Group 1 - The earnings call for Ameriprise Financial's Second Quarter 2025 is being conducted, with key participants including the Chairman & CEO and the CFO [3][4] - The call includes discussions on forward-looking statements and non-GAAP financial measures, which are intended to provide insights into the company's operations [4][5]

Core Insights - Ameriprise Financial (AMP) reported second-quarter 2025 adjusted operating earnings of $9.11 per share, exceeding the Zacks Consensus Estimate of $9, reflecting a 7% increase from the previous year [1][9] - The company's total assets under management (AUM) and assets under administration (AUA) reached a record $1.58 trillion, up 9% year over year [4][9] Financial Performance - Adjusted operating total net revenues for the quarter were $4.34 billion, a 4% increase year over year, matching the Zacks Consensus Estimate [3][9] - Total GAAP net revenues also rose to $4.38 billion, up 4% year over year [3] - Adjusted operating expenses increased to $3.19 billion, a 4% rise year over year, slightly below the projected $3.24 billion [3] Net Income and Share Repurchases - After accounting for significant items, net income on a GAAP basis was $1.06 billion or $10.73 per share, up from $829 million or $8.02 per share in the prior-year quarter [2] - The company repurchased 1.1 million shares for $573 million during the reported quarter [5] Competitive Landscape - Invesco (IVZ) reported adjusted earnings of 36 cents per share, below the Zacks Consensus Estimate of 40 cents, with a 16.3% decline from the prior year due to higher operating expenses [7] - BlackRock (BLK) achieved adjusted earnings of $12.05 per share, surpassing the Zacks Consensus Estimate of $10.66, reflecting a 16% increase year over year, supported by strong revenue growth and record AUM of $12.52 trillion [8]

