Ameriprise Financial Inc.'s (AMP) first-quarter earnings rose
13%, beating analysts' estimates, as the company's assets under
management and revenue increased.
"We had a strong start to the year, with solid growth across our
business," said Chairman and Chief Executive Jim Cracchiolo.
"Adviser productivity is at record levels, and retail client
assets, inflows and activity all improved."
The financial-services planning provider's results have been
boosted recently by its $1 billion acquisition of the Columbia
Management business from Bank of America Corp. (BAC) last April,
and the company's advice and wealth-management revenue and profit
have surged of late. In the most recent quarter, that segment's top
line rose 19%, while profit more than doubled to $100 million from
$48 million.
Ameriprise reported a profit of $241 million, or 94 cents a
share, up from $214 million, or 81 cents, a year earlier. Excluding
items such as integration expenses and a charge for a legal matter
at its Securities America arm, operating earnings were $1.35 a
share.
Net revenue on the same basis jumped 22% to $2.62 billion and
rose 17% on a fully reported basis.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.32 on $2.73 billion in revenue.
Assets under management and administration totaled $693 billion,
up 50% on the year, following the Columbia deal.
Shares closed at $62.62 and were inactive after hours. The stock
has risen 28% the past year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com