Amundi (AMUN) Q2 2024 earnings summary

Executive summary

• Achieved record assets under management (AuM) of €2,156bn at 30 June 2024, up 9.9% year-over-year, driven by strong net inflows and market effects, with robust performance in Asia and successful integration of Alpha Associates.

• Adjusted net income rose 9.4% year-over-year in Q2 2024 to €350m, and 7.7% in H1 2024 to €668m, supported by revenue growth and operational efficiency.

• Net inflows reached €15.5bn in Q2 and €32.1bn in H1, with strong contributions from both active (€8.0bn) and passive (€6.0bn) management, and significant inflows from Asia and JVs.

• Strategic partnership agreement signed with Victory Capital to expand US platform, expected to close in early 2025, with identified $100m in annual cost synergies.

• Technology revenues increased 21.7% year-over-year, with new responsible investment funds and technology solutions launched.

Financial highlights

• Adjusted net revenues in Q2 2024 were €887m, up 7.7% year-over-year; H1 2024 adjusted net revenues were €1,711m, up 5.8%.

• Adjusted net income for Q2 2024 was €350m (+9% year-over-year); H1 2024 adjusted net income was €668m (+7.7% year-over-year).

• Cost-income ratio improved to 51.9% in Q2 2024 and 52.6% in H1 2024.

• Assets under management hit a record €2,156bn as of June 30, 2024, up 9.9% year-over-year.

• Adjusted EPS for Q2 2024 was €1.71 (+9% year-over-year); H1 2024 adjusted EPS was €3.26 (+7.3% year-over-year).

Outlook and guidance

• Victory Capital partnership expected to close in early 2025, with Amundi to hold a 26.1% stake and $100m in annual cost synergies identified.

• Anticipates continued growth in Asia and further expansion in the US, with low single-digit accretion to net income and EPS by 2026 from the Victory Capital partnership.

• Expects to lose a large European insurance mandate (~€12bn AuM) in Q3, with low revenue impact.

• Cost-income ratio guidance remains below 53%.

• Market environment remains marked by risk aversion, but positive momentum in passive management and technology is expected to continue.