What was the primary driver of revenue growth in the second quarter of 2018?

The primary driver of revenue growth was the increase in management and financial advice fees, which rose by 8% to $1.7 billion, largely due to an increase in assets under management (AUM). Distribution fees also contributed positively, increasing by 9%.

How did the company's different business segments perform in Q2 2018?

The Advice & Wealth Management segment showed strong performance with a 20% increase in adjusted operating earnings. Asset Management also saw a 4% increase. The Annuities segment's adjusted operating earnings decreased by 9%, and the Protection segment's earnings were down 12%, primarily due to lower investment income and impacts related to insurance feature reserves.

What is the company's outlook regarding interest rates?

The company noted that the ongoing low interest rate environment negatively impacts its spread income. However, a modest rise in interest rates could widen spreads given the current relationship between interest rates and guaranteed minimum interest rates on some of its business. The company is actively managing its investment portfolio to mitigate these impacts.

What impact did the adoption of new accounting standards have?

Ameriprise Financial adopted the new revenue recognition standard retrospectively on January 1, 2018. This resulted in certain franchise advisor fees being presented as revenue rather than a reduction of expense. The adoption did not have a material impact on overall results.

AMP 10-Q Quarterly Report Q2 FY2018 — Revenue, Net Income, EPS

Summary

Ameriprise Financial, Inc. reported solid financial results for the second quarter and first half of 2018. Total net revenues grew 6% year-over-year in the second quarter to $3.2 billion, driven by strong performance in management and financial advice fees and distribution fees. Net income saw a significant increase of 18% to $462 million for the quarter. The company's adjusted operating earnings per diluted share also showed robust growth. The company's Advice & Wealth Management segment was a key driver of this growth, with adjusted operating earnings up 20% year-over-year for the quarter, fueled by increased wrap account assets and favorable market conditions. Asset Management also saw a 4% increase in adjusted operating earnings. Annuities and Protection segments experienced slight declines in adjusted operating earnings, primarily due to lower investment income and impacts from insurance feature reserves. Overall, Ameriprise Financial demonstrated continued operational strength and profitability, supported by its diversified business model and effective expense management.

Financial Highlights

33 data points

Beta

Revenue

$3.22B

Net Income

$462.00M

0.1% Net Margin

EPS (Diluted)

$3.10

Total Assets

$143.27B

Cash & Equivalents

$4.77B

Free Cash Flow

$686.00M

Financial Statements

Beta

Revenue	$3.22B
Operating Expenses	$2.65B
Net Income	$462.00M
EPS (Basic)	$3.14
EPS (Diluted)	$3.10
Shares Outstanding (Basic)	147.00M
Shares Outstanding (Diluted)	149.00M

Key Highlights

1Total net revenues increased by 6% to $3.2 billion in Q2 2018, compared to $3.0 billion in Q2 2017.
2Net income for Q2 2018 rose by 18% to $462 million, up from $393 million in Q2 2017.
3The Advice & Wealth Management segment reported a 20% increase in adjusted operating earnings for Q2 2018, reaching $350 million.
4Assets under management and administration (AUM/AUA) grew 7% to $890.9 billion as of June 30, 2018.
5Distribution expenses increased by 9% to $902 million in Q2 2018, reflecting higher advisor compensation.
6Interest and debt expense saw a significant increase of 54% to $80 million in Q2 2018, primarily due to higher interest expenses from consolidated investment entities.
7The company repurchased 5.3 million shares of common stock during the first six months of 2018.

AMERIPRISE FINANCIAL INC Quarterly Report for Q2 Ended Jun 30, 2018

Summary

Financial Highlights

Key Highlights

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