Amundi Sa

Good morning. I'm Cyril Maillan, the head of Investor Relations of Amundi, and it's a gorgeous day today. First, it's my birthday, so I won't tell you how much of a senile old-timer I am. But more importantly, we're here to present the nine months and Q3 results for Amundi, and I'm here with Nicolas Calcun, deputy CEO, and Aurélia Lecourtier, our CFO. We'll go through, as usual, the presentation of about 20-25 minutes and then open for Q&A. As usual, this is a video conference, so please, whenever you ask a question, please raise your hand. Whenever you want to ask a question, raise your hands virtually and open your camera so that we can have a live dialogue as much as possible. And sorry, but again, before we get started, we need to go through a short disclaimer. Throughout the presentation, we will make a number of forward-looking statements and mention forecasts. We call your attention to the fact that Amundi's actual results may differ from these statements. Some of the factors that may cause the results to differ materially are listed on our universal registration document. Amundi assumes no duty and does not undertake to update any forward-looking statements. And now I leave the floor to Nicolas.

Thank you, Cyril. Happy birthday. And good morning to all of you. And thank you for your participation in this conference to present our third quarter results. As usual, I will start this presentation with the main highlights, and then I will hand over to Aurélia, who will comment on the financial part more thoroughly before we answer your questions. First of all, I would like to highlight a few key points of this result. I will start with the strong inflows in the beginning of the year and in the third quarter. Over the first nine months, we have gathered 67 billion in net new money to manage, of which more than 15 billion in the third quarter. This comes mainly from medium to long-term assets, which are positive in both active and passive, and from retail as well as institutional investors and our Asian JVs. As of end of September, Amundi's asset under management reached a new all-time high of close to 2.32 trillion euros. They rose by close to 4% since the beginning of this year, despite the headwinds from a weaker US dollar and Indian rupee. The financial performance resulting from this business activity is healthy. Our pre-tax income rose by 4% year-on-year, to 445 million in the third quarter. This growth originates from business-related revenues, namely management fees and technology. Our costs remain under control furthermore, Q3 was the first quarter where the contribution from Victory Capital started reflecting the synergies from the deal. Finally, we saw further success in our strategic pillars, In the first nine months of 2025, all three main growth engines gathered more than 20 billion in net new assets. Third-party distribution first collected 21 billion euros, mainly in long-medium to long-term assets. Inflows were driven by ETF and positive in active management, with a high level of activity in most countries and regions. Our partnership with Standard Charter, for example, amplified its success and exceeded 3 billion in assets under management. The strong commercial momentum with digital platforms is accelerating, and a new long-term partnership has been signed with the South African digital platform Satrix, resisting a strong inflow of 1 billion on the quarter. In Asia, inflows over nine months reached 29 billion, of which 19 billion from the joint ventures and 10 billion from direct distribution. All countries in Asia contributed to these inflows, which are also well diversified by strategies across active management and passive management, as well as treasury products. ETFs collected $28 billion over nine months to total assets that exceed now $300 billion for the first time. Amundi confirmed its second place in the European ETF market in terms of asset under management as well as inflows. In the third quarter, two flagship products tracking major indices gathered the largest inflows, respectively in European and in U.S. equities. First, the Core Stocks Europe 600 ETF reached 14 billion in asset under management, making it the largest ETF in European equities. And the Core S&P 500 swap collected over 2 billion. Furthermore, we continue to innovate and new products were launched, such as the S&P 400 US Mid-Cap ETF or the Euro High Yield ETF. Finally, Amundi technology continued to record strong revenue growth at 81 million euros, approximately the same level as for the full year 2024. It's an increase by half compared to the same period of 2024, thanks to strong organic growth and the integration of Exego. Beyond strategic priorities, Amundi is achieving commercial success in its core business. And today we would like this quarter to put the spotlight on a business where Amundi is an undisputed number one, the management of employee savings schemes. Our dedicated business line, employee and retirement savings, saw record inflows over nine months with nearly 4 billion since the beginning of the year. Today manage 101 billion in assets with a market share in France of 45%. It services more than 12,000 corporate clients, multinationals and medium-sized companies directly, but also small companies via the networks of Credit Agricole and other partners. This business is in fact at Amundi the only business where we have direct access to the end client. Our service to the 4 million employee clients is comprehensive, from client servicing via telephone, mailbot, digital tools, including a transactional website and a SmartMock app, to a robo-advisor on GlidePass. We offer the full range of investment capabilities, from employee share ownership to funds and individual pension schemes. This retirement product in particular and developed in partnership with Crédit Agricole Assurance. As you can see, all these initiatives are creating a lot of value for our clients and position us well in the retirement business in France. I thank you for your attention and now leave the floor to Aurélia for the details of our financial results.

