Ameriprise Financial (AMP) Q3 2024 earnings summary

Executive summary

• Adjusted operating EPS rose 17% year-over-year to $9.02, excluding unlocking and severance, while GAAP net income for Q3 2024 was $511 million, down 41% due to market impacts on derivatives and long-duration products.

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

• Return on equity reached 50.7% on an adjusted basis, among the highest in the industry, with available capital for capital adequacy rising to $5.5 billion.

• About 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.

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

Financial highlights

• Adjusted operating net revenues increased 11% year-over-year to $4.35 billion, with GAAP net revenues for Q3 2024 at $4.40 billion, up 12%.

• Adjusted operating earnings rose 11% to $828 million; adjusted operating EPS was $9.02, up 17% year-over-year, excluding unlocking and severance.

• Consolidated margin was 27%, and wealth management margin was above 30%.

• Free cash flow generation remains strong at about 90% of earnings.

• Total equity as of September 30, 2024, was $5.7 billion, up from $4.7 billion at year-end 2023.

Outlook and guidance

• Targeting an 80% return of operating earnings to shareholders in 2024, with expectations 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%.

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

• Continued investment in technology, cloud migration, and new product launches, including bank CDs, HELOCs, and retirement income solutions.

• Focus on operational efficiency and disciplined expense management to sustain high margins and ROE.