Group 1 - The stock of Ameriprise Financial, Inc. (AMP) is experiencing significant attention due to high implied volatility in the options market, particularly the Sep 19, 2025 $640 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Ameriprise Financial's stock price, potentially due to an upcoming event [2] - Ameriprise Financial currently holds a Zacks Rank 3 (Hold) in the Financial - Investment Management industry, which is in the top 18% of the Zacks Industry Rank, with recent earnings estimates for the current quarter increasing from $9.08 to $9.32 per share [3] Group 2 - The high implied volatility surrounding Ameriprise Financial may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

Core Insights - Ameriprise Financial reported adjusted operating earnings per share of $9.11 for Q2 2025, surpassing analyst expectations of $9.00, while revenue was $4.30 billion, slightly below consensus estimates, indicating strong profitability despite mixed growth momentum [1][2] Financial Performance - Adjusted operating earnings per share (Non-GAAP) increased by 6.8% year-over-year from $8.53 to $9.11 [2] - Revenue (Non-GAAP) rose by 4.0% year-over-year from $4.17 billion to $4.34 billion [2] - Net income (GAAP) increased by 27.9% year-over-year from $829 million to $1,060 million [2] - Total assets under management reached $1.58 trillion, an 8.6% increase from the previous year [2] Business Segments Overview - Wealth management remains the primary growth driver, with total client assets reaching a record $1.08 trillion, up 11% year-over-year [5] - The asset management segment, represented by Columbia Threadneedle Investments, reported $690 billion in assets under management, a 2% increase year-over-year, despite net outflows of $8.7 billion [7] - The retirement and protection solutions segment saw a 9% rise in pretax adjusted operating earnings to $214 million, with adjusted operating net revenues increasing by 1% to $936 million [8] Strategic Developments - The company launched the Signature Wealth Program, a new unified managed account platform, aimed at simplifying investment solutions for clients and advisors [6][12] - Advisor productivity increased by 11%, reaching $1.07 million in trailing twelve-month adjusted operating net revenue per advisor [5] - The company emphasized ongoing investments in compliance, digital client service, and operational transformation to support long-term growth [10] Capital Management - Ameriprise distributed $158 million in dividends and repurchased $573 million in shares, totaling $731 million, which is about 81% of adjusted operating earnings [9] - The return on equity, excluding accumulated other comprehensive income, was 45.8% for the trailing twelve months ended Q2 2025 [9] - The balance sheet showed $7.96 billion in cash and a debt-to-capital ratio of 33.6%, down from 40.5% a year earlier [9] Future Outlook - Management did not provide explicit full-year earnings or revenue guidance but indicated that general and administrative expenses in wealth management are expected to increase by low to mid-single digits for the full year [14] - Investors are advised to monitor net client flow trends in wealth management, as this metric has slowed, and asset management's net outflows, which, while improved, remain a concern [15]

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 ...

Financial Performance - Second quarter adjusted operating earnings per diluted share increased 7% to $9.11, reflecting asset growth and expense discipline [7] - GAAP net income per diluted share was $10.73, a 34% increase from $8.02 a year ago [8] - Adjusted operating net revenues increased 4% to $4.3 billion, primarily driven by asset growth [7] - Total revenues for Q2 2025 were $4,490 million, a 2% increase from $4,392 million in Q2 2024 [39] - Net income for Q2 2025 reached $1,060 million, reflecting a 28% increase compared to $829 million in Q2 2024 [39] - Total net revenues increased by 4% to $4,375 million in Q2 2025 from $4,220 million in Q2 2024 [39] - Basic earnings per share for Q2 2025 were $10.88, up from $8.16 in Q2 2024 [39] - Adjusted operating earnings for Q2 2025 were $900 million, up 2% from $882 million in Q2 2024 [83] Assets and Management - Assets under management, administration, and advisement reached a record high of $1.6 trillion, up 9% [7] - Total client assets grew 11% to a record high of $1.1 trillion, with client net flows of $4.3 billion [14] - Assets Under Management (AUM) in Advice & Wealth Management grew to $611,333 million, a 15% increase from $531,268 million in Q2 2024 [42] - Total assets under management and advisement reached $689,723 million, a 2% increase from $673,860 million in Q2 2024 [53] - Total managed assets increased to $654,224 million in Q2 2025, up 2% from $641,880 million in Q2 2024 [53] Shareholder Returns - The company returned $731 million of capital to shareholders in the quarter, representing 81% of adjusted operating earnings [7] - Total capital returned to shareholders was $731 million, a 5% increase from $693 million in Q2 2024 [42] Revenue Streams - Adjusted operating net revenues for the Asset Management segment were $830 million, with a net pretax adjusted operating margin of 39% [16] - Management and financial advice fees rose by 11% to $1,737 million in Q2 2025 from $1,571 million in Q2 2024 [45] - Total revenues for Q2 2025 increased by 4% to $2,922 million compared to $2,816 million in Q2 2024 [45] Expenses - Distribution expenses rose to $1,596 million, a 10% increase compared to $1,450 million in Q2 2024 [39] - Distribution expenses increased by 10% to $1,546 million in Q2 2025 from $1,403 million in Q2 2024 [45] - The company experienced a 33% decrease in banking and deposit interest expense, down to $115 million from $172 million in Q2 2024 [39] Tax and Income - The operating effective tax rate was 21.7%, expected to be between 20% and 22% for the full year 2025 [26] - The effective tax rate for Q2 2025 was 21.6%, slightly higher than the 21.1% in Q2 2024 [92] Debt and Equity - Total long-term debt for Ameriprise Financial was $5.805 billion as of June 30, 2025, compared to $5.782 billion on June 30, 2024 [78] - The debt to capital ratio for Ameriprise Financial was 33.6% as of June 30, 2025, down from 40.5% on June 30, 2024 [78] - The total equity of Ameriprise Financial increased to $6.082 billion as of June 30, 2025, compared to $4.993 billion on June 30, 2024 [78] - Total equity increased to $6,082 million as of June 30, 2025, compared to $5,228 million at the end of 2024 [82] Other Financial Metrics - The company reported a pretax income margin of 30.9% for Q2 2025, up from 24.9% in Q2 2024 [87] - Return on equity excluding accumulated other comprehensive income (AOCI) was 45.8% for the twelve months ended June 30, 2025 [94] - Adjusted operating return on equity excluding AOCI improved to 51.5% for the twelve months ended June 30, 2025 [94]