Ameriprise wealth division sets new client asset record in Q3

Ameriprise Financial’s wealth management business continued to build on its momentum in the third quarter, with total client assets reaching a record high and advisor productivity hitting new peaks, according to the company’s latest results.

The Minneapolis-based firm reported that assets under management, administration and advisement climbed 8% year over year to $1.7 trillion, led by growth in its advice and wealth management segment. Within that division, total client assets rose 11% to $1.14 trillion, while wrap account assets increased 14% to $650 billion.

Ameriprise’s adjusted operating net revenues for the wealth segment reached $3 billion, up 9% from the prior year, driven by higher client assets and increased transactional activity. Pretax adjusted operating earnings for the division rose 7% to $881 million, with a margin of 29.5%.

Advisor productivity continued to trend upward, with adjusted operating net revenue per advisor on a trailing 12-month basis reaching $1.1 million, a 10% increase from a year ago. The company also reported that 90 experienced advisors joined Ameriprise during the quarter, reflecting ongoing recruiting efforts.

"Across the firm, we’re focused on delivering an excellent client experience supported by our distinctive combination of high-quality advice, solutions and capabilities," Jim Cracchiolo, chairman and CEO at Ameriprise, said in a statement Thursday.

Client flows, however, moderated compared to the previous year. Total client net flows for the wealth segment were $3.4 billion, down from $8.6 billion in the third quarter of 2024. Wrap net flows also declined to $4.8 billion from $8 billion a year ago, though the company noted that excluding the impact of two large advisor practices departing, net flows improved sequentially.

Las month, Wells Fargo announced the addition of a $1 billion Ameriprise team to its FiNet channel in Indiana. Earlier this month, Minneapolis-headquartered RIA NorthRock Partners revealed it had onboarded a 15-advisor team overseeing $2.7 billion in assets.

General and administrative expenses for the segment increased 5% to $439 million, primarily due to volume- and growth-related costs, but Ameriprise emphasized continued expense discipline. Companywide, general and administrative expenses improved 3% as a result of transformation initiatives.

Ameriprise’s chairman and chief executive officer, Jim Cracchiolo, said the firm is “focused on delivering an excellent client experience supported by our distinctive combination of high-quality advice, solutions and capabilities.”

He added that Ameriprise is “proud of what we have achieved since becoming an independent, public company 20 years ago, including delivering the number one total shareholder return within the S&P 500 Financials Index during that time.”

The firm's earnings presentation prepared by Walter Berman, chief financial officer, also highlighted its “exceptional balance sheet strength” and noted that Ameriprise generated “90%+ free cash flow from diversified sources, supporting consistent capital return to shareholders.”

Despite the slowdown in net flows, Ameriprise’s wealth management business continued to benefit from higher equity markets, cumulative wrap net inflows, and well-controlled expenses. Transactional activity increased 4% compared to the prior year, and cash sweep balances remained stable at $27.1 billion.

Bank assets in the wealth segment grew 5% to $24.3 billion, providing what the company described as sustainable net investment income in a lower rate environment. The firm’s bank net investment income remained stable, consistent with expectations for the full year.

Ameriprise’s overall adjusted operating earnings per diluted share rose 22% to $9.87, while the company’s adjusted operating return on equity, excluding accumulated other comprehensive income, reached 52.8%. The company returned $842 million to shareholders in the quarter, representing 87% of adjusted operating earnings.