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AMERIPRISE FINANCIAL INC (AMP)·Q2 2025 Earnings Summary

Executive Summary

  • AMP delivered a clean beat on both EPS and revenue: adjusted operating EPS was $9.11 vs S&P Global consensus $9.00*, and total revenues were $4.49B vs $4.33B*, with pretax adjusted operating margin at 26.5% (down ~30 bps YoY) . S&P Global consensus values marked with *; Values retrieved from S&P Global.
  • Advice & Wealth Management (AWM) benefited from record client assets ($1.084T) and resilient productivity, but margins compressed on higher distribution expense and lower spread revenue; Asset Management posted 39% net pretax adjusted operating margin despite $8.7B of outflows .
  • RPS remained a steady earnings contributor (+9% YoY to $214M pretax), aided by favorable life claims and stronger interest earnings .
  • Management reiterated 2025 operating tax-rate guidance (20–22%) and signaled a step-up in capital return, targeting an 85% operating-earnings payout in 2H25 (vs ~81% in 1H) — a potential stock support catalyst .
  • Macro and seasonal headwinds (April tax payments, trade-policy uncertainty) weighed on 2Q flows; June market recovery and a new UMA (Signature Wealth) position AWM for 3Q rebound .

What Went Well and What Went Wrong

  • What Went Well
    • Strong consolidated print: adjusted operating EPS +7% YoY to $9.11; total revenues +2% YoY to $4.49B; adjusted ROE ex-AOCI 51.5% .
    • Asset Management operating leverage: net pretax adjusted operating margin improved to 39.0% on expense actions, despite outflows; fee rate remained stable .
    • RPS execution: pretax adjusted operating earnings +9% YoY to $214M on favorable life claims and higher interest earnings; sequential sales improved to $1.4B with strong structured annuity demand .
    • CEO quote: “Advisor productivity grew by double digits… both client and firm asset levels hit all-time highs… we launched our new unified managed account, the Ameriprise Signature Wealth Program.”
  • What Went Wrong
    • AWM margin compression: Pretax adjusted operating margin fell to 28.9% (–220 bps YoY), pressured by higher distribution expense and lower spread revenue after 2024 Fed funds cuts .
    • Flows softness amid volatility: Firm-wide Asset Management net AUM/AUA outflows of $8.7B; retail redemptions increased and institutional outflows included ~$1.6B related to Lionstone exit .
    • Cash headwinds: AWM total cash balances declined sequentially (normal seasonality); cash sweep $27.4B vs $28.6B in 1Q, reflecting April tax payments .

Financial Results

Consolidated results vs prior periods and S&P Global consensus

MetricQ2 2024Q1 2025Q2 2025 ActualQ2 2025 Consensus
Total Revenues ($B)$4.392 $4.481 $4.490 $4.331*
Total Net Revenues ($B)$4.220 $4.354 $4.375 —
Adjusted Operating EPS ($)$8.53 $9.50 $9.11 $9.00*
GAAP Diluted EPS ($)$8.02 $5.83 $10.73 —
Pretax Adjusted Operating Margin (%)26.8% 26.7% 26.5% —

S&P Global consensus values marked with *; Values retrieved from S&P Global.

Segment performance

Segment (Adjusted Operating)Q2 2024Q1 2025Q2 2025
AWM Net Revenues ($MM)$2,644 $2,782 $2,807
AWM Pretax Earnings ($MM)$822 $792 $812
AWM Pretax Margin (%)31.1% 28.5% 28.9%
Asset Mgmt Net Revenues ($MM)$848 $846 $830
Asset Mgmt Pretax Earnings ($MM)$218 $241 $222
Asset Mgmt Net Pretax Adj Margin (%)37.6% 42.7% 39.0%
RPS Net Revenues ($MM)$928 $926 $936
RPS Pretax Earnings ($MM)$196 $215 $214
Corp & Other ex Closed Blocks Pretax ($MM)$(123) $(103) $(100)
Long Term Care Pretax ($MM)$12 $14 $7
Fixed Annuities Pretax ($MM)$(8) $(8) $(6)

Key performance indicators (KPIs)

KPIQ2 2024Q1 2025Q2 2025
Total AUM, Admin & Advisement ($MM)1,458,935 1,494,660 1,584,767
AWM Total Client Assets ($MM)972,135 1,022,520 1,083,821
AWM Total Client Net Flows ($MM)6,604 10,275 4,281
Wrap Ending Assets ($MM)534,990 572,771 615,189
AWM Total Cash Balances ($MM)40,630 40,006 37,972
Cash Sweep Balances ($B)—$28.6 $27.4
Asset Mgmt AUM & AUA ($MM)673,860 656,698 689,723
Asset Mgmt Total AUM & AUA Flows ($MM)(11,135) (18,250) (8,757)
RPS Sales ($B)—$1.2 $1.4
Operating Effective Tax Rate (%)21.0 17.5 21.7
Capital Returned ($MM)693 765 731

