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    AMP
    Earnings call· Sep 2025(Q3 FY25)

    AMERIPRISE FINANCIAL INC AMP

    Oct 30, 2025 Source

    Executive summary

    Ameriprise Q3 FY25 — Strong Earnings and Capital Return Amidst Fluid Market

    Ameriprise delivered robust Q3 FY25 results, demonstrating resilience with record assets and double-digit EPS growth despite a fluid market and competitive pressures. The firm continues to strategically invest in digital capabilities and its banking platform to enhance client engagement and maintain strong profitability, while also returning substantial capital to shareholders. Management acknowledges competitive dynamics in advisor recruiting but emphasizes a disciplined, long-term approach.

    Highlights

    5

    • Assets under management, administration, and advisement grew to a new high of $1.7 trillion, up 8% year-over-year.

    • Adjusted operating EPS, excluding unlocking, increased 12% to $9.92.

    • Firm-wide margin remained strong at 27%, with ROE at nearly 53%.

    • Capital return increased to $842 million in the quarter, with a target of 85% payout ratio for Q4.

    • Advisor productivity grew 10% to a new high of $1.1 million, with 90 experienced advisors recruited in the quarter.

    Concerns

    3

    • Client and Wrap flows were impacted by the departure of two large advisor teams, resulting in outflows in the quarter.

    • Cash revenues in Wealth Management declined in the mid-single-digit range due to Fed funds rate reductions.

    • Net outflows in Asset Management, though improved sequentially, were still $3.4 billion.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year G&A decline
    3% decline
    medium materiality
    High
    Capital return payout ratio
    85%
    high materiality
    High
    Asset Management G&A expense decline
    mid-single-digit decline
    medium materiality
    High
    Wealth Management G&A growth
    low to mid-single-digit growth
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Wealth Management
    The core business is performing very well, with strong fee-based and transactional revenues. Cash revenues were impacted by Fed rate reductions. Expenses remained well-managed, with core earnings growing strongly.
    Client assets: $1.1 trillionClient flows (past year): $29 billionWrap assets: $650 billionWrap assets growth YoY: 14%Wrap flows (past year): $30 billionClient flows (excluding departures): $6.5 billionWrap flows (excluding departures): $8 billionCash sweep balances: $27.1 billionAdvisor productivity: $1.1 millionAdvisor productivity growth: 10%Experienced advisors recruited: 90Distribution expenses growth: 11%G&A expenses: $439 millionG&A expenses growth: 5%Pretax adjusted operating earnings: $881 millionPretax adjusted operating earnings growth: 7%Core earnings growth: high-teen percentage rangeCash earnings decline: mid-single-digit percentageBank investment portfolio yield: 4.6%Bank investment portfolio duration: 3.7 yearsNew bank purchases: $700 millionNew bank purchases yield: 5.3%New bank purchases duration: 4.4 years
    		$3 billion9%—29.5%
    Asset Management
    Financial results were solid, reflecting equity market appreciation and expense management, partially offset by net outflows. Net outflows significantly improved sequentially, with higher retail gross sales and lower institutional redemptions.
    Operating earnings: $260 millionOperating earnings growth: 6%Total assets under management and advisement: $714 billionNet outflows: $3.4 billionFee rate: 46 basis pointsG&A expenses growth: 1%Funds outperforming medium (1-year): >65%Funds outperforming medium (3-year): >70%Funds outperforming medium (5-year): >70%Funds outperforming medium (10-year): >80%
    		$906 million3%—42%
    Retirement & Protection Solutions
    Delivered strong earnings and free cash flow, reflecting higher quality businesses and benefit from strong interest earnings and higher equity markets. Sales were solid with continued demand for structured variable annuities.
    Pretax adjusted operating earnings (excluding unlocking): $200 millionSales: $1.4 billionActuarial assumption update impact: unfavorable $5 million after-tax
    		————

    Operational metrics

    25
    Capital Return Payout Ratio
    87%
    Q3 FY25

    Increased capital return to 87% of operating earnings in the quarter.

