Press Release

Ameriprise Financial Reports Third Quarter 2024 Results

Company Release - 10/23/2024 4:08 PM

Ameriprise Financial, Inc. (NYSE: AMP):

 

Earnings Per Diluted Share

 

Return on Equity, ex AOCI (1)

 

Q3 2024

 

 

Q3 2024

GAAP

$

5.00

 

GAAP

40.1

%

Adjusted Operating

$

8.10

 

Adjusted Operating

49.6

%

Adjusted Operating, excluding unlocking and severance expense

$

9.02

 

Adjusted Operating, excluding unlocking

50.7

%

 

 

 

 

 

 

 
  • Third quarter adjusted operating earnings per diluted share increased 17 percent to $9.02 excluding unlocking and severance expense associated with the company’s initiatives to enhance operational efficiency and effectiveness.
  • Third quarter GAAP net income per diluted share was $5.00 compared to $8.14 a year ago, primarily from market impacts on the valuation of derivatives and market risk benefits.
  • Assets under management and administration reached $1.5 trillion, up 22 percent from strong client net inflows and market appreciation.
  • Adjusted operating net revenues increased 11 percent from organic growth, strong equity markets and higher spread revenues.
  • General and administrative expenses continued to be well managed and demonstrate the company’s focus on operational efficiency and effectiveness.
  • Pretax adjusted operating margin was 27 percent (2) and adjusted operating return on equity was 51 percent (3) .
  • The company returned $713 million of capital to shareholders in the quarter, demonstrating its balance sheet strength and strong free cash flow generation.

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

 

“Ameriprise delivered another very good quarter further demonstrating the strength of our client and advisor value propositions, complementary businesses, and strategic focus.

 

"We’re generating strong revenue and earnings growth across our business. With the positive market environment and our planning expertise, clients are investing more broadly. Flows into fee-based investment advisory accounts increased significantly, transactional activity remained strong and advisor productivity reached another new high.

 

"Across the firm, we continue to drive operating efficiencies while investing for growth. Our financial strength and free cash flow generation remain key differentiators and provide flexibility as we navigate market cycles and consistently generate strong results and return capital to shareholders.”

(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.

(2) Excludes unlocking and severance.

(3) Excludes unlocking. Unlocking impacts reflect the company’s annual review of insurance and annuity valuation assumptions and model changes.

 

Ameriprise Financial, Inc.

Third Quarter Summary

 

Quarter Ended

September 30,

%
Better/
(Worse)

 

Year-to-date

September 30,

%
Better/
(Worse)

(in millions, except per share amounts, unaudited)

2024

 

2023

 

2024

 

2023

GAAP net income

$

511

 

$

872

 

(41

)%

 

$

2,330

 

$

2,179

 

7

%

Adjusted operating earnings

$

828

 

$

745

 

11

%

 

$

2,588

 

$

2,350

 

10

%

Adjusted operating earnings excluding unlocking (see reconciliation on p. 24 & 25)

$

902

 

$

823

 

10

%

 

$

2,662

 

$

2,428

 

10

%

Adjusted operating earnings excluding unlocking and severance expense (see reconciliation on p. 24 & 25)

$

921

 

$

829

 

11

%

 

$

2,705

 

$

2,434

 

11

%

 

 

 

 

 

 

 

 

GAAP net income per diluted share

$

5.00

 

$

8.14

 

(39

)%

 

$

22.53

 

$

20.08

 

12

%

Adjusted operating earnings per diluted share

$

8.10

 

$

6.96

 

16

%

 

$

25.03

 

$

21.66

 

16

%

Adjusted operating earnings per diluted share excluding unlocking (see reconciliation on p. 24 & 25)

$

8.83

 

$

7.68

 

15

%

 

$

25.74

 

$

22.38

 

15

%

Adjusted operating earnings per diluted share excluding unlocking and severance expense (see reconciliation on p. 24 & 25)

$

9.02

 

$

7.74

 

17

%

 

$

26.15

 

$

22.43

 

