Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q1 2023 Earnings Presentation
19 slides from Ameriprise Financial's earnings presentation, Apr 25, 2023
Slide 1: Ameriprise Financial First Quarter 2023 Conference Call
Ameriprise Financial First Quarter 2023 Conference Call April 25, 2023 © 2023 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our April 24, 2023 earnings release and/or in this April 25, 2023 presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of April 25, 2023. These
Slide 3: Consolidated First Quarter 2023 Results
Consolidated First Quarter 2023 Results GAAP Q1 2023 Q1 2022 Better/(Worse) Net Revenues ($M) $3,742 $3,625 3% Expenses ($M) $3,246 $2,619 (24)% Net Income ($M) $417 $825 (49)% Diluted EPS $3.79 $7.10 (47)% Return on Equity, ex. AOCI (1) 45.2% 51.8% (660) bps Adjusted Operating Q1 2023 Q1 2022 Bette
Slide 4: Q1 2023 Business & Financial Results
Q1 2023 Business & Financial Results Walter Berman Chief Financial Officer © 2023 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: EPS up 25% demonstrating the strength of our diversified business model
EPS up 25% demonstrating the strength of our diversified business model • Results in the quarter reflect favorable business momentum and higher interest rates Pretax Adjusted Operating Earnings1 – Wealth Management delivered strong organic growth and benefited from higher spread revenue, driving 66%
Slide 6: Business momentum and interest earnings more than offset equity market pressures
Business momentum and interest earnings more than offset equity market pressures Operating Net Revenues $ in millions • AUM/A decreased 8% as significant business growth and client 3% $3,591 $3,698 flows were more than offset by depreciating markets – Equity markets down 9% – Fixed income markets do
Slide 7: Flexible Wealth Management model and deep relationships allow us to pivot with the markets
Flexible Wealth Management model and deep relationships allow us to pivot with the markets & drive strong organic growth Total Client Assets Total Client Flows TTM Revenue Per Advisor1 $ in billions $ in billions $ in thousands 5% $847 $823 (3)% $799 $12.3 $810 18% $10.4 Q1 2022 Q1 2023 Q1 2022 Q1 2
Slide 8: AWM planning model results in a stable client cash base
AWM planning model results in a stable client cash base • Breadth of our cash product offerings enable us to meet client Stable Client Cash Balances needs across market and rate cycles $ in billions • Client cash balances remained relatively stable at $45.7 $44.3 approximately 5.5% of client assets
Slide 9: Wealth Management earnings increased 58%
Wealth Management earnings increased 58% Adjusted Operating Pretax Adjusted • Long term nature of client relationships and stability Total Net Revenue Operating Earnings of assets results in resilience during market cycles $ in millions $ in millions 11% $2,265 • Strong revenue and pretax earnings g
Slide 10: Asset Management remains challenged by market depreciation and FX, consistent with the industry
Asset Management remains challenged by market depreciation and FX, consistent with the industry Total AUM Total Flows $ in billions $ in billions $699 $608 $(0.7) ($2.5) (1) Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 flows included $2.6 billion of inflows related to the U.S. asset transfer from the BMO
Slide 11: Asset Management financial results reflect the challenging macro backdrop consistent with industry
Asset Management financial results reflect the challenging macro backdrop consistent with industry Adjusted Operating Pretax Adjusted Total Net Revenue Operating Earnings • Lower revenues and pretax adjusted operating $ in millions $ in millions earnings are a result of deleveraging from declines in
Slide 12: Retirement & Protection Solutions delivered good earnings and strong free cash flow
Retirement & Protection Solutions delivered good earnings and strong free cash flow Pretax Adjusted • Sales declined as a result of management actions to reduce the risk profile of Operating Earnings the business $ in millions – Protection sales declined 17% in total, but were concentrated in higher
Slide 13: Strong balance sheet and free cash flow generation support capital return
Strong balance sheet and free cash flow generation support capital return Capital Returned to Shareholders • Strong balance sheet fundamentals and capital $ in millions management $138 – Strong excess capital position of $1.3 billion $140 $142 $138 and holding company liquidity of $1.6 billion $133
Slide 14: Reconciliation Tables
Reconciliation Tables © 2023 Ameriprise Financial, Inc. All rights reserved. 14
Slide 15: Reconciliation tables
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Per Diluted Share Quarter Ended Quarter Ended March 31, March 31, % Better/ (in millions, except per share amounts, unaudited) 2023 2022 2023 2022 (Worse) Net income $ 417 $ 825 $ 3.79 $ 7.10 (47)% Less: Net realized investment gain
Slide 16: Reconciliation tables
Reconciliation tables Pretax Adjusted Operating Net Revenues & Expenses Quarter Ended March 31, % Better/ (in millions, unaudited) 2023 2022 (Worse) Total net revenues $ 3,742 $ 3,625 3% Less: Net realized investment gains (losses) 3 16 Less: Market impact on non-traditional long-duration products —
Slide 17: Reconciliation tables
Reconciliation tables Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI” Twelve Months Ended March 31, (in millions, unaudited) 2023 2022 Net income $ 2,741 $ 2,807 Less: Adjustments (1) (266) 167 Adjusted operating earnings $ 3,007 $ 2,640 Total Ameriprise Financial, Inc
Slide 18: Reconciliation tables
Reconciliation tables Pretax Adjusted Operating Earnings Mix Shift Quarter Ended March 31, (in millions, unaudited) 2023 2022 Advice & Wealth Management $ 693 $ 440 Asset Management 165 285 RPS 194 175 Subtotal pretax adjusted operating earnings $ 1,052 $ 900 Advice & Wealth Management 66 % 49 % Ass
Slide 19: Reconciliation tables
Reconciliation tables Asset Management Net Pretax Adjusted Operating Margin (in millions, unaudited) 1 Qtr 2023 Adjusted operating total net revenues $ 799 Distribution pass through revenues (182) Subadvisory and other pass through revenues (95) Net adjusted operating revenues $ 522 Pretax adjusted