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Ameriprise Beats Analysts’ Expectations

Ameriprise Beats Analysts’ Expectations

Despite the market volatility, Ameriprise Financial’s fourth quarter earnings grew 7 percent year-over-year to $2.47 a share, beating analysts’ estimates by $0.12, according to Seeking Alpha. The firm’s operating net revenues were flat from a year ago at $3 billion, beating analysts’ expectations by $100 million.

“Amerprise delivered solid earnings in a more difficult environment,” said Jim Cracchiolo, chairman and chief executive officer. “Higher market volatility and declines have clearly shaped the beginning of 2016. We’ve managed through difficult market cycles before, and we’re very much focused on executing our strategy, connecting with clients and advisors and driving results.”

Here are some of the highlights:

  • Within the firm’s advice and wealth segment, operating net revenues grew 1 percent from a year ago to $1.3 billion. Growth was slowed due to market volatility and not seeing the typical lift from markets, said Walter Berman, chief financial officer.
  • Despite the deterioration in the market and flat client activity levels, wrap net flows were $2.1 billion in the quarter, with wrap balances increasing 3 percent year-over-year to $180 billion.
  • The firm recruited 82 advisors during the quarter, but the total number of advisors declined by 25 from the third quarter 2015 to 9,789.
  • Trailing 12-month production rose 4 percent from a year ago to an average $514,000, driven by asset growth and client activity.
  • Total client assets grew 1 percent from a year ago to $447 billion, as net inflows offset market depreciation.
  • The firm wasn’t immune from the market volatility, with overall net income declining 16 percent from a year ago to $357 million. Operating earnings were about flat at $441 million.
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