Ameriprise Financial Reports Fourth Quarter 2020 Results
|Earnings Per Diluted Share||Return on Equity, ex. AOCI (1)|
|Q4 2020||Q4 2020|
|Adjusted Operating||$4.53||Adjusted Operating (2)||36.1%|
“Ameriprise delivered an excellent quarter and a very strong year despite a challenging environment. Across the firm, our teams are focused on serving clients’ needs and executing our key initiatives, which resulted in record growth in both client inflows and assets.
“With our exceptional personal client experience and extensive digital capabilities, assets under management and administration grew to more than $1 trillion, another new record. This included very strong metrics in our primary growth businesses—Advice & Wealth Management and Asset Management. In total, we had nearly $15 billion in net inflows in the quarter, which was more than $7 billion above last year.
“Our financial foundation and ability to consistently generate strong free cash flow helped us navigate market headwinds and continue both our growth investments and capital return to shareholders at a differentiated rate. In fact, in 2020, Ameriprise returned $1.8 billion to shareholders.
“As we build on our momentum in 2021, we recognize the enormous challenges the pandemic has created for individuals, businesses and the economy. Ameriprise will continue to help clients stay on track to achieve their financial goals, and I feel very good about the opportunity before us.”
- Fourth quarter adjusted operating earnings per diluted share was $4.53, up 8 percent from the prior year period driven by strong underlying organic growth that more than offset headwinds from low interest rates.
- Fourth quarter GAAP net income per diluted share was $1.43, which was negatively impacted by market changes that affected credit spreads and the valuation of derivatives.
- Adjusted operating net revenue was $3.1 billion, a 3 percent increase driven by strong organic growth, which was negatively impacted by lower interest rates. Excluding the decline in short-term interest rates, net revenue increased 6 percent with double-digit revenue growth in Advice & Wealth Management.
- General and administrative expenses were well managed, down 1 percent, while still investing for business growth.
- Assets under management and administration reached $1.1 trillion, a record high from strong organic growth and market appreciation.
- The company generated strong flows of $14.9 billion into wrap accounts and Asset Management.
- The advisor network grew to 9,922 with 82 new experienced advisors joining the company in the quarter.
- Investment performance at Columbia Threadneedle Investments remains excellent with 108 funds with 4- and 5-star Morningstar ratings.
- The company returned $502 million to shareholders in the quarter or 90 percent of adjusted operating earnings. For the full year, the company returned $1.8 billion to shareholders.
- Return on equity excluding accumulated other comprehensive income (AOCI) is calculated on a trailing 12-month basis.
- Excluding third quarter unlocking impact.
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.