Total net revenues for the latest quarter declined 4% to $2.51bn from $2.62bn a year ago, due to a lower net investment income from continued low interest rates and volatile equity markets.
Advice & Wealth Management pretax operating earnings increased 3% from a year ago to $111 million, reflecting strong growth in asset-based fees and expense management.
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Ameriprise client assets grew 4% from a year ago to $331bn driven by strong net inflows, and wrap assets grew 7% to $113bn, including $2.6bn of wrap net inflows in the quarter, a 12% increase from a year ago.
Second quarter 2012 pretax operating margin increased to 11.6%, compared to 11.3% a year ago and 9.9% sequentially, reflecting improved expenses that helped to offset the impact from low interest rates.
Ameriprise Financial chairman and CEO Jim Cracchiolo said that earlier this month, the firm announced the plan to transition of federal savings bank subsidiary to a non-depository national trust bank by year end.
"Our advisors will continue to meet clients’ deposit and borrowing needs through leading third-party banks, and our shareholders will benefit from the additional capital flexibility," Cracchiolo said.
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