Core Insights - Ameriprise Financial Services (AMP) reported $4.34 billion in revenue for Q2 2025, marking a year-over-year increase of 3.9% and an EPS of $9.11 compared to $8.53 a year ago, with a slight revenue surprise of -0.1% against the Zacks Consensus Estimate [1] Financial Performance Metrics - Total Assets Under Management reached $1.22 billion, exceeding the average estimate of $1.17 billion [4] - Total Assets Under Administration were reported at $331.05 million, above the estimated $323.15 million [4] - Combined Total Assets Under Management and Administration stood at $1.58 billion, surpassing the average estimate of $1.49 billion [4] - Net investment income revenue was $891 million, exceeding the estimated $841.23 million, but reflecting a -3.3% change year-over-year [4] - Premiums, policy and contract charges revenue was $361 million, below the estimated $377.17 million, with a year-over-year decline of -5.3% [4] - Distribution fees revenue was $502 million, slightly below the estimated $522.11 million, with a year-over-year change of -0.6% [4] - Other revenues were reported at $136 million, marginally below the estimated $137.12 million, but showing a +5.4% change year-over-year [4] - Management and financial advice fees revenue was $2.6 billion, matching the average estimate, with a year-over-year increase of +5.9% [4] - Retirement & Protection Solutions premiums, policy and contract charges revenue was $342 million, below the estimated $356.99 million, reflecting a -6.8% change year-over-year [4] - Retirement & Protection Solutions net investment income was $309 million, exceeding the estimated $295.43 million, with a +16.2% year-over-year change [4] - Retirement & Protection Solutions distribution fees were reported at $101 million, slightly below the estimated $103.4 million, with a -2.9% year-over-year change [4] Stock Performance - Ameriprise shares returned +2.5% over the past month, compared to the Zacks S&P 500 composite's +5.7% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Ameriprise reported adjusted operating EPS increased by 7% to $9.11, with a strong margin of 27% [22] - Adjusted operating net revenues increased by 4% to $4.3 billion, driven by asset growth and strong transactional activity [22][24] - Return on equity remains high at 52%, among the best in the industry [7][20] Business Line Data and Key Metrics Changes - Wealth Management adjusted operating net revenues increased by 6% to $2.8 billion, benefiting from strong net inflows and market appreciation [28] - Client assets grew to a record $1.1 trillion, up 11%, with total WRAP assets increasing by 15% [9][26] - Asset Management total assets under management and administration increased to $690 billion, up 2% year-over-year and 5% sequentially [15][31] Market Data and Key Metrics Changes - Assets under management, administration, and advisement reached a new high of $1.6 trillion, reflecting strong client flows and equity market appreciation [7][24] - The bank's total assets increased by 6%, with good loan growth driven by new product launches [12] Company Strategy and Development Direction - The company is focused on significant investments in client experience, technology, digital capabilities, and AI to enhance productivity and client engagement [8][10] - Ameriprise aims to maintain a strong balance sheet while returning capital to shareholders, targeting an 85% payout ratio for the second half of the year [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and competitive strengths of the business despite market volatility and economic uncertainties [6][21] - The company anticipates continued growth opportunities from cash holdings on the sidelines and strong client engagement [9][10] Other Important Information - Ameriprise was recognized for outstanding overall satisfaction and quality of advice, receiving accolades from Kiplinger's and Fortune [21] - The company maintains a strong excess capital position of $2.3 billion above regulatory requirements [34] Q&A Session Summary Question: Drivers of software flows in 2Q and indications of NNA reaccelerating - Management noted that flows were impacted by tax payments and market conditions but started to recover later in the quarter [37][38] Question: Year-on-year trajectory for AWM distribution expense - Management indicated that distribution expenses are influenced by advisor productivity and compensation structures, with some rational behavior observed in the market [39][41] Question: Recruiting strategy and market outlook - Management highlighted a focus on selling the total value proposition to advisors, emphasizing productivity and support rather than just competitive packages [46][48] Question: Update on annuities and their positioning - Management confirmed continued interest in structured annuities and those without living benefits, aligning with clients' retirement needs [50][51] Question: Share buybacks and payout ratio expectations - Management stated that the target payout ratio is 85%, with the potential for adjustments based on shareholder interests [56] Question: Competitive environment and advisor growth expectations - Management confirmed that advisor numbers are growing, with a focus on maintaining productivity and quality rather than just increasing headcount [60][62] Question: Risk transfer updates and investment income - Management noted improvements in life claims contributing to profitability, with no current strategic risk transfer opportunities identified [64][66] Question: Bank and credit union pipeline updates - Management expressed confidence in the bank's pipeline and ongoing efforts to secure deals [81][82] Question: Asset management flow performance and outlook - Management acknowledged higher redemptions but noted good underlying sales and product development initiatives [88][90] Question: Balancing human capital addition versus automation - Management emphasized ongoing investments in technology and AI to enhance advisor capabilities while managing expenses [91][93] Question: Pipeline opportunities across affiliation channels - Management confirmed a broad recruitment strategy focusing on appropriate advisors and a strong pipeline for the upcoming quarter [99][100]

