Ameriprise Financial Reports Second Quarter 2019 Results
|Earnings ($M)||Earnings Per Diluted Share||Return on Equity, ex. AOCI|
|Adjusted Operating||$560||Adjusted Operating||$4.06||Adjusted Operating||37.1%|
Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer
“Ameriprise delivered another quarter of strong asset growth and financial results, driven by the power of our wealth management business. We’re serving more clients and deepening relationships with our engaging client experience, resulting in high satisfaction. Our comprehensive advice-based approach and leading capabilities drove Ameriprise client assets and advisor productivity to record highs in the second quarter.”
“Our asset management, insurance and annuity businesses continue to generate competitive returns and consistent free cash flow, complementing wealth management. In addition to our ongoing investments, we’re taking strategic actions to free-up additional capital to invest further and return to shareholders at a differentiated level. This includes the recently announced sale of Ameriprise Auto & Home Insurance, which is on schedule to close in the fourth quarter.”
- Adjusted operating earnings per diluted share increased 14 percent to $4.06 and adjusted operating return on equity
increased 670 basis points to 37.1 percent.
- Ameriprise assets under management and administration were $916 billion, with Advice & Wealth Management total client assets of $608 billion – both represented record highs.
- Clients continue to shift to wrap (advisory) products, with $4.8 billion of net inflows in the quarter. Wrap assets grew 13 percent
to $292 billion and represent 48 percent of Advice & Wealth Management total client assets.
- Ameriprise Bank, FSB launched and $2.2 billion of money market cash sweep balances were brought on balance sheet. The bank will begin offering deposits, credit cards, mortgages and pledge lending to Ameriprise’s wealth management clients in 2019 and 2020.
- Nearly 80 percent of Ameriprise adjusted operating net revenues were driven through Advice & Wealth Management.
- Ameriprise delivered a strong pretax adjusted operating margin of 20.7 percent, driven by a 22.7 percent margin in Advice & Wealth Management and a 37.1 percent net adjusted margin in Asset Management.
- Approximately 90 percent of earnings are free cash flow spread across our businesses, providing substantial capital flexibility.
- Ameriprise maintained $1.9 billion of excess capital after returning
$570 million to shareholders through share repurchase and dividends, which represented 102 percent of adjusted operating earnings.
- On June 29, Ameriprise reached its 125th anniversary,
marking a significant milestone.