MINNEAPOLIS – Ameriprise Financial, Inc. (NYSE: NYSE: (OTC:)) reported first-quarter earnings that exceeded analysts’ expectations, while revenue matched forecasts.
The financial services firm announced an adjusted operating earnings per diluted share (EPS) of $8.39, surpassing the analyst estimate of $8.17 by $0.22. The company’s revenue for the quarter was reported at $4.15 billion, aligning with the consensus estimate. The stock traded flat in the after-market session.
The first quarter results demonstrated a robust performance, with adjusted operating earnings per diluted share rising by 16% due to strong growth across the company. GAAP net income per diluted share significantly increased to $9.46 compared to $3.79 a year ago, primarily due to favorable market impacts on the valuation of derivatives and market risk benefits.
Jim Cracchiolo, Chairman and CEO, commented on the quarter’s success, stating, “Ameriprise delivered another good quarter with contributions across our diversified business.” He highlighted the strength and growth of the Wealth Management division as a key driver, with firm-wide assets under management and administration reaching a new high of $1.4 trillion, aided by positive markets. Cracchiolo also emphasized the company’s robust capital position, noting the announcement of a 10% dividend increase.
Adjusted operating net revenues saw an 11% increase from organic growth, strong equity markets, and higher spread revenues. The company’s assets under management and administration climbed 15%, bolstered by strong client net inflows and market appreciation. General and administrative expenses were well managed, and the company maintained a focus on operational efficiency and effectiveness.
Ameriprise’s capital position remained a differentiator, returning $650 million to shareholders in the quarter, showcasing its balance sheet strength and strong free cash flow generation. The company’s pretax adjusted operating margin stood at 26.3%, and the adjusted operating return on equity was 49.0%.
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