Ameriprise Financial Reports Third Quarter 2024 Financial Results
Ameriprise Financial, Inc. (NYSE: AMP) has announced its financial results for the third quarter of 2024, ending September 30.
Key Financial Metrics
| Metrics | Consensus Estimates |
|---|---|
| Total Revenue | $4.31B |
| Earnings Per Share (EPS) | $8.92 |
Due to insufficient provided data, specific revenue and EPS amounts for Q3 2024 were not disclosed in this summary. However, the company faced unfavorable market impacts on derivative valuations and market risk benefits this quarter.
Revenue Performance by Segment
| Segments | Performance |
|---|---|
| Advice & Wealth Management | Pretax earnings at $826M, margins exceeded 30%. |
| Asset Management | Net revenues up 7%, pretax earnings up 23%. |
| Retirement & Protection Solutions | Pretax earnings up 2% to $208M. |
Ameriprise's segments performed well, with strong growth noted in Advice & Wealth Management driven by core business expansion and investment income. Asset Management expanded by enhancing expense management and revenue growth, despite net outflows.
Key Developments and Operational Highlights
- Actuarial Assumption Update: Unfavorable after-tax impact of $74M due to updated persistency assumptions for variable annuities.
- Severance Costs: Adjusted after-tax results included a $19M severance expense in Q3 as part of operational efficiency initiatives.
- Client Assets: Total client assets grew 26% to $1 trillion, with wrap assets increasing by 28%.
- Advisor Growth: The headcount rose to 10,368 with the addition of 71 experienced advisors.
Executive Comments
Ameriprise executives emphasized ongoing initiatives to boost operational efficiency and client experiences, noting robust organic growth within core segments. The management remains optimistic about continued profitability in a potentially lower rate environment.
Dividends and Share Repurchase Program
- Details on dividends or share repurchase programs were not specified in the earnings release.
Forward Guidance
- Ameriprise did not provide specific forward guidance in this release, though it noted expectations for an operating effective tax rate in the 20-21% range for the full year.
Stock Price Movement
- Following the earnings release, Ameriprise Financial's stock experienced a modest increase of approximately 0.21%.
The comprehensive earnings results reflect Ameriprise's strength in adapting to market challenges while maintaining growth across its primary segments, supported by strategic operational enhancements and increased client engagement.
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