CEO, said:
“In a more difficult backdrop due to increased market volatility and the conflict in Ukraine, Amundi has had a solid quarter thanks to robust inflows in medium- and long-term assets, driven by the majority of our areas of expertise and our different customer segments. The acquisition of Lyxor is paying off with solid business momentum in passive management.
The increase in our earnings and high level of operational efficiency shows that our diversified model is resilient and our strategic choices are appropriate”.
I. Robust business activity, driven by Retail and by the main areas of expertise
Inflows8 of +€21bn in MLT9 assets excl. JVs
Despite a less favourable backdrop, the quarter was characterised by robust inflows in MLT assets, especially in Retail. In the JVs, business activity was solid (+€8.4bn), mainly in India and China.
To be note, however, there has been a sharp slowdown since the outbreak of the war in Ukraine.
Overall, given the outflows from treasury products (+€26.3bn excl. JVs) and a negative market effect (-€46.4bn), Amundi’s assets under management totalled €2,021bn as of 31 March 2022, up +15.1% year-on-year10 and down -2.1% vs. the end of December 202111.
Net flows in MLT assets (excl. JVs) totalled €21.0bn this quarter, despite the crisis in Ukraine:
- Retail: solid activity (+€14.4bn), particularly with third-party distributors
Inflows were once again robust, driven by all customer segments, in particular third-party distributors (+€10.8bn) and both active and passive management, and occurred mainly in Europe (Italy, Spain, United Kingdom, Germany). In the international networks (+€1.3bn excl. BOC WM), inflows remained steady, especially in Italy and Germany. In the French networks, activity stood at a good level in MLT assets (+€1.3bn) but was offset by continued outflows from structured products.
Amundi’s Chinese subsidiary BOC Wealth Management continued to post robust figures early this quarter (+€2.3bn), bringing AuM to over €13bn. However, business slowed substantially in March, partly due to the first maturities of funds launched last year, and also due to the new market environment and health crisis in China.
- Institutionals: positive flows (+€6.6bn) and treasury product outflows
This quarter was characterised by solid inflows in MLT assets (active and passive management, real assets, ESG solutions), mainly driven by Institutionals and Sovereign clients (for instance new Green, Social and Sustainable bonds mandates won in Germany and Japan, new OCIO12 client in Ireland, new client in passive in Israel), as well as CA and SG Insurers.
- High inflows in MLT assets were driven by most areas of expertise:
- Passive management had an excellent first quarter with +€10.6bn in net inflows, bringing AuM to €309bn at end-March 2022. With +€8,8bn in ETF inflows, Amundi is ranked no. 2 in terms of European inflows13 with a market share of 22%. This excellent business momentum is primarily the result of a stronger product range thanks to the acquisition of Lyxor. In total, ETF assets were €191bn at 31 March 2022. Amundi is the number one European player in this area and confirms its leadership with a market share of 14.1%13.
- Active management saw high inflows (+€9.1bn), especially in multi-asset management, with the acquisition of major new clients. Fund performance remained solid, with over 80% of assets in open-ended funds in the top two quartiles for their three-year performance14.
- Growth in Real and Alternative Assets continued, with +€2.6bn in net inflows driven by all areas of expertise (Private Equity, Private Debt, Liquid Alternatives, Real Estate). Assets under management totalled €93bn at the end of March 2022.
Good business momentum in the JVs (+€8.4bn)
The Indian JV continued its growth momentum with high inflows (+€3.6bn), leading to a gain in market share (from 16.4% to 16.9%15). SBI FM is thereby confirming its leadership in India.
In China (ABC-CA), business activity was also robust with flows remaining solid at +€3.6bn (excluding -€0.7bn in outflows from low margin Channel Business products).
II. Adjusted net income16 up +5%17 vs. Q1 2021
Amundi maintained a good level of adjusted net income (€324m) in the first quarter of 2022, in a less favourable environment. This growth was driven by the scope effect (consolidation of Lyxor as of Q1 2022) as well as a sharp increase in revenues and continued excellent operational efficiency (cost/income ratio of 50.6%16).