Thank you, Nicolas, and good morning, everyone. I will now comment, as usual, on our activity and financial results. Starting with our AUM, they reached 2.32 trillion at the end of September, which is, again, a new record for me. They were up over nine months, thanks to healthy net flows at 67 billion over the period, a positive market effect of more than 100 billion, but that was partially offset by a negative currency effect of 87 billion due to the depreciation of USD and Indian rupee. Year-to-date, indeed, both currencies are sharply down versus the euro, minus 11% for the US dollar and minus 15% for the Indian rupee. As a result of these various trends, our AUM increased by 3.5% since the beginning of year and by more than 2% in this third quarter. Moving now to our net inflows, Amundi's net inflows amounted 67 billion over the first nine months. with MLT net inflows totaling $57 billion and a strong contribution from passive management and ETF at $28 billion, as commented by Nicolas. This business line passed the $300 billion milestone, which is a very positive achievement. Flows were also driven by active management at $8 billion, decided to re-internalize the management of a 9 billion bond mandate. So we stated from this exit, net inflows into MLT assets would have been at 18 billion, balanced between 10 billions in passive and 8 in active. As in the previous quarter, our investment management teams delivered sustained performances in Q3. Close to three-quarters of our open-ended funds were in the first and second quartile, slightly up from the previous quarter. 242 Amundi funds are rated four or five stars by Morningstar. And 82% of our AUM outperformed their benchmark over five years. Let me add a bit of color to this performance, because this quarter, our fixed income flagships have done pretty good, such as global aggregate, corporate and European aggregate, and investment-grade credit strategies. They rank among the top of their peers. Our multi-asset strategies also posted very robust performances, as are emerging market strategies that performed well across both equity and fixed income. Beyond these highlights, the main message from this slide, as you can see, remains sustained consistency at a high level of investment performance. Looking now at our client segment and starting with retail, so retail flows were positive at 15 billion over the nine months. They remain driven by third party distributor, which posted healthy inflows of 21 billion year to date, of which 18 in ETF and positive flows in active and treasury products. Flows were also very diversified by regions with a high level of activity in Europe, namely in Germany, UK, Netherlands, but also Spain and Italy. Asia continued its momentum with 4 billion of net inflows and we gathered strong flows from high potential regions like the Middle East. We also signed, as Nicolas mentioned, a new long-term partnership in South Africa with the digital wealth platform Citrix, resulting in a flow of 1 billion ETFs. In China, JV with the Bank of China also enjoyed a strong commercial momentum with 1.6 billion gathered year-to-date. If we turn now to our international partner networks, the outflows totaled 4 billion in the last quarter and 10 billion over the first nine months. As you know, Unicredit is by far the largest of these networks, and the outflows originate from this group. As you know as well, Unicredit wants to develop their internal multi-manager platform, which explains the outflows. As many of you have asked, let me give you a few details about what Unicredit represents. At the end of September, Unicredit Networks represented a total of $88 billion in assets under management for Moondi, which is approximately 4% of a total AUM. These AUMs are mostly, as you know, invested in active management, so you should assume that the revenue margin is above our average retail margin and around 40 bps. And finally, to end on the retail segment, partner networks in France are showing positive net inflows, particularly in the third quarter with a 2.6 billion inflow. If we now move to institutional segments, net inflows were 35 billion year-to-date, with a sharp contrast between strong inflows into MLT that gathered 46 billion and outflows from Treasury products. As Nicolas already mentioned, employee saving and retirement expertise posted very strong inflows of 4 billion over the period. In the third quarter, if we restate from the exit of the 9 billion bond mandate I already mentioned, the MLC assets gathered 11 billion with a positive contribution from all segments. And it is worth noting as well that our mandate with Crédit Agricole and Société Générale insurers have collected strong inflows since the beginning of the year, including 4 billion in the third quarter, thanks to renewed interest in Euro contracts. Finally, our Asian joint venture posted net inflows of 18 billion over the first nine months, with good performances in all countries. South Korea posted $7 billion mostly in MLT assets. And China continued its recovery at $3 billion, excluding the discontinued channel business. Coming to our Indian JV, we had healthy inflows into saving plans that continued. However, the JV faced the impact of a lower