Ameriprise Tops Q1 Estimates as Wealth Unit Sees 'Strong Client Activity'

By Janet Levaux

News May 07, 2020 at 02:16 PM

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Ameriprise headquarters in Minneapolis. (Photo: Bloomberg)

Ameriprise Financial topped estimates with adjusted first-quarter earnings of $5.41 per share, up 46% from $3.75 per share a year ago. Its adjusted net income was $694 million vs. $518 million — a jump of 34%.

Its revenue was $3 billion, down about 4% from last year on a non-adjusted basis and up 4% after accounting for one-time issues and charges.

The Advice & Wealth Management unit brought in about $1.7 billion of revenue, up 9% from a year ago, thanks to "strong client activity and higher average equity markets that more than offset the decline in short-term interest rates," the firm said.

Its pretax adjusted operating earnings were $378 million, up 8% from a year ago.

"The company's business continuity capabilities ensured that advisors have the tools and information necessary to meet and exceed client needs in this volatile environment," it added in a statement.

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The business includes 9,878 independent (or franchisee) and employee advisors — up 7 from the prior quarter and down 101 from a year ago; 7,726 are indie advisors, and 2,100 are employees. The firm said 80 veteran advisors moved their practices to Ameriprise in the first quarter.

Total client assets, which grew 6% from last year to $616 billion through February, ended the quarter down 5% at $560 billion following the market decline.

Client inflows were $6.1 billion in the quarter, while client brokerage cash balances grew almost 30% from a year ago to $32.7 billion.

Adjusted operating net revenue (or fees and commissions) per advisor on a trailing 12-month basis were up 8% from last year to $680,000.

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