Question · Q4 2025
Luke, on behalf of Alex Blostein, asked about Ameriprise's longer-term expense algorithm beyond 2026, specifically if a low single-digit growth rate is a reasonable expectation given ongoing investments and re-engineering efforts. Luke also sought clarification on Ameriprise's positive cash generation in the Advice & Wealth Management business, asking if it implies organic cash growth ex-seasonality, and how the pace of cash growth might evolve in a potentially lower interest rate environment.
Answer
Chairman and CEO Jim Cracchiolo affirmed that a low single-digit expense growth rate is reasonable, considering inflation and rising costs from external technology vendors. CFO Walter Berman added that Ameriprise continuously manages to margin, balancing investments with ongoing re-engineering and leveraging its broad platform for efficiency. Cracchiolo confirmed underlying organic cash generation, supported by new product capabilities. He suggested that in a lower rate environment, clients might shift from money markets to sweep accounts for transactional and investment purposes, potentially increasing sweep balances.
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