Ameriprise Finl (NYSE:AMP) released first-quarter financial results and hosted an earnings call on Thursday. Read the complete transcript below.
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Summary
Ameriprise Finl reported a strong start to 2026 with adjusted operating revenues up 11% to $4.8 billion and EPS up 19% to $11.26, showcasing robust financial performance.
The company’s assets under management, administration, and advisement grew by 12% to $1.7 trillion, driven by client net inflows and positive market conditions.
Ameriprise Finl continues to invest in technology and AI to enhance advisor productivity and client engagement, with the introduction of new banking products and the expansion of the advisor-focused tech platform.
The acquisition of Huntington Bank’s retail investment program is expected to add 260 advisors and $28 billion in assets, emphasizing strategic growth and partnership.
Management remains disciplined in capital allocation, with 88% of operating earnings returned to shareholders and a 6% dividend increase, indicating strong shareholder value focus.
Full Transcript
Jael (Operator)
Welcome to the Q1 2026 earnings call. My name is Jael and I will be your conference operator for today’s call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session. During the question and answer session, if you have a question, please press Star one on your touchtone phone. As a reminder, the conference is being recorded. I’ll now turn the call over to Stephanie Raby. Stephanie, you may begin.
Stephanie Raby
Welcome to Ameriprise Financial’s first quarter earnings call. On the call with me today are Jim Cracciolo, Chairman and CEO and Walter Berman, Chief Financial Officer. Following their remarks, we’d be happy to take your questions turning to our earnings presentation materials that are available on our website. On slide 2 you will see a discussion of forward looking statements. Specifically during the call you’ll hear references to various non GAAP financial measures which we believe provide insight into the company’s operations. Reconciliation of non GAAP numbers to their respective GAAP numbers can be found in today’s materials and on our website at www.ir.ameriprise.com. Some statements that we make on this call may be forward looking Reflecting management’s expectations about future events and overall operating plans and performance, these forward looking statements speak only as of today’s date and involve a number of risks and uncertainties. A sample list of factors and risks that could cause actual results to be materially different from forward looking statements can be found in our first quarter 2026 earnings release, our 2025 annual report to shareholders and our 2025 10K report. We make no obligation to publicly update or revise these forward looking statements. On slide 3, you see our GAAP financial results at the top of the page for the first quarter. Below that you see our adjusted operating results, which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Many of the comments that management makes on the call today will focus on adjusted operating results and with that I’ll turn it over to Jim
Jim Cracciolo (Chairman and CEO)
Good afternoon and thanks for joining us. As you saw in our earnings release, Ameriprise delivered a strong start to the year driven by our disciplined execution and the benefits of our diversified business. While the first quarter was marked by ongoing market volatility and economic uncertainty contributing to a more cautious client behavior, our value proposition continued to clearly differentiate us across our firm. We remain deeply engaged with clients and delivered excellent Financial performance. We’re focused on maintaining a high quality, well positioned business while continuing to invest and innovate to support dynamics long term client relationships. Our business generates consistent earnings across market cycles. Equally important, we maintain a disciplined approach to capital allocation that enables Ameriprise to deliver strong value to shareholders. For the quarter, adjusted operating revenues up 11% to $4.8 billion. Earnings and EPS were also up double digits with EPS up 19% to a record $11.26. And we continue to deliver best in class ROE which increased to more than 54%. In addition, our assets on the management administration advisement grew 12% to $1.7 trillion driven by our client net inflows and positive markets. The consistency of these results reflect the strength of our integrated business and the benefits of our approach. Very clearly, Ameriprise is distinguished by the compelling experience we deliver to both clients and advisors across our firm. We remain focused on serving client needs and best interests exceptionally well. That differentiation is reflected on a consistently earnings excellent client satisfaction which continues to be 4.9 out of 5 and also by the recognition our firm receives year after year. On the advisor side, our distinctive value proposition drives sustainable practice growth, higher productivity and recurring revenue over time. Turning to our results, total client assets grew 12% to $1.1 trillion with wrap assets growing 16% to $664 billion in the quarter. We were lighter on flows based on more cautious client behavior and some lumpiness in recruiting and terminations. We ended the quarter with $6 billion of wrap net inflows. Importantly, underlying activity was good for the quarter. We kept clients closely engaged and delivered strong Transactional activity up 10%. Our cash business remains stable with nearly $30 billion in suite balances. As you saw, our advisors again generated meaningful productivity and revenue growth, with productivity increasing another 10% in the quarter to a record $1.2 million per advisor. Our strategy remains grounded in organic growth built, not bought. Advisors consistently value Ameriprise for the depth of our value proposition and the strength of our partnership. We continue to prioritize our core Advisor team productivity and we complement it by recruiting high quality advisors who view us as a strategic partner supporting strong client outcomes and practice growth. 