Ameriprise Financial advice and wealth management unit has withstood Covid-19 shock in Q1 and reported a rise in earnings.
The unit’s pre-tax adjusted operating earnings in Q1 2020 stood at $378m, up 8% from $350m in Q1 2019.
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The growth was said to be due to strong client activity and higher average equity markets.
The unit’s pretax adjusted operating margin was 22.3%.
The division’s adjusted operating net revenues rose 9% year-on-year to $1.69bn.
Total client assets at the end of March 2020 were $560bn, driven by the market depreciation in March. This marks a 5% fall from the previous year figure of $588bn.
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By GlobalDataHowever, wrap net inflows jumped 41% to $6.1bn from $4.3bn.
Ameriprise Financial: Asset Management
The asset management arm of Ameriprise Financial reported pre-tax adjusted operating earnings of $157m for the January-March quarter, up 8% from $146m in the prior year.
Pretax adjusted operating earnings soared 18% to $172m excluding a performance fee adjustment.
Adjusted operating revenues increased 9% through February but remained stable at the end of the quarter at $686m driven by a market dislocation in March.
Adjusted operating expenses at the unit dipped 3%. The firm attributed the fall to a decline in general and administrative and other expenses.
The unit’s assets under management amounted to $426bn at the end of March 2020, a 7% decrease from $459bn a year ago.
Net outflows reduced to $2.5bn from $7.2bn.
Ameriprise chairman and CEO Jim Cracchiolo said: “With our excellent balance sheet and risk management, we have been able to absorb considerable market impacts. We completed the quarter with a sizable excess capital position that provides important flexibility, and we also have ample liquidity.
“Both our financial strength and ability to generate free cash flow across market cycles differentiate Ameriprise. We are able to continue executing our long-term strategy and return capital to shareholders. This includes raising our regular quarterly dividend 7 percent, the 16th increase over the last 15 years.”
