01—Abstract
Summary
Summary of the 10-K filed February 24, 2015. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial Inc. (AMP) reported strong financial performance for the fiscal year ending December 31, 2014, with total net revenues reaching $12.3 billiona, a 10% increase year-over-year, primarily driven by growth in management and financial advice fees and other revenues.
Net income attributable to Ameriprise Financial increased by 21% to $1.6 billionb, with diluted earnings per share reaching $8.30. The company's assets under management and administration grew to $806.2 billion, reflecting market appreciation and net inflows across its Advice & Wealth Management and Asset Management segments. The filing also highlights the company's robust advisor network, strong client relationships, and commitment to capital returns to shareholders through dividends and share repurchases, with $1.8 billion remaining under its share repurchase authorization as of year-end 2014.
02—Key points
Key Highlights
- Total net revenues increased by 10% to $12.3 billion in 2014, driven by strong growth in management and financial advice fees.
- Net income attributable to Ameriprise Financial grew 21% to $1.6 billion, resulting in diluted EPS of $8.30.
- Assets under management and administration reached $806.2 billion, a 5% increase from the prior year.
- The Advice & Wealth Management segment saw operating earnings increase by 34% to $792 million, driven by wrap account asset growth and expense management.
- The Asset Management segment's operating earnings rose 14% to $788 million, primarily due to higher average assets under management.
- Ameriprise Financial repurchased approximately 11.8 million shares of common stock in 2014 for $1.4 billion, demonstrating a commitment to returning capital to shareholders.
- The company maintained strong capital levels, with insurance subsidiaries' capital well in excess of regulatory requirements.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2014filed February 24, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $12.30B$11.23B | +9.5% |
| Operating Expenses | $9.72B$9.23B | +5.3% |
| Operating Income | $1.62B$1.34B | +21.2% |
| Net Income | $1.62B$1.33B | +21.4% |
| EPS (Basic) | $8.45$6.56 | +28.8% |
| EPS (Diluted) | $8.30$6.44 | +28.9% |
| Shares Outstanding (Basic) | 191.60M203.20M | −5.7% |
| Shares Outstanding (Diluted) | 195.00M207.10M | −5.8% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's revenue growth in 2014?
Ameriprise Financial reported a 10% increase in total net revenues, reaching $12.3 billion for the year ended December 31, 2014, primarily driven by higher management and financial advice fees and other revenues.
How did Ameriprise Financial's profitability change in 2014?
Net income attributable to Ameriprise Financial increased by 21% to $1.6 billion in 2014, and diluted earnings per share grew to $8.30, reflecting improved profitability across key business segments.
What was the total asset value under management and administration for Ameriprise Financial at the end of 2014?
As of December 31, 2014, Ameriprise Financial had $806.2 billion in total assets under management and administration, an increase of 5% from the prior year.
What is the company's strategy regarding capital returns to shareholders?
Ameriprise Financial demonstrated a commitment to returning capital through dividends and share repurchases. In 2014, the company repurchased approximately 11.8 million shares for $1.4 billion and maintained $1.8 billion remaining under its share repurchase authorization as of December 31, 2014.
Which business segments contributed most significantly to the company's operating earnings growth in 2014?
The Advice & Wealth Management segment saw a 34% increase in operating earnings to $792 million, and the Asset Management segment's operating earnings grew by 14% to $788 million, both driven by asset growth and effective management.
06—Continue