Net revenues (excluding financial income)18 were up sharply:
- The sharp growth in net management fees compared to Q1 2021’s reported figure (+16.3%) was driven by the trend in inflows over the last several quarters, and further bolstered by the consolidation of Lyxor and market growth (+8.6% Q1/Q1 for the Eurostoxx average); growth remains very high (+9.2%) compared to the Amundi and Lyxor combined figures for Q1 2021.
- Performance fees remained high (€71m vs. €111m in Q1 2021 and €70m in Q4 2021) and are in the process of normalising.
- Amundi Technology’s revenues (which are now reported in the income statement) increased 37.8% vs Q1 2021, confirming its growth (42 clients as of the end of March, particularly with a new robo-advisor solution developed at ALTO W&D19).
Operating expenses16 were under control (€423m, up 3.4% vs. Q1 2021 combined). As a result, the adjusted cost/income ratio16 was very good and stood at 50.6%. Normalised20 for performance fees, the cost/income ratio (51.8% in Q1 2022) is almost stable compared to Q1 2021.
Given the strong activity of the equity-accounted companies (mainly the Asian joint ventures), their contribution to income increased to €20m vs. €18m in Q1 2022.
III. Other information
General Meeting and dividend
Amundi’s Ordinary General Meeting will be held on 18 May at 9:30 a.m. As already announced, the Board of Directors will propose a cash dividend of €4.10 per share at the General Meeting. This dividend represents a payout ratio of 65% of 2021 accounting net income Group share21 and a 7.1% return based on the share price at 26 April 2022 (at market close).
- Detachment: 23 May 2022
- Payout: as from 25 May 2022
Financial disclosure schedule
- AGM for the 2021 financial year: 18 May 2022
- Publication of H1 2022 results: 29 July 2022
- Publication of 9M 2022 results: 28 October 2022
***
Income Statements
| Q1 2022 | Q1 2021 (excl. Lyxor) | Chg. Q1/Q1 | Chg. Q1/Q1 combined2 | Q4 2021 (excl. Lyxor) | Chg. Q1/Q4 | Chg. Q1/Q4 combined2 | |||||||
| Adjusted net revenue 1 | 835 | 770 | 8.4% | 2.6% | 794 | 5.1% | -2.0% | ||||||
| Net asset management revenue | 837 | 770 | 8.7% | 2.8% | 789 | 6.0% | -1.3% | ||||||
| o/w net management fees | 766 | 658 | 16.3% | 9.2% | 719 | 6.5% | -0.7% | ||||||
| o/w performance fees | 71 | 111 | -36.2% | -37.3% | 70 | 1.2% | -7.6% | ||||||
| Amundi Technology revenues | 10 | 7 | 37.8% | 37.8% | 9 | 9.9% | 9.9% | ||||||
| Net financial income and other net income | (12) | (7) | - | - | (4) | - | - | ||||||
| Operating expenses 1 | (423) | (376) | 12.5% | 3.4% | (388) | 9.0% | -1.4% | ||||||
| Adjusted gross operating income 1 | 412 | 394 | 4.5% | 1.8% | 406 | 1.5% | -2.5% | ||||||
| Cost of risk & Other | (4) | (2) | - | - | 1 | - | - | ||||||
| Equity-accounted entities | 20 | 18 | 11.5% | 11.5% | 21 | -7.0% | -7.0% | ||||||
| Adjusted income before taxes 1 | 428 | 410 | 4.5% | 2.0% | 429 | 0.0% | -3.7% | ||||||
