10-QPeriod: Q1 FY2017

AMERIPRISE FINANCIAL INC Quarterly Report for Q1 Ended Mar 31, 2017

Filed May 3, 2017For Securities:AMP

Summary

Ameriprise Financial, Inc. reported solid financial results for the first quarter of 2017, with net income increasing 11% to $403 million ($2.52 per diluted share), up from $364 million ($2.09 per diluted share) in the prior year period. Total net revenues grew 5% to $2.9 billion, driven by an increase in management and financial advice fees and net investment income. The company experienced growth across its Advice & Wealth Management and Annuities segments, with operating earnings up 21% and 12%, respectively. While the Asset Management segment remained stable, the Protection segment saw a slight decrease in operating earnings. The company's financial condition remains robust, with total assets of $140.9 billion at March 31, 2017. Liquidity is strong, with $2.0 billion in cash and cash equivalents. Ameriprise also announced a significant share repurchase authorization of up to $2.5 billion, underscoring its commitment to returning capital to shareholders. Management's focus remains on driving operating total net revenue growth and operating earnings per diluted share growth, with stated targets for future performance.

Financial Highlights

31 data points
Beta

Revenue

$2.94B

Net Income

$403.00M

13.7% Net Margin

EPS (Diluted)

$2.52

Total Assets

$140.86B

Free Cash Flow

$6.00M

Financial Statements
Beta
Revenue$2.94B
Operating Expenses$2.45B
Net Income$403.00M
EPS (Basic)$2.56
EPS (Diluted)$2.52
Shares Outstanding (Basic)157.50M
Shares Outstanding (Diluted)160.10M

Key Highlights

  • 1Net income increased by 11% year-over-year to $403 million.
  • 2Diluted Earnings Per Share (EPS) rose to $2.52 from $2.09 in the prior year quarter.
  • 3Total net revenues grew 5% to $2.9 billion, driven by higher management fees and net investment income.
  • 4Advice & Wealth Management segment operating earnings increased significantly by 21% to $248 million.
  • 5Annuities segment operating earnings grew 12% to $139 million.
  • 6The company announced a new share repurchase authorization of up to $2.5 billion.
  • 7Total Assets Under Management and Administration (AUM/AUA) increased by 6% to $817.6 billion.

Frequently Asked Questions

For the three months ended March 31, 2017, Ameriprise Financial reported a net income of $403 million, an increase of 11% compared to $364 million in the same period of 2016. Diluted earnings per share were $2.52 in Q1 2017, up from $2.09 in Q1 2016.

Total net revenues increased by 5% to $2.9 billion. This growth was primarily driven by a 7% increase in management and financial advice fees, reflecting market appreciation and wrap account net inflows, and an 18% increase in net investment income, benefiting from favorable changes in investment hedges and net realized investment gains.

The Advice & Wealth Management segment showed strong performance with a 21% increase in operating earnings to $248 million, driven by growth in wrap account assets and higher earnings on brokerage cash. The Annuities segment also saw a 12% increase in operating earnings to $139 million, benefiting from equity market appreciation. The Asset Management segment's operating earnings were relatively flat at $150 million, while the Protection segment's operating earnings decreased by 7% to $63 million, primarily due to higher insurance claims.

Ameriprise Financial maintains a strong capital position with $2.0 billion in cash and cash equivalents. The company demonstrated its commitment to returning capital to shareholders by paying $121 million in dividends and announcing a new $2.5 billion share repurchase authorization. The total Assets Under Management and Administration (AUM/AUA) increased 6% to $817.6 billion, indicating continued client trust and market presence.