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Investing.com -- Amundi SA (EPA:AMUN) reported mixed first-quarter 2025 results on Tuesday, with earnings weighed by higher costs even as net client inflows exceeded expectations.
Adjusted pretax profit came in at €458 million, in line with consensus, though analysts at RBC Capital Markets noted a roughly 5% miss when excluding one-off gains in "Financial and other revenue."
Revenues slightly beat forecasts by around 1%, but this was offset by operating expenses that were about 2% higher than expected. The adjusted cost-to-income ratio rose to 52.4%, marginally above consensus.
Assets under management stood at €2.25 trillion at the end of March, up 0.3% from the previous quarter but 1% below the €2.27 trillion consensus.
Positive flows were partially offset by adverse market effects, including declines in the U.S. dollar and Indian rupee.
Total (EPA:TTEF) net inflows reached €31.1 billion, ahead of consensus expectations of €26.7 billion. Excluding joint ventures and treasury products, net flows were €36.9 billion, a beat versus the €25.3 billion consensus and RBC’s estimate of €30.3 billion.
Inflows were driven by a €21 billion passive mandate from a UK pension scheme, strong ETF sales through third-party distributors, and active fixed income products across client types. Treasury products posted €8.7 billion in outflows.
Retail flows were weaker, with ex-joint venture inflows at €5.8 billion, or €4.2 billion excluding money market products, below expectations.
French networks showed minor gains that turned to outflows once money market activity was excluded, while international retail networks recorded outflows of €2.7 billion, underperforming forecasts. Third-party distribution, however, outperformed, driven by ETF demand.
Amundi also announced a cost-cutting plan targeting €30–40 million in annual savings starting in 2026, equivalent to roughly 2% of projected adjusted PBT.
The company guided for a 2% decline in AUM (excluding JVs) from March to April 25, better than the 5% drop currently implied by consensus for the second quarter.
Despite a 19% rebound in the share price since early April, sentiment remains neutral. Amundi trades at about 11 times 2025 earnings and 10 times 2026 estimates, in line with European peers, according to Morgan Stanley (NYSE:MS).