10-QPeriod: Q3 FY2019

AMERIPRISE FINANCIAL INC Quarterly Report for Q3 Ended Sep 30, 2019

Filed November 12, 2019For Securities:AMP

Summary

Ameriprise Financial, Inc. reported solid results for the third quarter and first nine months of 2019, demonstrating resilience across its core business segments. Total net revenues saw a slight increase, driven by growth in Management and financial advice fees, primarily in Advice & Wealth Management, which benefited from strong wrap account net inflows and market appreciation. While Net Investment Income experienced a decline, this was largely attributed to market impacts and realized investment losses, offset by positive contributions from other revenue streams. The company also successfully completed the sale of its Auto & Home business, a strategic move aligning with its focus on core growth areas. Earnings per share showed a healthy increase compared to the prior year's third quarter. The company's financial condition remains robust, with total assets growing and strong liquidity maintained, supported by significant cash and cash equivalents and an undrawn revolving credit facility. Capital management remained a focus, with continued share repurchases and dividend payments demonstrating a commitment to shareholder returns. The company's diversified business model, with strengths in Advice & Wealth Management and Asset Management, positions it well to navigate the evolving financial landscape.

Financial Highlights

35 data points
Beta

Revenue

$3.35B

Net Income

$543.00M

16.2% Net Margin

EPS (Diluted)

$4.04

Total Assets

$149.51B

Cash & Equivalents

$7.57B

Free Cash Flow

$1.42B

Financial Statements
Beta
Revenue$3.35B
Operating Expenses$2.68B
Net Income$543.00M
EPS (Basic)$4.09
EPS (Diluted)$4.04
Shares Outstanding (Basic)132.70M
Shares Outstanding (Diluted)134.50M

Key Highlights

  • 1Total net revenues increased by 1% to $3.32 billion for the three months ended September 30, 2019.
  • 2Management and financial advice fees increased by 3% to $1.79 billion for Q3 2019, driven by growth in wrap account assets.
  • 3Diluted earnings per share rose to $4.04 in Q3 2019 from $3.43 in Q3 2018.
  • 4The company completed the sale of its Ameriprise Auto & Home business on October 1, 2019, receiving $1.135 billion in gross proceeds.
  • 5Total assets increased to $149.5 billion as of September 30, 2019, up from $137.2 billion at December 31, 2018.
  • 6The company maintained strong liquidity, with $5.29 billion in cash and cash equivalents as of September 30, 2019.
  • 7Share repurchases continued, with $1.39 billion in common shares repurchased during the first nine months of 2019.

Frequently Asked Questions

Ameriprise Financial reported a net income of $543 million for the third quarter of 2019, an increase from $503 million in the same period of the previous year.

The company completed the sale of its Ameriprise Auto & Home business on October 1, 2019, for gross proceeds of $1.135 billion. This strategic divestiture aligns with the company's focus on its core growth areas of Advice & Wealth Management and Asset Management.

As of September 30, 2019, Ameriprise Financial had $1.7 billion remaining under its share repurchase authorization, which runs through March 31, 2021. During the nine months ended September 30, 2019, the company repurchased approximately 9.8 million shares.

The Advice & Wealth Management segment showed strong performance, with net revenues increasing by 8% to $1.68 billion for Q3 2019. Adjusted operating earnings for the segment increased by 12% to $396 million, driven by growth in wrap account assets and higher earnings on brokerage cash.