61 advisors joined during the quarter and were seeing a pickup of activity in the second quarter and in AFIg we continue to expand this channel as a premier platform for banks and credit unions. During the quarter we signed a multi year agreement to become the retail investment program provider for Huntington Bank. This relationship is expected to add approximately 260 advisors and $28 billion in assets with onboarding beginning later this year. Huntington selected Ameriprise for our leadership and advice, strong culture and capabilities as we shared, we consistently invest across our firm to meet client needs today and further strengthen the business for the future. These are intentional multi year investments across technology systems and new capabilities. We’re focused on clear, high impact outcomes that deepen engagement, deliver relevant and actionable information while enabling highly personalized quality experiences. In particular, we’ve designed our tech platform around how advisors work, not individual tools. It connects multiple capabilities like our CRM platform E meeting advice, insights and practice workflows into an intelligent ecosystem enhanced with embedded AI and automation. To that end, we feel good about the progress we’re making. Our focus is on using AI and intelligent automation capabilities at scale to help advisors deliver a consistent, high quality client experience while improving how they operate day to day in terms of investments and solutions. After the initial launch of our signature Wealth UMA MID last year, we now expanding the product capabilities and seeing positive early asset movement and engagement. There is meaningful upside as we continue to expand capabilities including the introduction of SMAs and as we broaden the strategy set over time with regard to our bank solutions which complement our overall offering. Bank assets now exceed $25 billion with continued strength in pledge lending. With the recent introduction of products including HELOCs and checking accounts, we now offer a complete suite. As we reach more of our advisors and clients, we expect this will present opportunities to bring additional assets to our firm. To close out AWM, we received new recognition in the quarter for the 2026 J.D. power US Investor Satisfaction Study, Ameriprise ranked third out of 23 firms overall, a terrific result that underscores the quality of the experience we deliver. Turning to our retirement and protection business, as advisors deliver more comprehensive advice, they are thoughtfully incorporating annuity and insurance solutions to address clients increasingly complex needs. Sales were solid in the quarter, supported by by continued demand across annuities and annuities and variable products. In addition to meeting client needs, this business continues to generate attractive margins and consistent earnings over time, but RiverSource again recognized as one of the most profitable insurers in the industry. Moving to asset management, Assets under management and advisement increased 8% year over year to $706 billion in the quarter. Investment performance remains a strength. More than 70% of our funds are performing above the peer medium over 1, 3 and 5 year periods and 85% are above the medium over 10 years. This sustained performance continues to be recognized externally in the most recent Barron’s Best Fund Family rankings, Columbia Threadneedle placed in the top 10 across all time periods and our US fixed income team recently earned four 2026 Lipper awards. Importantly, net outflows improved significantly year over year to $5.9 billion, reflecting better trends across both retail and institutional channels. Gross retail sales in North America continue to improve, up 26% even in a volatile market environment and we’re seeing nice sales within Ameriprise from good initial sales and signature wealth. Retail flows and EMEA also improved, however they were impacted by headwinds from the geopolitical volatility during the quarter. On the product side, we continue to advance our strategy across ETFs, SMAs and alternatives with a clear focus on scale, consistency and performance. Our ETF platform surpassed $10 billion in assets under management supported by a differentiated offering across North America and emea. In smas, we benefit from long standing track records and remain a top 10 provider with continued positive flows in alternatives. Our technology and healthcare hedge fund strategies delivered strong performance and sales momentum and we see good opportunities ahead. Consistent with our approach in wealth management, we’re applying advanced analytics and technology within asset management, including in investment research where these capabilities are contributing real value. At the same time, we’re transforming how we leverage our global platform. We’re driving greater efficiency across the front, middle and back office while continuing to strengthen our data foundation. We’re also making good progress on back office outsourcing with a substantial portion of the conversion expected to be completed later this year. These initiatives complement our broader efforts to streamline systems and support operating leverage over time. Now for Ameriprise overall, our focus is having a premium branded, client focused business that delivers strong financial performance and attractive returns. Over the past year we have achieved record earnings and generated best in class return on equity now exceeding 54%. As I mentioned, given this performance and our current valuation, we continue to view our shares as an attractive buying opportunity. As a result, as you know, we increased our share repurchases in the fourth quarter and continued our strong return to shareholders with 88% returned in the first quarter and our board just approved another 6% increase in our dividend. Ameriprise is built to perform across market cycles. We’re well positioned to deliver meaningful value over time, manage risk responsibly and generate resilient performance. Before I close, I want to highlight the iconic Ameriprise reputation which remains an important competitive advantage. We are proud to have a company that continues to be widely recognized in the marketplace for who we are and how we operate in the minds of consumers, employees and investors. Ameriprise has been named one of America’s most trustworthy companies in 2026 by Newsweek and from Fortune. Ameriprise is also one of America’s most innovative companies for 2026, affirming our leadership in technology and driving transformational change. In closing, Ameriprise offers a differentiated combination of an excellent client and advisor, value proposition, sustainable profitable growth and attractive capital return. With that, I’ll turn it over to Walter to discuss our financials in more detail.
