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| 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.