Ameriprise Financial Reports Higher Q3 Profit Boosted by Robust Fee Income
Wednesday, Oct 23, 2024 5:05 pm ET
1min read Ameriprise Financial, Inc. (NYSE: AMP) reported strong third-quarter results, with a 17% increase in adjusted operating earnings per diluted share to $9.02, excluding unlocking and severance expense. The company's robust fee income, driven by growth in fee-based investment advisory accounts, contributed significantly to this profit growth.
The increase in fee-based investment advisory accounts can be attributed to several factors. Ameriprise's advisors have demonstrated exceptional productivity, with transactional activity remaining strong. This, coupled with the company's planning expertise and a positive market environment, has led clients to invest more broadly. Flows into fee-based investment advisory accounts have significantly increased, further boosting Ameriprise's fee income.
Ameriprise's focus on operational efficiency and effectiveness has also played a crucial role in managing general and administrative expenses. The company has successfully driven operating efficiencies while investing for growth, resulting in a pretax adjusted operating margin of 27% and an adjusted operating return on equity of 51%. This commitment to operational excellence has contributed to Ameriprise's strong profit growth in the third quarter.
In conclusion, Ameriprise Financial's robust fee income, driven by growth in fee-based investment advisory accounts, has significantly contributed to the company's higher Q3 profit. The company's advisor productivity, transactional activity, planning expertise, and focus on operational efficiency have all played vital roles in achieving this impressive financial performance.
The increase in fee-based investment advisory accounts can be attributed to several factors. Ameriprise's advisors have demonstrated exceptional productivity, with transactional activity remaining strong. This, coupled with the company's planning expertise and a positive market environment, has led clients to invest more broadly. Flows into fee-based investment advisory accounts have significantly increased, further boosting Ameriprise's fee income.
Ameriprise's focus on operational efficiency and effectiveness has also played a crucial role in managing general and administrative expenses. The company has successfully driven operating efficiencies while investing for growth, resulting in a pretax adjusted operating margin of 27% and an adjusted operating return on equity of 51%. This commitment to operational excellence has contributed to Ameriprise's strong profit growth in the third quarter.
In conclusion, Ameriprise Financial's robust fee income, driven by growth in fee-based investment advisory accounts, has significantly contributed to the company's higher Q3 profit. The company's advisor productivity, transactional activity, planning expertise, and focus on operational efficiency have all played vital roles in achieving this impressive financial performance.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
