ABC Arbitrage: 2022 Intermediate Result: : €16.2M / 2022 Annualized ROE: 20.2% – Yahoo Finance | Jewelry Dukan

ABC arbitrage

ABC arbitrage

Interim result 2022: : €16.2 million

2022 annualized ROE: 20.2%

The Board of Directors of ABC Arbitrage, chaired by Chairman Dominique Ceolin, met on September 15, 2022 to approve the consolidated financial statements for the first half of 20221.

In millions of euros

30 June 2022 IFRS

30 June 2021 IFRS

12/31/2021 IFRS

net income

€31.5 million

€35.1m

€64.1 million

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, as of June 30, 2022, the consolidated net sales amounted to 31.5 million euros and the consolidated net profit to 16.2 million euros, almost unchanged (-3.6%) compared to the first half of 2021.

The first half of 2022 was marked 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 on the financial markets. Initially, divergent perceptions by the United States and Europe of the fallout from this war and asynchronous monetary policies amid inflationary risks created large international decorrelations in markets, particularly in the second quarter. The major stock market indices posted fairly similar negative performances over the six-month period, with -20% for the European Eurostoxx 50 index and -21% for the S&P 500.

Despite this difficult environment on world markets, the group reports excellent half-year results, which offset the decrease in M&A activity, a decrease compatible with the economic and geopolitical situation. The 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

At 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. The ex-dates are scheduled for Tuesday, October 11, 2022 and Tuesday, December 6, 2022 for payments on October 13, 2022 and December 8, 2022, respectively.

outlook
The year 2022 seems to herald 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 the durability of its strong presence in the market ecosystem for now. The war in Ukraine and the inflationary tensions resulting from past central bank interventions and catalyzed by this war will be the key issues over the coming months. Volatility, which has hovered above its historical average since February 2022, illustrates this situation. This volatility allows most of the strategies employed by the group to achieve historically high performance. Still, geographic decorrelation remains difficult to manage for some of our strategies, most notably the ABCA Reversion fund. While performance was significantly better than the financial indices, it was still below the Group’s expectations in such an environment. This, combined with investors’ legitimate concerns in such a situation, makes it unlikely that the ABC 2022 strategic plan’s ambitions in terms of new assets under management will be met.
The Group’s strong expertise in this type of context should allow the ABCA Reversion and ABCA Opportunities funds to return to satisfactory levels of performance in the coming months, thus favoring a resumption of growth in assets under management. Thus, as of September 1, 2022, the average monthly activity rate is comparable to that of FY 2021, despite the ban on working on Russian equities and the overall declining M&A activity. The year 2022 marks the end of the ABC 2022 strategic plan in a context of turbulent markets.
The market parameters should help us achieve most of our goals while maintaining our investments to start rolling out the next strategic plan to be announced in March 2023.

1As of the date of this press release, the statutory auditors’ work is in the process of being finalized.

Contacts: abc-arbitrage.com

Shareholder Relations: actionnaires@abc-arbitrage.com

Press work: VERBATEE / v.sabineu@verbatee.com

EURONEXT Paris – Compartment B
ISIN: FR0004040608

Reuters BITI.PA/Bloomberg ABCA FP

Appendix

Leave a Comment