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AMERIPRISE FINANCIAL INC (AMP)·Q3 2025 Earnings Summary

Executive Summary

  • Ameriprise delivered a clean beat in Q3: Adjusted operating EPS was $9.87 vs $9.76 consensus* and total revenues were $4.89B vs $4.57B consensus*, with firmwide pretax adjusted operating margin of 26.2% (27.1% ex-unlocking), driven by asset growth and cost discipline .
  • Advice & Wealth Management (AWM) remained the engine: net revenues +9% to $2.99B and pretax AO earnings +7% to $881M (29.5% margin), as higher client assets and transactional activity offset expected pressure on cash/spread revenue .
  • Asset Management profitability improved (42.1% net pretax AO margin) despite modest outflows (-$3.4B), as expense actions and market appreciation supported a 6% increase in pretax AO earnings to $260M .
  • Capital return stayed a differentiator: $842M returned (87% of AO earnings) and a new Q4 payout target of ~85% signals continued shareholder-friendly policy; board declared a $1.60 dividend payable Nov 24, 2025 .
  • Near-term catalysts: continued core margin strength, improving Asset Management flows, and stabilized bank NII position; watch AWM net flows after one-off large team departures and the Comerica channel (~$15B AUA) amid regional bank M&A .

*Estimates marked with * are from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Core profitability and margins: Firmwide pretax adjusted operating margin was 26.2% (27.1% ex-unlocking), reflecting strong expense discipline and operating leverage .
  • Wealth momentum and productivity: AWM net revenues +9% to $2.99B; pretax AO earnings +7% to $881M (29.5% margin). Revenue per advisor (TTM) hit $1.093M (+10%); 90 experienced advisors joined in the quarter .
  • Asset Management margin expansion and cost control: Pretax AO earnings +6% to $260M; net pretax AO margin improved to 42.1% on stable fees and disciplined G&A (+1% YoY) .

What Went Wrong

  • Weaker AWM net flows headline: Total client net flows fell to $3.4B (from $8.6B YoY), with wrap net flows $4.8B; management cited two large advisor team departures and a one-time administrative change (ex these, client flows $6.5B; wrap $8.0B) .
  • Asset Management still in net outflow: Total AUM/AUA flows of -$3.4B despite sequential improvement; institutional -$1.4B and retail/model delivery -$1.1B .
  • Cash/spread revenue headwinds persisted: AWM net investment income declined YoY (banking & deposit expense dynamics), and cash revenue categories remained pressured as rates eased; cash balances stable at $27.1B .

Financial Results

Headline results by quarter (FY 2025; oldest → newest)

MetricQ1 2025Q2 2025Q3 2025
Total Revenues ($B)$4.48 $4.49 $4.89
Adjusted Operating EPS ($)$9.50 $9.11 $9.87
GAAP EPS ($)$5.83 $10.73 $9.33
Pretax Adjusted Operating Margin (%)26.7% 26.5% 26.2% (27.1% ex-unlocking)

YoY comparison (Q3 2024 vs Q3 2025)

MetricQ3 2024Q3 2025
Total Revenues ($B)$4.56 $4.89
Adjusted Operating EPS ($)$8.10 $9.87
GAAP EPS ($)$5.00 $9.33
Pretax Adjusted Operating Margin (%)24.1% 26.2% (27.1% ex-unlocking)

Q3 2025 vs S&P Global consensus

MetricConsensus*ActualSurprise
Revenue ($B)$4.57*$4.89 +7.2%
EPS ($)$9.76*$9.87 +1.1%

*Values retrieved from S&P Global.

Segment performance

Segment (Adjusted Operating)Q2 2025Q3 2025
AWM Net Revenues ($B)$2.807 $2.990
AWM Pretax Earnings ($M)$812 $881
AWM Pretax Margin (%)28.9% 29.5%
Asset Mgmt Net Revenues ($M)$830 $906
Asset Mgmt Pretax Earnings ($M)$222 $260
Asset Mgmt Net Pretax Margin (%)39.0% 42.1%
R&PS Net Revenues ($M)$936 $1,102
R&PS Pretax Earnings ex-unlocking ($M)$214 $200
Corporate & Other Pretax ex-unlocking ($M)$(85–90) run-rate; $(100) reported $(93)

KPIs and balance items

KPIQ2 2025Q3 2025
Total AUM/Administration/Advisement ($T)$1.585 $1.660
AWM Total Client Assets ($T)$1.084 $1.138
Wrap Assets ($B)$615 $650
Total Client Net Flows ($B)$4.3 $3.4
Wrap Net Flows ($B)$5.4 $4.8
Cash Sweep Balances ($B)$27.4 $27.1
Asset Mgmt AUM&AUA Flows ($B)$(8.7) $(3.4)
Model Delivery AUA Flows ($B)$0.4 $1.7 (incl. $1.0B institutional)
AWM Revenue/Advisor (TTM, $M)$1.070 $1.093
Advisors Recruited (Experienced, #)73 90

