Ameriprise advice unit reports 29% increase in pretax profit

Net revenue per adviser up 14%, reaches $468,000

Jul 29, 2014 @ 5:46 pm

By Bruce Kelly

Ameriprise Financial Inc.'s advice and wealth management unit reported pretax operating earnings of $194 million for the three months ended in June, an increase of 29% over the same period last year.

The increase reflected “robust revenue growth and expense controls,” the company said in a statement after the close of the market on Tuesday afternoon.

Financial adviser productivity also continued to improve. On a trailing 12 month basis, operating net revenue per adviser grew 14% in the quarter to reach $468,000. That excludes, however, results from former banking operations, according to the company's statement.

The company had a solid quarter in recruiting new advisers, despite a recruiting slowdown in the first half of the year across the industry. Fifty-four experienced advisers joined Ameriprise during the quarter. However, the company did not state the number of advisers who left the company during the period. Ameriprise is home to about 10,000 registered reps and advisers across two broker-dealers – one for employees and the other for independent reps and advisers.

Including its other business segments, Ameriprise Financial reported net income of $374 million for the most recent quarter, an increase of 16% from the same period last year. Earnings per share were $1.91 for the quarter that ended in June, compared with $1.54 per share in the same quarter in 2013.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

How (and why) to attract more millennial clients

It is time to take a hint from your grandmother if you want to attract more Gen Y clients. Amy Butte, the former CFO of the NYSE, says you need to learn to speak the language of financial services in a way millennials can comprehend.

Video Spotlight

Help Clients Be Prepared, Not Surprised

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Broker, retirement groups make last-minute pleas to change tax legislation

Pass-through provisions are target of groups representing employee-model brokerage firms, as well as retirement plan advisers.

House and Senate reach tentative compromise for tax overhaul

Lawmakers still need to get a cost analysis of their agreement, so it's not yet definite, according to a source.

Advisers' biggest fears for 2018

What keeps advisers up at night.

One adviser's story of losing his son to the opioid epidemic

John W. Brower, president and CEO of JW Brower & Associates, shares the story behind his son's death from a heroin overdose and how it inspired him to help others break the cycle of addiction.

Tax reform will boost food, chemicals, rail stocks. Technology? Not so much

Conagra and Berkshire Hathaway are two stocks that should benefit most from changes in the tax code.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print