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AMERIPRISE FINANCIAL INC (AMP)·Q1 2025 Earnings Summary

Executive Summary

  • Adjusted operating EPS of $9.50, up 13% YoY, and return on equity ex-AOCI at 52.0%; GAAP diluted EPS was $5.83, down due to market impacts on derivatives and market risk benefits .
  • Revenue was $4.48B (+4% YoY), with total net revenues up 5% YoY, driven by higher client assets and transactional activity; pretax adjusted operating margin was 26.7% (27% consolidated margin described in materials) .
  • EPS and revenue beat Wall Street consensus: $9.50 vs $9.08 EPS*, $4.48B vs $4.41B revenue*; prior quarter Q4 also beat, while Q3 2024 had an EPS miss but revenue beat*.
  • Capital return remained a key catalyst: $765M returned (81% of operating earnings), an 8% dividend increase to $1.60 per share, and a new $4.5B buyback authorization through June 30, 2027 .
  • Segment trends: AWM grew adjusted net revenues 9% with $10.3B client flows and $8.7B wrap flows, Asset Management margins expanded to 43% despite $18.3B net outflows, and RPS earnings rose 8% on stronger interest earnings and higher markets .

What Went Well and What Went Wrong

What Went Well

  • Strong profitability and capital return: $765M returned in Q1 (81% of operating earnings), new $4.5B buyback, and dividend raised 8% to $1.60 per share .
  • AWM organic growth: $10.3B total client flows and $8.7B wrap net inflows (6% annualized rate), with adjusted net revenue per advisor up 12% TTM to $1.056M .
  • Expense discipline and margin expansion: consolidated G&A down 5% YoY; Asset Management pretax margin at 43% on transformation efforts despite outflows .
    “Ameriprise delivered a strong first quarter... We further demonstrated the benefits of our diversified business and continued to generate strong financial results across the firm. And our expense discipline will continue to benefit us.” — Jim Cracchiolo, CEO .

What Went Wrong

  • Asset Management net outflows of $18.3B (retail/model -$5.8B; institutional -$11.5B), including a large client repositioning to passive and Lionstone exit .
  • AWM spread revenues declined given prior Fed cuts; AWM pretax margin slipped to 28.5% from 29.8% YoY .
  • GAAP EPS fell sharply YoY to $5.83 (from $9.46), driven by unfavorable market impacts on the valuation of derivatives and market risk benefits; change in fair value of market risk benefits was a $497M expense in Q1 .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Total Revenues ($USD Billions)$4.56*$4.649 $4.481
Total Net Revenues ($USD Billions)—$4.501 $4.354
GAAP Diluted EPS ($)$8.10*$10.58 $5.83
Adjusted Operating Diluted EPS ($)$9.02 $9.54 $9.50
Pretax Adjusted Operating Margin (%)~27% 27% 26.7%
ROE ex-AOCI (Adjusted, %)50.7% 52.7% 52.0%
Primary EPS Consensus Mean ($)$8.92*$9.05*$9.08*
Revenue Consensus Mean ($USD Billions)$4.28*$4.48*$4.41*
Values marked with * retrieved from S&P Global.

Segment breakdown (Adjusted Operating):

Segment MetricQ1 2024Q4 2024Q1 2025
AWM Adjusted Net Revenues ($B)$2.560 $2.834 $2.782
AWM Pretax Adjusted Earnings ($M)$762 $823 $792
AWM Pretax Adjusted Margin (%)29.8% 29.0% 28.5%
AM Adjusted Net Revenues ($M)$855 $930 $846
AM Pretax Adjusted Earnings ($M)$206 $251 $241
AM Net Pretax Adjusted Margin (%)34.9% 39.0% 42.7%
RPS Adjusted Net Revenues ($M)$912 $960 $926
RPS Pretax Adjusted Earnings ($M)$199 $213 $215

KPIs

KPIQ1 2024Q4 2024Q1 2025
Total AUM/AUA/AUA ($USD Billions)$1,452.66 $1,521.953 $1,494.660
AWM Total Client Flows ($B)$8.501 $11.261 $10.275
Wrap Net Flows ($B)$6.518 $11.073 $8.724
AWM Cash Balances ($B)$43.259 $41.647 $40.006
AM Total AUM & AUA Flows ($B)$(5.435) $1.323 $(18.250)
RPS Sales (total, $B)—$1.2 $1.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating effective tax rate (Adjusted)FY 2025Not disclosed previously in these materials20–22%New guidance
Dividend per share (regular quarterly)Q2 2025 payable May 19Not stated here$1.60 (+8%)Raised
Share repurchase authorizationThrough 6/30/2027~$138M remaining from July 2023 authorization through 9/30/2025+$4.5B authorizationRaised
AWM margin run-rateOngoing29% reasonable going forward28.5–29% (Q1 at 28.5%)Maintained tone
Consolidated G&AFY 2025Enterprise G&A flattish in 2025Consolidated G&A roughly flat for the yearMaintained
Corporate & Other run-rate1H 2025Q4 similar early in yearLess severance; cloud transition costs to dissipate through Q2Maintained trajectory

