Ameriprise posts in-line Q2 earnings, revenue falls short

MINNEAPOLIS – Ameriprise Financial, Inc. (NYSE: (OTC:)) reported second-quarter earnings per share (EPS) of $8.53, aligning with analyst expectations. However, the company’s revenue for the quarter was $4.22 billion, slightly below the consensus estimate of $4.24 billion.

The financial services firm’s adjusted operating earnings per diluted share stood at $8.53, consistent with the analyst estimate provided. Ameriprise’s reported revenue, while exhibiting robust growth, fell marginally short of the anticipated figure, indicating a mixed financial performance for the quarter.

Despite the revenue shortfall, Ameriprise’s management expressed confidence in the company’s financial results, highlighting robust revenue growth, ongoing expense discipline, and effective capital management. Chairman and CEO Jim Cracchiolo commented on the quarter’s performance, stating, “Our financial results were excellent, reflecting robust revenue growth, ongoing expense discipline, and effective capital management.”

Ameriprise’s assets under management and administration reached $1.4 trillion, up 12 percent, driven by strong client net inflows and market appreciation. Adjusted operating net revenues increased by 9 percent, attributed to organic growth, strong equity markets, and higher spread revenues. General and administrative expenses remained flat compared to the previous year, underscoring the company’s focus on operational efficiency.

The company’s pretax adjusted operating margin was reported at 26.8 percent, with an adjusted operating return on equity of 48.9 percent. Ameriprise also returned $693 million of capital to shareholders during the quarter, showcasing its balance sheet strength and strong free cash flow generation.

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