Ameriprise Financial Inc AMP

Ameriprise Earnings: Steady Growth Continued in the Second Quarter

Ameriprise’s investment management-oriented business continued to produce steady growth in the second quarter, while there’s some uncertainty over client cash rates. Ameriprise reported net income of $829 million, or $8.02 per diluted share, on $4.2 billion of net revenue for the second quarter of 2024. On a company-provided, adjusted operating basis that excludes the effect of changes in interest rates on some of its products and severance, the company reported pro forma operating earnings per share of $8.72, up 17% from the previous year. Net revenue increased 2% sequentially and 9% from the previous year due mainly to higher asset management and financial advice fees and net investment income, as client assets under administration reached a record $1.4 trillion. While net revenue growth was a bit low sequentially, we generally see the macroenvironment as supportive of further growth over the medium term. GDP is expected to grow, though at a slowing rate, and interest rates should fall, which will support financial security prices and client assets. We don’t anticipate making a material change to our $450 fair value estimate for narrow-moat-rated Ameriprise and assess shares are fairly valued.