currency, high market volatility, and uncertain monetary policy, which all triggered a wait-and-see attitude from clients. But despite these headwinds, the JV gathered 9 billion year-to-date and 2 billion for the Q3. As we have already highlighted many times on these calls, the expected partial exit from a big mandate with the Indian Pension Fund, EPFO, will now move forward. The outflow, as we already said, is likely to be between 30 and 40 billion and is expected to take place in Q4, but with no material impact on our net income. And finally, the U.S. distribution of victory capital posted smaller outflows, around 600 million for a share of 26%. But this is more than offset by the net inflows coming from the sales of victory strategies to non-U.S. clients, which are booked in our retail and institutional segments. Turning now to our results. So let me remind you of the pro forma restatements we have implemented since the closure of Victory in Q2. So to make comparison easier with 2025, as you know, we have restated the 2024 period. So Amundi US is not included in the revenues and costs of the 24 period and its contribution is equity accounted as for the contribution of Victory. So with that in mind, let's move now to our Q3 results on the next slide. Starting with the revenues, so our total revenues in the third quarter amounted to 815 million, up by 5% thanks to healthy growth in business-related revenues. Net management fees were up 3% compared to the same quarter last year. thanks to a strong asset gathering in the past 12 months and despite the drop in the US dollar. Our technology revenues were also up by 49% at 29 million, thanks to both a healthy organic growth and thanks to the contribution from Exego. Performance fees were also up year on year, thanks to the good performance fees I detailed earlier. And finally, our financial income is in line with the decrease in Euro short-term rates. If we turn now to the cost, so as you know, every year Amundi offers to its employees the possibility to invest in new shares issued at a discount. We call this operation WeShare. And this discount results in a charge in our P&L of $17 million that will be accounted in Q3. Last year, this charge was booked in Q4, and therefore, the charge rebooked in Q3 this year is distorting the comparison with Q3 24. So, restating for this impact, our cost would have been up by 4%, reflecting the integration of Exigo, and our investment to nurture our future growth. It also reflects our best-in-class cost efficiency with an adjusted cost-income ratio at 53.5%. This quarter, we also implemented our optimization plan that resulted in, first, the merger of Amundi Affiliates CPR and BFT in France, which is effective since October 1st, And second, the reorganization of our multi-asset teams across all Europe, which is underway. The restructuring costs of this plan are booked in this Q3 for an amount of 80 million, and they are excluded from our adjusted P&L. Therefore, they do not contribute to the cost evolution of the quarter. As a reminder, the aim of the plan is to generate 40 million in savings from 26 to be reinvested in our growth business. Finally, our adjusted profit before tax was up 4%, as you can see on the slide, at 450 million. Let me take you through the key drivers of this growth. So first, the contribution of our Asian JVs was up 3%, with China and Korea posting very strong growth in their contribution. And the contribution from SBIMF that suffered headwinds from the drop of the Indian rupee remains still healthy, with management fees growing more than 20% year-on-year in the JV in local currency. The equity accounted contribution from our U.S. operation was at 33 million over the quarter. As a result, as you know, of the lag by one quarter in the recognition of victories results, Q3 contribution includes the first synergies from the partnership. And this contribution also benefited from the adjustment of 4 million between the estimates used in Q2 and the publication of Victory's Q2 results. So, all in all, the adjusted net income of Amundi was at 340 million, including the tax surcharge over the quarter of 9 million. Let's have now a final look on our financial performance year-to-date. So first, our adjusted revenues reached $2.5 billion. They were up 5% and driven by net management fees up 4% and technology revenues at $81 million, an increase of almost a half. Performances were also up 7% year-on-year. Second, this revenue growth, as you can see, was complemented by our operational efficiency with an adjusted cost-income ratio at 52.8 over the period. Expenses were up 5% if we restate from the employee scheme charge. as I explained earlier, and they are in line with the gross revenue. Third, the contribution from our Asian JV was almost $100 million, up 6%, and the contribution from Victory Capital up by 8%. All this translates into the growth of 4% of our adjusted pre-tax income, that reach $1,340,000,000. Excluding the tax surcharge in France that totals 63 million for the nine months, our adjusted net income would have been over 1 billion, up 4% versus 24. I will now hand back to Nicolas for concluding remarks before we take your questions. And I thank you very much for your attention.

