Ameriprise Financial Reports First Quarter 2019 Results
Adjusted operating EPS was $3.75
First quarter 2019 return on equity excluding AOCI was 32.5 percent
Adjusted operating ROE excluding AOCI was 36.4 percent
Regular quarterly dividend raised 8 percent to $0.97 per diluted share,
representing the twelfth increase during the past ten years
“Ameriprise delivered a solid quarter led by double-digit earnings growth in our Advice and Wealth Management business,” said Jim Cracchiolo, chairman and chief executive officer. “Overall, I’m pleased with our results given at the beginning of the year markets drove lower fee levels and muted client activity. As volatility settled, client activity returned to historical levels in line with what we expected. We ended the quarter with strong Ameriprise client net inflows and steady growth in advisor productivity.”
“Consistent with our stated objectives, we continue to invest and optimize our capital base. We’re taking action to accelerate an ongoing transformation of our business mix by adding capabilities that will drive future growth and freeing-up capital to invest in the business while returning to shareholders at a differentiated level. We announced the sale of Ameriprise Auto & Home Insurance, enhanced the overall risk profile of our fixed annuity business and returned more than $480 million to shareholders through share repurchases and dividends. And, we announced an eight percent increase in our regular quarterly dividend –- the twelfth increase in the past ten years –- as well as a new $2.5 billion share repurchase authorization. We’re in a strong position and will continue to take steps to enhance it.”
GAAP Results – First quarter
Net revenues were $3.1 billion reflecting solid growth in Advice & Wealth Management, offset by lower average markets and the cumulative impact of net outflows in Asset Management.
Expenses were $2.6 billion, which included a higher market impact on variable annuity guaranteed benefits.
Adjusted Operating Results – First quarter
Adjusted operating net revenues of $3.1 billion were driven by continued growth in Advice & Wealth Management, offset by lower average equity markets and the cumulative impact of net outflows in Asset Management. Following a period of volatility in late 2018, activity levels in Advice & Wealth Management were slower at the beginning of the quarter and recovered to historical levels by the end of the quarter.
Adjusted operating expenses of $2.5 billion increased 1 percent. General and administrative expense increased 2 percent reflecting the mark-to-market impact on share based compensation and ongoing growth investments that were partially offset by continued expense discipline.
The adjusted operating effective tax rate in the quarter was 17.3 percent versus 14.3 percent in the prior year, primarily due to share based accounting. The full year adjusted operating effective tax rate is estimated to be in the 16 percent range, consistent with the prior year.
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.