Ameriprise Financial Reports Third Quarter 2018 Results
Adjusted operating EPS was $3.74
Excluding annual unlocking(1), adjusted operating EPS was $4.05, up 20 percent
Third quarter 2018 return on equity excluding AOCI was 29.6 percent
Adjusted operating ROE excluding AOCI was 31.2 percent
Excluding annual unlocking(1), adjusted operating ROE excluding AOCI was 32.0 percent, up 150 bps
“Ameriprise delivered another quarter of strong results, continuing our track record of generating profitable growth across market cycles,” said Jim Cracchiolo, chairman and chief executive officer.
“With our diversified business centered on advice, we continue to deepen the long-term relationships clients have with their advisors and the firm. We’re gaining strong client net inflows and increasing advisor productivity, which is driving our growth.
“In an environment of a strong U.S. economy and heightened equity market volatility globally, our comprehensive value proposition and strong financial foundation position Ameriprise well to serve more clients’ needs for advice and provide informed perspective. We’re delivering strong results while evolving our business mix, investing in the business and returning capital to shareholders at attractive levels.”
GAAP Results – Third quarter
Net revenues of $3.3 billion increased 9 percent, or $278 million, from a year ago primarily due to strong net revenue growth in Advice & Wealth Management from growth in client assets and the impact of annual unlocking.
Expenses of $2.7 billion increased 14 percent compared to a year ago from higher expenses related to unlocking and increased distribution expense from higher advisor productivity.
Adjusted Operating Results – Third quarter
Adjusted operating net revenues increased 9 percent to $3.3 billion. Excluding annual unlocking in both quarters, adjusted operating net revenues increased 5 percent to $3.2 billion. Advice & Wealth Management net revenues increased 11 percent driven by growth in client assets from continued strength in client net inflows and market appreciation.
Adjusted operating expenses of $2.6 billion increased 14 percent. Excluding annual unlocking in both quarters, adjusted operating expenses increased 4 percent reflecting increased distribution expense from higher advisor productivity. General and administrative expense increased 1 percent reflecting ongoing expense discipline and growth investments.
The full press release is available for download below. Earnings materials are also available on the Investor Relations site at ir.ameriprise.com.
- Unlocking impacts reflect the company’s annual review of insurance and annuity valuation assumptions and model changes, and the Long Term Care (LTC) gross premium valuation.