Ameriprise Financial Third Quarter 2025 Conference Call October 30, 2025 © 2025 Ameriprise Financial, Inc. All rights reserved. Forward-looking statements Some of the statements made in our October 30, 2025 earnings release and/or in this presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of October 30, 2025. These forward-looking statements involve a number of risks and uncertainties. | | | Quarter-Ended Se ...

Financial Performance - Third quarter adjusted operating earnings per diluted share increased 22% to $9.87, while GAAP net income per diluted share was $9.33, up 87% from $5.00 a year ago[5][6] - Adjusted operating earnings for Q3 2025 were $965 million, a 17% increase from $828 million in Q3 2024, with adjusted earnings per share rising 22% to $9.87 from $8.10[78] - Net income for Q3 2025 was $912 million, representing a 78% increase from $511 million in Q3 2024[33] - Total revenues for Q3 2025 were $4,893 million, a 7% increase compared to $4,560 million in Q3 2024[33] - Total net revenues for Q3 2025 were $4,791 million, a 9% increase from $4,397 million in Q3 2024[33] - Adjusted operating total net revenues for Q3 2025 were $1,102 million, reflecting an 18% increase from $936 million in Q2 2025[57] - Total adjusted operating earnings before tax were $881 million, a 7% increase from $826 million in Q3 2024[39] - The company reported a 10% increase in year-to-date net income for 2025, totaling $2,555 million compared to $2,330 million in 2024[81] Revenue Growth - Adjusted operating net revenues rose 9% to $4.7 billion, primarily driven by asset growth, with a 6% increase when excluding unlocking[5] - Management and financial advice fees increased by 9% to $2,811 million in Q3 2025, compared to $2,573 million in Q3 2024[33] - Total revenues for Q3 2025 reached $3,092 million, a 6% increase compared to $2,905 million in Q3 2024[39] - Total revenues for Q3 2025 reached $1,102 million, a 13% increase compared to $973 million in Q3 2024[57] Asset Management - Assets under management, administration, and advisement reached a record high of $1.7 trillion, representing an 8% increase[5] - Total client assets grew 11% to a record high of $1.1 trillion, with wrap assets increasing 14% to $650 billion[12] - Assets Under Management (AUM) increased to $1,274,064 million in Q3 2025, up 7% from $1,191,946 million in Q3 2024[36] - Total assets under management and advisement increased to $714.16 billion, a 1% rise from $705.41 billion in Q3 2024[47] Shareholder Returns - The company returned $842 million to shareholders in the quarter, which was 87% of adjusted operating earnings, highlighting its strong capital return track record[5] - Total capital returned to shareholders was $842 million in Q3 2025, an 18% increase from $713 million in Q3 2024[39] - Common stock share repurchases increased to $687 million in Q3 2025, a 22% rise from $563 million in Q3 2024[39] Expense Management - The pretax adjusted operating margin was robust at 26%, reflecting effective expense management[5] - Total expenses decreased to $3,617 million from $3,752 million, marking a reduction of approximately 4%[85] - Distribution expenses decreased by 11% to $1,714 million in Q3 2025, compared to $1,539 million in Q3 2024[33] Tax and Income - The operating effective tax rate for Q3 2025 was 22.3%, with an expected range of 20% to 22% for the full year 2025[22] - The effective tax rate for the quarter was 22.3%, consistent with the previous year[89] Customer Service and Recognition - The company was recognized by J.D. Power for outstanding customer service for the seventh consecutive year[5] - Experienced advisor recruiting accelerated, with 90 experienced advisors joining Ameriprise in the quarter[12] Market Performance - Market appreciation for global retail funds was $22.76 billion, a 47% increase compared to $15.52 billion in the previous year[47] - Net flows for total AUM were negative at $(5.17) billion, a 45% decline from $(3.58) billion in Q3 2024[47]

Core Insights - A significant wealth management team, The Atlantic Group, has transitioned from Oppenheimer & Co. to Ameriprise Financial, managing over $1.6 billion in client assets [2]. Group 1 - The Atlantic Group is based in Boca Raton, Florida, and consists of 16 members [2]. - The move is part of Ameriprise's strategy to enhance its branch channel for employee advisors [2].

Core Insights - The Atlantic Group, managing over $1.6 billion in client assets, has transitioned to Ameriprise Financial from Oppenheimer & Co [1] - The move is led by Andrew Lerner and Logan Shalmi, who cited Ameriprise's superior technology and platform capabilities as key factors for their decision [2][3] - Ameriprise has successfully attracted approximately 1,700 experienced financial advisors in the last five years, expanding its network to over 10,000 advisors [3] Company Performance - Ameriprise Chairman and CEO Jim Cracchiolo mentioned in a July earnings call that the firm has slightly increased compensation packages to remain competitive in the advisor market [2] - The firm is set to announce its Q3 earnings, which may provide further insights into its financial performance [2] Competitive Landscape - Recently, Ameriprise faced challenges, losing a team of 15 advisors managing $2.7 billion in client assets to NorthRock Partners and an 11-person team overseeing $1 billion to Wells Fargo's independent advisor channel [4]

