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    AMP
    Earnings call· Dec 2025(Q4 FY25)

    AMERIPRISE FINANCIAL INC AMP

    Jan 29, 2026 Source

    Executive summary

    Ameriprise Financial Q4 FY25 — Record Revenue, Earnings, and Client Flows

    Ameriprise Financial concluded FY25 with record financial performance, driven by strong organic client flows, market tailwinds, and strategic investments in technology and product solutions. The company achieved new highs in revenue, earnings, EPS, and return on equity, while also accelerating capital return to shareholders. Management expressed confidence in continued profitable growth and a strong adviser value proposition for 2026.

    Highlights

    6

    • Adjusted operating revenue grew 10% to $4.9 billion.

    • Adjusted operating earnings grew 10% to over $1 billion.

    • Adjusted EPS increased 16% to $10.83, a new all-time record.

    • Return on equity increased over 100 basis points to 53.2%, its highest ever.

    • Total client assets reached a new record of $1.2 trillion, up 13%, with client inflows of $13.3 billion (4.7% annualized flow rate).

    • Capital returned to shareholders increased 37% YoY to $1.1 billion in Q4, representing 101% of operating earnings.

    Concerns

    5

    • Impact of Fed funds rate reductions on cash revenues

    • Seasonality in client cash sweep balances

    • Competitive adviser recruiting market

    • Consolidation in the bank channel (e.g., Comerica acquisition)

    • Elevated mortality in Retirement and Protective Solutions

    Guidance & targets

    4
    CategoryTargetConfidence
    Firm-wide OpEx growth
    small increase versus last year
    medium materiality
    Medium
    AWM G&A growth
    mid-single digits
    medium materiality
    Medium
    Capital return payout ratio
    85% to 90%
    high materiality
    High
    Advice & Wealth Management organic growth rate
    4% to 5%
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Advice & Wealth Management
    Strong performance across all measures, with near-record client and wrap flow rates. Core business performing well, benefiting from higher client assets and activity. Expenses increased 11%, with distribution expenses up 12%. Pretax adjusted operating earnings increased 13% to $926 million.
    Total client assets: $1.2 trillionTotal client assets growth: 13%Client flows: $13.3 billionAnnualized client flow rate: 4.7%Wrap assets: $670 billionWrap assets growth: 17%Wrap net inflows: $12.1 billionAnnualized wrap flow rate: 7.4%Transactional activity growth: 5% YoYCash sweep balances: $29.9 billionAdviser productivity: $1.1 million per adviserAdviser productivity growth: 8%Experienced advisers recruited: 91Total adviser count growth: 1% YoYNet investment income in the bank: flat YoY
    		$3.2 billion12%—29.3%
    Asset Management
    Strong financial results with operating earnings up 17% to $293 million, reflecting asset growth, higher performance fees, and transformation initiatives. Revenues benefited from higher performance fee revenue. Expenses increased 10%, with G&A up 13% due to performance fee compensation and FX.
    Assets under management and advisement: $721 billionAssets under management and advisement growth: 6%Morningstar 4- and 5-star rated funds: 103Funds above median (1-year, asset-weighted): nearly 70%Funds above median (3- and 10-year, asset-weighted): 80%Net inflows: $1.9 billion
    		$1 billion12%—40%
    Retirement and Protective Solutions
    Delivered strong earnings and free cash flow, in line with target range. Business has excellent risk-adjusted returns and is an important part of the AWM client value proposition. Elevated mortality was due to higher claims, but within expected range.
    Structured annuity sales growth: 7% in Q4Life & Health sales growth: 14% in Q4
    		———$200 million

    Operational metrics

    48
    Adjusted operating revenue
    $4.9 billionup 10%
    Q4 FY25

    Record revenue for the quarter.

    Adjusted operating earnings
    over $1 billionup 10%
    Q4 FY25

    Double-digit growth in earnings.

    Adjusted operating EPS
    $10.83increased 16%
    Q4 FY25

    New all-time record.

    Return on equity
    53.2%increasing over 100 basis points
    Q4 FY25

    Highest ever.

    Assets under management, administration and advisement (AUMAA)
    $1.7 trillionup 11%
    FY25

    Another new high.

    Excess capital
    $2.1 billion
    Q4 FY25

    Strong balance sheet position.

    Holding company available liquidity
    $2.2 billion
    Q4 FY25

    Strong balance sheet position.

    Capital returned to shareholders
    $1.1 billionincreased 37% YoY
    Q4 FY25

    Opportunistic buyback given share price.

    Capital returned to shareholders
    $3.4 billion
    FY25

    One of the highest levels in recent years.

    Full year revenue growth
    6%
    FY25

    Company-wide revenue growth for the full fiscal year.

    Full year adjusted EPS growth
    12%
    FY25

    Company-wide adjusted EPS growth for the full fiscal year.

    Full year Return on equity growth
    60 basis points
    FY25

    Company-wide Return on Equity growth for the full fiscal year.

