10-QPeriod: Q3 FY2013

AMERIPRISE FINANCIAL INC Quarterly Report for Q3 Ended Sep 30, 2013

Filed November 5, 2013For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) reported strong financial results for the third quarter and the first nine months of 2013, demonstrating significant year-over-year growth across key metrics. Total revenues increased by 14% in the third quarter and 9% for the nine-month period. Net income attributable to Ameriprise Financial saw a substantial increase of 121% for the quarter and 62% for the nine months. This growth was driven by higher management and financial advice fees, distribution fees, and net investment income, reflecting positive market performance and increased client activity. The company also highlighted its robust financial planning and wealth management capabilities, with a 19% increase in Assets Under Management and Administration (AUM/AUA) year-over-year. The Annuities segment showed particularly strong operating earnings growth, largely due to favorable "unlocking" adjustments. Despite a persistent low-interest-rate environment impacting fixed annuity spread income, Ameriprise maintained a solid operational performance, supported by strategic expense management and growth in its Advice & Wealth Management segment.

Financial Highlights

34 data points
Beta

Revenue

$2.82B

Net Income

$382.00M

13.5% Net Margin

EPS (Diluted)

$1.86

Total Assets

$140.21B

Cash & Equivalents

$3.13B

Free Cash Flow

$1.20B

Financial Statements
Beta
Revenue$2.82B
Operating Expenses$2.21B
Operating Income$1.04B
Net Income$382.00M
EPS (Basic)$1.90
EPS (Diluted)$1.86
Shares Outstanding (Basic)201.30M
Shares Outstanding (Diluted)205.10M

Key Highlights

  • 1Total revenues for Q3 2013 increased 14% year-over-year to $2.82 billion.
  • 2Net income attributable to Ameriprise Financial for Q3 2013 surged 121% to $382 million compared to $173 million in Q3 2012.
  • 3Earnings per diluted share (EPS) for Q3 2013 were $1.86, a significant increase from $0.79 in the prior year period.
  • 4Assets Under Management and Administration (AUM/AUA) grew 8% year-over-year to $734.9 billion as of September 30, 2013.
  • 5The Advice & Wealth Management segment saw a 29% increase in pretax operating earnings, driven by strong wrap account growth and increased client activity.
  • 6The Annuities segment's pretax operating earnings more than doubled, increasing 139% to $219 million, largely due to favorable "unlocking" adjustments.
  • 7Ameriprise Financial returned $307 million to shareholders through dividends during the first nine months of 2013 and continued its share repurchase program.

Frequently Asked Questions

Ameriprise Financial reported total net revenues of $2.813 billion for the third quarter of 2013, an increase of 14% compared to $2.468 billion in the same period of 2012. This growth was driven by increases in management and financial advice fees, distribution fees, net investment income, and other revenues.

Net income attributable to Ameriprise Financial significantly increased by 121% to $382 million in Q3 2013 from $173 million in Q3 2012. Diluted earnings per share also saw a substantial rise, reaching $1.86 in Q3 2013, up from $0.79 in the prior year period.

Ameriprise Financial's total Assets Under Management and Administration (AUM/AUA) grew by 8% year-over-year to $734.9 billion as of September 30, 2013. This growth was attributed to increases in both the Advice & Wealth Management and Asset Management segments, driven by market appreciation and net inflows.

All operating segments showed positive performance. Advice & Wealth Management saw a 29% increase in pretax operating earnings due to strong asset growth. Asset Management's pretax operating earnings rose by 15%, benefiting from market appreciation. The Annuities segment experienced exceptional growth with a 139% increase in pretax operating earnings, largely due to favorable "unlocking" adjustments. The Protection segment's earnings decreased slightly by 16% due to lower auto and home insurance results.