Analyst Note| Michael Wong, CFA, CPA |
Ameriprise reported net income of $437 million, or $3.58 per diluted share, on $3.35 billion of net revenue during the first quarter of 2021. On a company-provided adjusted operating basis, which excludes the effect of changes in interest rates on some of its products and a tax benefit in the prior year period, the company reported pro forma operating earnings of $5.43 per share, up 27% from the previous year. Adjusted operating return on equity for the firm, which excludes accumulated other comprehensive income, was a strong 29.9% during the first quarter. Along with first-quarter earnings, Ameriprise announced it was increasing its quarterly dividend 9% to $1.13 per share. While the firm's reported results for the March quarter were impressive, we don’t anticipate making a material change to our $208 per share fair value estimate for narrow-moat Ameriprise Financial.