Ameriprise Financial (AMP) Q4 2024 earnings summary

Executive summary

• Achieved a record year in 2024 with double-digit revenue and earnings growth, driven by robust client engagement and operational efficiency.

• Adjusted operating EPS rose 23% to $9.54 in Q4 and 17% for the year, with GAAP EPS at $33.05 for the year.

• Assets under management, administration, and advisement reached $1.5 trillion, up 10% year-over-year, with $35 billion in net client inflows.

• Returned $2.8 billion to shareholders in 2024, representing 78%–81% of operating earnings, and reduced share count by up to 22% over five years.

• Maintained a strong balance sheet with $2 billion in excess capital and $2.1 billion in holding company liquidity.

Financial highlights

• Q4 2024 total revenues were $4.5 billion, up 13% year-over-year, with GAAP net income of $1.07 billion and adjusted operating earnings of $947 million.

• Adjusted operating EPS was $9.54 in Q4, up 23% year-over-year; full-year adjusted operating net revenues reached $17.08 billion, up 11%.

• Pretax adjusted operating margin was 27%; adjusted operating ROE was 52.7%.

• Five-year trends include 8% CAGR in revenue, 17% CAGR in EPS, $12 billion capital returned, and 22% share count reduction.

• Free cash flow generation was 90% of operating earnings.

Outlook and guidance

• Management expects continued strong net interest income at the bank and is positioned for a lower rate environment in 2025.

• Anticipates returning 80% of earnings to shareholders in 2025, with ongoing expense management and transformation initiatives to benefit margins.

• Focus on operational efficiency, advisor productivity, and client asset growth to drive future profitability.

• AWM margin of 29% in Q4 is expected to be sustainable.

• Forward-looking statements caution about market, rate, and regulatory uncertainties.