Ameriprise reports higher fourth-quarter earnings despite market drop

Growth in advice business offset lower revenue from asset management

Jan 31, 2019 @ 1:55 pm

By InvestmentNews

Despite December's sinking stock market, Ameriprise Financial Inc. reported fourth quarter 2018 net income of $539 million, or $3.76 per diluted share, up from $177 million, or $1.15 a share, in the same period a year ago. Net revenue was nearly flat at $3.2 billion.

(More:Ameriprise to switch CRM for nearly 10,000 advisers in 2019)

Adjusting for the effect of the federal tax reforms in the fourth quarter of 2017 and other items, the company's adjusted earnings rose 12% to $544 million, or $3.80 per share — a 21% increase from adjusted earnings per share of $3.15 in the fourth quarter last year.

The company said that net revenues of $3.2 billion reflected growth in its advice and wealth management business, which was offset by lower revenue from asset management. Its expenses of $2.5 billion decreased 2%, or $58 million, from a year ago.

Analysts covering the Minneapolis-based company expected it to report fourth-quarter adjusted earnings of $3.58 per share, on revenue of $3.18 billion.

(More:As Ameriprise case shows, firms on hook when brokers go bad) ?

"For the year, we returned more than $2 billion to shareholders through an increased dividend and repurchase of 11 million shares while maintaining our balance-sheet strength," said Jim Cracchiolo, chairman and chief executive officer.

0
Comments

What do you think?

View comments

Most watched

INTV

Young advisers envision a radically different business in five years

Fintech and sustainable investing are two factors being watched closely by some of the 2019 class of InvestmentNews' 40 Under 40.

INTV

Young professionals see lots of opportunity to reinvent the advice experience

Members of the 2019 InvestmentNews class of 40 Under 40 have strategies to overcome the challenges of being young in a mature industry.

Latest news & opinion

Target-date fund design may be wrong for retirees

Researchers suggest the funds don't adequately hedge against sequence-of-returns risk in retirement.

InvestmentNews' 2019 class of 40 Under 40

Our 40 Under 40 project, now in its sixth year, highlights young talent in the financial advice industry. These individuals illustrate the tremendous potential of those coming up in the profession. These stories will surprise, entertain, educate and inspire.

New Jersey fiduciary rule: Pressure leads to public hearing, comment deadline extension

Industry push results in chance to air grievances on July 17 and another month to present objections.

Galvin to propose fiduciary rule for Massachusetts brokers

The secretary of the commonwealth is proposing a fiduciary standard in response to an SEC investment-advice rule he views as too weak.

Summer reading recommendations from financial advisers

Here are some books that will keep you informed and entertained during summer's downtime

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print