Ameriprise: Adviser Productivity Improves, Recruting Slows
July 28 2010 - 5:31PM
Dow Jones News
Strong operating earnings growth in Ameriprise Financial Inc.'s
(AMP) advice and wealth-management segment contributed to its
strong second-quarter results, and adviser productivity was
improved, the company said.
The Minneapolis-based financial-services planning company
reported Wednesday that its overall net income increased to $259
million in the second quarter, up from just $95 million a year
ago.
Strong operating earnings growth in the quarter reflected
continued margin improvement in its advice and wealth-management
and asset-management segments, the company said Wednesday. Overall
operating earnings increased to $291 million in the quarter, up
172% from a year ago, and up 134% per diluted share, the company
said.
Its advice and wealth-management business reported pre-tax
income of $85 million in the second quarter, compared to a pre-tax
loss of $3 million a year ago, and operating earnings of $88
million compared to $21 million a year ago, the company said.
Operating expenses increased 14% to $880 million, primarily as a
result of higher adviser compensation from higher business levels,
it said.
"Client activity and advisor productivity continued to improve
despite the on-going volatility in the markets," Jim Cracchiolo,
Ameriprise chairman and chief executive, said in a statement.
Adviser productivity, measured as operating net revenue per
adviser, increased 32% compared to a year ago, a record for the
company, though it had fewer advisers. Growth was driven primarily
by higher asset-based fees as a result of year-over-year market
appreciation and net inflows, improved client activity and the
company's focus on higher-producing advisers, it said.
Total advisers declined 7% from a year ago to 11,684, due
primarily to the departure of low-producing advisers, the company
said. Franchise adviser retention rates remain strong, it said.
"The company continued to recruit experienced advisers, although at
a slower rate than in 2009," it said.
-By Daisy Maxey, Dow Jones Newswires; 212-416-2237;
daisy.maxey@dowjones.com
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