{"id":517687,"date":"2021-07-26T16:11:09","date_gmt":"2021-07-26T20:11:09","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ameriprise-financial-reports-second-quarter-2021-results\/"},"modified":"2021-07-26T16:11:09","modified_gmt":"2021-07-26T20:11:09","slug":"ameriprise-financial-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ameriprise-financial-reports-second-quarter-2021-results\/","title":{"rendered":"Ameriprise Financial Reports Second Quarter 2021 Results"},"content":{"rendered":"

<\/p>\n

Ameriprise Financial Reports Second Quarter 2021 Results<\/b><\/p>\n

MINNEAPOLIS–(BUSINESS WIRE<\/a>)–
\nAmeriprise Financial, Inc. (NYSE: AMP):\n<\/p>\n\n\n\n\n\n\n\n
\n\n\u00a0<\/td>\n<\/tr>\n
\n

\nEarnings Per Diluted Share\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nReturn on Equity, ex AOCI (1)<\/sup><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nQ2 2021\n<\/p>\n<\/td>\n

\n\n\n

\nQ2 2021\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP\n<\/p>\n<\/td>\n

\n

\n$4.88\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nGAAP\n<\/p>\n<\/td>\n

\n

\n19.5%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted Operating\n<\/p>\n<\/td>\n

\n

\n$5.27\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nAdjusted Operating\n<\/p>\n<\/td>\n

\n

\n37.5%\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\u00a0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
    \n
  • \nSecond quarter adjusted operating earnings per diluted share was $5.27. Adjusted operating EPS increased 39 percent from the prior year excluding a negative prior year period tax impact of $1.14 per diluted share, reflecting strong business growth.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n

\n\u201cAmeriprise delivered a strong second quarter and a record first half in operating revenue, earnings and EPS, as we continue to build on our momentum. We are delivering an excellent client experience and deepening relationships, which is driving continued growth in the business.\n<\/p>\n

\n\u00a0\n<\/p>\n

\n\u201cIn the quarter, nearly 80 percent of revenue and pretax earnings were driven by our asset-light Advice and Wealth Management and Asset Management businesses.\n<\/p>\n

\n\u00a0\n<\/p>\n

\n\u201cWe also announced a number of important strategic actions, including the acquisition of BMO\u2019s EMEA asset management business and a significant reinsurance transaction. Together, these moves complement our organic growth while also adding key capabilities and generating shareholder value.\u201d\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nSecond quarter GAAP net income per diluted share was $4.88, which was impacted by market changes that affected the valuation of derivatives. In the prior year period, results were impacted by changes in the company\u2019s credit spread and the valuation of derivatives used to hedge the company\u2019s variable annuity living benefit guarantees.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nAdjusted operating net revenue was $3.4 billion, a 22 percent increase from strong organic growth.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nGeneral and administrative expenses were well managed in light of business growth, up 6 percent.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nAssets under management and administration were up 28 percent to $1.2 trillion, a record high from strong client flows in Wealth and Asset Management, as well as market appreciation.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nThe company continues to generate strong organic growth, with over $16 billion of client net inflows from Advice & Wealth Management and Asset Management.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nInvestment performance at Columbia Threadneedle Investments remains excellent with 110 funds with 4- and 5-star Morningstar ratings.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nThe company returned $585 million of capital to shareholders in the quarter, which was 92 percent of adjusted operating earnings.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nDuring the quarter, the company made substantial progress in expanding its growth businesses and reducing its risk profile.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nOn June 29, 2021, Ameriprise announced that its insurance subsidiaries entered into an agreement to reinsure approximately $8.0 billion of fixed annuities, which will free up approximately $700 million of capital. In July, the RiverSource Life Insurance Company transaction closed.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n
    \n
  • \nAmeriprise is on track to close its acquisition of BMO\u2019s EMEA Asset Management business in the fourth quarter of 2021. The acquisition expands key capabilities in attractive and growing market segments where BMO EMEA Asset Management has leading positions.\n<\/li>\n<\/ul>\n<\/td>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

(1)<\/sup> Return on equity excluding AOCI is calculated on a trailing 12-month basis.\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nAs indicated, the severe market dislocation and steep interest rate reduction in the first quarter of 2020 related to COVID-19 distorted the company\u2019s prior year GAAP and operating results. This included a tax benefit from a projected net operating loss (NOL) in the first quarter of 2020 that was reversed in the second quarter of 2020.\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n<\/tr>\n
\n

