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April 25, 2019

Ameriprise Financial wealth earnings rise in Q1

The advice and wealth management arm of Ameriprise Financial has registered pre-tax adjusted operating earnings of $350m in the first quarter of 2019.

This is an increase of 11% from $316m in the corresponding quarter of 2018.

The company attributed the rise to “strength in client net inflows and increased earnings on cash balances”.

The unit’s pretax adjusted operating margin increased 140 basis points to 22.5% from 21.1%.

Adjusted operating net revenues at the unit were $1.55bn, up 4% from $1.5bn last year.

The rise was said to be due to “strong client activity, increased adviser productivity and higher earnings on cash balances”.

The division’s adjusted operating expenses increased 2% year-on-year to $1.2bn.

Total retail client assets rose 6% to $588bn from $557bn.

Wrap net inflows slumped 24% to $4.3bn from $5.7bn.

Asset management earnings

Pre-tax adjusted operating earnings in the asset management unit were $146m in the first quarter of 2019.

This marks a 25% fall from $195m in the previous year.

The division’s adjusted operating net revenues dropped 11% to $689m from $778m.

This was said to be due to “the cumulative impact of net outflows, lower average equity markets, unfavourable foreign exchange translation and a one-time benefit in the year ago period”.

Adjusted operating expenses at the division fell 7% year-on-year to $543m.

The unit’s assets under management totalled $459bn at the end of March 2019, down 5% from $485bn last year.

Ameriprise chairman and CEO Jim Cracchiolo said: “Ameriprise delivered a solid quarter led by double-digit earnings growth in our Advice and Wealth Management business.

“Overall, I’m pleased with our results given at the beginning of the year markets drove lower fee levels and muted client activity. As volatility settled, client activity returned to historical levels in line with what we expected.

“We ended the quarter with strong Ameriprise client net inflows and steady growth in adviser productivity.”

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