17

%

 

 

 

 

 

 

 

 

GAAP Return on Equity, ex. AOCI

 

40.1

%

 

44.4

%

 

 

 

40.1

%

 

44.4

%

 

Adjusted Operating Return on Equity, ex. AOCI

 

49.6

%

 

48.4

%

 

 

 

49.6

%

 

48.4

%

 

Adjusted Operating Return on Equity, ex. AOCI and unlocking (see reconciliation on p. 29)

 

50.7

%

 

49.6

%

 

 

 

50.7

%

 

49.6

%

 

 

 

 

 

 

 

 

 

GAAP Equity, ex. AOCI

$

6,816

 

$

6,665

 

2

%

 

$

6,816

 

$

6,665

 

2

%

Available Capital for Capital Adequacy (see reconciliation on p. 27)

$

5,523

 

$

5,247

 

5

%

 

$

5,523

 

$

5,247

 

5

%

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

Basic

 

100.4

 

 

104.9

 

 

 

 

101.6

 

 

106.4

 

 

Diluted

 

102.2

 

 

107.1

 

 

 

 

103.4

 

 

108.5

 

 

 

 

 

 

 

 

 

 

 

Third quarter 2024 GAAP results included unfavorable market impacts on the valuation of derivatives and market risk benefits, while the prior year quarter included favorable market impacts on the valuation of derivatives and market risk benefits.

The company completed its annual actuarial assumption update in the quarter, which resulted in an unfavorable after-tax impact of $74 million or $0.73 per share. This was primarily related to updated persistency assumptions for variable annuities.

In addition, adjusted operating after-tax results included severance expenses of $19 million in the third quarter of 2024 and $43 million on a year-to-date basis. Severance was related to the company’s initiatives to enhance operational efficiency and effectiveness to further strengthen the client experience and future profitability.

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

 

Quarter Ended September 30,

% Better/
(Worse)

(in millions, unaudited)

2024

2023

Adjusted operating net revenues

$

2,742

 

$

2,407

 

14

%

 

 

 

 

Distribution expenses

 

1,488

 

 

1,253

 

(19

)%

Interest and debt expense

 

9

 

 

6

 

(50

)%

General and administrative expenses

 

419

 

 

419

 

%

Adjusted operating expenses

 

1,916

 

 

1,678

 

(14

)%

Pretax adjusted operating earnings

$

826

 

$

729

 

13

%

 

 

 

 

Pretax adjusted operating margin

 

30.1

%

 

30.3

%

(20) bps

 

 

 

 

 

 

 

 

 

Quarter Ended September 30,

% Better/
(Worse)

(in billions, unless otherwise noted)

 

2024

 

 

2023

 

Total client assets

$

1,024

 

$

816

 

26

%

Total client net flows

$

8.6

 

$

8.9

 

(3

)%

Wrap net flows

$

8.0

 

$

5.4

 

48

%

AWM cash balances

$

40.1

 

$

40.5

 

(1

)%

Adjusted operating net revenue per advisor (TTM in thousands)

$

997

$

901

11

%

 

 

 

 

 

Advice & Wealth Management continued to demonstrate profitable organic growth with record high pretax adjusted operating earnings of $826 million and margins exceeded 30 percent driven by core business growth, as well as higher sustainable net investment income at the bank.

Adjusted operating net revenues increased 14 percent to $2.7 billion from growth in client assets, increased transactional activity and 6 percent growth in net investment income at the bank.

Adjusted operating expenses increased 14 percent to $1.9 billion compared to a year ago. General and administrative expenses were unchanged at $419 million. Excluding the $20 million regulatory accrual a year ago, general and administrative expenses grew 5 percent, primarily from volume-related expenses due to business growth.

Clients and advisors remained engaged and focused on positioning portfolios to meet financial planning goals across market cycles.

