Amundi : First quarter 2016 results

29 april 2016

First quarter 2016 results

Buoyant business activity and sustained earnings
despite a challenging market environment

Business	Strong net inflows [1] : €13.8bn, ie 6% [2] of AuM Well balanced between medium/long-term assets [3] (+€6.9bn) and treasury products Net inflows driven by the Institutional client segment (+€12.0bn) AuM 1 at €987bn stable compared to end-2015 due to a negative market effect of €11.6bn over the quarter, offsetting a large share of the net inflows AuM up 3% vs. 31 March 2015
Income	Net income Group share: €130m, up +1% vs Q1 2015 Net revenue down 3% vs Q1 2015 at €395m, but stable when excluding the market effect Cost/income ratio remains best in class at 53.7% (Q1 2015: 52.7%)

Paris, 29 April 2016

Amundi's Board of Directors, chaired by Jean-Paul Chifflet, met on Thursday, 28 April 2016 to review the financial statements for the first quarter of 2016.

Commenting on these results, Yves Perrier, CEO, said:

"The solid net inflows and earnings in the first quarter, achieved in a challenging market environment, are a reflection of the strength of Amundi's business model, based on broad business diversification by expertise, client segment and region."

A challenging market environment

The first quarter saw both a market downturn and an increase in market volatility. The equity markets in France and Europe as a whole were an average of 8% to 11% weaker ^[4] than in Q1 2015, due to concerns about the global economy and the low prices of commodities, particularly oil. On the bond markets, yields remained low and the average 3-month Euribor rate dropped into negative territory between the two periods.

Net inflows of €13.8bn in Q1 2016, equal to 6% ^[5] of AuM at the beginning of the period

In an unfavourable market environment, Amundi continued to benefit from its business model, based on diversification by expertise, client segment and region, and its business continued to grow.

Sales trends remained positive with net inflows of €13.8bn over the first quarter of 2016 , equal to 6% ⁵ of assets under management at the beginning of the period.

These inflows were driven by the Institutional client segment (+€12.0bn) , which continues to benefit from the Group's positive sales momentum.

In the Retail client segment , net inflows slowed (+€1.9bn) as risk aversion grew in response to the market environment. The results were uneven:

• The French networks saw inflows and outflows that were nearly equally balanced between  medium/long-term assets (-€0.3bn), with net outflows at the end of the quarter on money market instruments for SME clients (-€4.3bn overall). In a French market that remains challenging, Amundi increased its market share ^[6] , which rose to 28.3% (+1.9 percent points  year-on-year);
• The other distribution channels (International Networks including JVs and Third-Party Distributors) saw positive momentum (net inflows of +€6.4bn).

Net inflows remained balanced between treasury products (+€7.0bn) and medium/long-term assets (€6.9bn), with positive contributions from all asset classes.

Finally, net inflows remained concentrated in the international segment (+€9.3bn, or 68% of total net inflows) , evenly spread between Europe outside France (+€4.0bn) and Asia (+€5.0bn) as the contribution from Asian joint ventures remained strong (+€3.6bn mainly Asia).

Overall, assets under management remained near-stable over the quarter at €987bn (+0.2% vs 31 December 2015), with the negative market effect of -€11.6bn offsetting the positive net inflows.

Year-on-year , assets under management were up 3.5% , with net inflows of €69.7bn and a market effect of -€36.7bn.

Net income Group share was €130m, up +1% vs. the first quarter of 2015

Despite an unfavourable market environment, net income Group share, at €130m, was up slightly (+0.8%) compared to the first quarter of 2015 , reflecting the following developments:

• revenues were stable when excluding the negative market effect of -€14m  vs Q1 2015: net fee and commission income held up well, but performance fees came in at €18m, down by €8m vs Q1 2015;
• operating expenses were down 1.3%: this change is mainly the result of adjusting variable compensation to match changes in revenue; costs were equal to 9.3 ^[7]  bp of assets under management vs 9.6 bp in average in fiscal year 2015;
• the cost/income ratio, at 53.7% , was up one point from the first quarter of 2015 due to the unfavourable effect on revenues from the market downturn; however it remains at a very good level;
• tax expenses recorded over the quarter were down 12.2% , due primarily to the corporate tax cut in France; this resulted in an effective tax rate of 32.4% .

The Board of Directors, at its meeting on 28 April 2016, also took note of the resignation of Jean-Paul Chifflet from his positions as Chairman of the Board and Director, effective at the end of the Board meeting. The Board decided to replace him as Director by co-opting Michel Mathieu, Deputy CEO of Crédit Agricole S.A. in charge of the International Retail Banking business line and CEO of LCL, and to appoint Xavier Musca, Deputy CEO of Crédit Agricole S.A., to the position of Chairman of the Board.

Amundi's financial information for the first quarter 2016 consists of this press release and the related presentation, available on our website http://about.amundi.com.