Notes: “—” indicates not provided explicitly in the referenced period.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating effective tax rateFY 202520–22% (Q1 reiteration) 20–22% (reiterated) Maintained
AWM G&A growthFY 2025Not specified priorLow- to mid-single-digit increase New detail
Consolidated G&A run-rateFY 2025—“Maintain G&A expenses at this level for the remainder of the year” (after 3% YTD improvement) New
Capital return payout2H 2025—Target ~85% of operating earnings Raised (new target)
DividendAug 18, 2025—$1.60/sh payable; record Aug 4, 2025 Confirmed quarterly dividend

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
AI/Technology & efficiencyEmphasis on integrated tech, analytics; ongoing transformation and expense discipline Continued investments in client experience, technology, digital, advanced analytics, AI Steady execution
Macro/tariffs & volatility4Q benefited from strong markets; rate cuts underway Volatility, trade-policy uncertainty weighed on flows early; June recovery supportive Near-term headwind, improving exit
Recruiting/competitionRecord adviser productivity; active recruiting; competitive but disciplined 73 experienced advisers added; competitive packages; some “irrational” market behavior noted Pipeline improving
Bank & NII strategyRepositioned to higher fixed mix; deposit growth; plan new products Expect spread increases as securities roll; funding via high-yield savings/CDs; HELOCs/checking upcoming Positive NII trajectory
Asset Mgmt flows4Q retail inflows but institutional outflows; fee rate stable Net outflows continued (–$8.7B); Lionstone exit; margin 39%, expenses lower Stabilizing margins; flows still soft
RPS profitabilityStrong/consistent earnings; sales momentum Pretax +9% YoY; sales $1.4B; favorable life claims Sustained strength

Management Commentary

  • CEO (prepared): “Advisor productivity grew by double digits, reaching another record… both client and firm asset levels hit all-time highs… we launched our new unified managed account, the Ameriprise Signature Wealth Program.”
  • CFO (prepared): “Adjusted operating EPS increased 7% to $9.11 with a strong margin of 27%... we will maintain G&A expenses at this level for the remainder of the year… plan to increase our payout ratio to 85% for the second half of the year.”
  • On Asset Management: “We are significantly transforming the business… margin was 39%… fee rate remained stable.”

Q&A Highlights

  • Flows/recruiting dynamics: Early-quarter flows were pressured by tax season and client caution; improvement later in quarter and into July; distribution expense growth largely production-driven; recruiting packages competitive but disciplined .
  • Capital returns: Targeting ~85% operating-earnings payout in 2H25; capacity to go higher evaluated opportunistically .
  • Bank net interest income: Expect spread uplift as portfolio rolls; funding growth via CDs and high-yield savings; launching HELOCs and checking to support lending .
  • Asset Management pipeline: Outflows tied to institutional redemptions and Lionstone exit; retail gross sales improved; expanding active ETFs, CLOs, interval funds; building in EMEA .
  • Risk transfer/LTC: RPS remains highly profitable; no change in bid-ask to justify risk-transfer deals; LTC trends “on a good trajectory” .

Estimates Context

  • S&P Global consensus for Q2 2025: EPS $9.00 (11 est.); revenue $4.331B (6 est.)*. AMP delivered $9.11 EPS and $4.49B revenues — both beats. S&P Global consensus values marked with *; Values retrieved from S&P Global.
  • Given the margin resilience and stronger revenues, Street models may need to lift AWM core-fee revenue run-rates, temper spread revenue, and nudge Asset Management margins higher while keeping flows conservative .

Results vs estimates

MetricQ2 2025 ActualQ2 2025 ConsensusDelta
Adjusted Operating EPS ($)$9.11 $9.00*+$0.11
Total Revenues ($B)$4.490 $4.331*+$0.159

S&P Global consensus values marked with *; Values retrieved from S&P Global.

Key Takeaways for Investors

  • Quality beat with stable consolidated margins; mix shows AWM strength offset by Asset Management outflows — but 39% margin underscores operating leverage .
  • AWM margin compression appears cyclical (volatility, lower spread revenue post-rate cuts); June market recovery, record client assets, and Signature Wealth should support 2H flows and revenue per advisor .
  • Capital return is re-accelerating: management targeting ~85% payout in 2H25; dividend at $1.60 declared for Aug. 18 — supportive to total return .
  • RPS remains a differentiated, high-ROE, cash-generative ballast; continued steady earnings reduce consolidated volatility across cycles .
  • Asset Management remains the swing factor: expect ongoing expense discipline and product expansion (active ETFs, CLOs, interval funds) to sustain margins while flows normalize from volatile quarters .
  • Watch near-term catalysts: seasonal 3Q tailwinds to flows, bank product launches (HELOCs/checking), and potential improvement in institutional pipeline conversion .
  • Risk: renewed volatility and elevated redemptions could pressure fee revenue and AWM distribution expense; a slower redeployment of client cash would temper near-term upside .