- Ameriprise Financial (AMP, Financial) reports a 13% increase in adjusted operating earnings per diluted share for Q1 2025.
- The company authorized a new $4.5 billion share repurchase program through June 2027.
- Assets under management, administration, and advisement grew to $1.5 trillion.
Ameriprise Financial, Inc. (AMP) reported strong financial results for the first quarter of 2025, with adjusted operating earnings per diluted share increasing by 13% to $9.50. This growth was driven by asset growth and enhanced operational efficiency. However, the company's GAAP net income per diluted share decreased to $5.83, compared to $9.46 in the previous year, due to market impacts on the valuation of derivatives and market risk benefits.
The firm announced a new $4.5 billion share repurchase program, set to continue through June 30, 2027, and an 8% increase in its quarterly dividend. The robust performance was further highlighted by a 5% increase in adjusted operating net revenues, supported by strong asset growth and higher transactional activity.
Assets under management, administration, and advisement climbed to $1.5 trillion, marking an impressive growth trajectory for Ameriprise. The company returned $765 million of capital to shareholders, representing approximately 81% of adjusted operating earnings during the quarter. Additionally, the company's pretax adjusted operating margin increased to 27%, with an adjusted operating return on equity of 52%.
Ameriprise's Advice & Wealth Management segment saw adjusted operating net revenues rise 9% to $2.8 billion, driven by higher client assets and increased transactional activity. General and administrative expenses improved by 5% compared to the previous year, reflecting the benefits of initiatives aimed at enhancing operational efficiency and effectiveness.
In the Asset Management segment, Ameriprise reported a 1% decline in adjusted operating net revenues to $846 million, though pretax adjusted operating earnings increased by 17% to $241 million. Despite net outflows totaling $18.3 billion in the quarter, the segment's net pretax adjusted operating margin rose to 43%, reflecting equity market appreciation and effective expense management.
Overall, Ameriprise's strong balance sheet and free cash flow generation underpin its ability to invest for growth and return capital to shareholders while navigating market cycles effectively. The company continues to leverage its diversified business model to deliver consistent financial results and maintain a leading position in the financial services sector.
