By Josh Beckerman
Ameriprise Financial Inc. said its first-quarter earnings fell
2% as its advice-and-wealth-management business continued to post
strong growth but equity market volatility hurt results.
The financial-services company also increased its quarterly
dividend to 67 cents from 58 cents.
Operating net revenue rose 3%, as growth was partially offset by
foreign-exchange effects, lower interest rates and lower activity
due to market volatility.
"Retail client asset growth was strong from net inflows, new
client acquisition and experienced adviser recruiting," the company
said in a statement. "And while the operating environment was more
challenging in the quarter with increased equity market volatility
and continued low interest rates, we're executing our
strategy."
Ameriprise reported a profit of $393 million, or $2.08 a share,
compared with $400 million, or $2.01 a share, a year earlier.
Per-share operating earnings, which exclude realized gains and
losses, market effects on variable annuity benefits and other
items, rose to $2.18 from $2.04. Operating earnings included 13
cents a share of unfavorable items, including a reserve increase of
11 cents a share related to a closed block of long-term care
insurance.
Revenue increased 3% to $3.05 billion.
Analysts polled by Thomson Reuters expected per-share operating
profit of $2.33 and revenue of $3.1 billion.
Total assets under management and administration grew 4% to $815
billion, reflecting adviser client net inflows and market
appreciation, partially offset by an unfavorable foreign exchange
impact of more than $17 billion.
Advice-and-wealth-management client assets increased 85% to $453
billion.
In after-hours trading, Ameriprise shares were down 0.5% to
$131, after closing the regular session up slightly at $131.62.
Even so, shares of the company have gained more than 20% in the
last 12 months with the stock performing better than its former
parent, American Express Co.
Since being spun off from American Express in September 2005,
Ameriprise's shares have more than tripled.
Write to Josh Beckerman at josh.beckerman@wsj.com
Access Investor Kit for Ameriprise Financial, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US03076C1062
Subscribe to WSJ: http://online.wsj.com?mod=djnwires