  • Total client assets grew 26 percent to an all-time high of $1.0 trillion, with wrap assets up 28 percent to $569 billion.
  • Wrap flows grew to $8.0 billion or a 6 percent annualized flow rate, an early indication of client preferences returning to advisory products.
  • Transactional activity increased 19 percent with strong growth across all product areas.
  • Total client cash was $83 billion, up $10.5 billion from a year ago. In the quarter, growth in third-party money market funds was partially offset by declines in term products such as brokered CDs and certificates.
  • Client cash sweep balances were stable at approximately $28 billion.
  • Bank assets grew 7 percent to $23.2 billion, providing sustainable net investment income in this forecasted lower rate environment.
  • Adjusted operating net revenue per advisor on a trailing 12-month basis was $997,000, up 11 percent from enhanced productivity, business growth and market appreciation.
  • Advisor headcount increased to 10,368, which reflects the addition of 71 experienced advisors in the quarter and continued strong advisor retention.
 

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results

 

Quarter Ended September 30,

% Better/
(Worse)

(in millions, unaudited)

 

2024

 

2023

Adjusted operating net revenues

$

882

 

$

826

 

7

%

 

 

 

 

Distribution expenses

 

250

 

 

234

 

(7

)%

Amortization of deferred acquisition costs

 

2

 

 

1

 

NM

 

Interest and debt expense

 

2

 

 

2

 

%

General and administrative expenses

 

383

 

 

390

 

2

%

Adjusted operating expenses

 

637

 

 

627

 

(2

)%

Pretax adjusted operating earnings

$

245

 

$

199

 

23

%

 

 

 

 

Net pretax adjusted operating margin (1)

 

40.9

%

 

35.7

%

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30,

% Better/
(Worse)

(in billions)

2024

2023

Total segment AUM

$

672

 

$

587

 

14

%

 

 

 

 

Net Flows

 

 

 

Global Retail net AUM flows, ex. legacy insurance partners

$

(2.7

)

$

(3.8

)

29

%

Model delivery AUA flows (2)

 

1.2

 

 

0.2

 

NM

 

Total retail net AUM flows and model delivery AUA flows (2)

 

(1.5

)

 

(3.6

)

58

%

 

 

 

 

Global Institutional net AUM flows, ex. legacy insurance partners

 

 

 

0.5

 

NM

 

 

 

 

 

Legacy insurance partners AUM flows

 

(0.9

)

 

(0.9

)

%

Total Net AUM and AUA flows (2)

$

(2.4

)

$

(4.0

)

40

%

 

 

 

 

(1) See reconciliation on page 13.

 

 

 

(2) Model Delivery Assets Under Advisement flows are estimated based on the period-to-period change in assets less calculated performance based on strategy returns on a one-quarter lag.

NM Not Meaningful - variance equal to or greater than 100%

Asset Management adjusted operating net revenues grew 7 percent to $882 million and pretax adjusted operating earnings increased 23 percent to $245 million. Financial results reflected equity market appreciation and the positive impact from expense management actions, which more than offset the cumulative impact of net outflows. Net pretax adjusted operating margin was 41 percent and above the company’s targeted range.

Adjusted operating expenses increased 2 percent. General and administrative expenses improved 2 percent from a year ago, reflecting initial benefits from the company’s initiatives to enhance operational efficiency and effectiveness to further strengthen the client experience and future profitability.

Total assets under management increased 14 percent to $672 billion. The underlying fee rate remained stable.

Total net outflows improved 40 percent to $2.4 billion and included $0.9 billion of outflows related to legacy insurance partners. Retail and model delivery net outflows were $1.5 billion, representing a $2.1 billion improvement from the prior year from stronger gross sales in both North America and EMEA, as well as strong model delivery net inflows.