Walter Berman (Chief Financial Officer)
Thank you, Jim. Ameriprise delivered strong financial results in the quarter with adjusted operating earnings per share up 19% to $11.26 and an operating margin of 28%. These results reflected the strength of our diversified earnings profile and the operating leverage embedded in our businesses as well as the return from significant investments we have continued to make. Our ability to generate attractive growth and margins across cycles underscores the durability of our platform and the discipline we bring to execution. Total assets under management, administration and advisement increased 12% to 1.7 trillion which coupled with strong client engagement drove an 11% increase in revenues to 4.8 billion. In the quarter, we returned 88% of operating earnings to shareholders through share repurchases and dividends. Our balance sheet remains exceptionally strong with 2.3 billion of both excess capital holding company available liquidity. Let’s turn to wealth management Financials on slide 6. Adjusted operating net revenues increased 14% to 3.2 billion. The core distribution business is performing well given the value of our planning model and the multiple touch points we have with the client to meet their needs holistically. Our fee based and transaction revenues remain quite strong increasing 17% benefiting from growth in client assets and higher activity levels. In addition, our bank revenues increased 6% from business growth including the expansion of our lending products while revenues from cash sweep and certificates declined. Adjusted operating expenses in the quarter increased 12% with distribution expenses up 14%. I will note that advisor compensation within distribution expenses increased in line with the revenues advisors generate. G and A expenses were a 4% primarily driven by volume and growth related expenses including investments in signature wealth and banking products. This level was consistent with our expectations pre tax adjusted operating earnings increased 20% to 951 million with continued strong contribution from core distribution and core cash earnings. In the quarter, Comerica exercised their option for early termination of your relationship with us. This resulted in a one time 25 million make whole payment for onboarding cost and future earnings which finalized all payments that were due to us for this termination. Excluding this benefit, earnings increased 17%. Our core distribution earnings grew in the mid-30s 30% range, benefiting from higher client assets and advisory fees as well as strong activity levels. The strong level of core distribution earnings that we generated is unique relative to other independent wealth managers and demonstrates our focus ensuring that our growth is profitable. Bank earnings grew 6% in the quarter while certificate earnings declined. In total, core cash earnings were essentially flat from a year ago. We continue to take actions to build the bank portfolio in a way that supports stable earnings contributions going forward. The overall bank has a yield of 4.6% with a four year duration with now only 7% of the portfolio in floating rate securities. In the quarter, new purchases at the bank were 1.9 billion at a yield of 5% with a 4.1 year duration. Last, our aggregate margins remained excellent at 30% up from 28% a year ago. Underlying that, our core distribution margin is over 20% with a solid contribution from cash. Let’s turn to slide 7. Advice and wealth management generated solid asset growth in the quarter. Client assets grew 12% to 1.1 trillion and wrap assets increased 16% to 664 billion driven by solid organic growth, stronger buys of productivity and equity market appreciation. Our new signature wealth program continues to gain momentum and a significant portion of the assets are new money to ameriprise. Client flows were 4.2 billion and rap flows were 6 billion in the quarter. This reflected several moving pieces that I will explain. Same store sales levels remain strong and consistent aside from the normal seasonal impacts and climb caution resulting from volatility in the quarter. However, in the quarter we had some lumpiness in our flows caused by a combination of the aggressive recruiting environment which drove higher advisor departures as well as the acceleration of Comerica Advisors departing as a result of their acquisition. We anticipate the higher pace of outflows related to Comerica will continue in the second and third quarters, culminating with the conversion occurring near the end of the third quarter. While we have significant capacity to recruit, the recruiting deals we are seeing today in this perceived risk on environment exceed what we believe is a balanced risk return approach. Given the long cash paybacks and marginal P and L benefits over the extended life of these arrangements. We will continue to evaluate the facts and circumstances, whether for recruiting or retention, to assess the trade offs between sustained profitability versus flows and associated risk. This approach will ensure decisions are driving sustained shareholder value creation. Lastly, I will note that in the latter part of the quarter we’ve seen improving trends as we look ahead. The addition of Huntington bank is anticipated in the fourth quarter and will bring approximately 260 of ours and 28 billion of client assets onto our platform. Separately, we are further enhancing our advisor succession strategies for both internal and external advisors, including expanding and leveraging Ameriprise’s personal wealth group, our centralized advisor group, as a potential secession option. Let’s turn to slide 8. Advisor Wealth Management generated solid productivity growth. Our advisor productivity continues to grow, reaching a new high of 1.2 million, up 10% year over year, driven by strong growth in wrap assets and related fees as well as enhancements to advisor efficiency from the integrated tools, technology and support we provide. In addition, transactional activity remains strong, increasing 10% compared to the prior year. This is primarily …
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