Ameriprise Financial Q3 2024 Earnings Overview

Ameriprise Financial (AMP (OTC:AMLTF)) reported strong financial results in its Q3 2024 earnings call, highlighting significant growth and strategic plans.

Key Highlights

• Assets Under Management (AUM): Increased 22% to $1.5 trillion.
• Adjusted Operating Net Revenue: Rose by 11% to $4.4 billion.
• Earnings Per Share: Grew by 17%, excluding severance costs.
• Return on Equity: Strong at 50.7%, a rise from 49.6% last year.
• Wealth Management Client Assets: Surpassed $1 trillion, with notable growth in fee-based investment advisory services.
• Segments Growth: Retirement & Protection Solutions and Asset Management experienced sales and asset growth.
• Product Expansion: Plans to introduce new savings and lending products, leveraging analytics and AI for adviser productivity.

Company Outlook

• New Offerings: Anticipation to launch bank CDs, fixed loans, and HELOCs.
• Stable Net Interest Income: Expected at the bank.
• Operating Margins: Asset management anticipated between 35% to 39%.
• Capital Return: 80% of capital to be returned to shareholders in 2024, continuing into 2025.

Bearish Points

• Asset Management Outflows: Net outflows improved by 40% year-over-year but still reached $2.4 billion.
• Competitive Environment: Challenges may arise regarding the cost to acquire advisors.

Bullish Points

• Wealth Management Success: Achieved record client assets with $46 billion in net inflows.
• Sales Growth: Double-digit increases in variable annuity and life and health sales.

Misses

• Asset Management Outflows: Continued net outflows totaling $2.4 billion despite some improvement.

Q&A Highlights

• Executives expressed continued confidence in managing long-term care portfolios.
• No plans to absorb industry-standard losses regarding long-term care commitments.
• A flexible $2 billion excess capital strategy is in place for potential share buybacks or acquisitions.

Summary

Ameriprise Financial demonstrated robust growth with plans for expansion, effective capital management, and strategic positioning to maintain shareholder value despite market challenges.

InvestingPro Insights

• Market Capitalization: Stands at $49.13 billion.
• Dividend Growth: Raised for 19 consecutive years, with a 1.14% yield and 9.63% growth rate.
• Profitability: Strong gross profit margins and operating income further solidify Ameriprise's financial health.

Conclusion

Ameriprise Financial continues to focus on its strengths, adapt to changing market conditions, and enhance its offerings while ensuring significant returns for its stakeholders.

Transcript Excerpt: Operator: Welcome to the Q3 2024 Earnings Call…