Key Takeaways:
Ameriprise Financial (NYSE:AMP) reported first-quarter adjusted earnings per share of $11.26 on revenue of $4.81 billion, beating analyst expectations and showing sustained growth in its wealth management division.
"Our disciplined execution and diversified business model have enabled us to deliver consistent earnings growth across market cycles," CEO James Cracchiolo said, highlighting the firm's ability to perform amid market volatility.
The Minneapolis-based financial planner surpassed consensus estimates for both profit and revenue, continuing a trend of outperforming market forecasts. Total assets under management and administration grew 12 percent year-over-year to $1.7 trillion.
Despite the strong quarterly performance, shares fell 1.9 percent in after-hours trading. The company is navigating a headwind from the termination of its relationship with Comerica, which is expected to see roughly $18 billion in assets transfer out through the third quarter.
Ameriprise reported total client net flows of $4.2 billion, a significant slowdown from the $10.3 billion reported in the same period a year ago. Management attributed the lighter flows to cautious client behavior, an aggressive recruiting environment leading to higher advisor departures, and the accelerated exit of Comerica-related assets.
Offsetting the Comerica loss, Ameriprise announced a new multi-year agreement with Huntington Bank to become its retail investment program provider. The deal is expected to bring approximately 260 advisors and $28 billion in assets onto the Ameriprise platform, with onboarding scheduled to begin in the fourth quarter of 2026.
The Advice & Wealth Management unit was a primary growth driver, with adjusted operating net revenues increasing 14 percent to $3.2 billion. Advisor productivity hit a new record, rising 10 percent to $1.2 million per advisor.
The Asset Management division also delivered strong results, with operating earnings up 13 percent to $273 million and an operating margin of 44 percent, well above the company's target range of 35-39 percent. The division's net outflows improved significantly to $5.9 billion from $18.3 billion a year ago.
Reflecting confidence in its financial position, Ameriprise returned 88 percent of its operating earnings to shareholders in the quarter. The company's board also approved a 6 percent increase in its quarterly dividend.
The guidance raise signals management's confidence that the new Huntington partnership will more than offset the Comerica departure. Investors will watch the Q2 earnings call on July 24 for updates on the integration and flow dynamics.
This article is for informational purposes only and does not constitute investment advice.
