10-QPeriod: Q2 FY2024

AMERIPRISE FINANCIAL INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 6, 2024For Securities:AMP

Summary

Ameriprise Financial, Inc. (AMP) reported solid financial results for the quarter and six months ended June 30, 2024. Total net revenues increased by 9% year-over-year for the quarter, driven by higher management and financial advice fees, net investment income, and distribution fees. Pretax income saw a slight decrease of 7% for the quarter, primarily due to unfavorable market impacts on non-traditional long-duration products, but showed a significant increase of 40% for the six-month period. The company's Advice & Wealth Management segment demonstrated strong growth, with adjusted operating earnings up 12% year-over-year for the quarter, supported by rising wrap account assets and increased transactional activity. The Asset Management segment also saw a notable 35% increase in adjusted operating earnings for the quarter, benefiting from equity market appreciation and effective expense management, despite some net outflows. The Retirement & Protection Solutions segment experienced a modest 4% increase in adjusted operating earnings for the quarter, driven by higher interest rates and market appreciation. Ameriprise Financial continues to focus on operational efficiency and growth initiatives, with substantial assets under management and administration totaling $1.43 trillion. The company also actively returned capital to shareholders through dividends and share repurchases, underscoring its commitment to enhancing shareholder value.

Financial Highlights

30 data points
Beta

Revenue

$4.39B

Net Income

$829.00M

18.9% Net Margin

EPS (Diluted)

$8.02

Total Assets

$179.70B

Cash & Equivalents

$8.84B

Free Cash Flow

$1.72B

Financial Statements
Beta
Revenue$4.39B
Operating Expenses$3.17B
Net Income$829.00M
EPS (Basic)$8.16
EPS (Diluted)$8.02
Shares Outstanding (Basic)101.60M
Shares Outstanding (Diluted)103.40M

Key Highlights

  • 1Total net revenues increased 9% year-over-year for the quarter ended June 30, 2024, reaching $4.22 billion.
  • 2Pretax income for the six months ended June 30, 2024 increased by 40% to $2.27 billion compared to the prior year period.
  • 3The Advice & Wealth Management segment reported a 12% year-over-year increase in adjusted operating earnings for the quarter, driven by higher wrap account assets.
  • 4Asset Management adjusted operating earnings grew by 35% year-over-year for the quarter, benefiting from market appreciation and expense management.
  • 5Net investment income increased significantly by 14% for the quarter and 21% for the six months, reflecting higher interest rates and increased deposit balances.
  • 6The company maintained a strong liquidity position with $7.5 billion in cash and cash equivalents as of June 30, 2024.
  • 7Ameriprise Financial returned $2.2 billion in cash dividends or return of capital from its subsidiaries during the first six months of 2024.

Frequently Asked Questions

Ameriprise Financial reported a 9% increase in total net revenues to $4.22 billion for the quarter ended June 30, 2024, compared to the prior year period. Pretax income decreased by 7% to $1.05 billion, impacted by market conditions affecting non-traditional long-duration products, but the company's core segments, particularly Advice & Wealth Management and Asset Management, showed strong adjusted operating earnings growth.

The Advice & Wealth Management segment saw a 12% increase in adjusted operating earnings, driven by growth in wrap account assets and net inflows. The Asset Management segment's adjusted operating earnings rose by 35%, benefiting from market appreciation and cost efficiencies. The Retirement & Protection Solutions segment experienced a 4% increase in adjusted operating earnings, supported by higher interest rates and market appreciation.

Ameriprise Financial maintains a strong liquidity position with $7.5 billion in cash and cash equivalents as of June 30, 2024. The company continues to return value to shareholders through regular quarterly dividends and an ongoing share repurchase program, with $2.1 billion remaining under its authorized repurchase program as of the end of the quarter.

The significant increase in Net Investment Income for the quarter (14%) and year-to-date (21%) was primarily driven by favorable impacts from higher interest rates on the investment portfolio yield, coupled with growth in bank customer deposits and certificate business, as well as increased balances in structured variable annuity products.