Ameriprise Financial(US:AMP)2025-10-31 18:47Financial Performance - Ameriprise Financial reported net income of $2,555 million for the nine months ended September 30, 2025, compared to $2,330 million for the same period in 2024, reflecting a growth of 9.7%[270]. - Adjusted operating earnings for the same period increased to $2,815 million, up from $2,588 million, representing a growth of 8.8%[270]. - The company achieved adjusted operating earnings per diluted share of $28.46 for the nine months ended September 30, 2025, compared to $25.03 for the same period in 2024, marking a growth of 9.7%[270]. - Net income for the three months ended September 30, 2025, increased by $401 million, or 78%, to $912 million compared to $511 million in the prior year[281]. - Total revenues for the three months ended September 30, 2025, increased by $333 million, or 7%, to $4,893 million compared to $4,560 million in the prior year[281]. - Total revenues for the nine months ended September 30, 2025, increased by $587 million, or 4%, to $13.864 billion compared to the prior year period[340]. Assets Under Management - Assets under management, administration, and advisement reached $1.7 trillion as of September 30, 2025[260]. - Total Assets Under Management increased by $82.2 billion, or 7%, to $1.3 trillion as of September 30, 2025, compared to $1.2 trillion as of September 30, 2024[279]. - Advice & Wealth Management AUM rose by $81.2 billion, or 14%, driven by equity market appreciation and wrap account net inflows[279]. - Total client assets increased by $113.9 billion, or 11%, to $1.1 trillion as of September 30, 2025, primarily due to market appreciation and client net inflows[299]. - Total assets under management and advisement increased to $714.2 billion, up from $705.4 billion in 2024[319]. Operating Metrics - Adjusted operating return on equity was reported at 52.8% for the twelve months ended September 30, 2025, compared to 49.6% for the same period in 2024[273]. - The company expects adjusted operating earnings per diluted share growth of 12% to 15% going forward[271]. - The effective tax rate increased to 22.3% for the three months ended September 30, 2025, compared to 20.7% for the prior year period[294]. - The effective tax rate was 20.4% for the nine months ended September 30, 2025, compared to 20.0% for the prior year period[351]. Segment Performance - Adjusted operating earnings for the Advice & Wealth Management segment increased by $55 million, or 7%, to $881 million for the three months ended September 30, 2025[305]. - Adjusted operating earnings for the Asset Management segment increased by $15 million, or 6%, to $260 million for the three months ended September 30, 2025[321]. - The Retirement & Protection Solutions segment saw total revenues rise to $1.102 billion, a 13% increase from $973 million in 2024[324]. - Adjusted operating earnings for the Retirement & Protection Solutions segment surged by $99 million, or 84%, to $217 million for the three months ended September 30, 2025[325]. - The Corporate & Other segment reported an adjusted operating loss of $116 million, an improvement of $27 million compared to a loss of $143 million in 2024[331]. Expenses and Income - Management and financial advice fees increased by $238 million, or 9%, reflecting market appreciation and continued wrap account net inflows[285]. - Distribution expenses increased by $175 million, or 11%, primarily reflecting higher advisor compensation from increased wrap account assets[288]. - General and administrative expenses decreased by $57 million, or 50%, for the three months ended September 30, 2025, reflecting lower severance expenses and favorable impacts on share-based compensation[338]. - Net investment income decreased by $69 million, or 12%, to $485 million for the three months ended September 30, 2025, primarily due to lower average invested assets[307]. Shareholder Returns - Regular quarterly dividends paid to shareholders amounted to $461 million for the nine months ended September 30, 2025, up from $444 million in the prior year[415]. - The company repurchased 3.7 million shares of common stock at an average price of $512.03 per share during the nine months ended September 30, 2025[416]. - The company has authorized $4.5 billion for share repurchases through June 30, 2027, with $3.5 billion remaining as of September 30, 2025[416]. Market Conditions - The S&P 500 index showed a 16% increase in daily average and period-end values compared to the same quarter in 2024[276]. - The company anticipates continued impacts from market fluctuations and interest rate changes on its operations and financial performance[264].