Additional notes: GAAP-to-non-GAAP “unlocking” in Q3 had a +$17M GAAP after-tax impact and a -$5M adjusted operating after-tax impact .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating effective tax rateFY 202520–22% (Q1/Q2) 20–22% (reiterated) Maintained
AWM G&A growthFY 2025Low- to mid-single-digit increase (Q2) Low- to mid-single-digit increase (reiterated) Maintained
Asset Mgmt G&A (ex perf fees)FY 2025—Mid single-digit decline (ex perf fees) New detail
Capital return payoutQ4 2025—Targeting ~85% payout in Q4 New
Bank net investment incomeFY 2025“Sustainable”/Stable (Q2) Stable; bank NII flat in Q3 Maintained/clarified
DividendNext payablePrior $1.60 quarterly$1.60 payable Nov 24, 2025 (rec. Nov 10) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2 2025)Current Period (Q3 2025)Trend
Digital & AI initiatives (Advice Insights, mobile, platform)Continued investment; launched Signature Wealth Program in Q2 Record mobile app satisfaction; “Advice Insights” ML capability; Signature Wealth early success attracting assets Accelerating adoption and impact
Interest rates, cash, bank NIISeasonal cash decline in Q1; stable $27.4B in Q2 Cash $27.1B stable; bank NII flat; reinvestments high-4s/low-5s yield, 3.7–4.4yr duration Stable; rate cuts manageable
Recruiting & flowsQ1 flows strong ($10.3B); 82 advisors ; Q2: 73 advisors, $4.3B flows 90 advisors; headline flows muted by two large team exits; ex-one-offs client flows $6.5B, wrap $8.0B Productivity strong; flows impacted by one-offs
Asset Mgmt flows & efficiencyOutflows eased Q1→Q2; expense actions underway Outflows improved to $(3.4)B; 42.1% net pretax margin; State Street back-office partnership progressing Improving flows; structural cost wins
Certificates balances~$10.7B Q1; $9.9B Q2 $8.9B; management sees normalization toward ~$5–$6B over time Gradual normalization lower
Regional bank channel (Comerica)Not highlightedRelationship strong; ~$15B assets; monitoring M&A implications Watch list

Management Commentary

  • CEO Jim Cracchiolo: “Ameriprise delivered a strong third quarter… We consistently generate value with good revenue and earnings growth and attractive margins… complemented by our excellent free cash flow and differentiated capital return” .
  • CFO Walter Berman: “Adjusted operating EPS excluding unlocking up 12% to $9.92, with a strong margin of 27%… G&A expenses improved 3%… increased our capital return to 87% of operating earnings in the quarter” .
  • On technology: “Our digital and AI investments are creating strong experiences and streamlining workflows… Advice Insights uses big data and machine learning to create client-centric insights” .
  • On Asset Management: “Operating earnings increased 6% to $260 million… net pretax margin reached 42%… using State Street to establish a unified global back office” .
  • On capital return: “We remain committed to returning capital to shareholders… targeting an 85% payout ratio for the fourth quarter” .

Q&A Highlights

  • AWM flows and advisor departures: Management cited two large practices moving to RIA models as near-term flow headwinds; underlying organic flows and recruiting pipeline remain solid . They expect some carryover into Q4 but attrition patterns are stable .
  • Competitive recruiting market: Packages increased modestly to remain competitive but within rational, long-term profitability thresholds; no broad payout grid changes planned .
  • Comerica relationship: Relationship and platform feedback strong; ~$15B assets; monitoring impact of regional bank M&A, with contractual protections noted .
  • Bank and cash dynamics: Bank NII stable; reinvestment yields high-4s/low-5s; sweep cash expected to follow normal seasonal upticks despite rate cuts; certificates expected to normalize toward ~$5–$6B over time .
  • Asset Mgmt expenses and flows: Expense transformation largely implemented; State Street back-office initiative underway; sequential improvement in institutional and retail redemption trends .

Estimates Context

  • Q3 2025 results vs consensus: Adjusted Operating EPS $9.87 vs $9.76*; revenue $4.89B vs $4.57B* — both better than consensus .
  • Forward look: Q4 2025 consensus stands at EPS ~$10.23* and revenue ~$4.72B*; management’s 85% payout target and stable bank NII may support EPS resilience into year-end .

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Beat and quality: Q3 revenue (+7% vs consensus*) and EPS (+1% vs consensus*) beats alongside steady 26–27% firmwide margins underscore earnings quality and operating leverage .
  • AWM remains the growth engine: Double-digit advisor productivity, strong transactional activity, and record client assets offset rate-related cash pressure; ex-one-offs, flows remain healthy .
  • Asset Management turning the corner: Sequential outflow improvement and 42% net pretax margin point to structurally higher profitability as cost transformation takes hold .
  • Capital return is a core pillar: $842M returned (87% of AO earnings) in Q3 with a Q4 ~85% payout target signals continued shareholder-friendly distribution .
  • Rate path manageable: Bank NII stable and portfolio positioned for reinvestment in high-4s/low-5s yields; certificates likely to normalize lower, but spreads should hold up .
  • Watchlist items: Monitor AWM net flows normalization post-advisor departures, progress on Asset Management flows, and potential implications from regional bank M&A (e.g., Comerica channel) .

*Values retrieved from S&P Global.