 

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results

 

Quarter Ended September 30,

% Better/
(Worse)

(in millions, unaudited)

2024

2023

Adjusted operating net revenues

$

973

 

$

876

 

11

%

Adjusted operating expenses

 

855

 

 

776

 

(10

)%

Pretax adjusted operating earnings (including unlocking)

$

118

 

$

100

 

18

%

Unlocking

 

(90

)

 

(104

)

13

%

Pretax adjusted operating earnings excluding unlocking

$

208

 

$

204

 

2

%

 

 

 

 

 

Retirement & Protection Solutions pretax adjusted operating earnings excluding unlocking increased 2 percent to $208 million or $603 million on a year-to-date basis. The strong and consistent performance of the business reflects the benefit from stronger interest earnings and higher equity markets partially offset by higher distribution expenses associated with continued strong sales levels. These high-quality books of business continued to generate strong free cash flow and return on capital with a differentiated risk profile.

Retirement & Protection Solutions sales increased 15 percent to $1.4 billion fueled by Advice & Wealth Management client demand for structured variable annuities and variable universal life products.

 

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

 

Quarter Ended September 30,

% Better/
(Worse)

(in millions, unaudited)

2024

2023

Corporate & Other

$

(145

)

$

(74

)

(96

)%

Closed Blocks (1)

 

2

 

 

2

 

%

Pretax adjusted operating earnings

$

(143

)

$

(72

)

(99

)%

Unlocking

 

(4

)

 

5

 

NM

 

Pretax adjusted operating earnings excluding unlocking

$

(139

)

$

(77

)

(81

)%

 

 

 

 

Long Term Care excluding unlocking

$

13

 

$

5

 

NM

 

Fixed Annuities excluding unlocking

 

(7

)

 

(8

)

13

%

Pretax adjusted operating earnings excluding unlocking

$

6

 

$

(3

)

NM

 

 

 

 

 

(1) Long Term Care and Fixed Annuities.

NM Not Meaningful - variance equal to or greater than 100%

Corporate & Other, excluding Closed Blocks, pretax adjusted operating loss was $145 million, of which $56 million was related to $34 million of severance and severance program expenses, as well as $22 million of expenses to accelerate the firm’s transition to cloud-based technology platforms, higher compensation accruals related to strong performance and mark-to-market impacts on share-based compensation.

Long Term Care pretax adjusted operating earnings excluding unlocking were $13 million, or $41 million year-to-date, a continuation of an improved performance trend.

Fixed Annuities pretax adjusted operating loss excluding unlocking was in line with expectations at $7 million.

Taxes

The operating effective tax rate decreased to 20.8 percent for the third quarter and 20.1 percent on a year-to-date basis. The effective tax rate is expected to be in the 20 to 21 percent range for the full year.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for 130 years. With extensive investment advice, global asset management capabilities and insurance solutions, and a nationwide network of more than 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs.

Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited, Columbia Threadneedle Asset Managers Limited, Columbia Threadneedle (EM) Investments Limited, and Pyrford International Ltd, are SEC- and FCA-registered investment adviser affiliates of Columbia Management Investment Advisers, LLC based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

Non-GAAP Financial Measures

The company believes the presentation of adjusted operating measures, available capital for capital adequacy and other non-GAAP financial measures, and the corresponding ratios, best represents the underlying performance of our core operations and facilitates a more meaningful trend analysis without the distortion of various adjustment items. Management uses non-GAAP financial measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors and to provide a valuable perspective for investors. These non-GAAP financial measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Non-GAAP financial measures are intended to supplement investors’ understanding of our performance and should not be considered alternatives for financial measures presented in accordance with GAAP. These measures are discussed in more detail below and may not be comparable to other companies’ similarly titled non-GAAP financial measures. Non-GAAP financial measure reconciliations can be found on the subsequent pages.

Forward-Looking Statements

This news release contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include:

  • statements of the company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, general and administrative costs, net pretax adjusted operating margin, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;
  • other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets;
  • statements estimating the financial impacts and future profitability arising from the company’s initiatives to enhance operational efficiency and effectiveness;
  • statements about higher sustainable net investment income at the bank and the forecast for a lower rate environment;
  • statements about continued improved performance of long term care operating earnings;
  • statements estimating the expected full year 2024 operating effective tax rate; and
  • statements of assumptions underlying such statements.

