01—Abstract
Summary
Summary of the 10-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.
Ameriprise Financial, Inc. reported solid performance in its 2023 10-K filing.
The company experienced significant growth in Assets Under Management and Administration (AUMA), reaching $1.4 trilliona, a 15% increase year-over-year, primarily driven by market appreciation and net inflows in its Wealth Management segment. The company's adjusted operating earnings and adjusted operating return on equity demonstrate strong profitability. Despite a challenging economic environment with rising interest rates and market volatility, Ameriprise's diversified business model, strong advisor network, and focus on client relationships have enabled it to navigate these conditions effectively.
The company continues to execute its strategic growth initiatives, with a particular emphasis on its Advice & Wealth Management segment, which showed a substantial 30%b increase in adjusted operating earnings. The Asset Management segment saw a decrease in adjusted operating earnings due to net outflows, while Retirement & Protection Solutions also experienced a decline in earnings, largely influenced by market impacts on variable annuity benefits. The company's capital position remains robust, with available capital for capital adequacy well above regulatory requirements, supported by consistent dividend payments to shareholders and ongoing share repurchase programs.
02—Key points
Key Highlights
- Assets Under Management and Administration (AUMA) grew 15% to $1.4 trillion by year-end 2023, indicating strong client asset growth and market appreciation.
- Advice & Wealth Management segment performance was robust, with adjusted operating earnings increasing by 30% year-over-year, driven by higher interest rates and client net inflows.
- Ameriprise Bank and Certificate Company saw significant deposit growth, highlighting the success of their banking solutions and attractiveness in the current interest rate environment.
- The company maintained a strong capital position, with 'Available Capital for Capital Adequacy' of $5.4 billion at year-end 2023.
- Shareholder returns were supported by regular quarterly dividends totaling $569 million in 2023 and an active share repurchase program with $3.1 billion remaining authorization.
- The company's financial results reflect a diversified business model, with Advice & Wealth Management contributing significantly to overall adjusted operating earnings.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 22, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $16.10B$14.33B | +12.3% |
| Operating Expenses | $12.30B$10.33B | +19.1% |
| Net Income | $2.56B$3.15B | −18.8% |
| EPS (Basic) | $24.18$28.29 | −14.5% |
| EPS (Diluted) | $23.71$27.70 | −14.4% |
| Shares Outstanding (Basic) | 105.70M111.30M | −5.0% |
| Shares Outstanding (Diluted) | 107.80M113.70M | −5.2% |
05—Questions
Frequently Asked Questions
What was Ameriprise Financial's overall financial performance in 2023?
Ameriprise Financial reported a decrease in net income to $2.56 billion in 2023 from $3.15 billion in 2022. However, on an adjusted operating basis, adjusted operating earnings increased to $3.11 billion in 2023 from $2.89 billion in 2022. The company saw growth in its Assets Under Management and Administration (AUMA) to $1.4 trillion, up 15% from the prior year, primarily driven by market appreciation and net inflows in the Advice & Wealth Management segment.
How did the different business segments perform?
The Advice & Wealth Management segment was a strong performer, with adjusted operating earnings up 30% to $2.85 billion, driven by higher interest rates and net inflows. The Asset Management segment saw a 15% decrease in adjusted operating earnings to $720 million, primarily due to net outflows. The Retirement & Protection Solutions segment's adjusted operating earnings decreased by 21% to $685 million, impacted by market effects on variable annuity benefits. The Corporate & Other segment reported an increased adjusted operating loss of $320 million.
What is the company's outlook and strategy moving forward?
Ameriprise Financial's strategy continues to focus on growing its Advice & Wealth Management business, supported by its Asset Management and Retirement & Protection Solutions. The company aims to increase shareholder value through adjusted operating earnings growth of 12%-15% and an adjusted operating return on equity of over 30%. They are also strategically shifting their business mix towards lower-risk offerings and optimizing their product portfolio.
06—Continue