Ameriprise Financial, Inc. (AMP) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary and Q&A reveal strong fundamentals: targeted 6% revenue growth, reduced G&A expenses, and high shareholder returns. Positive sentiment is supported by successful recruitment, strong client cash management, and strategic investments in technology and digital transformation. The company maintains a robust capital return strategy and has a strong outlook for asset and wealth management. Although management avoided some specifics, the overall tone and strategic initiatives suggest a positive stock price movement, likely in the 2% to 8% range over the next two weeks.
Key Financial Performance
Adjusted Operating Revenue $4.9 billion, up 10% year-over-year, driven by strong organic client flows and markets.
Adjusted Operating Earnings Over $1 billion, up 10% year-over-year, supported by strong business performance.
Earnings Per Share (EPS) $10.83, up 16% year-over-year, reflecting strong earnings growth.
Return on Equity (ROE) 53.2%, up over 100 basis points year-over-year, marking the highest ever for the company.
Assets Under Management, Administration, and Advisement $1.7 trillion, up 11% year-over-year, driven by strong client flows and positive market performance.
Total Client Assets $1.2 trillion, up 13% year-over-year, due to focused actions to drive flows and positive markets.
Total Client Inflows $13.3 billion, up 18% year-over-year, attributed to adviser engagement, client acquisition, and recruiting success.
Wrap Assets $670 billion, up 17% year-over-year, with meaningful growth in flows.
Transactional Activity Up 5% year-over-year, primarily from growth in annuity products and brokerage.
Bank Product Assets $25.3 billion, reflecting growth in lending and new product offerings.
Adviser Productivity $1.1 million per adviser, up 8% year-over-year, supported by interconnected systems and capabilities.
Structured Annuity Sales Up 7% year-over-year, contributing to transactional activity.
Life & Health Sales Up 14% year-over-year, with a focus on accumulation-focused variable universal life.
Assets Under Management and Advisement (Asset Management) $721 billion, up 6% year-over-year, supported by strong investment performance and net inflows.
Net Inflows (Asset Management) $1.9 billion, driven by higher reinvested dividends and institutional growth sales.
Adjusted Operating Net Revenues (Wealth Management) $3.2 billion, up 12% year-over-year, driven by higher client assets and activity levels.
Wrap Net Inflows $12.1 billion, representing a 7.4% annualized flow rate, near record levels.
Cash Sweep Balances $29.9 billion, up from $27.1 billion in the prior quarter, consistent with seasonal trends.
Adjusted Operating Expenses (Wealth Management) Up 11% year-over-year, with distribution expenses up 12%.
Pretax Adjusted Operating Earnings (Wealth Management) $926 million, up 13% year-over-year, driven by higher client assets and advisory fees.
Margins (Wealth Management) 29.3%, reflecting strong profitability.
Operating Earnings (Asset Management) $293 million, up 17% year-over-year, supported by asset growth and higher performance fees.
Performance Fees (Asset Management) Higher year-over-year, driven by strong hedge fund performance.
Margins (Asset Management) 40%, above the target range, reflecting strong financial performance.
Pretax Adjusted Operating Earnings (Retirement and Protective Solutions) $200 million, in line with the target range, reflecting high-quality business performance.
Excess Capital $2.1 billion, reflecting a strong balance sheet.
Available Liquidity $2.2 billion, supporting sustainable growth and capital return.
Capital Return $1.1 billion in Q4 2025, up 37% year-over-year, representing 101% of operating earnings.
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Operating Highlights
Signature Wealth unified management account: Launched midyear 2025, it has been one of the most successful rollouts with positive adviser feedback. Features include enhanced personalization, automated portfolio monitoring, rebalancing, reporting, and centralized trading.
Banking products: Introduced new offerings including checking accounts, expanded lending book, and HELOC. These products complement the business and enable greater uptake of savings and lending products.
Active ETFs: Launched 6 new active managed and research-enhanced ETFs in the U.S. and initial ETFs in EMEA.
Client assets: Total client assets reached $1.2 trillion, up 13% year-over-year, driven by strong client flows and positive markets.
Wrap business: Assets increased 17% to $670 billion with meaningful growth in flows.
Asset Management: Assets under management and advisement reached $721 billion, up 6% year-over-year. Net inflows of $1.9 billion were recorded in the quarter.
Adviser productivity: Increased 8% to $1.1 million per adviser in the quarter, supported by interconnected systems, digital advice, CRM, and practice management resources.
Operational efficiencies: Investments in AI, digital capabilities, and cloud infrastructure to enhance client and adviser experience and drive organic growth.
Back-office transformation: Efforts to increase cost-effectiveness of data delivery and ensure scalable solutions.
Capital return: Returned $3.4 billion to shareholders in 2025, representing 88% of operating earnings.
Recognition and awards: Ameriprise was named one of America's most iconic companies by TIME and included in the Wall Street Journal's Best Managed Companies list for 2025.
