ABC arbitrage: 2022 Interim Result: : €16.2m / 2022 annualized ROE: 20.2 %
September 20 2022 - 1:00AM
ABC arbitrage: 2022 Interim Result: : €16.2m / 2022 annualized ROE:
20.2 %
2022 Interim Result: : €16.2m
2022 annualized ROE: 20.2 %
The Board of Directors of ABC arbitrage,
presided by the Chairman Dominique Ceolin, met on September 15,
2022 to approve the consolidated financial statements for the first
half 20221.
In EUR millions |
June 30, 2022 IFRS |
June 30, 2021 IFRS |
Dec. 31, 2021 IFRS |
Net revenues |
€31.5m |
€35.1m |
€64.1m |
Net income |
€16.2m |
€16.8m |
€28.0m |
Earnings per share (EPS) |
€0.27 |
€0.29 |
€0.48 |
Return On Equity (ROE) |
20.2% |
21.7% |
17.5% |
Business performance
In accordance with IFRS standards, consolidated
net revenue at 30 June 2022 was €31.5 million and consolidated net
income amounted to €16.2 million, almost flat (-3.6%) compared to
the first half of 2021.
The first half of 2022 was impacted by the war
in Ukraine, a situation unknown in Europe since the Second World
War and therefore statistically rare. This conflict and its
economic tensions weighed negatively on financial markets.
Initially, differences in perception of the consequences of this
war by the United States and Europe and asynchronous monetary
policies in the face of inflationary risks created major
international de-correlations on the markets, particularly in the
second quarter. The main stock market indices ended up with a
fairly similar negative performance over the six-month period, with
-20% for the European Eurostoxx 50 index and -21% for the S&P
500.
Despite this difficult context on the world
markets, the group reports excellent half-year results absorbing
the decline in M&A activities, a decline consistent with the
economic and geo-political situation. Annualized ROE is 20.2%. This
result once again confirms the excellence of the group's know-how
in a context of high volatility.
Dividend Policy
On the proposal of the Board of Directors, and
in accordance with its quarterly distribution policy, ABC arbitrage
will pay two interim dividends of €0.10 per share each. The
ex-dates are scheduled on Tuesday October 11, 2022 and Tuesday,
December 6, 2022 for payments on October 13, 2022 and December 8,
2022 respectively .
OutlookThe year 2022 seems to outline the
end of the central bank paradigm established since 2012. The size
of their balance sheets is still very significant and the ECB's
anti-fragmentation stance confirms for the time being the
durability of their strong presence in the market ecosystem. The
war in Ukraine and the inflationary tensions resulting from past
central bank interventions and catalyzed by this war are going to
be the key issues in the coming months. The level of volatility,
which has been hovering above its historical average since February
2022, illustrates this situation. This volatility allows most of
the strategies deployed by the group to produce historically high
performance. Nevertheless, geographical decorrelation remains
difficult to manage for some of our strategies, in particular for
the ABCA Reversion fund. Although performance was significantly
better than the financial indices, it was still below the group's
expectations in such a context. This, combined with legitimate
investor apprehension in this type of situation, makes it unlikely
that the ambitions of the "ABC 2022" strategic plan in terms of new
assets under management will be achieved.The group's strong
expertise in this type of context should enable the ABCA Reversion
and ABCA Opportunities funds to come back to satisfactory levels of
performance in the coming months and thus favor a resumption of
growth in assets under management. As of September 1, 2022, the
average monthly activity rate is thus comparable to that of fiscal
year 2021, despite the prohibition of working on Russian stocks and
the overall decline in M&A activity. The year 2022 represents
the end of the ABC 2022 strategic plan in a context of turbulent
markets. Market parameters should help us finalize the majority of
our objectives while maintaining our investments to begin the
launch of the next strategic plan to be announced in March
2023.
1As of the date of this press release, the work
of the statutory auditors is in the process of being finalized.
Contacts:
abc-arbitrage.comShareholder relations:
actionnaires@abc-arbitrage.comPress relations: VERBATEE /
v.sabineu@verbatee.com |
EURONEXT Paris - Compartiment BISIN:
FR0004040608Reuters BITI.PA / Bloomberg ABCA
FP |
- 2022 ABCA CP Resultats S1 2022 VENG
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