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Sep 30, 2020
Ameriprise Q3 2020 Earnings Report
Ameriprise Financial's Q3 2020 results reflected a challenging low interest rate environment, but also demonstrated strong client flows and expense management.
Key Takeaways
Ameriprise Financial reported adjusted operating net revenues of $3.0 billion, a 1% decline year-over-year, but a 3% increase excluding the impact of lower interest rates. Adjusted operating earnings per diluted share was $4.27, excluding a $2.80 per diluted share unlocking impact, down 1% year-over-year, but up 18% excluding the decline in short term interest rates. Assets under management and administration reached nearly $1 trillion. The company returned $448 million to shareholders and announced a new share repurchase authorization of $2.5 billion.
Adjusted operating earnings per diluted share was $4.27, excluding unlocking impact, down 1 percent from last year.
Adjusted operating net revenue was $3.0 billion, a 1 percent decline, but increased 3 percent excluding the decline in short-term interest rates.
Assets under management and administration reached a new high at nearly $1 trillion.
Wrap flows in the quarter reached $5.2 billion and recruiting of experienced advisors reached a three-year record.
Revenue by Segment
Forward Guidance
This news release contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements.
Positive Outlook
- statements of the company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, general and administrative costs, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities
- statements about the expected trend in the shift of the retirement product sales business to lower risk products without living benefit guarantees over time
- other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets
- statements of assumptions underlying such statements
Challenges Ahead
- Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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