| Corporate tax 1 2 | (103) | (103) | -0.6% | -3.7% | (99) | 4.2% | -0.5% | ||||||
| Minority interests | (1) | 2 | - | - | (1) | -3.2% | -3.2% | ||||||
| Adjusted net income, Group share 1 | 324 | 309 | 5.0% | 2.8% | 328 | -1.3% | -4.6% | ||||||
| Amortisation of intangible assets after tax | (15) | (12) | 20.5% | 25.1% | (12) | - | - | ||||||
| Integration costs net of tax | (8) | - | - | - | (12) | - | - | ||||||
| Net income, Group share | 302 | 297 | 1.9% | -0.6% | 304 | -0.8% | -4.5% |
1. Adjusted data: excluding amortisation of intangible assets and integration costs 2. Combined data: Amundi + Lyxor
Change in assets under management1 from end-December 2020 to end-March 2022
| (€bn) | Assets under management | Net inflows | Market and forex effect | Scope effect | Change in AuM vs. previous quarter | ||||||||
| At 31/12/2020 | 1,729 | +4.0% | |||||||||||
| Q1 2021 | -12.7 | +39.3 | / | ||||||||||
| At 31/03/2021 | 1,755 | +1.5% | |||||||||||
| Q2 2021 | +7.2 | +31.4 | / | ||||||||||
| At 30/06/2021 | 1,794 | / | +2.2% | ||||||||||
| Q3 2021 | +0.2 | +17.0 | / | ||||||||||
| At 30/09/2021 | 1,811 | / | +1.0% | ||||||||||
| Q4 2021 | +65.6 | +39.1 | +14822 | ||||||||||
| At 31/12/2021 | 2,064 | / | |||||||||||
| Q1 2022 | +3.2 | -46.4 | / | -2.1% | |||||||||
| At 31/03/2022 | 2,021 | / | |||||||||||
1. AuM (including Lyxor from 31/12/2021) and net inflows (including Lyxor only in Q1 2022) include assets under advisory and assets marketed and take into account 100% of the Asian JVs’ assets under management and net inflows. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
Assets under management and net inflows by client segment1
| AuM | AuM | % chg. | Inflows | Inflows | Inflows | |
| (€bn) | 31/03/2022 | 31/03/2021 | vs. 31/03/2021 | Q1 2022 | Q4 2021 | Q1 2021 |
| French networks | 122 | 121 | 1.0% | -1.3 | +3.6 | +0.4 |
| International networks | 172 | 151 | 14.0% | +3.5 | +5.1 | +2.7 |
| o/w Amundi BOC WM | 13 | 1 | NS | +2.3 | +3.3 | +0.9 |
| Third-party distributors | 322 | 196 | 64.5% | +11.9 | +11.3 | +4.3 |
| Retail (excl. JVs) | 617 | 468 | 31.8% | +14.1 | +19.9 | +7.4 |
| Institutionals2 & sovereigns | 476 | 413 | 15.3% | -3.0 | +5.5 | -10.7 |
| Corporates | 95 | 89 | 6.2% | -13.4 | +14.9 | -6.7 |
| Employee Savings | 75 | 71 | 6.0% | -1.3 | +0.1 | +0.0 |
| CA & SG insurers | 462 | 466 | -0.9% | -1.7 | -0.3 | +1.1 |
| Institutionals | 1,108 | 1,039 | 6.6% | -19.4 | +20.2 | -16.2 |
| JVs | 296 | 248 | 19.2% | +8.4 | +25.5 | -4.0 |
| TOTAL | 2,021 | 1,755 | 15.1% | +3.2 | +65.6 | -12.7 |
Note: Q1 2022 and 31/03/2022: data for Amundi + Lyxor combined; Q1 and Q4 2021 and 31/03/2021: data for Amundi only
1. Assets under management (including Lyxor as of 31/12/2021) and Inflows (including Lyxor in Q1 2022 only) include assets under advisory and assets sold and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis. 2. Including funds of funds.
