Ameriprise Financial Reports Third Quarter 2022 Results
|Earnings Per Diluted Share||Return on Equity, ex AOCI (1)|
|Q3 2022||Q3 2022|
|Adjusted Operating||$5.24||Adjusted Operating||45.6%|
|Adjusted Operating Ex. Unlocking (2)||$6.43||Adjusted Operating Ex. Unlocking (2)||47.9%|
Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer:
“Ameriprise delivered another good quarter demonstrating the strength of our business and ability to navigate periods of heightened volatility and market dislocation.
“Our advice value proposition and deep client relationships differentiate Ameriprise. In the quarter, total client net flows were up significantly to more than $11 billion, and we continue to generate good growth in advisor productivity. In addition, growth in our cash business and Bank drove higher spread income in Wealth Management that more than offset equity market depreciation in our businesses.
“The business consistently generates strong free cash flow from contributions across our diversified firm that we invest in the business and return to shareholders. Our balance sheet remains a core strength, and in the quarter, we returned $632 million to shareholders and remain on track to return 90% of our adjusted operating earnings to shareholders this year, building on our long record of attractive shareholder returns.”
- Third quarter adjusted operating earnings per diluted share excluding unlocking was $6.43, up 9 percent from the prior year period driven by strong business performance in Wealth Management and stable financial performance in Retirement & Protection Solutions. The benefit of higher interest rates was offset by market depreciation and unfavorable foreign exchange translation.
- Third quarter GAAP net income per diluted share was $4.86 compared to $8.65 a year ago, primarily reflecting the net realized gains on investments related to the fixed annuity reinsurance transaction in the prior year period.
- Adjusted operating net revenue was $3.5 billion, a 1 percent increase driven by strong Wealth Management growth, partially offset by lower revenue from Asset Management due to market depreciation.
- Assets under management and administration were $1.1 trillion, down 9 percent, as significant market depreciation more than offset $64 billion of cumulative net inflows over the past twelve months.
- Ameriprise Bank approximately doubled in size from a year ago to $18.6 billion. The Bank represents a significant opportunity to capture sustainable benefits from widening spreads and rising rates. The gross fee yield increased nearly 100 basis points sequentially.
- Long-term investment performance at Columbia Threadneedle Investments remains excellent with 130 funds with 4- and 5-star Morningstar ratings and more than 70 percent of funds above median on an asset-weighted basis over 3-, 5- and 10-year time periods.
- The company returned $632 million of capital to shareholders in the quarter and remains on track to return 90 percent of operating earnings to shareholders during the year.
The full press release and other earnings materials are available on the Investor Relations site at ir.ameriprise.com.
(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.
(2) 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.
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