Thank you, Aurélien. To conclude, as you can see from our business and financial results, Amundi continues to accelerate alongside its strategic pillars. 80% of the net inflows over the first nine months of this year, meaning 55 billion out of the total of 67 billion, comes from these strategic pillars, third-party distribution, Asia or ETFs. Net inflows from these strategic pillars already exceed the full year 2024 total net inflows. We are now reaching the end of our ambitious 2025 medium term plan, and we can confidently look forward to the presentation of our next plan. In this perspective, let me complement what Aurélia told you about our distribution agreement with Unicredit. As you know, this agreement comes for renewal in July 2027 and we do not know whether it will be renewed or under what conditions. We are of course fully committed to continue serving Unicredit clients with the highest standards and we stand ready to remain a partner for Unicredit and to create value for all parties beyond 2027. Our new strategic plan for 2028 will include a financial trajectory that will reflect this uncertainty regarding the contribution from Unicredit from 2027 onwards, as well as, of course, Amundi's healthy growth in all its strategic pillars. So we look forward to our Capital Market Day on November 18th to present all the ambitious growth initiatives that will underpin our future growths. We are now with Aurelia at your disposal to answer your questions. Thank you.

Thank you, Nicolas. Thank you, Aurelia. So now we are moving to the Q&A session, as Nicolas said, and we will start with a question from Hubert from Bank of America.

Hi, thanks for taking my questions. I've got three of them. Firstly, on unit credit. So you talk about accounting for the unit credit uncertainty in your strategic plan. Just wondering what are the different ways you can reflect this in the plan, just given the uncertainty and the exposure that you, the significant exposure that you have in it and the potential impact that it can bring? if the contract wasn't renewed. That's the first question. The second question is on taxes. There's now likely going to be further tax surcharge in France in 2026. So, any guidance you can have for us for this for next year? And lastly, on the French networks, it's good to see the medium long-term assets turning positive this quarter. Do you see this as a turning point? And also, can you please give us also the breakdown of the medium long-term assets in this? Is it coming from structured products or passives or anything else? Thank you.

Thank you. I will answer your first question and maybe let Aurelia answer the two other ones. So your first question was about Unicredit and how to take into account it in our medium-term plan. As we explained, there's a lot of uncertainty around the future of this relationship, even if we hope and we are convinced that we can continue to bring value to Unicredit. So the way we would look at it, but really it's an uncertainty because we know that in Italy, asset turnover can be very high. as it is illustrated by the rapid deployment of one market. And we do estimate that in an unfavorable scenario, the largest part of our assets could exit within two years. But as we said, we don't know if the partnership will be renewed under what conditions. So what we will do is to commit to targets that will be achieved whatever Unicredit's decision is about the future of this partnership.

Coming now to your question on the surcharge. As a reminder, we foresee an impact this year of the surcharge of about 72 million euros. As noticed indeed in the budget proposal for 26, actually the government proposed, the French government proposed to renew partially this surcharge. But I would say no guidance at the moment, as it is far too early to draw a conclusion as the budget is still under discussion. And coming to the French network and your question, actually, yeah, genuine inflows from our French network in the quarter, 2.6 overall, of which 1.8 coming from money markets and 0.6 in MLT, driven by passive, active, and also positive in real assets. So, basically, it is a good and positive development, but maybe a bit too early to call for the end of risk aversion in our French networks.

Great. Thank you.

Thank you, Hubert. The next question comes from Arnaud from BNP Priva.

