Global Finance News
25 Apr 2025, 12:30
Ameriprise Financial Q1 2025 Earnings Summary
Ameriprise reported adjusted operating earnings per diluted share of $9.50, up 13% from Q1 2024. However, GAAP EPS declined 38% to $5.83 due to unfavorable market impacts on derivatives and market risk benefits.
Net income was $583 million, down 41% year-over-year, while adjusted operating earnings were $950 million, up 8%.
Return on Equity
- Adjusted operating ROE (excluding AOCI): 52.0% (up from 49.0%)
- GAAP ROE (excluding AOCI): 43.2%
Capital Actions
- Returned $765 million to shareholders (81% of adjusted operating earnings)
- Announced a new $4.5 billion share repurchase program through June 2027
- Increased the quarterly dividend by 8%
Segment Highlights
1. Advice & Wealth Management
- Pretax adjusted operating earnings: $792 million (up 4%)
- Adjusted operating margin: 28.5%
- Total client assets: $1.02 trillion (up 7%)
- Net flows: $10.3 billion
- Wrap net flows: $8.7 billion (up 34%)
- Revenue per advisor (TTM): $1.1 million (up 12%)
Growth was supported by strong client engagement, advisor productivity, and market appreciation.
2. Asset Management
- Pretax adjusted earnings: $241 million (up 17%)
- Adjusted net revenues: $846 million (down 1%)
- Operating margin: 42.7% (up from 34.9%)
- Net outflows: $18.3 billion (vs $5.5 billion a year ago)
- Assets under management: $621 billion (down 5%)
Performance benefited from expense reductions and equity market appreciation despite elevated redemptions and institutional repositioning.
3. Retirement & Protection Solutions
- Pretax adjusted operating earnings: $215 million (up 8%)
- Net revenues: $926 million (up 2%)
- Sales: $1.2 billion
Growth was supported by increased interest income and solid sales in variable annuities and life insurance products.
4. Corporate & Other
- Pretax adjusted loss: $97 million
- Includes $10 million in severance and cloud transition costs
- Long Term Care earned $14 million
- Fixed Annuities posted a loss of $8 million
Balance Sheet and AUM
- Total assets under management, administration, and advisement: $1.49 trillion (up 3%)
- Cash and equivalents: $7.8 billion
- Long-term debt: $3.6 billion (up from $2.8 billion in December 2024)
- Total equity: $5.43 billion
CEO Commentary
Jim Cracchiolo stated that Ameriprise remains well-positioned through strong client relationships, consistent free cash flow, and solid capital deployment. The firm continues to invest in growth while returning capital through dividends and buybacks.
Ameriprise reported adjusted operating earnings per diluted share of $9.50, up 13% from Q1 2024. However, GAAP EPS declined 38% to $5.83 due to unfavorable market impacts on derivatives and market risk benefits.
Net income was $583 million, down 41% year-over-year, while adjusted operating earnings were $950 million, up 8%.
Return on Equity
- Adjusted operating ROE (excluding AOCI): 52.0% (up from 49.0%)
- GAAP ROE (excluding AOCI): 43.2%
Capital Actions
- Returned $765 million to shareholders (81% of adjusted operating earnings)
- Announced a new $4.5 billion share repurchase program through June 2027
- Increased the quarterly dividend by 8%
Segment Highlights
1. Advice & Wealth Management
- Pretax adjusted operating earnings: $792 million (up 4%)
- Adjusted operating margin: 28.5%
- Total client assets: $1.02 trillion (up 7%)
- Net flows: $10.3 billion
- Wrap net flows: $8.7 billion (up 34%)
- Revenue per advisor (TTM): $1.1 million (up 12%)
Growth was supported by strong client engagement, advisor productivity, and market appreciation.
2. Asset Management
- Pretax adjusted earnings: $241 million (up 17%)
- Adjusted net revenues: $846 million (down 1%)
- Operating margin: 42.7% (up from 34.9%)
- Net outflows: $18.3 billion (vs $5.5 billion a year ago)
- Assets under management: $621 billion (down 5%)
Performance benefited from expense reductions and equity market appreciation despite elevated redemptions and institutional repositioning.
3. Retirement & Protection Solutions
- Pretax adjusted operating earnings: $215 million (up 8%)
- Net revenues: $926 million (up 2%)
- Sales: $1.2 billion
Growth was supported by increased interest income and solid sales in variable annuities and life insurance products.
4. Corporate & Other
- Pretax adjusted loss: $97 million
- Includes $10 million in severance and cloud transition costs
- Long Term Care earned $14 million
- Fixed Annuities posted a loss of $8 million
Balance Sheet and AUM
- Total assets under management, administration, and advisement: $1.49 trillion (up 3%)
- Cash and equivalents: $7.8 billion
- Long-term debt: $3.6 billion (up from $2.8 billion in December 2024)
- Total equity: $5.43 billion
CEO Commentary
Jim Cracchiolo stated that Ameriprise remains well-positioned through strong client relationships, consistent free cash flow, and solid capital deployment. The firm continues to invest in growth while returning capital through dividends and buybacks.