Summary income statement

(€m)				Q1  16	Q1  15	% ch.
Net revenues				395	408	-3.3%
o/w performance fees				18	26	-32.2%
Operating expenses				-212	-215	-1.3%
Gross operating income				183	193	-5.5%
Cost income ratio (%)				53.7%	52.7%	+1.0pt
Other items				0	-3	NS
Share of net inc. of equity-accounted entities				7	6	+13.0%
Pre tax income				189	196	-3.5%
Income tax				-59	-68	-12.2%
Net income				130	129	+1.1%
Net income Group share				130	129	+0.8%
Earnings per share (€)			0.77 €		0.77 €	+0.5%

Change in assets under management from 31 December 2014 to 31 March 2016

	Assets under	Net	Market	Scope
(€bn)	management	inflows	effect	effect
31/12/2014	877.5
Flows Q1 2015		24.0	47.5	5.3
31/03/2015	954.3
Flows Q2 2015		22.6	-22.9	-
30/06/2015	954.0
Flows Q3 2015		19.2	-21.2	-
30/09/2015	952.0
Flows Q4 2015		14.1	+19.0	-
31/12/2015	985.0
Flows Q1 2016		13.8	-11.6	-
31/03/2016	987.2

 

Details of assets under management and net inflows by client segment

		AuM	AuM	% ch.		Net inflows	Net inflows
(€bn)		31.03.16	31.12.15	/31.12.15		Q1-16	Q1-15
French networks		95	102	-7.1%		(4.6) 1	0.8 2
International networks & JV		95	94	+0.9%		3.7	3.0
Third-party distributors		67	66	+0.9%		2.7	6.1
Retail		257	263	-2.2%		1.8	9.9
Institutionals & sovereigns		245	238	+2.8%		8.5	5.4
Corporates & Employee Savings Plans		82	87	-5.3%		(4.1)	4.2
CA & SG insurers		404	398	+1.5%		7.6	4.4
Institutionals		730	722	+1.1%		12.0	14.0
TOTAL		987	985	+0.2%		13.8	24.0
O/W JV		74	73	+1.2%		3.6	2.5

¹ Q1 2016: net inflows on long-term assets: -€0.3bn, net inflows on treasury products from SMEs: -€4.3bn
² Q1 2015: net inflows on long-term assets: +€1.0bn, net inflows on treasury products from SMEs: -€0.2bn

Details of assets under management and net inflows by asset class

		AuM	AuM	% ch.		Net inflows	Net inflows
(€bn)		31.03.16	31.12.15	/31.12.15		Q1-16	Q1-15
Equities		122	125	-2.5%		2.3	(1.2)
Multi-assets		116	117	-1.2%		1.4	6.4
Bonds		498	498	-0.0%		1.7	5.9
Specialised & structured		65	60	+8.5%		1.4	1.1
MEDIUM TO LONG TERM ASSETS		800	804	-0.5%		6.9	12.2
Treasury		187	181	+3.5%		7.0	11.8
TOTAL		987	985	+0.2%		13.8	24.0

About Amundi

Amundi is the leading European asset manager and among the top ten asset managers worldwide ^[8] , with €987 billion in assets under management ("AuM") as of 31 March 2016. Amundi is a global player, operating through two business lines: Retail (management of saving solutions distributed in France and worldwide by the Crédit Agricole and Société Générale group networks, worldwide by other banking networks through distribution agreements and managing joint-ventures, and in France and worldwide by third-party distributors) and Institutional (including sovereign funds, companies, insurers of the Crédit Agricole and Société Générale groups and other institutional investors). Amundi has a presence in 30 countries across 5 continents, developed through a combination of organic growth, acquisitions and long-term partnerships.

Press contacts:	Investor contacts:
Natacha Sharp	Cyril Meilland, CFA                          Annabelle Wiriath
Tel. +33 (0)1 76 37 86 05	Tel. +33 (0)1 76 32 17 16                   Tel. +33 (0)1 76 32 59 84
natacha.sharp@amundi.com	cyril.meilland@amundi.com            annabelle.wiriath@amundi.com

This notice may contain forward-looking statements for the Group, provided as information on trends. The figures given do not constitute a "forecast" as defined in Article 2.10 of Chapter 1 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.

Furthermore, the financial information given is based on estimates, particularly when measuring market value and asset depreciation.

The reader should take all of these uncertainties and risks into consideration before forming their own opinion.

The figures presented for the three-month period ended 31 March 2016 were prepared in accordance with IFRS guidelines as adopted by the European Union and applicable as of this date. The financial information given does not constitute financial statements for an interim period as defined in IAS 34 ("Interim Financial Reporting"), and has neither been audited nor subject to a limited review.

The information contained in this notice, 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 notice or its contents, or anything related to them, or any document or information to which the notice may refer.

Note: Amundi Group's consolidation scope is unchanged since the 2015 Registration Document (Document de Référence), filed with the AMF (French Financial Markets Authority) on 20 April 2015 (approval no. R.16-025).

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