Ameriprise Earnings: Strong Wealth Management Performance and Positive Outlook

Ameriprise reported net income of $377 million, or $3.57 per diluted share, on $4.0 billion of net revenue for the fourth quarter of 2023. On a company-provided adjusted operating basis, which excludes the effects of changes in interest rates on some of its products, regulatory accrual charges (including an industrywide regulatory matter relating to electronic communication recordkeeping requirements), severance costs, and mark-to-market impact on share-based compensation expense, Ameriprise reported pro forma operating earnings per share of $7.75, up 14% from the previous year. Adjusted operating return on equity, excluding accumulated other comprehensive income, was a strong 48.5% for the quarter. We don't anticipate making a material change to our $379 per share fair value estimate for narrow-moat-rated Ameriprise and assess shares as being fairly valued right now.