Ameriprise Operating Earnings Fall on Equity-Market Dislocation
April 27 2016 - 6:20PM
Dow Jones News
By Josh Beckerman
Ameriprise Financial Inc. (AMP) said operating earnings fell 8%
in the first quarter as dislocation in equity markets hurt
revenue.
The financial-services company said "client activity slowed
given the markets," but said it had solid inflows in fee-based
accounts. The company saw the benefits of "disciplined expense
control," as operating expenses fell 2%.
Ameriprise increased its quarterly dividend to 75 cents from 67
cents. A year ago, the company boosted its payout from 58
cents.
For the quarter ended March 31, net income was $364 million, or
$2.09 a share, compared with $393 million, or $2.08 a share, a year
earlier. Revenue fell 9.4% to $2.77 billion from $3.05 billion.
Operating earnings, which exclude realized gains and losses,
market effects on variable annuity benefits and other items, fell
to $378 million, or $2.17 a share, from $412 million, or $2.18 a
share.
Analysts polled by Thomson Reuters expected per-share operating
profit of $2.18 and revenue of $2.9 billion.
At the end of the period, total assets under management and
administration were $773 billion and the company had 9,766 total
advisers.
In after-hours trading, Ameriprise shares were flat at
$101.07.
Ameriprise was spun off from American Express Co. in September
2005.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
April 27, 2016 18:05 ET (22:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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