Assets under management and net inflows by asset class1
| AuM | AuM | % chg. | Inflows | Inflows | Inflows | |
| (€bn) | 31/03/2022 | 31/03/2021 | vs. 31/03/2021 | Q1 2022 | Q4 2021 | Q1 2021 |
| Active management | 1,117 | 1,036 | 7.8% | 9.1 | 20.0 | 5.9 |
| Equities | 183 | 163 | 12.4% | -0.7 | 5.3 | 2.0 |
| Multi-asset | 321 | 269 | 19.6% | 11.0 | 8.7 | 5.5 |
| Bonds | 612 | 604 | 1.4% | -1.2 | 6.0 | -1.6 |
| Structured products | 32 | 37 | -14.5% | -1.2 | -1.7 | 0.2 |
| Passive management | 309 | 171 | 80.4% | 10.6 | 9.5 | 2.3 |
| Real and alternative assets | 93 | 58 | 60.4% | 2.6 | 1.2 | 1.4 |
| MLT assets | 1,551 | 1,302 | 19.1% | 21.0 | 1.2 | 9.8 |
| Treasury products | 174 | 205 | -15.1% | -26.3 | 1.2 | -18.6 |
| JVs | 296 | 248 | 19.2% | 8.4 | 1.2 | -4.0 |
| TOTAL | 2021 | 1,755 | 15.1% | 3.2 | 1.2 | -12.7 |
Note: Q1 2022 and 31/03/2022: data for Amundi + Lyxor combined; Q1 and Q4 2021 and 31/03/2021: data for Amundi only
1. Assets under management (including Lyxor as of 31/12/2021) and Inflows (including Lyxor in Q1 2022 only) include assets under advisory and assets sold and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
Assets under management and net inflows by geographic segment1
| AuM | AuM | % chg. | Inflows | Inflows | Inflows | |
| (€bn) | 31/03/2022 | 31/03/2021 | vs. 31/03/2021 | Q1 2022 | Q4 2021 | Q1 2021 |
| France | 948 | 927 | 2.3% | -22.8 | 10.1 | -15.7 |
| Italy | 209 | 185 | 12.8% | 3.8 | 5.2 | 3.2 |
| Europe excl. France and Italy | 350 | 233 | 50.3% | 8.7 | 15.0 | 2.6 |
| Asia | 386 | 311 | 23.9% | 14.2 | 33.7 | -1.5 |
| Rest of world | 128 | 99 | 28.6% | -0.7 | 1.6 | -1.4 |
| TOTAL | 2,021 | 1,755 | 15.1% | 3.2 | 65.6 | -12.7 |
| TOTAL excl. France | 1,072 | 829 | 29.4% | 26.0 | 55.5 | 3.0 |
Note: Q1 2022 and 31/03/2022: data for Amundi + Lyxor combined; Q1 and Q4 2021 and 31/03/2021: data for Amundi only
1. AuM (including Lyxor from 31/12/2021) and net inflows (including Lyxor only in Q1 2022) include assets under advisory and assets marketed and take into account 100% of the Asian JVs’ assets under management and net inflows. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
Methodology appendix
I. Accounting and adjusted data
Accounting data
For the first three months of 2021 and 2022, data after amortisation of intangible assets (distribution agreements with Bawag, UniCredit and Banco Sabadell; Lyxor client contracts); and after the integration costs related to Lyxor.
Adjusted data
To present an income statement that is closer to the economic reality, the following adjustments have been made: restatement of amortisation of intangible assets (deducted from net revenues); the integration costs related to Lyxor.
In the accounting data, amortisation of intangible assets:
- Q1 2021: €17m before tax and €12m after tax
- Q1 2022: €20m before tax and €15m after tax
In the accounting data, integration costs related to Lyxor:
- Q1 2021: 0
- Q1 2022: €10m before tax and €8m after tax
Acquisition of Lyxor
In accordance with IFRS 3, recognition on Amundi’s balance sheet as of 31/12/2021 of:
- goodwill in the amount of €652m;
- an intangible asset, representing client contracts, of €40m before tax (€30m after tax), which will be amortised on a straight-line basis over 3 years;
In the Group income statement, the above-mentioned intangible asset is amortised on a straight-line basis over 3 years starting in 2022; the full-year impact of this amortisation is €10m net of tax (i.e. €13m before tax). This amortisation is recognised as a deduction from net income and is added to the existing amortisation of distribution agreements.
II. Alternative Performance Indicators23
To present an income statement that is closer to the economic reality, Amundi publishes adjusted data which excludes amortisation of the intangible assets and the integration costs related to Lyxor.
