You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Ameriprise reported adding 90 financial advisors in the third quarter, an increase from the same period last year. Separately, UBS reported another drop in advisor headcount in the Americas, following an earlier move to change compensation and buyout packages aimed at improving profitability. James Cracchiolo, chairman and CEO of Ameriprise, told investors on an earnings call that the Minneapoli ...

Financial Data and Key Metrics Changes - Ameriprise reported adjusted operating EPS increased by 7% to $9.11, with a strong margin of 27% [22] - Adjusted operating net revenues increased by 4% to $4.3 billion, driven by asset growth and strong transactional activity [22][24] - Return on equity remains high at 52%, among the best in the industry [7][20] Business Line Data and Key Metrics Changes - Wealth Management adjusted operating net revenues increased by 6% to $2.8 billion, benefiting from strong net inflows and market appreciation [28] - Client assets grew to a record $1.1 trillion, up 11%, with total WRAP assets increasing by 15% [9][26] - Asset Management total assets under management and administration increased to $690 billion, up 2% year-over-year and 5% sequentially [15][31] Market Data and Key Metrics Changes - Assets under management, administration, and advisement reached a new high of $1.6 trillion, reflecting strong client flows and equity market appreciation [7][24] - The bank's total assets increased by 6%, with good loan growth driven by new product launches [12] Company Strategy and Development Direction - The company is focused on significant investments in client experience, technology, digital capabilities, and AI to enhance productivity and client engagement [8][10] - Ameriprise aims to maintain a strong balance sheet while returning capital to shareholders, targeting an 85% payout ratio for the second half of the year [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and competitive strengths of the business despite market volatility and economic uncertainties [6][21] - The company anticipates continued growth opportunities from cash holdings on the sidelines and strong client engagement [9][10] Other Important Information - Ameriprise was recognized for outstanding overall satisfaction and quality of advice, receiving accolades from Kiplinger's and Fortune [21] - The company maintains a strong excess capital position of $2.3 billion above regulatory requirements [34] Q&A Session Summary Question: Drivers of software flows in 2Q and indications of NNA reaccelerating - Management noted that flows were impacted by tax payments and market conditions but started to recover later in the quarter [37][38] Question: Year-on-year trajectory for AWM distribution expense - Management indicated that distribution expenses are influenced by advisor productivity and compensation structures, with some rational behavior observed in the market [39][41] Question: Recruiting strategy and market outlook - Management highlighted a focus on selling the total value proposition to advisors, emphasizing productivity and support rather than just competitive packages [46][48] Question: Update on annuities and their positioning - Management confirmed continued interest in structured annuities and those without living benefits, aligning with clients' retirement needs [50][51] Question: Share buybacks and payout ratio expectations - Management stated that the target payout ratio is 85%, with the potential for adjustments based on shareholder interests [56] Question: Competitive environment and advisor growth expectations - Management confirmed that advisor numbers are growing, with a focus on maintaining productivity and quality rather than just increasing headcount [60][62] Question: Risk transfer updates and investment income - Management noted improvements in life claims contributing to profitability, with no current strategic risk transfer opportunities identified [64][66] Question: Bank and credit union pipeline updates - Management expressed confidence in the bank's pipeline and ongoing efforts to secure deals [81][82] Question: Asset management flow performance and outlook - Management acknowledged higher redemptions but noted good underlying sales and product development initiatives [88][90] Question: Balancing human capital addition versus automation - Management emphasized ongoing investments in technology and AI to enhance advisor capabilities while managing expenses [91][93] Question: Pipeline opportunities across affiliation channels - Management confirmed a broad recruitment strategy focusing on appropriate advisors and a strong pipeline for the upcoming quarter [99][100]

