Ameriprise Financial Reports Fourth Quarter and Full Year 2016 Results
Operating EPS was $2.73
Full Year 2016 net income per diluted share was $7.81
Operating EPS was $8.48
Excluding annual unlocking , operating EPS was $9.40
Fourth quarter 2016 return on equity excluding AOCI was 20.4 percent
Operating ROE excluding AOCI was 22.2 percent
Excluding annual unlocking , operating ROE excluding AOCI was 24.6 percent
MINNEAPOLIS – February 1, 2017 – Ameriprise Financial, Inc. (NYSE: AMP) today reported fourth quarter 2016 net income(1) of $400 million, or $2.46 per diluted share. Operating earnings were $443 million, with operating earnings per diluted share of $2.73.
GAAP Results – Fourth Quarter
Net revenues of $3.1 billion decreased 1 percent or $41 million from last year. The decrease in revenue related to the deconsolidation of certain collateralized loan obligations and property funds was offset by the increase in the market impact of hedges on investments. Operating net revenue decreased $41 million or 1 percent versus last year as described below.
Expenses of $2.6 billion decreased 2 percent as a result of lower general and administrative expenses and the deconsolidation of certain investment entities.
Operating Results – Fourth Quarter
Operating net revenues of $2.9 billion decreased 1 percent or $41 million versus last year. Strong net revenue growth in Advice & Wealth Management from growth in client assets was offset by lower Asset Management revenues relating to outflows, foreign exchange translation and elevated performance fees a year ago.
Operating expenses of $2.4 billion decreased 1 percent. General and administrative expense declined 4 percent, equally driven by continued focus on managing underlying operating expenses and lower foreign exchange rates.
The company continued to deliver a strong return to shareholders through share repurchases and dividends of $523 million in the quarter and $2.2 billion for the year.
“Ameriprise had a strong fourth quarter and a good year in light of the operating environment,” said Jim Cracchiolo, chairman and chief executive officer. “Our fee-based businesses continued to generate strong profitability. Advice & Wealth Management in particular led the way with a record high for retail client assets, strong net inflows into investment advisory accounts, as well as very good advisor productivity.”
“Our capital management actions continue to reflect the strength of our financial foundation and significant free cash flow generation, as well as our consistent investment in the business and approach to capital return. We delivered a differentiated operating return on equity of 22.2 percent at year end, or 24.6 percent when excluding annual unlocking. I am pleased to add that 2016 was the sixth consecutive year where we returned more than 100 percent of our operating earnings to shareholders while consistently investing in the business.”
Full earnings marterials are available on the Investor Relations site at ir.ameriprise.com.