Amundi reports record earnings and AuM for 2019

France
On the 02/12/20 at 7:17AM

by

Franck Joselin

The Paris-headquartered asset manager posted €1.65trn in assets under management as of end 2019.
(Pierre Chiquelin)

Yet another year of earnings growth for Amundi. The investment firm reported adjusted net income of €1.01bn for 2019, up 6.6% from one year earlier. Its accounting net income, which does not take amortisation of distribution contracts and the costs of merging with Pioneer, rose by 12.2% to €959m. “Our results improved for the 10th consecutive year and are in line with our strategic plan,” said Yves Perrier, CEO.

These figures were slightly above the FactSet consensus of accounting net income of €958m and adjusted net income of €989m.

In 2019, Amundi’s adjusted net revenues rose by 4.9% to €2.7bn, while its costs rose by only 3.5%, to €1.38bn. Its cost-income ratio, which was already well above the industry average, improved even more, to 50.9% from 51.5% in 2018.

Amundi reported €107.7bn in inflows and a market and currency impact of €121bn in 2019. It had €1,653bn in assets under management at year-end, up by 16% vs. 2018. Most of these inflows came from its joint-ventures, of which €74.2bn from institutional mandates in India. When excluding JVs, Amundi achieved €23.8bn in inflows in “all client segments and for medium- and long-term assets,” the firm said.

For the fourth quarter, Amundi reported adjusted net income of €274m, up by 21.8% vs. the same quarter of 2018. This is Amundi’s best quarterly profit ever. Its revenues rose in the fourth quarter by 15.9% to €719m, and its costs rose by 10.8% to €361m. During this quarter, Amundi totalled record inflows of €76.8bn, including €66.7bn in its JVs, vs. €42.7bn in inflows in the third quarter.

In 2020, Amundi plans to launch its new Chinese investment firm, in partnership with Bank of China. Amundi will hold a 55% equity stake and the firm will serve not only Bank of China’s private bank clients, but also other clients. Amundi will also set up its distribution partnership in Spain with Banco Sabadell following its takeover of Sabadell AM in January.

Lastly, regarding distribution agreements between Amundi and Société Générale, which mature in November 2020, Perrier confirmed that he is “very confident these agreements will be extended.”

Sign in