By Tess Stynes
Ameriprise Financial Inc.'s (AMP) second-quarter earnings rose
44% as the financial-services company and asset manager reported
broad revenue growth and a strong performance at its advice and
wealth management business.
Ameriprise has generally reported higher operating earnings over
the past three years. The company has been helped by its $1 billion
acquisition of the Columbia Management business from Bank of
America Corp. (BAC) in 2010, as well as strength from the advice
and wealth-management segment.
In the latest quarter the advice and wealth-management business
reported operating earnings growth of 37% to $152 million,
reflecting a revenue increase of 13% to $1.1 billion, as well as
expense controls.
"All of our business segments performed well, most notably
advice and wealth management. We're experiencing good growth in
client acquisition and strong client net inflows, which are key
drivers of advisor productivity gains," Chairman and Chief
Executive Jim Cracchiolo said. "Even with the pressure of low
interest rates, we're delivering meaningful growth in
profitability."
Ameriprise Financial reported a second-quarter profit of $321
million, or $1.54 a share, up from $223 million, or 99 cents a
share, a year earlier. Per-share operating earnings, which exclude
realized gains and losses, market impacts on variable annuity
benefits and other items, were up to $1.69 from $1.13.
Revenue increased 9.3% to $2.75 billion as management and
financial advice fees grew 12% to $1.29 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of $1.62 a share on revenue of $2.77 billion.
Assets under management and administration were up 7% from a
year earlier at $703 billion.
Shares were unchanged at $86.24 in after-hours trading. Through
the close, the stock is up 38% this year.
Write to Tess Stynes at tess.stynes@dowjones.com
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