Ameriprise Financial Reports First Quarter 2017 Results
Operating EPS was $2.70
First quarter 2017 return on equity excluding AOCI was 21.6 percent
Operating ROE excluding AOCI was 23.6 percent or 26.1 percent before annual unlocking(1)
The Board approved an 11 percent increase in the regular quarterly dividend to $0.83 per share and an additional $2.5 billion share repurchase authorization
MINNEAPOLIS – April 24, 2017 – Ameriprise Financial, Inc. (NYSE: AMP) today reported first quarter 2017 net income of $403 million, up 11 percent compared to a year ago, or $2.52 per diluted share, up 21 percent. Operating earnings were $432 million, up 14 percent compared to a year ago, with operating earnings per diluted share of $2.70, up 24 percent.
GAAP Results – First quarter
Net revenues of $2.9 billion increased 5 percent, or $136 million, from a year ago primarily due to strong net revenue growth in Advice & Wealth Management from growth in client assets. Net investment income also increased due to gains on investment securities in the quarter compared to losses on securities and negative market impact of hedges on investments a year ago.
Expenses of $2.4 billion increased 6 percent compared to a year ago reflecting the market impact on variable annuity guaranteed benefits and higher distribution expenses from increased advisor productivity. General and administrative expense increased 3 percent compared to a year ago and reflected the impacts of elevated DOL transition expenses, a renegotiated vendor arrangement and the beneficial impact of foreign exchange translation.
Operating Results – First quarter
Operating net revenues of $2.9 billion increased 3 percent, or $72 million, compared to a year ago. Excluding the impact of transitioning advisory accounts to share classes without 12b-1 fees, one fewer fee day and foreign exchange, operating net revenue would have increased by 5 percent due to strong net revenue growth in Advice & Wealth Management from growth in client assets.
Operating expenses of $2.3 billion increased 2 percent. General and administrative expense increased 3 percent compared to a year ago and reflected the impacts of elevated DOL transition expenses, a renegotiated vendor arrangement and the beneficial impact of foreign exchange translation.
The company continued to deliver a strong return to shareholders through share repurchases and dividends of $478 million in the quarter.
“Client activity was strong and assets increased across the firm. Net inflows into fee-based investment advisory accounts more than doubled from last year. Our advisors are growing productivity and benefiting from both our position as the leader in advice as well as the investments we’ve made in our technology, financial planning tools and leadership support.
“Our fee-based businesses are growing and will be larger contributors to our total earnings over time. This transition generates strong free cash flow that we invest in the business and return to shareholders.
“Our operating return on equity is consistently among the best in the industry. In fact, we’ve announced an additional $2.5 billion share repurchase authorization and another increase to our quarterly dividend, raising it 11 percent—the tenth increase in the past eight years.”
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.