Hi, yeah, hopefully you can hear me. I'm just wondering, yeah, since we're talking about the networks, could we go to the social engineering networks? I think they're up for renewal pretty soon. Is there anything you can update us there? My second question is on LTIFs. This has been live. There's been some traction in the market. I'm just wondering what that looks like for you in terms of AUM and flows. And thirdly, you talked at the beginning of your presentation about having a B2B2C connection to 4 million end times. I'm just wondering if there isn't an opportunity for you to be upselling those clients. I mean, a lot of VC pension funds in the UK, for example, do reach out to clients and manage to consolidate various pension funds or other products they may have. I'm just wondering if there's not a longer-term opportunity for you to leverage the access you have to those four million clients. Thank you.

Thank you. I will take your questions. First question was on Societe Generale, indeed a long-standing partnership for Amundi, a partnership that dates from 15 years now, renewed several times. The existing agreement is coming to maturity in a few weeks. It's too early to talk about the future, but what I can say is that I'm confident that we will continue to work with Societe Generale in the future. Your second question was about LTIF, if I got it right. Indeed, it's an interesting development, an opportunity to create new funds to give access to wealthy clients to private markets. We have launched several LTIFs during the course of the year. To be honest, I don't remember exactly where we stand in terms of inflows, but it's the beginning. It's, I would say, a starting point, and we expect to see progressively more inflows going to this kind of products. And we think this regulatory evolution is something positive for retail clients, first of all, and for ourselves. And your third question was back to employee and savings scheme and retirement scheme in France, where we do have really a B2B, 2C relationship. We have direct access to the clients. So, indeed, this particularity in our business is really a big opportunity, first of all, to, I would say, to learn how to talk directly to GM clients more and more, and to also experiment and promote offers to our clients. So, that's something we are doing. But, of course, as the employees of the companies in which they work. We are bound by the contract that we have with the employers, but within the limit of this employer, it's indeed a good way to experiment and promote new approaches to give advice and to promote new solutions.

Thank you. The next question will come from Sharath.

Thanks for taking my questions. I have three. Firstly, on India, the inflow seems to have dropped about 50% if I compare it on a year-to-date basis. So, can you tell me the drivers and how does this compare with peers? I know there are a lot of new entrants in the India mutual market space. Can you comment if you're losing market share? And sticking with India, can you tell us any reasons that you are aware of the SBA management not being very keen to reconsider listing plans? So that's the first one on India. Second is on alternatives. Other than real estate, I don't necessarily see alternatives being a key focus area for you. So can we expect this to continue? And how do you view the recent surge in partnerships between traditional and alternative asset managers and your willingness to follow a similar path? And lastly, a follow-up on the unique credit relationship. Thanks for sharing more details on the AEM. Can you give us an indication of the bottom line contribution? Did I hear correctly when you said the revenue margin is around 40 basis points? Thank you.

I propose, Aurelia, you answer on the Indian questions and I will follow up with the other ones.

Yes, so as mentioned in my speech, thank you for the question. We see that the Indian market is facing, I would say, many evolutions. I mentioned the currency impact. I mentioned also a bit of volatility in the markets. and elements also on the monetary policy, which led to, I would say, a kind of risk aversion from the clients in the Indian market. Nevertheless, first, as you asked, our market share is stable and above 15% over the nine months. Second, we nevertheless also gathered genuine inflows, almost $9 billion since the beginning of year. And when we look at, I would say, the JV activity and financial results, We can still see a very dynamic growth of the net management fees of the JV, more than 20% in local currency, obviously. So all in all, we keep very confident in this major growth driver for Amundi in the coming months and quarters.

As far as your questions, there was a question on EPFO.

Yes, EPFO, as mentioned, we think that the outflows may happen in Q4. As you know, there has been a first RFP launched in the beginning of the year that was unsuccessful. The Indian Authority relaunched another RFP that seems to be, at that time, successful. So, as we said, the rotation and reallocation from two... Three or four asset managers on these huge mandates of more than 100 billion euros will take place in Q4 with two consequences. First, outflows, as I mentioned, for SBIMF, something about 30 to 40 billion, but very limited and insignificant impact on obviously net management fees for SBI-FM and as a result on the result of the JV in our P&L.

