Ameriprise Earnings: Net Investment Income a Bright Spot for Now; No Signs of Stress

Ameriprise reported net income of $417 million, or $3.79 per diluted share, on $3.7 billion of net revenue for the first quarter of 2023. On a company-provided, adjusted operating basis that excludes the effect of changes in interest rates on some of its products, the company reported pro forma operating earnings per share of $7.25, up 25% from the previous year, and adjusted operating return on equity excluding accumulated other comprehensive income was a strong 49.5% in the quarter. We don't anticipate making a material change to our $358 per share fair value estimate for narrow-moat-rated Ameriprise and assess the shares as being modestly undervalued.