Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q4 2024 Earnings Presentation
35 slides from Ameriprise Financial's earnings presentation, Jan 30, 2025
Slide 1: Ameriprise Financial
Ameriprise Financial January 2024
Slide 2: Forward-looking statements
Forward-looking statements The forward-looking statements in this presentation reflect management’s expectations about future events, plans and performance. These forward-looking statements and the many assumptions upon which they are based involve risks and uncertainties. A list of factors that cou
Slide 3: A diversified and differentiated financial services leader
A diversified and differentiated financial services leader with a record of outperformance – well-positioned to capture future growth 3
Slide 4: Ameriprise – diversified and fully integrated
Ameriprise – diversified and fully integrated Advice & Wealth Management Industry-leading wealth manager with Strong investment differentiated advice Important solutions performance; value proposition meeting clients’ client-focused approach evolving needs $1.4T Quintupled EPS ~90% ongoing ~$21B ret
Slide 5: One dynamic firm delivering significant value
One dynamic firm delivering significant value Wealth Global Asset Benefits Management Management Wealth management1 drives ~85% of the firm’s revenue Columbia Deep, long-term client relationships Threadneedle Investments Captures assets and fees across Advice market cycles & Wealth Management Strong
Slide 6: Continued progress in shifting our business mix given growth in Wealth Management
Continued progress in shifting our business mix given growth in Wealth Management Pretax Adjusted Operating Earnings1 18% 41% 2013 2023 27% $2.2B $4.4B 17% 65% 32% Advice & Wealth Management Asset Management Retirement & Protection Solutions 6 1. Excludes Corporate & Other segment and unlocking. Res
Slide 7: Advice & Wealth Management is delivering sustained profitable growth
Advice & Wealth Management is delivering sustained profitable growth A longstanding leader in 10,367 financial planning and advice financial advisors Excellent client $916K trailing 12-month satisfaction adjusted operating net revenue per advisor Significant and Over 80% fee- sustainable benefit fro
Slide 8: Recognized for our premium client experience and for managing our business responsibly
Recognized for our premium client experience and for managing our business responsibly Ameriprise recognized as Ameriprise has been recognized Ameriprise earned a 2023 Recognized among the #1 among wealth by J.D. Power for providing “an Hearts & Wallets Top best-managed companies managers in Kipling
Slide 9: Attractive and fast-growing market
Attractive and fast-growing market Households1 Investable assets1 Investable assets2 (in millions) ($ in trillions) CAGR 2016 – 2022 $20M+ 0.3 +10.1% $14 U.S. household investable assets $10-$19.9M 0.5 +3.7% $7 projected $5M-$9.9M 1.6 $11 +10.6% to grow at $500k – $4.9M +8.0% an ~8% 19.6 $28 compoun
Slide 10: Within the opportunity, we are focused on the Responsible Mindset
Within the opportunity, we are focused on the Responsible Mindset Who they are What they want Our primary target market: Advice and anytime access $500K–$5M $20.2 trillion in financial assets 63% prefer Want advice Strong digital comprehensive beyond expectations and advice investments engagement At
Slide 11: Through our Client Experience, we deliver advice to our full client base
Through our Client Experience, we deliver advice to our full client base and generate significant value and client satisfaction 4 elements of the Client Experience What clients 1:1 financial advice based A personalized plan and Anytime access to your Regular meetings to review can expect on your goa
Slide 12: Multiple affiliation options to attract and retain advisors and serve more clients
Multiple affiliation options to attract and retain advisors and serve more clients Ameriprise Ameriprise Ameriprise Ameriprise Financial Franchise Group Advisor Group Advisor Center Institutions Group AFFILIATION AFFILIATION AFFILIATION AFFILIATION Independent Employee Employee Employee DESCRIPTION
Slide 13: Our bank capabilities complement our advice value proposition
Our bank capabilities complement our advice value proposition and allow us to help clients with both sides of their balance sheets Many wealth Ameriprise Bank, FSB managers generate OPPORTUNITY • Almost $23 billion in assets with additional opportunity to grow organically by gathering deposits throu
Slide 14: Strong financial performance compared to peers
Strong financial performance compared to peers Ameriprise margin exceeds wirehouses, and remains notably above regionals and independents Adjusted Pretax Operating Margin 2023 AWM 30% Regionals / 17% Independents Wirehouses 25% 14 Source: Company filings. Regionals / Independents represents median o
Slide 15: Wealth Management continues to deliver strong profitable organic growth
Wealth Management continues to deliver strong profitable organic growth Total Client Assets Total Client Flows TTM Revenue Per Advisor $ in billions $ in billions $ in thousands 5% 29% $53.3 15% $901 $916 $858 $827 $42.5 $796 $41.4 $758 2021 2022 2023 2021 2022 2023 2021 2022 2023 15
Slide 16: AWM clients continue to allocate heavily to cash
AWM clients continue to allocate heavily to cash • Total cash balances, including money market funds and brokered Client Cash Balances CDs, reached $81.5 billion1 $ in billions • Up 31% from 2022 and 76% from 2021 $81.5 • A sizeable opportunity for future deployment $37.0 • Cash sweep (including Ban
Slide 17: Wealth Management has delivered excellent growth and financial performance across market cycles
Wealth Management has delivered excellent growth and financial performance across market cycles Grow our client base and move further up market Advice and Wealth Management PTI ($ in millions) Stable advisor force with $2,851 increase advisor productivity Deepen client relationships 17% CAGR Ameripr