Global expansion: Launched ETFs in EMEA and expanded SMA model delivery and alternatives offering.
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Risk or Challenges
Market Conditions: Potential risks from the Fed funds rate reduction since September 2024, which could impact cash revenues and net investment income.
Regulatory and Economic Uncertainties: The company faces risks from regulatory changes and economic uncertainties that could affect its operations and financial performance.
Strategic Execution Risks: Investments in new products, AI, digital capabilities, and cloud infrastructure carry execution risks, including potential delays or cost overruns.
Competitive Pressures: The need to maintain competitive adviser compensation and transition packages to attract and retain experienced advisers.
Supply Chain and Operational Risks: Potential challenges in scaling solutions and ensuring operational efficiency as the company expands its global footprint and investment capabilities.
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Guidance & Outlook
Revenue Growth: The company expects continued revenue growth driven by strong client engagement, organic flows, and market conditions. Adjusted operating revenues in Wealth Management are projected to remain strong, supported by higher client assets and activity levels.
Capital Return: Ameriprise plans to maintain a high level of capital return to shareholders, with a focus on share repurchases and dividends. The company returned 101% of operating earnings in Q4 2025 and aims to sustain a differentiated pace of capital return in 2026.
Wealth Management: The company anticipates continued growth in Wealth Management, with a focus on expanding client assets, increasing adviser productivity, and leveraging its Signature Wealth platform. Wrap assets and client flows are expected to remain strong.
Asset Management: Ameriprise plans to broaden its investment capabilities, including expanding its active ETF lineup, SMA model delivery, and alternatives offering. The company aims to leverage its global footprint for operational efficiencies and scalable solutions.
Banking Products: The company is rolling out new banking products, including checking accounts, and expanding its lending book. These initiatives are expected to enhance adviser practices and client engagement.
Technology and Innovation: Ameriprise is investing in top-tier technology, digital capabilities, AI, and cloud infrastructure to enhance client and adviser experiences. The company is also innovating with AI and automation to improve efficiency and identify growth opportunities.
Market Conditions: The company expects a positive market environment to support its growth initiatives, with resilient U.S. economic growth and favorable equity market conditions.
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Shareholder Return Plan
Higher reinvested dividends: The company generated $1.9 billion in net inflows in the quarter, which included higher reinvested dividends.
Share repurchase program: The company increased its capital return to more than 100% in the quarter, being opportunistic with a discount in the share price. This brought the total capital return for the year to nearly 90%, one of the highest levels in recent years. In the fourth quarter alone, $1.1 billion was returned to shareholders, representing 101% of operating earnings.
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Key Q&A
Q:Can you reconcile the acceleration in net new flows in 4Q with the lower distribution expense ratio? What is the outlook for organic flows and distribution expense in the coming year?
A:Flows in 4Q were strong due to organic growth, new clients, and improved recruiting. Retention was also good. Distribution expenses are in line with revenue growth, and while there may be slight increases due to competition, they remain within comfortable ranges.
Q:What is the preliminary guidance for 2026 growth in firm-wide OpEx and G&A growth within AWM?
A:The company continues to invest in technology, AI, and product solutions while reengineering and transforming operations to improve productivity. Overall expense growth is expected to remain within mid-single digits, balancing investments with cost efficiencies.
Q:What can be expected for flows in early 2026, given the 91 advisers recruited in 4Q?
A:The company sees good results in recruiting and organic growth, though seasonality may impact results. Retention efforts are strong, and fundamentals indicate positive traction.
Q:What is the outlook for buybacks and the use of $2.1 billion in excess capital?
A:The company returned 88% of capital through dividends and buybacks in 2025 and expects to maintain a range of 85%-90% for 2026, balancing investments and shareholder returns.
Q:Should we adjust for elevated financial adviser movement in 4Q due to industry integration?
A:Recruiting was strong in 4Q, and the company remains focused on retaining advisers. While the market is competitive, retention was strong, and the company does not comment on competitors' activities.
Q:What are the trends in client cash within Wealth Management, and what is the outlook for cash sweep growth in 1H 2026?
A:Seasonality impacted 4Q cash trends positively, but 1Q may see utilization for tax purposes. The company is managing cash generation well and implementing strategies to mitigate rate impacts.
Q:How does the company manage risks of consolidation in the bank channel, and what is the status of the Comerica partnership?
A:The company sees opportunities in the financial institutions business despite consolidation risks. The Comerica partnership is strong, but its future depends on Fifth Third's decisions post-acquisition.
Q:What portion of expense growth is driven by investments, and what enhancements are being made?
A:Investments focus on technology, AI, and analytics to improve adviser productivity. Expense growth is primarily volume-driven, but reengineering offsets some increases. The company maintains a leading technology platform.
Q:What is the update on Signature Wealth adoption and differences in utilization between franchisee and employee advisers?