Financial Data and Key Metrics Changes - Ameriprise Financial reported adjusted operating EPS increased by 7% to $9.11, with a strong margin of 27% [23][25] - Total revenues increased by 4% to $4.3 billion, driven by asset growth and strong transactional activity [23][25] - Return on equity remains high at 52%, reflecting the company's strong profitability [7][21] Business Line Data and Key Metrics Changes - Wealth Management adjusted operating net revenues increased by 6% to $2.8 billion, benefiting from strong net inflows and market appreciation [28] - Client assets grew to a record $1.1 trillion, up 11%, with total WRAP assets increasing by 15% [9][26] - Asset Management total assets under management and administration increased to $690 billion, up 2% year-over-year and 5% sequentially [16][31] Market Data and Key Metrics Changes - Assets under management, administration, and advisement reached a new high of $1.6 trillion, benefiting from strong client flows and equity market appreciation [7][25] - The company experienced $8.7 billion in outflows in the quarter, largely driven by higher institutional impacts [17][88] - Gross sales in Global Retail increased by about 10% year-over-year, despite higher underlying redemptions [17][88] Company Strategy and Development Direction - The company continues to invest significantly in technology, digital capabilities, and AI to enhance client experience and advisor productivity [8][12] - Ameriprise launched Signature Wealth to improve wealth management capabilities, allowing advisors to manage client assets more holistically [12] - The company aims to maintain a balanced approach to share buybacks and dividends, targeting an 85% payout ratio for the second half of the year [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and competitive strengths of the business, despite market volatility and economic uncertainties [6][22] - The company anticipates continued strong performance in the wealth management sector, supported by high client satisfaction ratings [8][22] - Management noted that the economic environment remains firm, but uncertainties around tariffs could impact future performance [7][22] Other Important Information - Ameriprise received recognition for outstanding overall satisfaction and was named one of America's most innovative companies in 2025 [22] - The company maintains a strong balance sheet with excess capital of $2.3 billion above regulatory requirements [34] - The Retirement and Protection Solutions segment reported a 9% increase in pretax adjusted operating earnings, reflecting strong interest earnings and favorable life claims [33] Q&A Session Summary Question: Drivers of software flows in 2Q and indications of NNA reaccelerating - Management noted that tax payments and market conditions impacted flows, but recovery was seen later in the quarter [39][40] Question: Year-on-year trajectory for AWM distribution expense - Management explained that distribution expenses are influenced by advisor production levels and market conditions, with a focus on maintaining expense discipline [41][43] Question: Recruiting strategy and market outlook - Management highlighted a strong pipeline for recruiting experienced advisors, emphasizing the value proposition and support provided to them [48][49] Question: Share buybacks and payout ratio expectations - Management confirmed a target payout ratio of 85% for the second half of the year, with the potential for adjustments based on market conditions [57][58] Question: Competitive environment in AWM and advisor growth expectations - Management indicated that they are experiencing growth in advisor numbers and are focused on maintaining a strong advisor base [60][61] Question: Updates on Retirement and Protection Solutions performance - Management noted strong fundamentals in the RPS segment, with favorable life claims contributing to improved earnings [64][66] Question: Dynamics in the bank's securities portfolio and loan strategy - Management confirmed expectations for spread increases as the securities portfolio matures and emphasized the launch of new liability products to support loan growth [71][74] Question: Asset management flow performance and outlook - Management acknowledged higher redemptions but noted strong gross sales and ongoing product development efforts [86][89] Question: Weighing human capital versus automation and AI investments - Management stated a commitment to investing in technology and automation to enhance advisor productivity while also considering human capital needs [92][94] Question: Growth drivers in AWM and advisor recruitment - Management confirmed that core growth primarily comes from existing advisors, with recruitment serving as a supplementary growth driver [107][109]

Core Insights - Ameriprise Financial Services (AMP) reported quarterly earnings of $9.11 per share, exceeding the Zacks Consensus Estimate of $9 per share, and up from $8.53 per share a year ago, representing an earnings surprise of +1.22% [1] - The company posted revenues of $4.34 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.1%, but up from $4.17 billion year-over-year [2] - Ameriprise shares have increased by approximately 0.9% year-to-date, underperforming the S&P 500's gain of 8.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $9.27, with expected revenues of $4.43 billion, and for the current fiscal year, the consensus EPS estimate is $37.54 on revenues of $17.64 billion [7] - The estimate revisions trend for Ameriprise was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Investment Management industry, to which Ameriprise belongs, is currently ranked in the top 5% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Ameriprise Financial Second Quarter 2025 Conference Call July 24, 2025 © 2025 Ameriprise Financial, Inc. All rights reserved. Forward-looking statements Some of the statements made in our July 24, 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 July 24, 2025. These forward-looking statements involve a number of risks and uncertainties. A list of certain factors that ...

Ameriprise Financial, Inc. Minneapolis, MN NYSE: AMP July 24, 2025 Ameriprise Financial Reports Second Quarter 2025 Results | Earnings Per Diluted Share | | Return on Equity, ex AOCI | (1) | | --- | --- | --- | --- | | | Q2 2025 | | Q2 2025 | | GAAP | $10.73 | GAAP | 45.8% | | Adjusted Operating | $9.11 | Adjusted Operating | 51.5% | Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer "Ameriprise delivered another good quarter, posting strong financial results. Whether its premier technolo ...

