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Ameriprise's Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise
AMPAmeriprise Financial(AMP) ZACKS·2025-01-30 14:01

Core Insights - Ameriprise Financial (AMP) reported fourth-quarter 2024 adjusted operating earnings of 9.36pershare,exceedingtheZacksConsensusEstimateof9.36 per share, exceeding the Zacks Consensus Estimate of 8.94, reflecting a 30% increase from the previous year [1] - For the full year 2024, adjusted operating earnings were 35.07pershare,a1935.07 per share, a 19% year-over-year increase, surpassing the consensus estimate of 33.93 [3] Financial Performance - Adjusted operating total net revenues for the reported quarter were 4.46billion,up134.46 billion, up 13% year over year, beating the Zacks Consensus Estimate of 4.45 billion [4] - Total GAAP net revenues were 4.5billion,alsoreflectinga134.5 billion, also reflecting a 13% increase year over year [4] - Net income on a GAAP basis was 1.07 billion or 10.58pershare,significantlyupfrom10.58 per share, significantly up from 377 million or 3.57pershareintheprior−yearquarter[2]AssetsUnderManagement−Totalassetsundermanagement(AUM)andassetsunderadministration(AUA)increasedby103.57 per share in the prior-year quarter [2] Assets Under Management - Total assets under management (AUM) and assets under administration (AUA) increased by 10% year over year to 1.52 trillion, driven by strong client net inflows and market appreciation [5] Share Repurchase Activity - Ameriprise repurchased 1.1 million shares for 619millionduringthereportedquarter[6]ExpenseTrends−Adjustedoperatingexpensestotaled619 million during the reported quarter [6] Expense Trends - Adjusted operating expenses totaled 3.27 billion, rising 10% year over year, which was slightly below the projected 3.29billion[4]−Elevatedexpenses,primarilyduetotechnologyupgrades,areexpectedtocontinueimpactingAMP′sbottomline[7]CompetitiveLandscape−Invesco(IVZ)reportedfourth−quarter2024adjustedearningsof52centspershare,surpassingestimatesandreflectinga10.63.29 billion [4] - Elevated expenses, primarily due to technology upgrades, are expected to continue impacting AMP's bottom line [7] Competitive Landscape - Invesco (IVZ) reported fourth-quarter 2024 adjusted earnings of 52 cents per share, surpassing estimates and reflecting a 10.6% increase from the prior year, aided by a decline in adjusted expenses and higher net revenues [8] - BlackRock (BLK) reported adjusted earnings of 11.93 per share, exceeding estimates and reflecting a 23.5% year-over-year increase, supported by revenue growth despite higher expenses [9][10]