The advice & wealth management arm of the Ameriprise Financial has posted pretax operating earnings of $220m for the second quarter of 2015, an increase of 13% compared to $194m a year earlier.
For the quarter ended 31 June 2015, the division’s pretax operating margin was 17.3% compared to 16.2% a year ago.
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Operating net revenues at the unit were $1.27bn, a 6% increase compared to $1.19bn for the previous year period driven by asset growth in fee-based accounts from client net inflows and market appreciation.
The division’s operating expenses rose 5% to $1.1bn. General and administrative expenses were flat compared to a year ago.
During the quarter, total retail client assets grew 4% to $453bn driven by client net inflows, new client acquisition and market appreciation. Wrap net inflows stood at $3.3bn with wrap balances increasing 8% to $182bn.
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By GlobalDataThe pre-tax operating earnings at the asset management unit for the second quarter fell 1% to $197m from $199m a year ago.
The unit’s operating net revenues dropped slightly to $832m as asset growth from market appreciation was more than offset by net outflows and the negative impact of foreign exchange.
Total segment assets under management decreased 3% to $503bn from $518bn a year ago driven by the unfavourable foreign
exchange impact of nearly $12bn year-over-year and net outflows of $2.0bn in the quarter.
Overall, the Ameriprise Financial group reported second quarter 2015 net income of $415m, or $2.23 per diluted share, up 11% compared to $374m a year ago.
Ameriprise chairman and CEO Jim Cracchiolo said: "We posted new records for client assets and advisor productivity from strong client net inflows in fee-based investment advisory accounts, client acquisition and experienced advisor recruiting."
"Given our balance sheet strength and market movements, we increased our share repurchases in the quarter. So far this year, we’ve returned more than $1 billion to shareholders and generated an operating return on equity of 23.5 percent while maintaining a strong excess capital position."
