Ameriprise Financial(AMP) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter adjusted operating earnings per diluted share increased 13% to $9.50, while GAAP net income per diluted share was $5.83, down 38% from $9.46 a year ago [2][7]. - Net income for Q1 2025 decreased to $583 million, down 41% from $990 million in Q1 2024 [36]. - Basic earnings per share for Q1 2025 were $5.92, down from $9.63 in Q1 2024 [36]. - The company reported a pretax income of $687 million in Q1 2025, a 44% decrease from $1,219 million in Q1 2024 [36]. - Total revenues for Q1 2025 were $4,481 million, a 4% increase compared to $4,325 million in Q1 2024 [36]. - Total net revenues for Q1 2025 were $4,354 million, an increase of 5% compared to $4,146 million in Q1 2024 [83]. - Adjusted operating earnings for Q1 2025 were $950 million, an 8% increase from $878 million in Q1 2024, with adjusted diluted earnings per share rising 13% to $9.50 [80]. Assets and Management - Assets under management, administration, and advisement grew to $1.5 trillion, with adjusted operating net revenues increasing 5% due to strong asset growth and higher transactional activity [5][10]. - Total client assets increased 7% to $1.0 trillion, with strong client net flows of $10.3 billion, reflecting a 21% increase year-over-year [12]. - Assets Under Management (AUM) increased to $1,146,940 million in Q1 2025, a 2% rise from $1,127,405 million in Q1 2024 [39]. - Total assets under administration grew by 6% to $314,055 million in Q1 2025, compared to $297,457 million in Q1 2024 [39]. - Total managed assets decreased by 5% to $621,378 million in Q1 2025 from $652,077 million in Q1 2024 [50]. - Total ending assets for global institutional decreased by 7% to $281,025 million from $302,510 million year-over-year [50]. Revenue Segments - Adjusted operating net revenues for the Advice & Wealth Management segment rose 9% to $2.8 billion, driven by higher client assets and increased transactional activity [10][9]. - The Retirement & Protection Solutions segment reported adjusted operating net revenues of $926 million, up 2%, with strong sales of $1.2 billion in traditional variable annuities [19][18]. - The Asset Management segment experienced a 1% decline in adjusted operating net revenues to $846 million, but pretax adjusted operating earnings increased 17% to $241 million [14][13]. - Management and financial advice fees rose by 8% to $2,602 million in Q1 2025, compared to $2,399 million in Q1 2024 [36]. - Management and financial advice fees totaled $1,719 million, reflecting a 14% increase from $1,509 million in the same quarter last year [42]. Shareholder Returns - The company returned $765 million of capital to shareholders in the quarter, representing approximately 81% of adjusted operating earnings, and announced a new $4.5 billion share repurchase program [5][3]. - The company returned $765 million to shareholders in Q1 2025, an 18% increase from $650 million in Q1 2024 [39]. Expenses and Liabilities - Total expenses for Q1 2025 were $3,667 million, up from $2,927 million in Q1 2024, with adjusted operating expenses at $3,158 million compared to $3,022 million [83]. - Distribution expenses increased to $1,612 million in Q1 2025, a 14% rise from $1,419 million in Q1 2024 [36]. - Total long-term debt increased to $5,976 million as of March 31, 2025, up from $5,517 million a year earlier [77]. - Total liabilities decreased to $173,633 million in Q1 2025 from $176,175 million in Q4 2024 [79]. Tax and Effective Rates - The operating effective tax rate for the quarter was 17.5%, with an expected range of 20% to 22% for the full year 2025 [24]. - The effective tax rate for Q1 2025 was 15.1%, compared to 18.8% in Q1 2024 [87]. Market Impact and Flows - The company reported a market impact on non-traditional long-duration products of $460 million in Q1 2025, compared to a positive impact of $140 million in Q1 2024 [80]. - Net outflows in the Asset Management segment totaled $18.3 billion, primarily due to market volatility and client repositioning into passive investments [16]. - Net flows for total assets under management (AUM) were negative at $(18,215) million, compared to $(5,678) million in the previous year, indicating a significant decline [59]. - Global retail funds experienced a net outflow of $(5,801) million, worsening from $(2,811) million in Q1 2024 [50]. Operational Efficiency - The company aims to enhance operational efficiency and effectiveness, with expectations for improved long-term care operating earnings [29]. - The company added 82 experienced advisors in the quarter, contributing to enhanced productivity and business growth [12].