Ameriprise Financial (AMP) Q3 2024 earnings summary

Executive summary

• Adjusted operating EPS rose 17% year-over-year to $9.02, excluding unlocking and severance, reflecting strong business growth and operational efficiency initiatives.

• Assets under management and administration reached $1.51 trillion, up 22% year-over-year, driven by robust client flows, organic growth, and market appreciation.

• Wealth management client assets surpassed $1 trillion, up 26%, with record net inflows and high advisor productivity.

• GAAP net income for Q3 2024 was $511 million, down 41% year-over-year, mainly due to market impacts on derivatives and long-duration products.

• Approximately 80% of earnings were returned to shareholders over the trailing 12 months, with $713 million returned in Q3 and $2.6 billion over the last year.

Financial highlights

• Adjusted operating net revenues grew 11% year-over-year to $4.4 billion, supported by organic growth and higher spread revenues.

• Adjusted operating earnings for Q3 2024 were $828 million, up 11% year-over-year; adjusted operating EPS (ex. unlocking and severance) was $9.02, up 17%.

• Consolidated/pretax adjusted operating margin was 27%, excluding unlocking and severance.

• Return on equity (ex. AOCI and unlocking) reached 50.7% for the quarter, up from 49.6% a year ago.

• Free cash flow generation remains strong at ~90% of earnings across segments.

Outlook and guidance

• Targeting an 80% return of operating earnings to shareholders in 2024 and likely to maintain this level in 2025.

• G&A expenses projected to be flat at the enterprise level for 2024 and 2025, with AWM segment G&A expected to grow 4-5%.

• Asset management margins anticipated to remain strong, in the 35-39% range, assuming stable markets.

• Management expects the effective tax rate to be in the 20–21% range for the full year.

• Continued investment in new savings and lending products at the bank, with HELOCs and checking accounts launching in the coming year.