A:Signature Wealth adoption is progressing well, with good initial uptake across both adviser channels. Advisers appreciate its comprehensive capabilities, and further enhancements are planned for 2026.
Q:How much of 4Q organic growth was due to seasonality, and is 4%-5% organic growth in Advice & Wealth Management sustainable long-term?
A:Seasonality had limited impact in 4Q, and 4%-5% organic growth is a reasonable long-term target, with adjustments for seasonal variations.
Q:Is low single-digit expense growth sustainable beyond 2026?
A:Yes, low single-digit expense growth is sustainable, considering inflation and external cost pressures. The company continues to manage expenses effectively while investing in growth.
Q:What is the outlook for cash growth in AWM, especially if rates decline?
A:Cash growth remains positive, supported by new product capabilities. If rates decline, money market funds may shift to sweeps for transactional and investment purposes.
Q:What is the consolidation opportunity in asset management, and what is the progress on transforming the expense base?
A:Consolidation in asset management presents opportunities, but the company is focused on organic growth and maintaining margins. The expense base transformation is in later stages, with back-office improvements expected by year-end.
Q:What is the outlook for AWM margins in 2026?
A:AWM margins are expected to remain in the 29%-30% range, barring significant external changes. Core operations are performing well, and interest rate impacts are minimized.
Q:How is adviser retention expected to perform in 2026?
A:Adviser retention is strong, though some losses may occur due to competitive offers. The company emphasizes long-term value and growth support for advisers.
Q:What caused elevated mortality in RPS in 4Q, and is it a concern?
A:Elevated mortality was due to higher frequency and large claims but remains within normal ranges and is not a long-term concern.
Q:What strategies or regions contributed to strong hedge fund performance, and what is the outlook?
A:Strong performance came from equity, retail, institutional strategies, and hedge funds. The outlook for 2026 is positive, with opportunities in fixed income and other areas.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the impact of elevated financial adviser movement in 4Q due to industry integration, providing a general response about retention and competition without specific details. Additionally, the response to the question about the sustainability of low single-digit expense growth beyond 2026 lacked clarity on specific measures to achieve this.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI automation
AI cloud
AI efficiency
AWM cadre
AWM field
Adviser productivity
America company
Ameriprise America
Ameriprise equity
Ameriprise premier
Ameriprise quality
Ameriprise strength
Asset result
Assets advisement
Assets flow
Berman Chief
CEO Berman
CRM practice
Companies America
EMEA asset
ETFs EMEA
ETFs launch
Forbes
JD Power
adviser value
client adviser
field leader
flow market
foundation
fund median
industry service
lending
model delivery
phone support
strategy
success
team
uptake
AMP Transcript
Ameriprise Financial, Inc. (AMP) Q4 2025 Earnings Call Transcript
Positive1-29
The earnings call summary and Q&A reveal strong fundamentals: targeted 6% revenue growth, reduced G&A expenses, and high shareholder returns. Positive sentiment is supported by successful recruitment, strong client cash management, and strategic investments in technology and digital transformation. The company maintains a robust capital return strategy and has a strong outlook for asset and wealth management. Although management avoided some specifics, the overall tone and strategic initiatives suggest a positive stock price movement, likely in the 2% to 8% range over the next two weeks.
Ameriprise Financial, Inc. (AMP) Q3 2025 Earnings Call Transcript
Positive10-30
The earnings call summary highlights robust revenue growth, strong asset management margins, and a strategic focus on wealth management and product expansion. The Q&A section reveals management's confidence in overcoming temporary outflows and maintaining profitability despite competitive pressures. The planned increase in shareholder returns and stable financial health further support a positive outlook. While some management responses lacked specificity, the overall sentiment is optimistic, indicating a likely positive stock price movement over the next two weeks.
Ameriprise Financial, Inc. (AMP) Q2 2025 Earnings Conference Call Transcript
Positive7-24
The earnings call highlights strong financial performance with increased assets under management, a rise in EPS, and a dividend increase. Share repurchase authorization and stable free cash flow further support a positive outlook. Despite some uncertainties in asset management flows and market competition, the company's strategic focus on long-term growth and productivity, coupled with technological innovation, provides a solid foundation for future success. The positive sentiment is reinforced by a strong recruitment pipeline and a robust shareholder return plan, indicating a likely positive stock price reaction.
Ameriprise Financial, Inc. (NYSE:AMP) Q1 2025 Earnings Call Transcript
Positive4-26
The earnings call summary and Q&A session indicate strong financial performance, with significant growth in EPS, revenues, and assets under management. The approval of a $4.5 billion share repurchase authorization and an 8% dividend increase further demonstrate a robust shareholder return strategy. While there are some concerns about adviser retention disclosures, the overall sentiment is positive, supported by effective expense management and strong capital returns. The positive guidance and strategic initiatives, such as the Signature Wealth platform and new CD offerings, suggest a favorable outlook, likely resulting in a stock price increase of 2% to 8%.
AMP Slides
AMP Report
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