Regarding your next question, which was about alternatives, I would say that private assets are a priority in terms of development for Amundi. That's why we, for example, made the acquisition of Alpha Associates one year ago, and we count on this new acquisition to allow us to develop in this field. That's true that over the recent years inflows have been limited because historically the largest part of our business was in real estate and as you know real estate has been suffering a lot over the recent period. But on other private assets, we are developing and we can continue to develop. For example, as mentioned earlier, to take advantage of the new regulatory opportunities and the appetite and the interest from retail clients to allocate part of their savings, at least in long-term savings, in real assets. Your last question was about the contribution to e-credit in our P&L. I would say you have the asset under management, $8 billion at the end of September. You have the margin, so you can calculate the revenues as far as the bottom line. The only thing I can say is that, as you know, Amundi is a global company. It's a very integrated model. And therefore, costs are managed globally. So there's no direct or very limited costs that are directly allocated to any credit. What we do is to manage costs globally, trying to adjust them to the evolution of our revenues at the same time to continue to invest in our future growth drivers.

Thank you. The next question will come from the line of Angeliki from JP Morgan.

Hi, good morning, and thank you for taking my questions. Just three from my end as well, please. First of all, with regards to the $40 million of cost savings that you have given us as an indication on the back of these actions that you have taken and you have booked some restructuring costs this quarter starting from next year, in which areas are you looking to reinvest this $40 million of cost savings next year more concretely? And could there be related to your answer that you gave before with regards to the unit credit distribution agreement? I mean, if we take the worst case scenario of, you know, losing this partnership, what is the leeway that you have to potentially reduce costs elsewhere in order to maintain the cost income ratio below 53%? Second question with regards to management fees. I noticed that the management fee margin actually improved a little bit quarter to quarter, at least on my numbers. What is the outlook for the management fee margin as you see it taking into account the asset mix for Q4 and potentially also for next year? Are you seeing some competition perhaps also between the same asset classes with the introduction of new products that you're launching, or is that really not the case? And third question, I was just wondering if you can provide an update with regards to any potential special distribution of excess capital. Is that now more likely to happen next year as we get closer to year end and we don't have any further M&A announcements coming from you? Thank you very much.

Thank you. Thank you, Angeliki. I will take your first and last question and maybe let Aurelia answer on the management fees and the margins. So first of all, on the cost saving, the question was about where do we invest? Basically, it's in all our strategic priorities on areas of growth, whether you're talking about technology, development in Asia, ETF. But of course, we are meeting you in a few weeks to talk about our next strategy plan, and it will be a good opportunity to develop a little bit further our future areas of growth. As far as, again, Unicredit and the adjustment of costs, I can repeat what I say. Again, we have an integrated model, so we manage costs globally. And not directly, and again, the costs that are associated specifically to one client are limited. But we look at it very, look at cost management very, very globally to ensure that we adjust costs when we see revenues moving and we preserve our capacity to invest in our growth drivers. And maybe before leaving the floor to management fees, regarding distribution, we are not yet at the end of our 20 to 25 plan. So again, we can discuss a little bit more our intention in a few weeks during our medium term plan. Keeping in mind that, first of all, our priorities in terms of capital allocation remain if we value creating opportunity to do M&A, otherwise to return the excess capital to our shareholders.

And yes, coming to your question on management fees, so they were quite dynamic since the beginning of the year at 4% increase compared to last year. When we come into our margins, as you know, we don't steer properly our margin and we are quite product agnostic. And what we can say and what we've tried to enlighten in our Q2 financial communication is that we observe that there's obviously a rising pressure in the whole industry on margin. due to, I would say, client demands towards passive fixed income and also, as far as we are concerned, this year a very good success in the institutional space leading to, I would say, low margin mandates. In addition to that, as you know, we recorded an idiosyncratic effect due to the the deconsolidation of Amundi US. So what we can say about our margin is that what we disclosed at the end of H1, which was more or less something like 16 bps, is a good starting point for obviously the nine months and onwards. But obviously, this is a starting point that we reassess in respect to the flows and to what we will collect over the next quarter.

Thank you. Next question from Mike. Mike Werner from UBS. We can't hear you, Mike. I don't know whether... It's good now. No, still not. Sorry.

We can't hear you.

We can't hear you, but apparently it's not at our end. The mic is definitely open at our end. Try again. No.

Any luck?

Sorry.

