Ameriprise reports big jump in 1Q profit

Mutual fund manager Ameriprise Financial Inc. said Monday that its first-quarter profit rose 65 percent, the result of an improved stock market and investors jumping back in to certain mutual funds.

Net income rose to $214 million, or 81 cents per share, from $130 million, or 58 cents per share, in the same quarter a year ago.

The result matched the expectation of analysts surveyed by Thomson Reuters.

Revenue rose to $2.27 billion from $1.72 billion a year ago. Analysts predicted $2.22 billion in revenue.

Expenses increased to $1.91 billion from $1.58 billion.

Management attributed the improvement to a growth in management fees from market appreciation of assets and increased retail investor interest in mutual funds.

As of March 31, the company’s excess capital position was more than $2.5 billion, including about $1 billion for the company’s pending acquisition of Columbia Management’s long-term asset management business, which is expected to be completed on May 1.

“We had a solid quarter aided by equity market appreciation and improved client activity,” said CEO Jim Cracchiolo. “We generated positive retail client asset flows, driven by particular strength in our mutual fund wrap business, and we had good new client acquisition growth.

The company also posted $1 billion in net unrealized investment gains for the quarter.