Ameriprise Earnings: Client Cash Outflows Restarted but Manageable

Ameriprise reported net income of $990 million, or $9.46 per diluted share, on $4.1 billion of net revenue for the first quarter of 2024. On a company-provided adjusted operating basis, which excludes the effects of changes in interest rates on some of its products, Ameriprise reported pro forma operating earnings per share of $8.39, up 16% from the previous year. Ameriprise also increased its quarterly dividend by 10% to $1.48 per share, and total capital return to shareholders was 74% of adjusted operating earnings. The management team expects to return 80% of operating earnings to shareholders in 2024, the same as its target in 2023. We don't anticipate making a material change to our $450 per share fair value estimate for narrow-moat-rated Ameriprise and assess shares as being fairly valued right now.