Core Viewpoint - Ameriprise Financial, Inc. (AMP) is expected to report year-over-year growth in revenues and earnings for Q2 2025, with results influenced by higher assets under management (AUM) and administration (AUA), although rising expenses may pose challenges [1][10]. Financial Performance Expectations - The Zacks Consensus Estimate for AMP's management and financial advice fees is $2.6 billion, reflecting a 6% increase from the prior year [3]. - Distribution fees are estimated at $522.1 million, indicating a 3.4% rise, while other revenues are projected at $137.1 million, suggesting a 6.3% growth [4]. - Net investment income is expected to decline by 8.7% to $841.2 million, and premiums, policy, and contract charges are estimated to fall by 1% to $377.2 million [5]. Asset Management Insights - Total AUM and AUA are projected to reach $1.49 trillion, representing a 4.4% increase year-over-year [6]. - Despite market volatility, the company has experienced decent inflows, contributing to the growth in AUM and AUA [6]. Expense Management - Total adjusted operating expenses are anticipated to rise by 6% year-over-year to $3.24 billion, driven by technology upgrades and hiring, despite efforts to control general and administrative costs [7][10]. Earnings Estimates - The consensus estimate for earnings per share is $9.00, indicating a 5.5% increase from the previous year, with total sales expected to reach $4.34 billion, reflecting a 4% increase [11]. Earnings Surprise History - Ameriprise has a solid earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 2.05% [2]. Earnings Whisper - The likelihood of Ameriprise beating the Zacks Consensus Estimate for earnings this quarter is low, as it currently has an Earnings ESP of -0.73% and a Zacks Rank of 3 [8][9].

Summary of AMP's Wealth and Retirement Business Units Conference Call Company Overview - **Company**: AMP (AMP) - **Date**: July 21, 2025 - **Focus**: Wealth and Retirement Business Units Key Points and Arguments Strategic Direction - AMP has simplified its portfolio, reduced costs, and strengthened its balance sheet, positioning itself as a specialist in retirement solutions [6][7] - The company aims to approach growth with a challenger brand mindset, embracing technology and agility while maintaining its legacy of safety and security [7] Financial Performance - In 2024, AMP reported an operating profit of $236 million, with $174 million (approximately 75%) coming from its wealth management businesses [8] - The North platform is the third-largest WRAP platform for superannuation and pensions in Australia, managing approximately $80 billion [10] Retirement Solutions - AMP has introduced innovative retirement solutions, including the North Guaranty and lifetime superannuation options, which are unique in the market [11][12] - The company launched the Citro Lifestyle app to address the social aspects of retirement, enhancing customer engagement [12] Market Opportunity - By 2031, 33% of Australia's population will be in retirement, with $750 billion in assets expected to transition into the retirement phase over the next six years [14] - Despite significant wealth, 80% of Australian retirees struggle to enjoy a comfortable retirement due to a lack of financial literacy and access to advice [16][17] Challenges in the Retirement Sector - 50% of Australians are concerned about not having enough money in retirement, leading to a tendency to underspend [18] - There is a shortage of independent financial advisers, which complicates access to quality advice for the general population [19] Innovative Features - AMP's lifetime solutions combine the benefits of account-based pensions and annuities, providing clients with higher income in retirement [29][32] - The company has developed a unique approach to mitigate market and longevity risks through pooled solutions and market-linked income streams [41][44] Age Pension Insights - 63% of Australians are eligible for some form of Centrelink support in retirement, with the asset test favoring those using AMP's lifetime super functionality [45][48] - AMP's analysis shows that 94% of its members could benefit from increased eligibility for the age pension through lifetime super features [49] Growth and Market Position - The platform market is growing at approximately 10% per year, with AMP's North platform positioned to capture a larger share of the addressable market estimated at $2.4 trillion [70] - Only 10% of Australians currently receive financial advice, indicating a significant opportunity for AMP to expand its advisory services [71] Technology and Efficiency - AMP is investing in in-house technology and AI to enhance adviser efficiency and client engagement, aiming to increase the number of clients served by each adviser [75][84] - The North platform has seen significant growth in managed portfolios, now totaling $21.8 billion, reflecting strong adviser and client adoption [83] Conclusion - AMP is well-positioned to capitalize on the growing retirement market through innovative solutions, a focus on financial advice accessibility, and leveraging technology to enhance adviser-client relationships [76][92]