Ameriprise Financial, Inc.<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Second Quarter Summary<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Quarter Ended
\n
June 30,<\/b><\/p>\n<\/td>\n

\n

% Over\/
\n
(Under)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Year-to-date
\n
June 30,<\/b><\/p>\n<\/td>\n

\n

% Over\/
\n
(Under)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n(in millions, except per share amounts, unaudited)\n<\/p>\n<\/td>\n

\n

2021<\/b><\/p>\n<\/td>\n

\n

2020<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

2021<\/b><\/p>\n<\/td>\n

\n

2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP net income\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n591\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(539)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nNM\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,028\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,497\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(31)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted operating earnings (see reconciliation on p. 25 and p. 26)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n639\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n333\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n92%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,302\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,027\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n27%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted operating earnings excluding Net Operating Loss (NOL) tax impacts (see reconciliation on p. 25 and p. 26)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n639\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n477\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n34%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,302\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,027\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n27%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP net income per diluted share\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n4.88\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(4.31)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nNM\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n8.45\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n11.77\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(28)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted operating earnings per diluted share (see reconciliation on p. 25 and p. 26)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n5.27\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n2.64\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n100%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n10.70\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n8.07\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n33%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted operating earnings per diluted share excluding Net Operating Loss (NOL) tax impacts (see reconciliation on p. 25 and p. 26)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n5.27\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n3.78\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n39%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n10.70\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n8.07\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n33%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGAAP Return on Equity, ex. AOCI\n<\/p>\n<\/td>\n

\n

\n19.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n41.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted Operating Return on Equity, ex. AOCI\n<\/p>\n<\/td>\n

\n

\n37.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n35.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nWeighted average common shares outstanding:\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nBasic\n<\/p>\n<\/td>\n

\n

\n118.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n125.0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted\n<\/p>\n<\/td>\n

\n

\n121.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n126.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNM Not Meaningful – variance equal to or greater than 100%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n\n\n\n\u00a0<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
<\/tr>\n
\n

Ameriprise Financial, Inc.<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Advice & Wealth Management Segment Adjusted Operating Results<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Quarter Ended
\n
June 30,<\/b><\/p>\n<\/td>\n

\n

% Over\/
\n
(Under)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n(in millions, unaudited)\n<\/p>\n<\/td>\n

\n

2021<\/b><\/p>\n<\/td>\n

\n

2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nNet revenues\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,980\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n1,537\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n29%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nDistribution expenses\n<\/p>\n<\/td>\n

\n

\n1,194\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n913\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(31)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nG&A \/ other expense\n<\/p>\n<\/td>\n

\n

\n363\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n353\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(3)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nPretax adjusted operating earnings\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n423\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n271\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n56%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nPretax adjusted operating margin\n<\/p>\n<\/td>\n

\n

\n21.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n17.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n380 bps\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\n\u00a0<\/td>\n<\/tr>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Quarter Ended
\n
June 30,<\/b><\/p>\n<\/td>\n

\n

% Over\/
\n
(Under)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n(in billions, unless otherwise noted)\n<\/p>\n<\/td>\n

\n

2021<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nTotal client assets\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n807\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n630\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n28%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nTotal client net flows (1)<\/sup><\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n9.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n6.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n54%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nWrap net flows (1)<\/sup><\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n10.0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n5.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n78%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAWM cash balance\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n39.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n38.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n2%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAverage gross yield on cash balances (in bps)\n<\/p>\n<\/td>\n

\n

\n63\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n79\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted operating net revenue per advisor (TTM in thousands)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n731\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n669\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n9%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted for interest rates (2)<\/sup><\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n731\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n641\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n14%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

(1)<\/sup> See definition on page 12.\n<\/p>\n<\/td>\n<\/tr>\n

\n

(2)<\/sup> Adjusted for impact from interest rates. See reconciliation on page 28.\n<\/p>\n<\/td>\n<\/tr>\n

<\/tr>\n<\/table>\n

Advice & Wealth Management<\/b> pretax adjusted operating earnings were $423 million, up 56 percent driven by continued robust client net flows, higher transactional activity, market appreciation and disciplined expense management. Pretax adjusted operating margin increased 380 basis points. On a sequential basis, pretax operating earnings increased 9 percent and pretax adjusted operating margin expanded 70 basis points.\n<\/p>\n