    Cash Sweep Balances
    $27.4 billion
    Q2 FY25

    Cash sweep balances in the prior quarter, used as a comparison for current stable balances.

    Bank Investment Portfolio Yield
    4.5%
    Historical

    Historical yield of the bank's investment portfolio, used in discussion about reinvestment yields.

    Net New Assets High Watermark
    $11.1 billion
    Q4 FY24

    High watermark for inflows in the fourth quarter of the prior fiscal year.

    Distribution Expense Ratio Outlook
    66%-67%
    FY25

    Outlook for the distribution expense ratio in Wealth Management.

    Lionstone Outflow Remaining
    $0.5 billion
    Q3 FY25

    Remaining outflow related to Lionstone assets.

    Assets under Management, Administration and Advisement
    $1.7 trillionup 8% year-over-year
    Q3 FY25

    Reached a new high.

    Firm-wide Margin
    27%
    Q3 FY25

    Exceptionally strong margin.

    Return on Equity (ROE)
    53%
    Q3 FY25

    Best-in-class and one of the highest in financial services.

    Adjusted Operating EPS (excluding unlocking)
    $9.92up 12%
    Q3 FY25

    Strong double-digit EPS growth.

    Adjusted Operating Net Revenues (excluding unlocking)
    $4.6 billionincreased 6%
    Q3 FY25

    Driven by asset growth.

    G&A Expenses (firm-wide) decline
    3%
    Q3 FY25

    Improved G&A expenses due to ongoing firm-wide transformation initiatives.

    Total Capital Returned
    $842 million
    Q3 FY25

    Increased capital return in the quarter.

    Total Capital Returned (LTM)
    $3.1 billion
    LTM Q3 FY25

    Total capital returned over the last 12 months.

    Total Capital Returned (5 years)
    $13 billion
    5 years ending Q3 FY25

    Total capital returned over the past 5 years.

    Revenue Growth (LTM)
    7%
    LTM Q3 FY25

    Revenue growth over the last 12 months.

    EPS Growth (LTM)
    12%
    LTM Q3 FY25

    EPS growth over the last 12 months.

    ROE Growth (LTM)
    210 basis points
    LTM Q3 FY25

    ROE improvement over the last 12 months.

    Revenue Growth (5 years CAGR)
    9%
    5 years ending Q3 FY25

    Compounded annual revenue growth over the past 5 years.

    EPS Growth (5 years CAGR)
    18%
    5 years ending Q3 FY25

    Compounded annual EPS growth over the past 5 years.

    ROE Improvement (5 years)
    17 percentage points
    5 years ending Q3 FY25

    ROE improvement over the past 5 years.

    Excess Capital Position
    $2.2 billion
    Q3 FY25

    Excellent excess capital position.

    Available Liquidity
    $2.5 billion
    Q3 FY25

    Strong available liquidity.

    Client Satisfaction Score
    4.9 out of 5
    Q3 FY25

    Consistently earning top client satisfaction.

    Ameriprise Bank Net Investment Income
    flat
    Q3 FY25

    Net investment income in the bank was flat this quarter, minimizing impact from Fed funds rate reductions.

    Industry KPIs

    1
    MetricValueDetails
    Payout ratio87%%

    Product announcements

    5
    ProductTypeDetails
    HELOCslaunch
    Checking Accountslaunch
    Signature Wealth Platformlaunch
    Active ETF capabilitylaunch
    Interval fundlaunch

    Deals & partnerships

    1
    State StreetExpanded partnership to establish a unified global back office for Columbia Threadneedle funds.

    This initiative is part of enhancing the global operating platform for asset management.

    Risks & headwinds

    5
    Fluid Operating EnvironmentCurrent

    Fed cut rates by 0.25 point.

    Mitigation: Diversified business, disciplined management, complementary mix of revenue streams, effective expense management, strong margins.

    Advisor Team DeparturesQ3 FY25

    Impacted client flows and Wrap flows in the quarter.