    Adjusted operating net revenues
    $3.2 billionincreased 12%
    Q4 FY25

    Core business performing very well.

    Fee-based and transaction revenues growth
    low-teen percentage range
    Q4 FY25

    Benefiting from higher client assets and activity levels.

    Cash revenues (NII, distribution fees, banking/deposit interest)
    increased modestly
    Q4 FY25

    Despite impact from Fed funds rate reduction since September 2024.

    Adjusted operating expenses
    increased 11%
    Q4 FY25

    Overall operating expenses for the AWM segment.

    Distribution expenses growth
    12%
    Q4 FY25

    Adviser compensation within distribution expense increased in line with revenues.

    Distribution expenses as % of fees
    65.8%consistent with 66% guided level
    Q4 FY25

    Consistent with prior guidance.

    Full year G&A expenses growth
    4.5%
    FY25

    Primarily driven by volume and growth-related expenses, including investments in Signature Wealth and banking products. Consistent with guidance.

    Pretax adjusted operating earnings
    $926 millionincreased 13%
    Q4 FY25

    Continued strong contribution from both core and cash earnings.

    Core earnings growth
    mid-20% range
    Q4 FY25

    Benefiting from higher client assets and advisory fees as well as strong activity levels.

    Cash earnings
    increased modestly
    Q4 FY25

    Despite the impact from the Fed funds rate reduction since September 2024.

    Ameriprise Bank investment portfolio yield
    4.6%
    Q4 FY25

    Supports stable earnings contributions.

    Ameriprise Bank new purchases
    $2.7 billion
    Q4 FY25

    New investment purchases for the bank's portfolio.

    Total client assets
    $1.2 trillionup 13%
    year-end

    New record high.

    Total client inflows
    $13.3 billionup 18%
    Q4 FY25

    One of the best quarters for flows.

    Wrap business assets
    $670 billionincreased 17%
    Q4 FY25

    Meaningful growth in flows.

    Wrap net inflows
    $12.1 billion
    Q4 FY25

    Near record levels of flows.

    Bank products assets
    $25.3 billion
    Q4 FY25

    Complement the business nicely.

    Lending book growth
    good growth
    Q4 FY25

    Expansion of the lending book within bank products.

    Adviser productivity
    $1.1 millionup 8%
    Q4 FY25

    Continues to increase nicely.

    Experienced advisers recruited
    91
    Q4 FY25

    Building on strong momentum in Q3.

    Total adviser count growth
    1%
    YoY

    Overall growth in the number of advisers.

    Cash sweep balances
    $29.9 billioncompared to $27.1 billion in Q3
    Q4 FY25

    Consistent with normal seasonal trend near year-end.

    Operating earnings
    $293 millionincreased 17%
    Q4 FY25

    Reflected asset growth, higher performance fees, and positive impact from transformation.

    Revenues
    $1 billionincreased 12%
    Q4 FY25

    Benefiting from higher performance fee revenue than a year ago.

    Expenses
    increased 10%
    Q4 FY25

    Overall expenses for the Asset Management segment.

    Distribution expenses growth
    5%
    Q4 FY25

    Distribution expenses for the Asset Management segment.

    General and administrative expenses growth
    13%
    Q4 FY25

    As a result of higher performance fee compensation and foreign exchange translation.

    Margins
    40%
    Q4 FY25

    Above target range for the Asset Management segment.

    Assets under management and advisement
    $721 billionup 6%
    Q4 FY25

    Increased both year-over-year and sequentially from higher ending market levels.

    Net inflows
    $1.9 billion
    Q4 FY25

    Net inflows for the Asset Management segment.

    Morningstar 4- and 5-star rated funds
    103
    year-end

    Continued strong investment performance.

    Funds above median (1-year)
    nearly 70%
    1-year

    Performance of funds globally.

    Funds above median (3- and 10-year)
    80%
    3- and 10-year

    Stronger performance for long-term time frames.

    Pretax adjusted operating earnings
    $200 million
    Q4 FY25

    In line with target range.

    Structured annuity sales growth
    7%
    Q4 FY25

    Sales growth in structured annuity products.

    Life & Health sales growth
    14%
    Q4 FY25

    Sales growth in Life & Health products.

    Industry KPIs

    5
    MetricValueDetails
    Payout ratio101%%
    Pretax margin29.3%%
    Fundraising inflows$1.9 billionUSD
    Net interest incomeflat
    Performance revenuehigher

    Product announcements

    5
    ProductTypeDetails
    Signature Wealth unified management accountlaunch
    Mortgage loanslaunch
    HELOC (Home Equity Line of Credit)launch
    Checking accountslaunch
    Active managed and research enhanced ETFslaunch

    Deals & partnerships

    1
    ComericaFinancial institutions business partnership

    Ameriprise has a very good relationship with Comerica. Comerica is undergoing an acquisition by Fifth Third, which will determine the future of the partnership. Contractual arrangements include contingencies and protections.