Excellent. Sorry about that. Thank you. Still learning the Zoom thing. So on Unicredit, can you provide a little bit of disclosure as to how the AUMs were broken down by country between Italy, Germany, and Austria through the Unicredit channels? And second, apologies if you already covered this, but in terms of the financial and other income, we saw a A bit of a decline in Q3. I was just wondering if you could provide a little bit of color there. Apologies if I missed that in the presentation. And then in terms of the excess capital, can you just update us on where that excess capital position is today? Thank you.

We'll take the question on Unicredit and maybe let financial income and excess cap, let Aurélie answer. So on Unicredit, as we said, at the end of September, we have 88 billion euros of assets managed for Unicredit networks in Europe. Out of which the vast majority in Italy, a bit less than 70, I think it's 69 billion in Italy, around 10 billion in Germany, around 6 billion in Austria, and the rest in Central Europe.

Thank you.

So coming to our financial income, I mean, the decrease is totally in line with the decrease of the short-term interest rate. As you know, this is the main driver in terms of sensitivity for our financial income. And the excess capital, sorry, what was exactly the question?

At the end of September.

The excess capital at the end of September is very close to the one we disclosed in H1, which was 1.3. There's a slight impact, but not very significant due to technical reasons. But you should keep in mind 1.3.

Thank you.

Thank you. Next question from Nick Herman from Citi. Nick.

Yes, thank you for taking my questions. Hopefully you can hear me okay?

Yes, yes, perfectly. Great.

Super. So just to follow up on your guidance around unit credit, I guess could you help the market broadly understand what proportion of any potential revenue loss you believe you could offset via cost takeout? And I guess within that, what areas might that come from? And what gives you the confidence that you could execute on that within a year and a half? So that's the first one. The second one is a follow-up to Angeliki's question. I guess we're not conscious, we're not too far now from your 2026 AGM. I guess, do you see increasing visibility on your M&A pipeline, which I know you talked about in the past is pretty comprehensive and robust? And then the final question is, we've seen net inflows for the first time in a couple of years now in real and alternative assets. Just wondering whether you're seeing sentiment turning at all, even at the margin. That would be helpful. Thank you.

So, on a new credit, and sorry if I repeat myself, as I said, as we are global compatible, very integrated with the same IT system, same operation, investment capabilities that are largely Flair, the costs that are specifically, I would say, dedicated to one or other clients are quite limited. So when we steer and look at costs, we look at it globally, looking at the evolution of our business, our need to invest globally. Regarding M&A visibility, you won't be surprised, nothing I can share. We are definitely continuing to look at opportunities. And of course, we inform you if any materialize in due course. And as far as your last question regarding real and alternative assets, what you are seeing is that outflows coming from real estate, which remains a very important part of a business, are slowing down. compared to one or two years ago, and we have positive inflows in private markets. In particular, we should have mentioned it, we launched a new direct private equity offering called Megatendance during the third quarter. And we are also seeing progressively, even if they are limited, seeing inflows in our multi-private asset offers in the LTIF format we mentioned earlier, in particular funds that are called Prima.

Thank you. Next question from Jacques-Henri Golar from Kepler-Chevreux.

Yes. Good morning and happy birthday. Cyril, sorry, call me an integer. I'm going to have to ask the question a fourth time, Nikolai, and I really, really apologize for that. I'm going to rephrase it. On the back of what you said about costs not being allocated to one client, does it mean that the cost-income ratio on Unicredit is materially lower than your current group cost-income ratio? And if this is the case, and if indeed the impact on the EPS from the deal being adjourned or canceled is important, would you consider an enormous buyback to actually offset the loss in EPS? Thank you.

What I'm saying is that for Unicredit, as for many clients, marginal cost income is, of course, lower than our average cost income ratio. Nothing more, nothing less, but I think it's quite clear. And regarding your second question, Again, we have an appointment, I would say, in three weeks now to discuss our medium-term plans, and I think we can discuss more thoroughly our trajectory and what we will do at that time.

Okay. Thank you, Jacques-Henri. Next question is a follow-up from Sharad from Deutsche Bank.

Thank you. Sorry for following up. I asked this initially, but this was not answered. Can you tell us the reasons that you are aware of, if any, for SBI management for not reconsidering their listing plans in India? I also ask this in the context of India IPO market being very hot, being very conducive. Thank you.