Slide 18: RPS: maintaining differentiated risk-return profile
RPS: maintaining differentiated risk-return profile while supporting clients’ long-term needs Important solutions for our Confident Retirement® approach Stable $199 Life ~$96B $ $ Insurance in-force client AUM1 Strong returns Strategically managing our with a lower books of business risk profile Top
Slide 19: We are a leading global asset manager with strong performance
We are a leading global asset manager with strong performance amidst challenging market environment $637B in AUM $ Global presence Top 15 long-term mutual and capabilities funds in the U.S.2 Strong institutional Top 10 retail ranking presence in the UK2 113 four- and five-star Net flow rate in line
Slide 20: Our investment engine is a foundation for client success
Our investment engine is a foundation for client success Our investment approach is underpinned by a culture that is dynamic, collaborative and interactive and by processes that are team-based, performance driven and risk aware. Our investment teams share a common set of values and a commitment to d
Slide 21: We have a broad set of investment capabilities and solutions
We have a broad set of investment capabilities and solutions to meet client needs Equities Fixed Income Global quality growth: large Regional & single country Investment grade credit US bank loans & small cap, EAFE, emerging Equity income High yield credit Social bonds markets ESG & sustainable equi
Slide 22: Our investment approach has delivered consistently competitive long-term investment performance
Our investment approach has delivered consistently competitive long-term investment performance Asset-weighted performance Columbia Threadneedle funds 57% 67% 79% 89% 1 year 3 years 5 years 10 year 113 funds out of 238* earned an Overall Rating of 4 or 5 stars: - 26 funds received 5-star Overall Rat
Slide 23: Broad global distribution capability
Broad global distribution capability U.S. EMEA APAC 11 locations 15 locations 5 Locations • $265B U.S. Retail Product AUM • $70B EMEA Retail Product AUM • Retail and private bank / GSR (global strategic relationship) distribution • 5 focused intermediary sales • Key countries / regions include: oper
Slide 24: Focused on maintaining strong margins in the target range of 31 – 35%
Focused on maintaining strong margins in the target range of 31 – 35% 41.7% 32.3% 32.3% 31.6% 30.9% 29.8% 28.2% 24 Represents trailing 12-months through 12-31-23. Adjusted operating margin for BLK, TROW, APAM, AMP, IVZ, JHG, BEN
Slide 25: Ameriprise is a unique shareholder value creation opportunity
Ameriprise is a unique shareholder value creation opportunity with diversified free cash flow generation Excess Capital Sizeable growth in earnings and free cash $ in billions flow from Wealth Management $1.5 $1.5 Significant operating leverage in Asset Growing contribution Management fromnormalize
Slide 26: We have returned $21 billion of capital to shareholders over the past 10 years
We have returned $21 billion of capital to shareholders over the past 10 years Capital Returned to Shareholders $ in billions $2.5 $2.4 $2.4 $2.4 $2.1 $2.2 $2.1 $1.8 $1.8 $1.8 $1.8 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividends Share Repurchase 26
Slide 27: Increasing and diversified sources of free cash flow
Increasing and diversified sources of free cash flow as business mix shift accelerates Pretax Adjusted Operating Earnings1 18% 27% 2023 Continued 41% 2013 Growth & $2.2B 17% $4.4B Mix Shift 65% 32% Advice and Wealth Management Asset Management Retirement & Protection Solutions 27 1. Excludes Corpora
Slide 28: Continue to meet and exceed client needs across our businesses
Continue to meet and exceed client needs across our businesses Significant opportunity to further grow as a wealth management and advice leader focused on deep client relationships Leading global asset manager with competitive long-term investment performance that meets the growing client need for a
Slide 29: Appendix
Appendix 29
Slide 30: Appendix: Sources
Appendix: Sources Wants & Pricing Report (April 2021, the most recent report) from the Hearts & Wallets Investor QuantitativeTM Database. In this annual syndicated survey respondents are asked to rate their financial services providers in a variety of areas on a scale of 0 (not at all satisfied) to
Slide 31: Disclosures
Disclosures Kiplinger -- Kiplinger readers were invited to take the 2023 Readers' Choice Awards survey on Kiplinger.com from Feb. 28-March 31, 2023. Kiplinger received more than 2,600 total completed surveys — 725 of which answered the questions pertaining to the Wealth Management category. Responde
Slide 32: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share Per Diluted Share Full Year Full Year 2013(1) 2023 % Change Reported EPS $ 6.44 $ 23.71 Less: Impact of operating adjustments (0.61) (5.15) Adjusted operating EPS $ 7.05 $ 28.86 Less: Impact of annual unlocking 0.15 (0.72) Adjusted
Slide 33: Reconciliation Tables
Reconciliation Tables Mix Shift ($ in millions) Full Year Full Year 2013(1) 2023 Advice & Wealth Management pretax adjusted operating earnings $ 592 $ 2,851 Less: Unlocking - - Pretax adjusted operating earnings excluding unlocking $ 592 $ 2,851 Asset Management pretax adjusted operating earnings $
Slide 34: Reconciliation Tables
Reconciliation Tables Asset Management net pretax adjusted operating margin ($ in millions) Full Year 2023 Adjusted operating total net revenues $3,278 Less: Distribution pass through revenues 731 Less: Subadvisory and other pass through revenues 386 Net adjusted operating revenues $2,161 Pretax adj
Slide 35: Reconciliation Tables
Reconciliation Tables Adjusted operating return on equity ($ in millions) Twelve Months Ended December 31, 2023 Net income $ 2,556 Less: Adjustments (1) (555) Adjusted operating earnings $ 3,111 Less: Unlocking (78) Adjusted operating earnings excluding Unlocking $ 3,189 Total Ameriprise Financial,