    Risks & headwinds

    5
    Impact of Fed funds rate reductions on cash revenuesQ4 FY25 and potentially ongoing

    Cash revenues increased modestly despite the impact from the Fed funds rate reduction since September of 2024.

    Mitigation: Leveraging Ameriprise Bank to minimize impact; building bank investment portfolio to support stable earnings contributions; investing out longer to absorb rate cuts.

    Seasonality in client cash sweep balancesQ1 FY26 (utilization for tax and other reasons)

    Cash sweep balances increased to $29.9 billion compared to $27.1 billion in the third quarter, which is consistent with the normal seasonal trend we typically see near the end of the fourth quarter. In the first quarter, you will see utilization for tax and other reasons.

    Mitigation: Positive underlying cash generation; new product capabilities to generate additional cash.

    Competitive adviser recruiting marketOngoing

    It's a competitive market out there.

    Mitigation: Focus on retaining advisers (strong retention in Q4); attractive transition packages for experienced advisers; strong value proposition and platform capabilities for advisers.

    Consolidation in the bank channel (e.g., Comerica acquisition)Near-term (Comerica acquisition closing soon)

    Consolidation occurs, that can both present opportunities or challenges depending on how that takes place.

    Mitigation: Contractual arrangements with contingencies and protections; strong value proposition for new partners.

    Elevated mortality in Retirement and Protective SolutionsQ4 FY25

    Higher claims at this stage... more frequency... nothing exceptional.

    Mitigation: Within expected range, not seen as impacting longer-term trends.

    What to watch in Q1 FY26

    5

    Firm-wide OpEx growth

    FY26
    CurrentFY25 G&A up 4.5%
    Targetsmall increase versus last year

    Why it matters

    Indicates the company's ability to manage expenses while investing for growth and maintaining operating leverage.

    the net effect of that should be, as you look at the company, staying within the ranges that you saw, again, based on volume and up, but certainly seeing a small increase versus last year

    Q&A highlights

    6

    How to reconcile strong net new flows with lower distribution expense ratio, and outlook for organic flows and distribution expense in the coming year?

    Management attributed strong flows to organic growth, new clients, existing client flows, and increased recruiting. They expect distribution expenses to remain in line with revenue growth, acknowledging competitive recruiting but comfortable with the ranges.

    “Our flows in the fourth quarter were very strong. It was both organic growth, new clients added flows from current clients as well as, as you saw a pickup in the recruiting as we head towards the latter part of the year.”

    asked by Steven Chubak · answered by Jim Cracchiolo

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q4 and FY25 Performance

    Ameriprise Financial reported a strong fourth quarter, contributing to a very good year in 2025, with new all-time records across revenue ($4.9 billion, up 10%), earnings (over $1 billion, up 10%), and EPS ($10.83, up 16%). The company achieved a record return on equity of 53.2% and ended the year with $1.7 trillion in assets under management, administration, and advisement, up 11%.

    02

    Investments in Technology and Growth

    The company is making significant investments in top-tier technology, digital capabilities, AI, and cloud infrastructure to enhance client and adviser experience and drive organic growth. These investments include new product solutions across businesses, such as the Signature Wealth unified management account and expanded bank offerings like checking accounts and mortgage loans.

    03

    Advice & Wealth Management Momentum

    The Advice & Wealth Management segment saw total client assets reach a record $1.2 trillion, up 13%, driven by strong client flows of $13.3 billion (up 18%) and a 4.7% annualized flow rate. Wrap assets grew 17% to $670 billion with $12.1 billion in net inflows (7.4% annualized flow rate). Adviser productivity increased 8% to $1.1 million per adviser, and 91 experienced advisers were recruited in the quarter.

    04

    Asset Management Transformation

    Asset Management reported strong financial results with operating earnings up 17% to $293 million and AUM/AUA reaching $721 billion, up 6%. The segment is leveraging global capabilities for efficiency, undergoing back-office transformation, and expanding its active ETF lineup, SMA model delivery, and alternatives offering, including the launch of 6 new active ETFs in the U.S. and initial ETFs in EMEA.

    05

    Robust Capital Return and Balance Sheet

    Ameriprise maintains a strong financial foundation with $2.1 billion in excess capital and $2.2 billion in available liquidity. The company returned $1.1 billion to shareholders in Q4 (101% of operating earnings) and $3.4 billion for the full year 2025 (88% of operating earnings), demonstrating an opportunistic approach to share repurchases.

    06

    Strategic Bank Integration

    The Ameriprise Bank strategy has been crucial in minimizing the impact of Fed funds rate reductions on the AWM business, with net investment income in the bank remaining flat for the year. The bank's investment portfolio has a yield of 4.6% and a 3.8-year duration, with new purchases yielding 5%. New offerings like checking accounts and HELOCs are being rolled out to complement the wealth management business.

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