The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” ”continue,” “able to remain”, “resume,” “deliver,” “develop,” “evolve,” “drive,” ”enable,” “flexibility,” “commitment,” “scenario,” “case,” “appear,” “expands” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023 available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company’s Form 10-Q for the period ended September 30, 2024.

Ameriprise Financial announces financial and other information to investors through the company’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and webcasts. Investors and others interested in the company are encouraged to visit the investor relations website from time to time, as information is updated and new information is posted. The website also allows users to sign up for automatic notifications in the event new materials are posted. The information found on the website is not incorporated by reference into this release or in any other report or document the company furnishes or files with the SEC.

 

Ameriprise Financial, Inc.

Consolidated GAAP Results

(in millions, except per share amounts, unaudited)

3 Qtr 2024

 

3 Qtr 2023

% Better/
(Worse)

2 Qtr 2024

% Better/
(Worse)

Revenues

 

 

 

 

 

 

Management and financial advice fees

$

2,573

 

 

$

2,287

 

13

%

$

2,456

 

5

%

Distribution fees

 

513

 

 

 

463

 

11

%

 

505

 

2

%

Net investment income

 

934

 

 

 

809

 

15

%

 

921

 

1

%

Premiums, policy and contract charges

 

409

 

 

 

390

 

5

%

 

381

 

7

%

Other revenues

 

131

 

 

 

127

 

3

%

 

129

 

2

%

Total revenues

 

4,560

 

 

 

4,076

 

12

%

 

4,392

 

4

%

Banking and deposit interest expense

 

163

 

 

 

151

 

(8

)%

 

172

 

5

%

Total net revenues

 

4,397

 

 

 

3,925

 

12

%

 

4,220

 

4

%

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

Distribution expenses

 

1,539

 

 

 

1,297

 

(19

)%

 

1,450

 

(6

)%

Interest credited to fixed accounts

 

118

 

 

 

139

 

15

%

 

185

 

36

%

Benefits, claims, losses and settlement expenses

 

430

 

 

 

120

 

NM

 

 

331

 

(30

)%

Remeasurement (gains) losses of future policy benefit reserves

 

(22

)

 

 

(12

)

83

%

 

(8

)

NM

 

Change in fair value of market risk benefits

 

566

 

 

 

168

 

NM

 

 

110

 

NM

 

Amortization of deferred acquisition costs

 

59

 

 

 

62

 

5

%

 

61

 

3

%

Interest and debt expense

 

87

 

 

 

84

 

(4

)%

 

83

 

(5

)%

General and administrative expense

 

975

 

 

 

950

 

(3

)%

 

957

 

(2

)%

Total expenses

 

3,752

 

 

 

2,808

 

(34

)%

 

3,169

 

(18

)%

Pretax income

 

645

 

 

 

1,117

 

(42

)%

 

1,051

 

(39

)%

Income tax provision

 

134

 

 

 

245

 

(45

)%

 

222

 

(40

)%

Net income

$

511

 

 

$

872

 

(41

)%

$

829

 

(38

)%

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

Basic earnings per share

$

5.09

 

 

$

8.31

 

 

$

8.16

 

 

Earnings per diluted share

$

5.00

 

 

$

8.14

 

 

$

8.02

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic

 

100.4

 

 

 

104.9

 

 

 

101.6

 

 

Diluted

 

102.2

 

 

 

107.1

 

 

 

103.4

 

 

 

 

 

 

 

 

 

NM Not Meaningful - variance equal to or greater than 100%

 

Ameriprise Financial, Inc.

