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Dec 31, 2020
Ameriprise Q4 2020 Earnings Report
Ameriprise reported strong organic growth and record assets despite headwinds from low interest rates.
Key Takeaways
Ameriprise Financial reported an excellent quarter with adjusted operating earnings per diluted share of $4.53, up 8% year-over-year, driven by strong organic growth. Assets under management and administration reached a record high of $1.1 trillion, and the company generated strong flows of $14.9 billion into wrap accounts and Asset Management. The advisor network grew to 9,922, and the company returned $502 million to shareholders.
Adjusted operating earnings per diluted share was $4.53, up 8 percent from the prior year period.
GAAP net income per diluted share was $1.43, which was negatively impacted by market changes.
Adjusted operating net revenue was $3.1 billion, a 3 percent increase driven by strong organic growth.
Assets under management and administration reached $1.1 trillion, a record high.
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
Ameriprise did not provide specific forward guidance in its Q4 2020 earnings report. However, the company's management expressed optimism about building on their momentum in 2021, despite recognizing the challenges posed by the pandemic.
Positive Outlook
- Ameriprise will continue to help clients stay on track to achieve their financial goals.
- Company returned $1.8 billion to shareholders in 2020.
- Advisor network grew to 9,922 with 82 new experienced advisors.
- Investment performance at Columbia Threadneedle Investments remains excellent.
- Company generated strong flows of $14.9 billion into wrap accounts and Asset Management.
Challenges Ahead
- The company recognizes the enormous challenges the pandemic has created for individuals, businesses and the economy.
- GAAP results were negatively impacted by market changes that affected credit spreads and the valuation of derivatives.
- The reduction in short term interest rates impacted adjusted operating earnings by $303 million in 2020.
- Distribution fees decreased 10% YOY.
- Net investment income decreased 7% YOY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income