These combined and adjusted data are reconciled with accounting data as follows:
accounting data
adjusted data
| €m | Q1 2022 | Q4 2021 | Q1 2021 | |||
| Net revenues (a) | 814 | 777 | 753 | |||
| + Amortisation of intangible assets before tax | 20 | 17 | 17 | |||
| Adjusted net revenues (b) | 835 | 794 | 770 | |||
| Operating expenses (c) | -433 | -404 | -376 | |||
| + Integration costs before tax | 10 | 16 | ||||
| Adjusted operating expenses (d) | -423 | -388 | -376 | |||
| Gross operating income (e) = (a)+(c) | 382 | 373 | 377 | |||
| Adjusted gross operating income (f) = (b)+(d) | 412 | 406 | 394 | |||
| Cost/Income ratio (c)/(a) | 53.1% | 52.0% | 49.9% | |||
| Adjusted cost/income ratio (d)/(b) | 50.6% | 48.8% | 48.8% | |||
| Cost of risk & Other (g) | -4 | 1 | -2 | |||
| Equity-accounted entities (h) | 20 | 21 | 18 | |||
| Income before tax (i) = (e)+(g)+(h) | 398 | 396 | 393 | |||
| Adjusted income before tax (j) = (f)+(g)+(h) | 428 | 429 | 410 | |||
| Taxes (k) | -94 | -90 | -99 | |||
| Adjusted taxes (l) | -103 | -99 | -103 | |||
| Minority interests (m) | -1 | -1 | 2 | |||
| Net income, Group share (n)= (i)+(k)+(m)-(p) | 302 | 304 | 297 | |||
| Adjusted net income, Group share (o) = (j)+(l)+(m) | 324 | 328 | 309 |
About Amundi
Amundi, the leading European asset manager, ranking among the top 10 global players24, 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.
With its six international investment hubs25, 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 5,300 employees in 35 countries. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €2.0 trillion of assets26.
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-sharp@amundi.com
Nathalie Boschat
Tel. +33 1 76 37 54 96
Investor contacts:
Anthony Mellor
Tel. +33 1 76 32 17 16
Thomas Lapeyre
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com
DISCLAIMER:
This presentation may contain projections concerning Amundi's financial situation and results.
The figures provided do not constitute a “forecast” as defined in Commission Delegated Regulation (EU) 2019/980.
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 as adopted by the European Union. Figures were unaudited, Data including Lyxor is estimated (with assumptions regarding the exclusion of certain activities retained by SG).
The information contained in this presentation, 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 presentation or its contents, or anything related to them, or any document or information to which the presentation may refer.
1 Assets under management (including Lyxor as of 31/12/2021) and net inflows (including Lyxor in Q1 2022 only) include assets under advisory and assets sold and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
2 Medium/Long-Term Assets: excluding treasury products
3Adjusted data: excluding amortisation of intangible assets and excluding integration costs. See page 6 for definitions and methodology.
4 Change from Q1 2021 reported data, excluding Lyxor
5 Excl. JVs
6 See glossary in Amundi’s 2021 Universal Registration Document
7 Excl. insurer mandates
8 Assets under management (including Lyxor as of 31/12/2021) and net inflows (including Lyxor in Q1 2022 only) include assets under advisory and assets sold and take into account 100% of the Asian JVs’ inflows and assets under management. For Wafa in Morocco, assets are reported on a proportional consolidation basis.
9 Medium/Long-Term Assets: excluding treasury products
10 Compared to 31 March 2021 excl. Lyxor.
11 Including Lyxor AuM.
12 Outsourced Chief Investment Officer solutions
13 Source: ETF GI, end of March 2022
14 Source: Morningstar Direct, Broadridge FundFile - Open-ended funds and ETFs worldwide, March 2022
15 Source: AMFI. Market share at end-December 2021 and end-March 2022.
16Adjusted data: excluding amortisation of intangible assets and excluding integration costs. See page 6 for definitions and methodology.
17 Change from Q1 reported data, excluding Lyxor
18 Net revenues excluding financial income and other net income, including asset management revenues and revenues from Amundi Technology which are now isolated on a specific line.
19 Wealth & Distribution
20 Cost/income ratio (in %) excluding exceptional performance fees (= higher-than-average performance fees per quarter in 2017-2020).
21 Excluding Affrancamento and Lyxor integration costs
22 Lyxor
23 Please refer to section 4.3 of the 2021 Universal Registration Document filed with the French AMF on 12/04/2022
24 Source: IPE “Top 500 Asset Managers” published in June 2021, based on assets under management as at 31/12/2020
25 Boston, Dublin, London, Milan, Paris and Tokyo
26 Amundi data including Lyxor as at 31/03/2022
Attachment
