Tags: Ameriprise | AMP | financials | wealth

Ameriprise Benefits as Wealthy Seek Advice

By    |   Monday, 08 Aug 2011 12:16 PM

Shocked by the market turns of late, people who have money are saving it — and looking for financial advisers to tell them how to protect and grow their wealth. Ameriprise Financial (AMP), a U.S. financial services company, says its profits and revenues are on the rise, thanks in large part to strong business at the company's wealth management unit.

In the second quarter of 2011, the company reported revenues of $2.6 billion, a 7 percent gain from $2.5 billion a year ago, driven by growth in asset-based fees from retail clients and from previous acquisitions as well. Revenue from the company's wealth management unit rose by 12 percent on year to $957 million.

Net income from continuing operations attributable to Ameriprise Financial increased 22 percent to $313 million. After the financial meltdown of 2008, Ameriprise picked up advisers who jumped ship from troubled financial institutions. Along came those advisers’ clients.

"Ameriprise Financial continued to generate strong revenue growth as well as higher earnings and returns in the second quarter," company CEO Jim Cracchiolo says in a statement.

"Our advisory and asset management businesses are generating strong results. Adviser productivity reached another record high, and we're driving good asset flows and client activity. Our asset management results in the quarter demonstrate the benefits of our increased scale and geographic reach, with strong earnings growth and improved retail and institutional flows."

No pressure

Fitch Ratings likes the company's financials, pointing out that Ameriprise is doing better than many of its peers. On Aug. 4, the day before rival ratings agency Standard and Poor's downgraded U.S. ratings for the first time ever, Fitch affirmed Ameriprise's stable outlook.

"The rating affirmation reflects AMP's favorable balance sheet characteristics that provide good financial flexibility and liquidity, strong profitability trends and favorable market position as a leading financial planning firm in the United States," Fitch says in a statement on the company.

"AMP compares favorably versus many peers in terms of profitability, financial leverage and total financing leverage. The life insurance operations were a net capital generator through the recent financial crisis, unlike many peers."

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Shocked by the market turns of late, people who have money are saving it and looking for financial advisers to tell them how to protect and grow their wealth. Ameriprise Financial (AMP), a U.S. financial services company, says its profits and revenues are on the rise,...
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2011-16-08
Monday, 08 Aug 2011 12:16 PM
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