Ameriprise Financial (NYSE:AMP) reported a standout fourth quarter on Thursday, delivering adjusted earnings that comfortably beat market expectations, supported by strong asset growth and tight cost control.
Adjusted earnings per share came in at $10.83, well above the analyst consensus of $10.30. Revenue for the quarter totaled $4.96 billion, exceeding expectations of $4.77 billion and representing a 10% increase from the same period a year earlier. Shares edged up 0.21% in pre-market trading following the release.
Assets under management, administration and advisement climbed to a record $1.7 trillion, up 11% year on year, while the pretax adjusted operating margin remained robust at 27%.
“Ameriprise delivered a record fourth quarter with robust client activity, resulting in one of our best quarters for client inflows and strong asset growth,” said Jim Cracchiolo, Chairman and CEO. “Our disciplined execution and excellent client experience are driving meaningful growth.”
The Advice & Wealth Management division generated pretax adjusted operating earnings of $926 million, a 13% increase, with margins holding firm at 29.3%. Total client assets in the segment rose 13% to a record $1.2 trillion, supported by strong net client inflows of $13.3 billion.
In Asset Management, pretax adjusted operating earnings advanced 17% to $293 million, benefiting from higher assets and solid performance fees. The segment’s net pretax adjusted operating margin improved by 140 basis points to 40%.
Ameriprise also stepped up capital returns, distributing $1.1 billion to shareholders during the quarter, equivalent to 101% of adjusted operating earnings, highlighting the group’s strong free cash flow generation.