Summary
Ameriprise Financial, Inc. reported a strong return to profitability in the third quarter of 2009, with net income attributable to Ameriprise Financial of $260 million, or $1.00 per diluted share, a significant improvement from a net loss of $70 million ($0.32 per diluted share) in the same period of 2008. This rebound was driven by a substantial increase in net investment income, largely recovering from prior year losses, and the positive impact of annual valuation assumption reviews for RiverSource Life products, which resulted in a net pretax benefit. While management and financial advice fees saw a decline due to market conditions, overall net revenues increased by 20% year-over-year, benefiting from improved investment income and contributions from 2008 acquisitions. The company's balance sheet strengthened, with total assets growing to $111.2 billion. Management highlighted the strategic acquisition of Columbia Management's long-term asset management business, expected to close in spring 2010, which will be funded by existing cash. Despite a temporary suspension of share repurchases, the company maintained a solid liquidity position with $3.6 billion in cash and cash equivalents, and a strong capital position across its subsidiaries, positioning it to navigate the uncertain economic environment and pursue future growth opportunities.
Financial Highlights
35 data points| Revenue | $1.98B |
| Operating Expenses | $1.61B |
| Net Income | $260.00M |
| EPS (Basic) | $1.00 |
| EPS (Diluted) | $1.00 |
| Shares Outstanding (Basic) | 258.70M |
| Shares Outstanding (Diluted) | 260.70M |
Key Highlights
- 1Net income attributable to Ameriprise Financial surged to $260 million ($1.00/share) in Q3 2009, a significant turnaround from a $70 million loss ($0.32/share) in Q3 2008.
- 2Total net revenues increased by 20% year-over-year to $2.0 billion, driven by a substantial rebound in net investment income.
- 3The company announced a definitive agreement to acquire Columbia Management's long-term asset management business for an expected consideration between $900 million and $1.2 billion, to be funded by cash on hand.
- 4Total assets grew to $111.2 billion as of September 30, 2009, up from $95.6 billion at the end of 2008.
- 5Ameriprise Financial's liquidity remains robust, with $3.6 billion in cash and cash equivalents as of September 30, 2009.
- 6Advisory and Wealth Management segment pretax income improved to $12 million from a pretax loss of $77 million in the prior year period, reflecting recovery from market impacts.