Okay, so we missed, I think we missed the question which was regarding a potential IPO of SBI FM. The only thing I can say is that listing its subsidiary is for SBI part of its plans. It's not new, but no decision has been taken yet.

Okay, next question is from Pierre Chedville. Pierre?

Yes, good morning. First question is regarding French networks. I would like to know what was the performance of structural products this quarter and how do you see the evolution of these products that used to work very well but it seems a little bit more difficult nowadays and these products which remuneration is high. How do you see things evolve in the future? Regarding the integration of XIM with BNP, I would like to know how do you see the game changer, this game change, I would say, in France and also in Europe, in terms of pressure on inflows, but also on margins, or things like that. Where do you think this new competitor may be the most, I would say, dangerous for you for what type of products. Or if you think that you will continue as usual because this merger is not a game changer for you. My last question is on Unicredit. I would be disappointed not to ask a question on Unicredit. Now, just to be clear, because you said that that you will give a financial target whatever the result of the negotiation that you be off or you stay. So do we have to understand that you will give conservative targets As if you were off this deal, because I don't understand, you are in or you are out. You can be both. You see what I mean? It's not very clear for me. So can we understand that you will give conservative targets, and in case you stay on board with Unicredit, then we will have good surprise.

Thank you for your question. First one on French networks on structured products. Structured products, whether in the form of notes and fonts, we believe are something attractive and interesting for clients. They do suffer again, I would say, from the competition from the traditional Euro contract life insurance, which is gaining momentum. And you can see it on the inflows we get on the mandates we manage both for Crédit Agricole Assurance and SOGECAP. And so I think the flows were slightly negative due to the increased competition. Regarding your question on AXA and BNP, to be clear, I don't want to comment on operations that are taking place with competitors, but it's not a game changer for us. They were competitors. The combined entity will be a competitor, but no game changer as we see it. And regarding your last question on Unicredit, What I can say is that there is uncertainty. You are asking if we'll be in or out. We could be out. We could be in. We could be in. In various ways, so we don't know, and that's why we say to you what we can say, what we know their uncertainty and the targets we will provide will take into account this uncertainty and we will ensure that we provide targets that we can deliver whatever the outcome is.

OK. Thank you, Pierre. Next question from Mike is a follow-up again. Mike Werner from UBS.

Thank you very much. Just a quick one, please. In your worst-case scenario, as you mentioned, with Unicredit, if the contract is not renegotiated, you mentioned that you expect to take about two years for those assets to roll off. Are you still required to pay those retrocession fees to Unicredit if you do not renew that contract? Thank you.

So rebates are paid on the stock of AUM. So yes, we will continue to pay rebates on the AUM as long as there are AUMs.

Gotcha. Thank you.

Okay. And we have another follow-up from Angeliki from JP Morgan.

Yes, thank you so much for taking my follow-up. Just to, firstly, on Unicredit, can I please ask if you are currently sitting on the negotiating table with them, or if it's too early to start discussing? Because, you know, are we in a stage where, you know, you're currently discussing various scenarios, or are we in a stage where there is no communication yet? and you will communicate with them closer to the termination of the contract, which I appreciate is not yet that close. And second question, just a follow-up on flows. Multi-asset flows were positive this quarter after several quarters of outflows, and I was just wondering which channels drove this. Is it retail, institutional, and whose geographies perhaps? Thank you very much.

So on your first question, we obviously are partners of Unicredit and we are constantly discussing with them on our partnerships. That said, the existing agreements are still alive for close to two years, a bit more than one year and a half. So we are very well in advance before that.

Regarding the multi-asset flows, if you want to... Yes, the flows were positive over the quarter, 2.6 billion. And what we can say is that it's very diversified in terms of client segment and geographies with small outflows coming from a bit everywhere.

Okay, do we have a follow-up from Pierre, or have you kept your... No? Okay. So I think we are done with the Q&A session. Last chance to raise your hand if you have another one. No? So I think I can hand over to Nicolas and Aurelia for any concluding remarks.

Just to thank you again for your participation and to say that we are very looking forward to meeting you in three weeks on November 18th for our ambitious new medium-term plan. Thank you very much.