What was the primary driver of the increase in Ameriprise Financial's revenue?

The primary driver of the increase in Ameriprise Financial's revenue was the impact of the Columbia Management Acquisition completed in April 2010, along with market appreciation and net inflows in branded client wrap assets. This led to higher asset-based fees and increased client activity across segments.

How did the company address the legal issues related to Securities America?

Ameriprise Financial recorded a $118 million pre-tax charge in the first quarter of 2011 related to settlement agreements for litigation and arbitration claims stemming from Securities America's sale of private placements. The company has also decided to seek a buyer for Securities America and is presenting its results as discontinued operations.

What is the significance of the Columbia Management Acquisition to Ameriprise Financial's results?

The Columbia Management Acquisition, completed in April 2010, significantly enhanced Ameriprise Financial's scale and capabilities, particularly in the Asset Management segment. It drove substantial growth in AUM and revenues, contributing to the overall increase in net income and operating performance for the first quarter of 2011.

How is Ameriprise Financial managing its capital and returning value to shareholders?

Ameriprise Financial demonstrated a commitment to returning capital by significantly increasing share repurchases in Q1 2011, spending $395 million. They also paid regular quarterly cash dividends. The company maintains substantial liquidity with $2.5 billion in cash and cash equivalents and has an available revolving credit facility.

AMP 10-Q Quarterly Report Q1 FY2011 — Revenue, Net Income, EPS

Summary

Ameriprise Financial, Inc. (AMP) reported its first quarter 2011 financial results, showing a solid increase in net income attributable to Ameriprise Financial, up 13% to $241 million compared to $214 million in the prior year quarter. This growth was primarily driven by strong performance in the Advice & Wealth Management and Asset Management segments, fueled by market appreciation and net inflows. Total revenues increased by 17% to $2.7 billion, reflecting the positive impact of the Columbia Management Acquisition and increased client activity. The company also highlighted an increase in share repurchases, demonstrating a commitment to returning capital to shareholders. While operating expenses rose, largely due to integration costs related to the Columbia Management Acquisition and significant legal expenses associated with Securities America, the company maintained a healthy operating margin. Management expressed confidence in its strategy focused on the mass affluent and affluent market, emphasizing long-term client relationships and advisor productivity.

Financial Highlights

34 data points

Beta

Revenue

$2.54B

Net Income

$241.00M

0.1% Net Margin

EPS (Diluted)

$0.94

Total Assets

$133.83B

Cash & Equivalents

$2.46B

Free Cash Flow

$15.00M

Financial Statements

Beta

Revenue	$2.54B
Operating Expenses	$2.15B
Operating Income	$312.00M
Net Income	$241.00M
EPS (Basic)	$0.96
EPS (Diluted)	$0.94
Shares Outstanding (Basic)	251.60M
Shares Outstanding (Diluted)	257.70M

Key Highlights

1Net income attributable to Ameriprise Financial increased by 13% to $241 million for Q1 2011, compared to $214 million for Q1 2010.
2Total revenues grew by 17% to $2.7 billion in Q1 2011, up from $2.3 billion in the prior year quarter, largely driven by the Columbia Management Acquisition and market appreciation.
3The Advice & Wealth Management segment saw a significant 94% increase in pretax operating income to $99 million, driven by higher asset-based fees and client activity.
4The Asset Management segment's pretax operating income surged to $136 million from $22 million, primarily due to the Columbia Management Acquisition and market appreciation.
5Ameriprise Financial significantly increased its share repurchases, spending $395 million in Q1 2011, compared to no repurchases in Q1 2010.
6The company is pursuing the sale of its Securities America business, which has been moved to the Corporate & Other segment for reporting purposes, and recorded a $118 million pre-tax charge related to settlements for this business in Q1 2011.
7Assets Under Management and Administration (AUM & AUA) combined increased by 50% to $692.6 billion, driven by the Columbia Management Acquisition and market appreciation.

AMERIPRISE FINANCIAL INC Quarterly Report for Q1 Ended Mar 31, 2011

Summary

Financial Highlights

Key Highlights

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