Financial Data and Key Metrics Changes - Ameriprise Financial reported adjusted operating EPS increased by 7% to $9.11, with a strong margin of 27% [23][25] - Total revenues increased by 4% to $4.3 billion, driven by asset growth and strong transactional activity [23][25] - Return on equity remains high at 52%, reflecting the company's strong profitability [7][21] Business Line Data and Key Metrics Changes - Wealth Management adjusted operating net revenues increased by 6% to $2.8 billion, benefiting from strong net inflows and market appreciation [28] - Client assets grew to a record $1.1 trillion, up 11%, with total WRAP assets increasing by 15% [9][26] - Asset Management total assets under management and administration increased to $690 billion, up 2% year-over-year and 5% sequentially [16][31] Market Data and Key Metrics Changes - Assets under management, administration, and advisement reached a new high of $1.6 trillion, benefiting from strong client flows and equity market appreciation [7][25] - The company experienced $8.7 billion in outflows in the quarter, largely driven by higher institutional impacts [17][88] - Gross sales in Global Retail increased by about 10% year-over-year, despite higher underlying redemptions [17][88] Company Strategy and Development Direction - The company continues to invest significantly in technology, digital capabilities, and AI to enhance client experience and advisor productivity [8][12] - Ameriprise launched Signature Wealth to improve wealth management capabilities, allowing advisors to manage client assets more holistically [12] - The company aims to maintain a balanced approach to share buybacks and dividends, targeting an 85% payout ratio for the second half of the year [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and competitive strengths of the business, despite market volatility and economic uncertainties [6][22] - The company anticipates continued strong performance in the wealth management sector, supported by high client satisfaction ratings [8][22] - Management noted that the economic environment remains firm, but uncertainties around tariffs could impact future performance [7][22] Other Important Information - Ameriprise received recognition for outstanding overall satisfaction and was named one of America's most innovative companies in 2025 [22] - The company maintains a strong balance sheet with excess capital of $2.3 billion above regulatory requirements [34] - The Retirement and Protection Solutions segment reported a 9% increase in pretax adjusted operating earnings, reflecting strong interest earnings and favorable life claims [33] Q&A Session Summary Question: Drivers of software flows in 2Q and indications of NNA reaccelerating - Management noted that tax payments and market conditions impacted flows, but recovery was seen later in the quarter [39][40] Question: Year-on-year trajectory for AWM distribution expense - Management explained that distribution expenses are influenced by advisor production levels and market conditions, with a focus on maintaining expense discipline [41][43] Question: Recruiting strategy and market outlook - Management highlighted a strong pipeline for recruiting experienced advisors, emphasizing the value proposition and support provided to them [48][49] Question: Share buybacks and payout ratio expectations - Management confirmed a target payout ratio of 85% for the second half of the year, with the potential for adjustments based on market conditions [57][58] Question: Competitive environment in AWM and advisor growth expectations - Management indicated that they are experiencing growth in advisor numbers and are focused on maintaining a strong advisor base [60][61] Question: Updates on Retirement and Protection Solutions performance - Management noted strong fundamentals in the RPS segment, with favorable life claims contributing to improved earnings [64][66] Question: Dynamics in the bank's securities portfolio and loan strategy - Management confirmed expectations for spread increases as the securities portfolio matures and emphasized the launch of new liability products to support loan growth [71][74] Question: Asset management flow performance and outlook - Management acknowledged higher redemptions but noted strong gross sales and ongoing product development efforts [86][89] Question: Weighing human capital versus automation and AI investments - Management stated a commitment to investing in technology and automation to enhance advisor productivity while also considering human capital needs [92][94] Question: Growth drivers in AWM and advisor recruitment - Management confirmed that core growth primarily comes from existing advisors, with recruitment serving as a supplementary growth driver [107][109]

Financial Data and Key Metrics Changes - Total revenues increased by 5% driven by positive asset growth and higher transactional activity [10] - Earnings rose by 8% with EPS up 13%, reflecting strong business growth and ongoing expense discipline [10] - Return on equity excluding AOCI remains at 52%, indicating best-in-class performance [10] Business Line Data and Key Metrics Changes - In Wealth Management, assets increased by 7% to $1 trillion, with inflows of $10.3 billion [11] - Wrap activity saw a 34% increase in flows to $8.7 billion, with total wrap assets growing by 10% to $573 billion [12] - Retirement Protection Solutions reported strong earnings with annuities growing by 28% and life business sales up by 22% [23] - Asset Management faced challenges with net outflows of $18.3 billion, despite strong investment performance [25][50] Market Data and Key Metrics Changes - Assets under management and advisement reached $1.5 trillion, benefiting from strong net client flows and equity market appreciation [39] - The bank's assets grew to over $24 billion, contributing positively to earnings [20] Company Strategy and Development Direction - The company is focused on enhancing its advice value proposition and integrating technology to support advisers [14][17] - A new Unified Managed Account (UMA) platform called Signature Wealth is being tested, expected to launch soon [15][66] - The company aims to maintain flexibility and opportunism in a volatile market environment, supported by a strong capital position [30][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing market volatility and economic uncertainty but expresses confidence in the company's diversified business model [8][36] - The outlook for net interest income is positive due to proactive portfolio adjustments [62] - The company remains committed to returning capital to shareholders, with an 8% dividend increase announced [31][41] Other Important Information - The company achieved a 12% increase in adviser productivity, reflecting strong asset growth [17] - Client satisfaction remains high, with a rating of 4.9 out of 5 [18] - The company has been recognized for its technology innovation and client engagement strategies [16][33] Q&A Session Summary Question: Outlook for AWM NII and bank earnings - Management expects improvement in net interest income based on recent actions taken [62] Question: Details on Signature Wealth platform - Signature Wealth is a comprehensive UMA platform that offers flexibility for advisers and clients [66] Question: AWM flows and competitive landscape - Management reports strong client activity and engagement, with good new asset additions [71] Question: Adviser recruiting environment - The company has seen good recruitment numbers and a strong pipeline for the second quarter [95] Question: Capital position and potential acquisitions - Management emphasizes flexibility in responding to market opportunities due to a strong capital position [84] Question: G&A expenses outlook - G&A expenses are expected to remain flat for the year [134] Question: Client behavior in April - No significant changes in client transactional activity have been observed despite market volatility [138]