Ameriprise Financial Reports First Quarter 2023 Results, Raises Quarterly Dividend 8 Percent

 

Earnings Per Diluted Share			Return on Equity, ex AOCI (1)
	Q1 2023			Q1 2023
GAAP	$3.79		GAAP	45.2%
Adjusted Operating	$7.25		Adjusted Operating	49.5%

 
Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer:
 
"Ameriprise delivered an excellent first quarter and a strong start to the year. 
 
In a period of significant market dislocation, we remained focused on providing an exceptional client experience and further demonstrated the benefits of our diversified business model. Our leadership in financial planning and advice and extensive wealth management capabilities led to another quarter of strong client engagement, double-digit growth in client flows and significant asset growth in the bank and certificate companies. 
 
The combination of our businesses enables Ameriprise to consistently generate a range of fee- and spread-based revenue streams and strong free cash flow. This, complemented by our strong risk, expense and capital management, underpins our ability to successfully navigate market pressures.
 
Our capital strength is a clear differentiator for Ameriprise. We have a well-established track record of consistently returning capital to shareholders at attractive levels and today announced our 19th dividend increase since becoming a public company in 2005, raising our quarterly dividend another 8 percent."
 
 

• First quarter adjusted operating earnings per diluted share was $7.25, up 25 percent from the prior year driven by strong business performance in Wealth Management.
• First quarter GAAP net income per diluted share was $3.79 compared to $7.10 a year ago, primarily reflecting the market impact on the valuation of derivatives and market risk benefits, which was unfavorable in the current year and favorable in the prior year.
• Assets under management and administration were $1.2 trillion, down 8 percent, reflecting strong client net inflows that were more than offset by market depreciation and unfavorable foreign exchange translation.
• In Wealth Management, adjusted operating net revenue increased 11 percent. Pretax adjusted operating earnings grew 58 percent, resulting in a new record high operating margin of 31 percent. Total client flows increased 18 percent to $12.3 billion, and Ameriprise Bank and Certificate Company assets reached $32.9 billion. 
• Asset Management delivered a 31 percent net pretax adjusted operating margin, which was within our target range. Net new flow trends improved in line with the industry and reflected the challenging environment.
• Retirement & Protection Solutions earnings increased 11 percent, and all periods reflect the adoption of long duration targeted improvements (LDTI). These high-returning books of business continued to generate substantial free cash flow.
• In the quarter, the Company announced a partnership with Comerica as its new Investment Program Provider, which will add approximately 100 financial advisors and $18 billion of assets and is expected to close by year end.
• The company returned $641 million of capital to shareholders in the quarter and announced an increase in its quarterly dividend to $1.35 per diluted share. Excess capital remained strong at $1.3 billion.

⁽¹⁾ Return on equity excluding AOCI is calculated on a trailing 12-month basis.

The full press release and other earnings materials are available on the Investor Relations site at ir.ameriprise.com.