Summary
Ameriprise Financial, Inc. reported solid financial results for the second quarter and first half of 2017. Total net revenues increased to $2.99 billion for the quarter and $5.91 billion for the six months, driven by growth in management and financial advice fees, reflecting an increase in assets under management and administration. Net income also saw a significant increase, rising 17% to $393 million for the quarter and 14% to $796 million for the six months, driven by strong revenue growth and effective expense management, although certain segments like Annuities experienced a slight dip in operating earnings. The company continued its share repurchase program, demonstrating a commitment to returning value to shareholders. Despite a generally positive financial performance, the company noted the ongoing impact of a low interest rate environment on its spread-based businesses and acknowledged continued uncertainty in the regulatory landscape, particularly concerning the Department of Labor's fiduciary rule. The company's financial health appears stable, with total assets growing to $143.14 billion. The Advice & Wealth Management segment was a key driver of growth, with operating earnings up 32% for the quarter, supported by increased wrap account assets and advisor productivity. While the Asset Management segment saw slight net outflows, overall AUM grew due to market appreciation. The Annuities segment faced headwinds from lower investment yields and increased reserves for living benefits, leading to a slight decrease in operating earnings. The Protection segment benefited from improved auto and home insurance results and the impact of reinsurance arrangements. Overall, Ameriprise demonstrated resilience and strategic execution in a dynamic market environment.
Financial Highlights
31 data points| Revenue | $3.02B |
| Operating Expenses | $2.50B |
| Net Income | $393.00M |
| EPS (Basic) | $2.53 |
| EPS (Diluted) | $2.50 |
| Shares Outstanding (Basic) | 155.10M |
| Shares Outstanding (Diluted) | 157.50M |
Key Highlights
- 1Total net revenues for the second quarter of 2017 increased by 4% to $2.99 billion, and for the first six months increased by 5% to $5.91 billion, compared to the prior year periods.
- 2Net income for the quarter rose 17% to $393 million, and for the six months increased 14% to $796 million, compared to the prior year periods.
- 3The Advice & Wealth Management segment reported a significant 32% increase in operating earnings for the quarter, driven by growth in wrap account assets and advisor productivity.
- 4Assets Under Management and Administration (AUM/AUA) grew by 7% to $834.7 billion as of June 30, 2017, compared to the prior year, primarily fueled by market appreciation and net inflows into advisory wrap accounts.
- 5The company continued its share repurchase program, repurchasing 2.89 million shares in the second quarter of 2017 under authorized programs, reflecting a commitment to shareholder returns.
- 6The Annuities segment experienced a 3% decrease in operating earnings due to lower investment yields and increased reserves for living benefits, though it benefited from equity market appreciation.
- 7Ameriprise Financial maintained a strong liquidity position with $2.4 billion in cash and cash equivalents (excluding consolidated investment entities) at the end of the second quarter.