Ameriprise 2Q profit up 44%

By Associated Press

July 26, 2013 at 07:27 AM

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MINNEAPOLIS (AP) — Ameriprise Financial Inc. said Wednesday that second-quarter net income jumped 44 percent as it attracted new investing customers and a rising stock market lifted the value of their accounts.

The company earned $322 million, or $1.54 per share, for the quarter that ended June 30. A year earlier it made $224 million, or 99 cents per share. If not for one-time items it would have earned $1.69 per share.

Revenue rose 9 percent to $2.75 billion.

Analysts surveyed by FactSet expected a profit of $1.62 per share on revenue of $2.74 billion.

Assets under management rose 7 percent to $703 billion as new investors came in, and the value of their assets grew. However, Ameriprise also saw some customers drop annuitiesbecause of low interest rates. The balance of its fixed annuity accounts fell 4 percent to $13.5 billion.

Ameriprise also said it would pay a dividend of 52 cents per share on Aug. 16, to shareholders of record on Aug. 5.

Ameriprise shares fell 43 cents to close at $86.24.

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