Ameriprise Financial Inc (AMP) Q3 2023 Earnings: Key Highlights

• Adjusted operating earnings per diluted share excluding unlocking was $7.68, up 21% from the prior year.

• Assets under management and administration reached $1.2 trillion, up 12% from strong client net inflows and market appreciation.

• Adjusted operating net revenues increased 11% from organic growth, higher spread revenues and equity market appreciation.

• The company returned $663 million of capital to shareholders, approximately 80% of adjusted operating earnings excluding unlocking.

Ameriprise Financial Inc (NYSE:AMP) released its Q3 2023 earnings report on October 25, 2023. The company demonstrated strong performance amid a challenging operating environment, with significant growth in its diversified business model.

Financial Performance

The company reported a GAAP net income per diluted share of $8.14, compared to $9.41 a year ago. This decrease was primarily due to market impacts on the valuation of derivatives and market risk benefits, as well as unlocking. Despite this, the company's adjusted operating earnings per diluted share excluding unlocking was $7.68, up 21% from the prior year.

Assets and Revenues

Ameriprise Financial Inc (NYSE:AMP) saw its assets under management and administration reach $1.2 trillion, a 12% increase driven by strong client net inflows and market appreciation. The company's adjusted operating net revenues also increased by 11% due to organic growth, higher spread revenues, and equity market appreciation.

Expense Management and Cash Flow

The company's general and administrative expense increased by 4%, reflecting growth investments in attractive areas and tight expense management. The company's free cash flow remained approximately 90% of earnings, reflecting continued strong performance across market environments. The balance sheet fundamentals were strong with $1.4 billion of excess capital and $1.9 billion of holding company available liquidity.

Capital Return to Shareholders

In Q3 2023, Ameriprise Financial Inc (NYSE:AMP) returned $663 million of capital to shareholders, which was approximately 80% of adjusted operating earnings excluding unlocking. This demonstrates the company's commitment to delivering value to its shareholders.

Future Outlook

Ameriprise is expected to close on its partnership with Comerica Bank in November. This strategic move is anticipated to further strengthen the company's financial position and enhance its ability to deliver value to its shareholders.

Explore the complete 8-K earnings release (here) from Ameriprise Financial Inc for further details.

This article first appeared on GuruFocus.