Ameriprise Financial Reports Third Quarter 2017 Results
Operating EPS was a record $3.53
Third quarter 2017 return on equity excluding AOCI was 28.1 percent
Operating ROE excluding AOCI was 30.8 percent
Excluding annual unlocking(1), operating EPS was $3.12
Operating ROE excluding AOCI was 29.8 percent
GAAP Results – Third quarter
Net revenues were $3.0 billion driven by strong growth in Advice & Wealth Management that was more than offset by impacts from unlocking and 12b-1 fees. Normalizing for those items, net revenues increased 5 percent due to a strong increase in net revenue in Advice & Wealth Management from growth in client assets.
Expenses of $2.4 billion decreased 15 percent, or $407 million, from a year ago, reflecting the year-over-year benefit from annual unlocking, partially offset by increased distribution expenses from increased advisor productivity. General and administrative expenses increased 3 percent.
Operating Results – Third quarter
Operating net revenue increased 6 percent to $3.0 billion after normalizing for the net impacts of unlocking and 12b-1 fees. Advice & Wealth Management net revenues increased 14 percent driven by growth in client assets.
Operating expenses of $2.3 billion decreased 16 percent, or $428 million, from a year ago, largely due to unlocking impacts. General and administrative expenses increased 3 percent reflecting the timing of accruals for performance-related compensation.
The company continued to deliver a strong return to shareholders through share repurchases and dividends of $462 million in the quarter.
“Ameriprise delivered a record third quarter driven by significant momentum in our Advice & Wealth Management business and asset growth across the firm,” said Jim Cracchiolo, chairman and chief executive officer.
“We reported new highs in retail client flows, assets and advisor productivity, and for the sixth consecutive quarter, increased client net inflows into fee-based investment advisory accounts. We’re serving more clients in our target markets of the affluent and mass affluent, as well as attracting quality advisors to Ameriprise.
“In Asset Management, we’re consistently delivering strong investment performance for clients while managing industry change and generating competitive financial results.
“We’re benefiting from our scale and effective expense management and investing for near-and long-term growth. We’re also consistently returning capital to shareholders through dividends and share repurchases and achieved a new high for return on equity at nearly 30 percent.”
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.
- Unlocking represents the company’s annual review of insurance and annuity valuation assumptions and model changes and the long term care review conducted in the third quarter.