In its first-quarter earnings report, Ameriprise Financial surpassed analysts’ expectations by posting an adjusted operating earnings per diluted share (EPS) of $8.39, $0.22 above the forecasted $8.17. Revenue for the quarter met estimates at $4.15 billion, indicating a robust financial performance.
The company’s diluted net income amounted to $9.46, a significant increase from the $3.79 reported a year ago, primarily driven by favorable market conditions and the valuation of derivatives and market risk benefits.
Chairman and CEO Jim Cracchiolo expressed satisfaction with the quarter’s performance, highlighting contributions from across Ameriprise’s diversified business. The Wealth Management division demonstrated strength and growth, with assets under management and administration reaching a new high of $1.4 trillion, supported by positive markets.
Ameriprise’s strong capital position was further underscored by a 10% dividend increase announcement. The company’s adjusted operating net revenues saw an impressive 11% increase due to organic growth, favorable equity markets, and higher spread revenues.
The company emphasized its focus on operational efficiency, with general and administrative expenses managed well. Additionally, Ameriprise returned $650 million to shareholders in the quarter, emphasizing its balance sheet strength and strong free cash flow generation. Its pretax adjusted operating margin reached 26.3%, and the adjusted operating return on equity stood at 49.0%.
