Ameriprise Financial (AMP) Q2 2024 earnings summary

Executive summary

• Adjusted operating EPS rose 17% year-over-year to $8.72, excluding $0.19 per share in severance costs, while GAAP net income for Q2 2024 was $829 million, down 7% year-over-year.

• Assets under management and administration reached $1.43 trillion as of June 30, 2024, up 12% year-over-year, driven by strong client net inflows and market appreciation.

• Returned $693 million to shareholders in Q2 2024, with a target to return 80% of operating earnings for the year.

• Celebrated 130th anniversary, highlighting long-term performance and legacy.

• Pretax income for Q2 2024 was $1.05 billion, a 7% decrease from Q2 2023, but six-month pretax income increased 40% to $2.27 billion.

Financial highlights

• Q2 2024 revenues rose 10% year-over-year to $4.39 billion; adjusted operating net revenues increased 9% to $4.17 billion.

• Adjusted operating earnings were $882 million, up 9% year-over-year; GAAP net income was $829 million.

• Adjusted operating ROE (excluding AOCI) was 48.9%; GAAP ROE (excluding AOCI) was 45.9%.

• Free cash flow conversion remained strong at 90%.

• General and administrative expenses remained flat or decreased year-over-year, reflecting ongoing efficiency focus.

Outlook and guidance

• Management targets returning 80% of operating earnings to shareholders in 2024.

• Focus remains on operational efficiency, advisor productivity, and optimizing business mix, especially in variable annuities.

• Net interest income in the bank expected to be higher in 2024 than 2023, with continued growth anticipated into 2025.

• Operating effective tax rate is expected to be approximately 21% for full year 2024.