AMERIPRISE FINANCIAL INC Quarterly Report for Q3 Ended Sep 30, 2010

Summary

Ameriprise Financial, Inc. reported strong financial performance for the nine months ended September 30, 2010, with net income attributable to Ameriprise Financial increasing significantly to $817 million from $485 million in the prior year period. This growth was driven by a substantial rise in net revenues across all segments, particularly in Management and financial advice fees and Distribution fees, bolstered by market appreciation and the strategic acquisition of Columbia Management Group's long-term asset management business in April 2010. The company's strategic focus on financial planning and its mass affluent and affluent client base continues to yield positive results, evidenced by strong client retention and advisor network growth. Despite some increases in expenses, largely related to integration costs for the Columbia Management acquisition, the company demonstrated solid operational efficiency and a strong overall financial position. Total assets grew to $129 billion from $113.8 billion at the end of 2009, reflecting the impact of the Columbia Management acquisition and organic growth. The company also actively managed its capital structure, repurchasing shares and paying dividends, underscoring its commitment to shareholder value. The company's liquidity remains robust, supported by significant cash and cash equivalents and available credit facilities. Key operational highlights include substantial growth in the Asset Management segment, largely attributable to the Columbia Management acquisition, and continued strength in the Advice & Wealth Management segment, driven by increasing fee-based assets.

Key Highlights

• 1Net income attributable to Ameriprise Financial increased by 68% to $861 million for the first nine months of 2010, compared to $512 million in the prior year period.
• 2Total net revenues grew by 26% to $7.3 billion for the first nine months of 2010, driven by strong performance across all operating segments.
• 3The acquisition of Columbia Management Group's asset management business for $927 million in April 2010 significantly boosted the Asset Management segment, contributing to an 80% increase in operating net revenues for that segment.
• 4Advice & Wealth Management segment showed resilience, with operating net revenues increasing by 19% to $2.8 billion for the first nine months of 2010, driven by higher fee-based assets.
• 5The company repurchased $373 million of its common stock during the first nine months of 2010, demonstrating a commitment to returning capital to shareholders.
• 6Total assets increased to $129.0 billion as of September 30, 2010, up from $113.8 billion at December 31, 2009, reflecting growth and strategic acquisitions.
• 7Cash and cash equivalents increased to $3.7 billion as of September 30, 2010, from $3.1 billion at December 31, 2009, indicating strong liquidity.

Frequently Asked Questions