    Mitigation: Strong recruiting (90 experienced advisors), strong pipeline, focus on quality books and long-term profitability, rational transition packages.

    Competitive Recruiting EnvironmentCurrent

    Not explicitly quantified, but described as "paying up to bring advisors in at, what I would say, top dollar."

    Mitigation: Focus on Ameriprise's value proposition, strength, stability, and balanced equation for long-term profitability.

    Net Outflows in Asset ManagementQ3 FY25

    $3.4 billion net outflows.

    Mitigation: Increased retail gross sales, lower institutional redemptions, investments in high-demand areas, data analytics for targeting advisors, managing expenses effectively.

    Impact of Fed Rate Reductions on Cash RevenuesQ3 FY25

    Cash revenues declined in the mid-single-digit range.

    Mitigation: Leveraging Ameriprise Bank to minimize impact, building bank investment portfolio for stable earnings, repositioning portfolio to be less impacted by rate drops.

    What to watch in Q4 FY25

    5

    Wealth Management Client Flows

    Q4 FY25
    Current$6.5 billion (excluding departures)
    TargetBounce back closer to $8 billion (Wrap flows) or higher overall.

    Why it matters

    Client flows are a key indicator of organic growth and advisor effectiveness, crucial for AUM expansion.

    Excluding those departures, client flows were solid at $6.5 billion and Wrap flows were $8 billion when also adjusted for administrative change.

    Q&A highlights

    6

    Inquired about the status of the Comerica relationship post-M&A and the associated AUM.

    Jim Cracchiolo stated an excellent relationship with Comerica, positive feedback on their platform, and acknowledged the acquisition, noting they would work with Comerica on next steps. Walter Berman quantified the assets at around $15 billion, with contractual protections.

    “Suneet, on the asset side, it's around $15 billion. And like in any contract of this nature, there is protections.”

    asked by Suneet Kamath · answered by Walter Berman

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Investments & Digital Transformation

    Ameriprise is investing in advanced capabilities like Advice Insights, leveraging big data and machine learning for client-centric insights. The launch of the Signature Wealth platform is proving successful in attracting new assets and managing client portfolios. Digital adoption and mobile app satisfaction are at record highs, streamlining workflows and enhancing client and advisor experiences.

    02

    Banking Product Expansion

    The Ameriprise Bank recently launched HELOCs and began a soft launch of checking accounts, with a full rollout planned for later this year. These offerings expand the suite of savings and lending products, aiming to enhance client experience and deepen relationships, while also supporting stable earnings by minimizing the impact of Fed rate reductions on the AWM business.

    03

    Asset Management Performance & Efficiency

    Asset Management saw solid financial results with operating earnings up 6% to $260 million, driven by equity market appreciation and expense management. Net outflows improved significantly to $3.4 billion, with increased retail gross sales and lower institutional redemptions. The firm is enhancing its global operating platform, including an expanded partnership with State Street for a unified global back office.

    04

    Advisor Recruiting & Productivity

    Ameriprise reported strong advisor recruiting, bringing in 90 experienced advisors in the quarter, with a strong pipeline for Q4. Advisor productivity reached a new high of $1.1 million, up 10%. Management acknowledges a competitive recruiting environment but maintains a disciplined approach, focusing on quality advisors and long-term profitability.

    05

    Capital Allocation & Shareholder Returns

    The company generated robust free cash flow and increased capital return to $842 million in the quarter, targeting an 85% payout ratio for Q4. This consistent capital return strategy, combined with an exceptional ROE of nearly 53%, underscores the firm's commitment to generating strong long-term shareholder value and financial strength.

    06

    Market Environment and Resilience

    Management noted a fluid operating environment with strong bull markets, elevated inflation, and recent Fed rate cuts. Despite these dynamics, Ameriprise's diversified business model, effective expense management, and strong margins enable it to sustain strong financial performance and demonstrate resilience.

    AI-generated summary of the company’s earnings call. Not investment advice.