\nAdjusted operating net revenues grew 29 percent to $2.0 billion, reflecting strong client net flows and market appreciation. On a sequential basis, revenues increased 5 percent.\n<\/p>\n

\nTotal expenses were $1.6 billion, reflecting higher distribution expense related to strong organic growth. General and administrative expense was well managed and increased 3 percent, reflecting the cost associated with increased activity and performance-based compensation expense.\n<\/p>\n

\nTotal client assets grew 28 percent to $807 billion, with continued robust total client flows of $9.5 billion in the quarter. The company\u2019s ability to meet client needs efficiently and effectively is translating into excellent organic growth. Advisor productivity remains high with a 78 percent increase in flows in the investment advisory business and a 29 percent increase in transactional activity. Wrap net flows were $10.0 billion, representing the third consecutive quarter at or above $9.0 billion of net flows. Cash balances remain elevated at $39.2 billion with an opportunity for clients to put cash back to work in the future.\n<\/p>\n

\nAdjusted operating net revenue per advisor on a trailing 12-month basis was $731,000. Excluding the decline in short-term interest rates, adjusted net revenue per advisor increased 14 percent. Total advisors were 10,047, up 2 percent, from a combination of high advisor retention and the addition of 42 experienced advisors in the quarter.\n<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n<\/tr>\n
\n

Ameriprise Financial, Inc.<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Asset Management Segment Adjusted Operating Results<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Quarter Ended
\n
June 30,<\/b><\/p>\n<\/td>\n

\n

% Over\/
\n
(Under)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n(in millions, unaudited)\n<\/p>\n<\/td>\n

\n

2021<\/b><\/p>\n<\/td>\n

\n

2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nNet revenues\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n879\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n668\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n32%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nDistribution expenses\n<\/p>\n<\/td>\n

\n

\n282\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n220\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(28)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nG&A \/ other expenses\n<\/p>\n<\/td>\n

\n

\n344\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n307\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(12)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nPretax adjusted operating earnings\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n253\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n141\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n79%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet pretax adjusted operating margin (1)<\/sup><\/p>\n<\/td>\n

\n

\n45.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n34.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Quarter Ended
\n
June 30,<\/b><\/p>\n<\/td>\n

\n

% Over\/
\n
(Under)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n(in billions)\n<\/p>\n<\/td>\n

\n

2021<\/b><\/p>\n<\/td>\n

\n

2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nTotal segment AUM\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n593\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n476\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n25%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

Net Flows<\/span><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGlobal Retail net flows\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n4.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n3.1\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n38%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nGlobal Institutional net flows, ex. legacy insurance partners flows\n<\/p>\n<\/td>\n

\n

\n3.9\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n0.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nNM\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nLegacy insurance partners flows\n<\/p>\n<\/td>\n

\n

\n(1.4)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(1.3)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(7)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nTotal segment net flows\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n6.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n2.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nNM\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nModel delivery AUA Flows (2)<\/sup><\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n0.9\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n0.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nNM\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

(1)<\/sup> See reconciliation on page 13.\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

(2)<\/sup> Estimated based on the period to period change in assets less calculated performance based on strategy returns on a one-quarter lag.\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNM Not Meaningful – variance equal to or greater than 100%\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Asset Management<\/b> pretax adjusted operating earnings were $253 million, up 79 percent, reflecting strong market appreciation and the cumulative benefit of net inflows. The net pretax adjusted operating margin was 45.4 percent. On a sequential basis, pretax operating earnings increased 11 percent and pretax adjusted operating margin expanded 150 basis points.\n<\/p>\n

\nAdjusted operating revenues increased 32 percent to $879 million from the cumulative benefit of inflows and higher equity markets. The overall fee rate remained strong at 52 basis points. On a sequential basis, revenues increased 6 percent.\n<\/p>\n

\nAdjusted operating expenses increased 19 percent. General and administrative expenses grew 12 percent driven primarily from strong business performance that drove higher compensation expense and foreign exchange translation, as well as the costs associated with increased activity levels.\n<\/p>\n

\nTotal assets under management increased 25 percent to $593 billion reflecting equity market appreciation and net inflows. Investment performance remained strong across equity, fixed income and asset-allocation strategies.\n<\/p>\n

\nIn the quarter, net inflows were $6.7 billion, an improvement of $4.1 billion from a year ago. Net inflows were $8.1 billion excluding legacy insurance partners outflows, reflecting a continuation of positive flow trends across multiple distribution channels and strategies:\n<\/p>\n