The advice and wealth management unit of Ameriprise Financial has registered pre-tax adjusted operating earnings of $387m for the fourth quarter of 2019.
This is a 5% rise compared to $368m reported in the same quarter a year ago.
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The US-based financial services company attributed the increase to the jump in client activity and stability in the equity markets.
The unit’s pretax adjusted operating margin decreased from 23.3% in 2018 Q4 to 22.6% in 2019 Q4.
Additionally, the division’s adjusted operating net revenues jumped 8% to $1.7bn driving on improved equity market and organic growth that negated the impact of a drop in short term interest rates.
Expenses also increased 9% on a year-on-year basis from $1.21bn to $1.32bn.
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By GlobalDataTotal client assets jumped 19% from $539bn in 2018 December quarter to $643bn in 2019 December quarter.
Wrap net inflows were reported to be $4.4bn, down 3% from the previous year.
Ameriprise Financial: Asset Management
The asset management arm of Ameriprise Financial reported pre-tax adjusted operating earnings of $178m in the fourth quarter of 2019.
The figure jumped 16% compared to $153m registered in the same quarter of 2018.
The unit’s adjusted operating net revenues were $770m, a 9% increase from $706m a year earlier.
Ameriprise Financial attributed the increase to market appreciation and performance fees. However, the increase was partially trimmed by the cumulative impact of net outflows.
Adjusted operating expenses at the asset management arm increased 7% to $592m on a year-on-year basis.
The unit’s assets under management amounted to $494bn at the end of December 2019, a jump of 15% from $431bn last year.
Ameriprise chairman and CEO Jim Cracchiolo said: “Ameriprise delivered another strong quarter, completing a year of significant progress. We served more clients in our affluent target market, earned strong asset flows and deepened the personal, advice-based relationships our advisors have with clients.”