Consolidated Highlights and Capital Summary

(in millions unless otherwise noted, unaudited)

3 Qtr 2024

 

3 Qtr 2023

% Better/
(Worse)

2 Qtr 2024

% Better/
(Worse)

 

 

 

 

 

 

 

Assets Under Management and Administration

 

 

 

 

 

Advice & Wealth Management AUM

$

565,152

 

 

$

440,703

 

28

%

$

531,268

 

6

%

Asset Management AUM

 

672,110

 

 

 

587,171

 

14

%

 

641,880

 

5

%

Corporate AUM

 

523

 

 

 

349

 

50

%

 

490

 

7

%

Eliminations

 

(45,839

)

 

 

(37,795

)

(21

)%

 

(44,136

)

(4

)%

Total Assets Under Management

 

1,191,946

 

 

 

990,428

 

20

%

 

1,129,502

 

6

%

Total Assets Under Administration

 

314,173

 

 

 

242,336

 

30

%

 

298,468

 

5

%

Total AUM and AUA

$

1,506,119

 

 

$

1,232,764

 

22

%

$

1,427,970

 

5

%

 

 

 

 

 

 

 

S&P 500

 

 

 

 

 

 

Daily average

 

5,546

 

 

 

4,456

 

24

%

 

5,253

 

6

%

Period end

 

5,762

 

 

 

4,288

 

34

%

 

5,460

 

6

%

 

 

 

 

 

 

 

Weighted Equity Index (WEI) (1)

 

 

 

 

 

 

Daily average

 

3,528

 

 

 

2,903

 

22

%

 

3,358

 

5

%

Period end

 

3,664

 

 

 

2,788

 

31

%

 

3,456

 

6

%

 

 

 

 

 

 

 

Common shares

 

 

 

 

 

 

Beginning balance

 

98.4

 

 

 

102.8

 

(4

)%

 

99.6

 

(1

)%

Repurchases

 

(1.3

)

 

 

(1.5

)

13

%

 

(1.3

)

%

Issuances

 

0.2

 

 

 

0.3

 

(33

)%

 

0.1

 

NM

 

Other

 

(0.1

)

 

 

(0.2

)

50

%

 

 

%

Total common shares outstanding

 

97.2

 

 

 

101.4

 

(4

)%

 

98.4

 

(1

)%

Restricted stock units

 

2.5

 

 

 

2.6

 

(4

)%

 

2.6

 

(4

)%

Total basic common shares outstanding

 

99.7

 

 

 

104.0

 

(4

)%

 

101.0

 

(1

)%

Total potentially dilutive shares

 

1.9

 

 

 

2.2

 

(14

)%

 

1.8

 

6

%

Total diluted shares

 

101.6

 

 

 

106.2

 

(4

)%

 

102.8

 

(1

)%

 

 

 

 

 

 

 

Capital Returned to Shareholders

 

 

 

 

 

 

Dividends paid

$

150

 

 

$

143

 

5

%

$

151

 

(1

)%

Common stock share repurchases

 

563

 

 

 

520

 

8

%

 

542

 

4

%

Total Capital Returned to Shareholders

$

713

 

 

$

663

 

8

%

$

693

 

3

%

 

 

 

 

 

 

 

(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.

NM Not Meaningful - variance equal to or greater than 100%

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Adjusted Operating Results

(in millions, unaudited)

3 Qtr 2024

3 Qtr 2023

% Better/
(Worse)

2 Qtr 2024

% Better/
(Worse)

 

Revenues

 

 

 

 

 

 

 

 

Management and financial advice fees:

 

 

 

 

 

 

 

 

Advisory fees

$

1,451

 

$

1,228

 

18

%

$

1,361

 

7

%

Financial planning fees

 

111

 

 

102

 

9

%

 

110

 

1

%

Transaction and other fees

 

97

 

 

94

 

3

%

 

100

 

(3

)%

Total management and financial advice fees

 

1,659

 

 

1,424

 

17

%

 

1,571

 

6

%

Distribution fees:

 

 

 

 

 

 

 

 

Mutual funds

 

209

 

 

184

 

14

%

 

199

 

5

%

Insurance and annuity

 

266

 

 

226

 

18

%

 

260

 

2

%

Off-Balance sheet brokerage cash

 

32

 

 

58

 

(45

)%

 

40

 

(20

)%

Other products

 

107

 

 

84

 

27

%

 

109

 

(2

)%

Total distribution fees

 

614

 

 

552

 

11

%

 

608

 

1

%

Net investment income

 

