Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q2 2021 Earnings Presentation
18 slides from Ameriprise Financial's earnings presentation, Jul 27, 2021
Slide 1: Second Quarter 2021 Conference Call
Ameriprise Financial Second Quarter 2021 Conference Call July 27, 2021 © 2021 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our July 26, 2021 earnings release and/or in this July 27, 2021 presentation constitute forward- looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of July 27, 2021. These f
Slide 3: Consolidated Second Quarter 2021 Results
Consolidated Second Quarter 2021 Results GAAP Q2 2021 Q2 2020(2) Over/(Under) Net Revenues ($M) $3,418 $2,712 26% Expenses ($M) $2,697 $3,238 17% Net Income ($M) $591 $(539) NM Diluted EPS $4.88 $(4.31) NM ROE, ex. AOCI (1) 19.5% 41.7% NM Adjusted Operating Q2 2021 Q2 2020(2) Over/(Under) Net Revenu
Slide 4: Q2 2021 Business & Financial Results
Q2 2021 Business & Financial Results Walter Berman Chief Financial Officer © 2021 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: Strong performance and execution of strategic priorities continued in the quarter
Strong performance and execution of strategic priorities continued in the quarter • Delivered excellent financial results across the firm – Revenue up 22% with nearly 80%(1) driven by AWM and AM – Earnings per diluted share up 39%(2) to $5.27 – AWM & AM had strong net inflows of over $16 billion wit
Slide 6: Continued strength in core growth businesses delivered excellent financial performance
Continued strength in core growth businesses delivered excellent financial performance Adjusted Operating Adjusted Operating • Revenue grew 22% reflecting continued excellent Total Net Revenue EPS performance and activity levels in Advice & Wealth $ in millions Management and Asset Management $3,387
Slide 7: Strong fundamentals driving profitable organic growth in AWM
Strong fundamentals driving profitable organic growth in AWM Total Client Assets Total Client Flows Pretax Adjusted $ in billions $ in billions Operating Margin 28% $807 $9.5 380 21.4% 54% bps $630 17.6% $6.2 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 © 2021 Ameriprise Financial, Inc. All right
Slide 8: Delivered strong AWM results with earnings up 56%
Delivered strong AWM results with earnings up 56% Adjusted Operating Pretax Adjusted • Revenue growth of 29% year-over-year and 5% Total Net Revenue Operating Earnings sequentially driven by: $ in millions $ in millions – Robust client flows into wrap accounts – Higher transactional activity – Equit
Slide 9: Excellent financial results reflect improved flow trends in Asset Management
Excellent financial results reflect improved flow trends in Asset Management Adjusted Operating Pretax Adjusted • Strong and consistent investment performance is the Total Net Revenue Operating Earnings engine behind improved net inflows of $8.1 billion(1), a $ in millions $ in millions continuation
Slide 10: Retirement & Protection Solutions generates substantial free cash flow
Retirement & Protection Solutions generates substantial free cash flow with focus on prudent risk management Pretax Adjusted Operating Earnings $ in millions • Earnings were $182 million, down 18% from the prior year – Results in the quarter included higher distribution expenses due to improved sale
Slide 11: Strong balance sheet and free cash flow generation support 90% capital return target
Strong balance sheet and free cash flow generation support continued 90% capital return target Capital Returned to Shareholders • Strong balance sheet fundamentals $ in millions – $3.0 billion of holding company available liquidity – Ongoing free cash flow generation of ~90% $135 – $2.0 billion of e
Slide 12: Reconciliation tables: Adjusted Operating Net Revenues & Expenses
Reconciliation tables Adjusted Operating Net Revenues & Expenses Quarter Ended June 30, % Over / (in millions, unaudited) 2021 2020 (Under) Total net revenues $ 3,418 $ 2,712 26% Less: Net realized investment gains (losses) 10 (3) Less: Market impact on non-traditional long-duration products 21 (66)
Slide 13: Reconciliation tables: Adjusted Operating Earnings Per Diluted Share
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Per Diluted Share Quarter Ended Quarter Ended June 30, June 30, % Over/ (in millions, except per share amounts, unaudited) 2021 2020 2021 2020 (Under) Net income $ 591 $ (539) $ 4.88 $ (4.31) (3) NM Add: Basic to diluted share conve
Slide 14: Reconciliation tables: Return on Equity Excluding AOCI
Reconciliation tables Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI” Twelve Months Ended June 30, (in millions, unaudited) 2021 2020 Net income $ 1,065 $ 2,503 Less: Adjustments (1) (980) 371 Adjusted operating earnings $ 2,045 $ 2,132 Total Ameriprise Financial, Inc.
Slide 15: Reconciliation tables: Adjusted Operating G&A Expense
Reconciliation tables Adjusted Operating General & Administrative Expense Quarter Ended June 30, % Over / (in millions, unaudited) 2021 2020 (Under) General and administrative expense $ 830 $ 776 (7)% Less: CIEs expenses 1 — Less: Integration/restructuring charges 7 2 Adjusted operating general and
Slide 16: Reconciliation tables: AWM Adjusted Revenue Per Advisor
Reconciliation tables Advice & Wealth Management Adjusted Revenue Per Advisor 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q % Over/ (unaudited) 2019 2019 2020 2020 2020 2020 2021 2021 (Under) Total Net Revenue ($ in M) $ 1,682 $ 1,710 $ 1,695 $ 1,537 $ 1,667 $ 1,776 1,879 1,980 Interest Revenue ($ in M) $ (116) $ (92) $
Slide 17: Reconciliation tables: Asset Management Net Pretax Adjusted Operating Margin
Reconciliation tables Asset Management Net Pretax Adjusted Operating Margin Quarter Ended June 30, (in millions, except per share amounts, unaudited) 2021 2020 Adjusted operating total net revenues $ 879 $ 668 Distribution pass thru revenues (225) (177) Subadvisory and other pass thru revenues (94)
Slide 18: Reconciliation tables: Revenue and Earnings Mix Shift
Reconciliation tables Adjusted Operating Total Net Revenues Mix Shift Pretax Adjusted Operating Earnings Mix Shift Quarter Ended Quarter Ended June 30, June 30, (in millions, unaudited) 2021 2020 (in millions, unaudited) 2021 2020 Advice & Wealth Management $ 1,980 $ 1,537 Advice & Wealth Management