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| 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.