Summary
Ameriprise Financial, Inc. reported solid financial performance for the second quarter and first half of 2013, demonstrating revenue growth and improved profitability. Total net revenues increased by 9% in Q2 2013 and 7% in the first half compared to the prior year, driven by strong performance in management and financial advice fees and distribution fees. This growth was primarily fueled by an increase in assets under management and administration, which rose to $703.2 billion as of June 30, 2013. Net income attributable to Ameriprise Financial increased significantly by 44% in Q2 and 40% in the first half, reflecting successful operational execution and favorable market conditions. The company also highlighted its capital strength and commitment to returning value to shareholders through dividends and share repurchases.
Financial Highlights
33 data points| Revenue | $2.76B |
| Operating Expenses | $2.35B |
| Operating Income | $658.00M |
| Net Income | $321.00M |
| EPS (Basic) | $1.57 |
| EPS (Diluted) | $1.54 |
| Shares Outstanding (Basic) | 204.90M |
| Shares Outstanding (Diluted) | 208.60M |
Key Highlights
- 1Total net revenues for Q2 2013 increased by 9% to $2.75 billion, and by 7% for the first half to $5.46 billion, compared to the prior year periods.
- 2Net income attributable to Ameriprise Financial increased by 44% in Q2 2013 to $321 million and by 40% in the first half to $656 million.
- 3Assets under management and administration (AUM/AUA) grew to $703.2 billion as of June 30, 2013, a 7% increase year-over-year, driven by market appreciation and net inflows in advisory services.
- 4The Advice & Wealth Management segment showed strong growth, with operating earnings up 37% in Q2 and 38% in the first half, supported by increased wrap account assets and client activity.
- 5The Asset Management segment's operating earnings increased significantly by 53% in Q2 and 31% in the first half, benefiting from market appreciation and a gain on the sale of an investment.
- 6Ameriprise Financial paid $202 million in dividends and repurchased $732 million in common stock during the first half of 2013, demonstrating a commitment to shareholder returns.
- 7The company's effective tax rate improved in the first half of 2013 due to tax-preferred items and a favorable tax adjustment related to prior periods.