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Amundi increases AUM but revenue and profits down in H1

News Team, 31/07/2020

Europe’s largest asset manager Amundi today released its results for the six months ending 30 June and the firm has managed to increase its assets under management by 7 percent to €1.592 trillion on a year-on-year basis. However revenues and profits were impacted by the COVID induced market downturn, with the former down by 7.3 percent compared to the same period last year.

 A point of note is that Société Générale remains invested in Amundi as when the asset manager floated, the French bank sold its 20 percent stake in the company seemingly leaving Credit Agricole as the sole bank shareholder. Given the captive nature of European fund distribution, having two major French financial institutions is a benefit to Amundi and today’s announcement that Société Générale plans to stay involved for five more years at least should buoy investors.

 Other notable growth drivers for Amundi include its acquisition of Sabadell in Spain and a joint venture with the Bank of China. The latter deal should prove lucrative for Amundi as China is still one of the fastest growing markets in the world.

 Yves Perrier (pictured), CEO of Amundi, said in a statement: “Despite an unfavourable market environment, Amundi’s business activity and earning were solid in the 2nd quarter, which proves the company’s business model is sound. Medium-Long-Term assets inflows turned positive, thanks notably to real assets and passive management.”

He added that the firm’s cost/income ratio is improving, standing at 50.9% at the end of Q2, a 30 basis points improvement on the prior year. While profits were down slightly on the prior year, Mr Perrier said if it were not for COVID, the firm’s profits would have at least been on par with 2019.

 

Amundi has been busy since its IPO, buying Italy’s Pioneer and the firm remains on the acquisition trail. With Société Générale remaining on board, the firm has one of the strongest retail distribution networks of any asset manager, especially in Europe.

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