Core Insights - Ameriprise Financial, Inc. (AMP) is expected to report third-quarter 2025 results on October 30, with anticipated year-over-year increases in revenues and earnings [1][11] - The company has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 2.30% [2] Revenue Estimates - The Zacks Consensus Estimate for management and financial advice fees is $2.75 billion, reflecting a 7% increase from the prior year [3] - Distribution fees are estimated at $553 million, indicating a year-over-year rise of 7.8 [4] - Other revenues are projected at $134 million, suggesting a growth of 2.3% [4] Investment Income and Charges - The consensus estimate for net investment income is $834 million, representing a decline of 10.7% year-over-year [5] - Premiums, policy, and contract charges are estimated at $374 million, indicating an 8.6% decrease [5] Assets Under Management - Total AUM and AUA are expected to reach $1.62 trillion, marking a 7.4% increase from the previous year [6] Expense Management - While cost management initiatives have controlled general and administrative expenses, overall costs are expected to rise due to technology upgrades and new hires, with total adjusted operating expenses estimated at $3.27 billion [7][11] Earnings Expectations - The consensus estimate for earnings is $9.60 per share, reflecting an 8.7% increase from the prior year, with total sales estimated at $4.52 billion, suggesting a 4% year-over-year increase [12] Earnings Surprise Potential - The company has a positive Earnings ESP of +2.55%, indicating a high likelihood of beating the Zacks Consensus Estimate for earnings [8] - Ameriprise currently holds a Zacks Rank 2 (Buy) [9]

Core Insights - Ameriprise Financial, Inc. has been recognized by J.D. Power for outstanding customer service experience in phone support for clients and financial advisors [1] - The firm received certification for client service for the second consecutive year and for advisor service for the seventh consecutive year [1] - The company emphasizes the importance of providing a consistently excellent experience for both clients and advisors [1]

Core Insights - JMOD Financial Services has transitioned to the independent channel of Ameriprise Financial, Inc. from LPL Financial, bringing over $110 million in assets [1] Company Overview - The financial advisory practice is led by Joe Kelly, with team members including Frank Del Busto, CFP®, and Dave Fedrizzi, CFP®, ChFC®, CLU®, RICP® [1] - The team operates from offices located in Florida and New York, with Kelly and Del Busto based in Miami, and Fedrizzi in Rochester, New York [1]

Company Overview - Ameriprise Financial, Inc. (AMP) is currently positioned as an intriguing investment choice due to solid earnings estimate revisions and a favorable Zacks Industry Rank [1][3]. Industry Analysis - The Financial - Investment Management industry has a Zacks Industry Rank of 44 out of more than 250 industries, indicating a strong position relative to other segments [2]. - Broad trends in the Financial - Investment Management space are positively impacting securities across the board, suggesting a rising tide effect [2]. Earnings Estimates - Over the past month, earnings estimates for the current quarter have increased from $9.30 per share to $9.60 per share, while estimates for the current year have risen from $37.64 per share to $38.22 per share [4]. - These revisions reflect a more bullish outlook from analysts regarding Ameriprise Financial's short and long-term prospects [3][4]. Investment Recommendation - Given the strong industry performance and positive estimate revisions, Ameriprise Financial is recommended as a solid pick for investors seeking opportunities in a robust industry segment [5].

Market Overview - The US equity market experienced a rally in Q3 2025, with the S&P 500 Index increasing by 8.12% during the quarter [1] - Bonds also performed well, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% [1] - The composite return for Aristotle Capital's Value Equity Strategy was 4.33% gross of fees and 3.82% net of fees, underperforming the Russell 1000 Value Index (5.33%) and the S&P 500 Index (8.12%) [1] Company Focus: Ameriprise Financial, Inc. (NYSE:AMP) - Ameriprise Financial, Inc. is highlighted as a primary detractor in the quarter, with a one-month return of -2.06% and a 52-week loss of 7.70% [2][3] - As of October 15, 2025, Ameriprise's stock closed at $481.27, with a market capitalization of $45.37 billion [2] - Despite challenges such as equity volatility and institutional outflows, Ameriprise maintains record client assets of $1.6 trillion, indicating strong long-term potential [3] Business Model and Strategy - Ameriprise has shifted towards fee-based, lower capital-intensive financial advice and asset management, which now accounts for over 80% of its revenues [3] - This strategic evolution has allowed the company to return $3 billion to shareholders over the past year, with an 85% payout ratio targeted for the second half of 2025 [3] - The company’s focus on trusted financial advice and a diversified model positions it well to navigate macroeconomic uncertainties while delivering returns to shareholders [3]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Ameriprise Financial Services (AMP) due to higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $9.60 per share, reflecting an 8.7% increase year-over-year, and revenues of $4.52 billion, which is a 4% increase from the previous year [3]. - The consensus EPS estimate has been revised 2.82% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +2.55% for Ameriprise, suggesting analysts are optimistic about the company's earnings prospects [12]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 2 (Buy) [10]. Historical Performance - In the last reported quarter, Ameriprise exceeded the expected earnings of $9 per share by delivering $9.11, resulting in a surprise of +1.22% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - Ameriprise is positioned as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance beyond earnings results [15][17].