Earnings Call Themes & Trends

TopicQ3 2024Q4 2024Q1 2025Trend
AI/Technology initiativesAdvisers leveraging analytics/AI; CRM/data tools Investing in data and AI in AM; building capabilities Practice Tech award; launching Signature Wealth UMA; tech platform availability Expanding deployment; GenAI benefits early-stage
Macro/VolatilityFed cuts; election/geopolitics; clients navigating uncertainty Slower pace for rate cuts in 2025 Elevated volatility; tariff uncertainty; Fed navigating impacts Persistent volatility; positioned to navigate
Bank/NII & cashBank assets up; aim for stable NII across lower-rate cycle 75%→87% fixed; NII expected stable/higher; sweep rate adjustments 15% floating; added $500M balances; invested at ~5.5% yield/4-year duration; NII should improve Stabilizing NII via portfolio shifts
Asset Management flowsOutflows improved to $(2.4)B; ETF/SMA/model delivery building Net inflows $1.3B; margin 39% Net outflows $(18.3)B; large institutional move to passive; margin 43% Volatile flows; margin resilience via costs
RPS earnings~$800M annual pretax target; consistent earnings $213M pretax; strong VA & VUL sales $215M pretax; strong product sales Steady, strong FCF contribution
Recruiting/advisers71 adds; productivity $997k; high retention 91 adds; productivity >$1M; pipeline strong 82 adds; packages more competitive; adviser count disclosure removed; headcount up if provided Productivity rising; recruiting steady
Capital return80% payout target; excess capital $2B $768M returned; ROE 52.7% $765M returned; dividend +8%; $4.5B buyback; excess capital $2.4B; liquidity $2.5B Very strong; authorization increased

Management Commentary

  • “We’re navigating the operating environment with the strength of our client relationships and advice-based value proposition... And our expense discipline will continue to benefit us. Our balance sheet strength remains a differentiator.” — Jim Cracchiolo, CEO .
  • “Adjusted operating EPS increasing 13% to $9.50... reflects positive flows and activity in Wealth Management, proactive changes to the bank’s investment portfolio, and benefits from transformation initiatives.” — Walter Berman, CFO .
  • “Margin for Wealth Management remains strong at 29%... client cash levels remain high overall at $86 billion, which represents a nice opportunity for money to be put back to work.” — Jim Cracchiolo .
  • “Asset Management margins reached 43%... driven by market appreciation and expense management actions, partially offset by cumulative impact of net outflows.” — Management .
  • “Operating effective tax rate was 17.5% in Q1... expected to be 20 to 22 percent for full year 2025.” — Company .

Q&A Highlights

  • Bank NII outlook: CFO expects improvement given shift from floating to fixed and portfolio mix actions; additional liabilities added to balance sheet; ability to manage NII despite rate uncertainty .
  • Signature Wealth UMA: CEO detailed a comprehensive UMA enabling flexible sleeves and household-level rebalancing; includes Columbia models among providers; aims to be state-of-the-art .
  • Adviser recruiting environment: Packages getting more competitive; AMP added 82 experienced advisers; CEO noted removal of adviser count disclosure aligns with peers; headcount would be up if disclosed .
  • Asset Management outflows: Institutional outflows driven by a large client moving to passive and Lionstone exit; retail redemptions increased with volatility; working to build momentum via active ETFs, SMAs, and model delivery .
  • Expense trajectory: Consolidated G&A expected roughly flat for 2025; corporate costs similar to 4Q with severance/cloud costs dissipating through Q2 .
  • April trends: Cash relatively flat aside from tax-related pulls; recruiting pipeline remains strong; client behavior mixed with volatility .

Estimates Context

MetricQ3 2024Q4 2024Q1 2025
Adjusted Operating EPS Actual ($)$9.02 $9.54 $9.50
Primary EPS Consensus Mean ($)$8.92*$9.05*$9.08*
Total Revenues Actual ($USD Billions)$4.56*$4.649 $4.481
Revenue Consensus Mean ($USD Billions)$4.28*$4.48*$4.41*
Values marked with * retrieved from S&P Global.
  • Q1 2025: EPS beat ($9.50 vs $9.08*) and revenue beat ($4.481B vs $4.41B*).
  • Q4 2024: EPS beat ($9.54 vs $9.05*) and revenue beat ($4.649B vs $4.48B*).
  • Q3 2024: EPS miss ($9.02 vs $8.92* actual adjusted beat relative to “Primary EPS” definition may vary); revenue beat ($4.56B vs $4.28B*).

Key Takeaways for Investors

  • Beat-and-raise profile on capital return: Strong EPS/revenue beats and an upsized $4.5B buyback plus an 8% dividend increase support near-term multiple resilience and buyback-led EPS accretion .
  • AWM durability: High client engagement, strong flows and wrap momentum with stabilizing margins (~29%) suggest continued core strength even as spreads normalize .
  • Asset Management margin resilience: Despite volatile flows, transformation-driven cost reductions lifted margins to 43%; watch for flow normalization as active ETFs/SMAs/model delivery scale .
  • Rate strategy mitigants: Bank portfolio repositioning (only ~15% floating now) and deposit growth underpin NII stability; expect incremental product catalysts (CDs, HELOCs, checking) to deepen client balances .
  • Tax rate shift: Adjusted operating effective tax rate expected at 20–22% for FY25; incorporate into updated models .
  • RPS steady cash generation: Consistent earnings and strong sales mix (VA w/o living benefits and VUL) remain an underappreciated driver of FCF and capital returns .
  • Near-term trading lens: Positive capital return narrative and margin discipline offset the AM flow volatility; monitor institutional flows and macro volatility headlines as potential stock reaction drivers .

Values marked with * retrieved from S&P Global.