Ameriprise Financial(US:AMP)2025-07-24 12:31Financial 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]