Q2 2024 Ameriprise Financial Inc Earnings Call Transcript
Key Points
- Ameriprise Financial Inc (AMP) reported a 9% increase in revenues, reaching a new record of $4.2 billion.
- Earnings per share (EPS), excluding severance costs, increased by 17% to $8.72, marking a new high.
- Assets under management and administration grew by 12% year over year to $1.4 trillion, driven by client net inflows and market appreciation.
- The company returned $693 million to shareholders in the quarter, maintaining a strong return on equity of nearly 50%.
- Client satisfaction in Wealth Management remains high at 4.9 out of 5 stars, with total client assets in wealth management up 17% to $972 billion.
- Inflation remains sticky, and geopolitical instability along with the upcoming US election are concerns for clients.
- Total outflows in Asset Management were $4 billion, although this was an improvement from the previous year.
- The advisor force grew only modestly, with the addition of 52 experienced advisors, indicating a potential slowdown in recruitment.
- Despite strong net investment income, the Retirement and Protection Solutions segment saw higher distribution expenses, impacting overall earnings.
- The competitive environment for hiring experienced advisors remains challenging, with some slowdown observed in the second quarter.
-- listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) As a reminder, the conference is being recorded.
I will now turn the call over to Alicia Charity. Alicia, you may begin.
Thank you, operator, and good morning. Welcome to Ameriprise Financialsâ second quarter earnings call. On the call with me today are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions.
Turning to our earnings presentation materials that are available on our website. On slide 2, you will see a discussion of forward-looking statements. Specifically, during the call, you will hear reference to various non-GAAP financial measures, which we believe provide insight into the company operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website.
Some statements that we make on this
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