Amundi Fourth-Quarter 2021: Positive Trends Continue

Narrow-moat Amundi reported a net profit of EUR 304 million for fourth-quarter 2021, 11% higher than a year earlier. Quarterly revenue grew by 9% year on year, management fees increased 16% year on year, while performance declined 25%. Despite this, performance fees remain elevated compared with the long-run average. Operating expenses were very well controlled and increased only 5% year on year, supporting a 2% improvement in the cost/income ratio to 48%. It was another strong quarter for net new money inflows; pleasingly flows into active management strategies remain robust, supporting margin expansion. Inflows into high-margin retail products grew faster than institutional mandates. Net management fees/assets under management increased to 17.9 basis points for fiscal 2021 compared with 17.4 basis points for fiscal 2020 due to the favourable mix effects of having more active and retail AUM.