554

 

 

517

 

7

%

 

560

 

(1

)%

Other revenues

 

78

 

 

65

 

20

%

 

77

 

1

%

Total revenues

 

2,905

 

 

2,558

 

14

%

 

2,816

 

3

%

Banking and deposit interest expense

 

163

 

 

151

 

(8

)%

 

172

 

5

%

Adjusted operating total net revenues

 

2,742

 

 

2,407

 

14

%

 

2,644

 

4

%

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

Distribution expenses

 

1,488

 

 

1,253

 

(19

)%

 

1,403

 

(6

)%

Interest and debt expense

 

9

 

 

6

 

(50

)%

 

10

 

10

%

General and administrative expense

 

419

 

 

419

 

%

 

409

 

(2

)%

Adjusted operating expenses

 

1,916

 

 

1,678

 

(14

)%

 

1,822

 

(5

)%

Pretax adjusted operating earnings

$

826

 

$

729

 

13

%

$

822

 

%

 

 

 

 

 

 

 

 

 

Pretax adjusted operating margin

 

30.1

%

 

30.3

%

 

 

31.1

%

 

 

 

 

 

 

 

 

 

 

 

Ameriprise Financial, Inc.

Advice & Wealth Management Segment Operating Metrics

(in millions unless otherwise noted, unaudited)

3 Qtr 2024

3 Qtr 2023

% Better/
(Worse)

2 Qtr 2024

% Better/
(Worse)

 

 

 

 

 

 

AWM Total Client Assets

$

1,024,467

 

$

816,019

 

26

%

$

972,135

 

5

%

 

 

 

 

 

 

Total Client Flows

$

8,613

 

$

8,901

 

(3

)%

$

6,604

 

30

%

 

 

 

 

 

 

Total Wrap Accounts

 

 

 

 

 

Beginning assets

$

534,990

 

$

454,689

 

18

%

$

521,722

 

3

%

Net flows

 

7,992

 

 

5,391

 

48

%

 

7,521

 

6

%

Market appreciation (depreciation) and other

 

26,072

 

 

(16,019

)

NM

 

 

5,747

 

NM

 

Total wrap ending assets

$

569,054

 

$

444,061

 

28

%

$

534,990

 

6

%

 

 

 

 

 

 

Advisory wrap account assets ending balance (1)

$

563,438

 

$

439,341

 

28

%

$

529,642

 

6

%

 

 

 

 

 

 

Brokerage Cash & Certificates Balances

 

 

 

 

 

On-balance sheet (Net Investment Income)

 

 

 

 

 

On-balance sheet - broker dealer

$

2,633

 

$

2,554

 

3

%

$

2,279

 

16

%

On-balance sheet - bank

 

21,731

 

 

20,970

 

4

%

 

21,466

 

1

%

On-balance sheet - certificate

 

11,998

 

 

12,612

 

(5

)%

 

12,526

 

(4

)%

Total on-balance sheet

$

36,362

 

$

36,136

 

1

%

$

36,271

 

%

Off-balance sheet (Distribution Fees)

 

 

 

 

 

Off-balance sheet - broker dealer

$

3,714

 

$

4,347

 

(15

)%

$

4,359

 

(15

)%

Total brokerage cash & certificates balances

$

40,076

 

$

40,483

 

(1

)%

$

40,630

 

(1

)%

 

 

 

 

 

 

Gross Fee Yield

 

 

 

 

 

On-balance sheet - broker dealer

 

5.27

%

 

5.30

%

 

 

5.34

%

 

On-balance sheet - bank

 

5.02

%

 

4.97

%

 

 

5.15

%

 

On-balance sheet - certificates

 

5.63

%

 

5.40

%

 

 

5.66

%

 

Off-balance sheet - broker dealer

 

3.28

%

 

4.28

%

 

 

3.08

%

 

 

 

 

 

 

 

Financial Advisors

 

 

 

 

 

Employee advisors

 

2,212

 

 

2,104

 

5

%

 

2,236