By Michael Calia
Ameriprise Financial Inc. (AMP) said its earnings fell 24% in
the fourth quarter as expenses increased, but operating earnings
and revenue at the financial-services company grew.
The results beat Wall Street expectations.
The company's advice and wealth-management has helped buoy
operating earnings recently, as have contributions from its 2010
acquisition of Columbia Management.
In the fourth quarter, Ameriprise Financial posted earnings of
$296 million, or $1.47 a share, compared with from $389 million, or
$1.80 a share, a year ago.
Operating earnings, which exclude realized gains and losses,
market impacts on variable annuity benefits and other items, jumped
to $1.87 a share from $1.71.
Revenue rose 10% to $2.95 billion.
Analysts surveyed by Thomson Reuters expected a profit of $1.81
a share on $2.88 billion in revenue.
Management and financial advice fees, which contribute the most
to the company's revenue, posted a revenue increase of 15%. Net
investment income declined 9%, and distribution fees rose 4.9%.
Assets under management and administration increased 13% to $771
billion, due to advisor client net inflows and market
appreciation.
Total expenses rose 9.4% to $2.47 billion.
Shares of Ameriprise were inactive at $103.54 in recent
after-hours trading. The stock is down 10% so far this year through
Monday's close.
Write to Michael Calia at michael.calia@wsj.com
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