AMP.NYSEAmeriprise Financial INC
10-K: Ameriprise Financial Reports Strong 2024 Results, Driven by Wealth Management Growth
Sentiment:
Annual Results
Ameriprise Financial's 2024 annual report highlights a strong financial year, marked by significant growth in its Wealth Management business and an increase in assets under management and advisement.
Delay expectedThe company plans to move all Minneapolis office footprint to the Ameriprise Financial Headquarters by June 30, 2025.
Better than expectedNet income increased to $3.401 billion, or $33.05 per diluted share, compared to $2.556 billion, or $23.71 per diluted share, in the prior year.Adjusted operating earnings increased $382 million, or 13%, for 2024 compared to the prior year.Total AUM increased $89.7 billion, or 8%, to $1.2 trillion as of December 31, 2024 compared to $1.1 trillion as of December 31, 2023.
Summary
- Ameriprise Financial, Inc. reported its Form 10-K for the fiscal year ended December 31, 2024.
- The company had $1.5 trillion in assets under management, administration, and advisement as of December 31, 2024, compared to $1.4 trillion as of December 31, 2023.
- The overall employee engagement remains strong at 84% favorable.
- The company attracted 278 experienced advisors moving their practices to Ameriprise in 2024 and approximately 1,691 over the last 5 years.
- Net income increased to $3.401 billion, or $33.05 per diluted share, compared to $2.556 billion, or $23.71 per diluted share, in the prior year.
- The company repurchased 4.9 million shares of its common stock at an average price of $453.15 per share during 2024.
- The Board of Directors authorized an additional $3.5 billion for share repurchases through September 30, 2025.
- The company plans to move all Minneapolis based employees to the Ameriprise Financial Headquarters by June 30, 2025.
- The company is opening a new support office in Hyderabad, India in early 2025.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results and growth in key business areas. While risks are acknowledged, the overall tone is optimistic.
Positives
- Strong growth in Advice & Wealth Management AUM, driven by market appreciation and wrap account net inflows.
- Increase in Asset Management AUM primarily driven by market appreciation.
- Strong employee engagement and advisor retention rates.
- Growth in Ameriprise Bank customer deposits.
- Increase in net investment income due to higher investment portfolio yields.
Negatives
- Asset Management segment experienced net outflows.
- ACC client deposits decreased $2.3 billion from the prior year to $11.2 billion.
- The company is subject to ongoing supervision by the FRB, including supervision and prudential standards, capital requirements, stress-testing, resolution planning, information security and privacy, and risk management requirements.
Risks
- Market fluctuations and economic factors could adversely affect the company's results.
- Intense competition and the economies of scale for larger competitors could negatively impact the company's ability to maintain or increase its market share and profitability.
- A drop in investment performance as compared to that of competitors could negatively impact revenues and profitability.
- The negative performance or default by other financial institutions or other third parties could adversely affect the company.
- Operational systems and networks are subject to evolving cybersecurity or other technological risks.
- The direct and indirect effects of climate change could adversely affect the business and operations.
Future Outlook
The company expects to continue focusing on its key strategic objectives and obtaining operational and strategic leverage from its core capabilities.
Industry Context
The company operates in a highly competitive global industry, competing with registered investment advisers, securities brokers, asset managers, banks, and insurance companies.
Comparison to Industry Standards
- The document does not provide a direct comparison to industry standards.
- However, it mentions competing with firms like registered investment advisers, securities brokers, asset managers, banks and insurance companies.
- Specific competitors are not named, making a detailed comparison challenging.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Bylaw Amendments | Amendments to the company's bylaws related to meeting notices, stockholder business, director nominations, proxy access, and board meetings. | February 20, 2025 | Clarifies procedures for stockholder meetings and director nominations. |
Legal Proceedings
- The company is, and in the future may be, subject to legal and regulatory actions in the ordinary course of its operations, both domestically and internationally.
Stakeholder Impact
- Shareholders: Positive impact through increased profitability and share repurchases.
- Employees: Strong employee engagement and continued investment in human capital programs.
- Clients: Access to a broad range of products and services designed to achieve their financial objectives.
- Advisors: Continued support and resources to assist them in serving clients and growing their practices.
Next Steps
- Continue executing on the strategy to grow the Advice & Wealth Management business with complementary Asset Management and Retirement & Protection Solutions businesses.
- Continue to foster an inclusive culture where everyone at Ameriprise can belong, grow and contribute to realize their potential and deliver value for clients, community and shareholders.
Key Dates
| Date | Description |
|---|---|
| 1894 | Investors Syndicate, the earliest predecessor company, was founded. |
| 1983 | The company was formed as a Delaware corporation in connection with American Express' acquisition of IDS Financial Services. |
| 1994 | The company began marketing products and services under the American Express brand. |
| 2005 | AEFC spun off from American Express to form Ameriprise Financial, Inc. |
| May 2019 | Ameriprise National Trust Bank converted to Ameriprise Bank, FSB. |
| June 30, 2020 | SECs Regulation Best Interest standard of care became effective. |
| 2020 | The company discontinued new sales of fixed annuities and moved the Fixed Annuities and Fixed Indexed Annuities blocks to the Corporate & Other segment as a closed block. |
| July 2016 | The company finalized various confidential enhancements with Genworth Life Insurance Company. |
| July 24, 2023 | The Board of Directors authorized an additional $3.5 billion for the repurchase of common stock through September 30, 2025. |
| February 7, 2025 | Date as of which the number of outstanding shares of common stock is reported (96,118,499 shares). |
| February 20, 2025 | Date of amended and restated bylaws. |
| April 30, 2025 | Date of the Annual Meeting of Shareholders. |
| June 30, 2025 | The company plans to move all Minneapolis based employees to the Ameriprise Financial Headquarters. |
| December 31, 2025 | An additional capital conservation buffer of 150% will be effective as of December 31, 2025, for a total capital requirement of at least 400%. |
Keywords
wealth management, asset management, financial planning, investment advice, financial advisors, annuities, insurance, Form 10-K, Ameriprise Financial
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