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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.
Ameriprise
Ameriprise
Ameriprise Revenue by Segment
Revenue by Segment
Advice & Wealth Mgmt net Revenue
CapyFin.comAsset Mgmt net Revenue
CapyFin.comRetirement & Protection net Revenue
CapyFin.com 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.
- Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.
- Management cautions readers to carefully consider the risks described in the “Risk Factors” discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019, Part 1, Item 1A of and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and subsequent Quarterly Reports on Form 10-Q, available at ir.ameriprise.com.
- Management undertakes no obligation to update publicly or revise any forward-looking statements.
- The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income