Ameriprise Financial(US:AMP)2025-10-30 11:31Financial 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]