Ameriprise Financial, Inc. · NYSE:AMP

Ameriprise Financial — Q4 2021 Earnings Presentation

26 slides from Ameriprise Financial's earnings presentation, Jan 27, 2022

  1. Slide 1: Fourth Quarter 2021 Conference Call

    Ameriprise Financial Fourth Quarter 2021 Conference Call January 27, 2022 © 2022 Ameriprise Financial, Inc. All rights reserved.

  2. Slide 2: Forward-looking statements

    Forward-looking statements Some of the statements made in our January 26, 2022 earnings release and/or in this January 27, 2022 presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of January 27, 2022.

  3. Slide 3: Consolidated Fourth Quarter 2021 Results

    Consolidated Fourth Quarter 2021 Results GAAP Q4 2021 Q4 2020 Over/(Under) Net Revenues ($M) $3,760 $3,183 18% Expenses ($M) $2,894 $2,993 3% Net Income ($M) $701 $177 NM Diluted EPS $5.96 $1.43 NM ROE, ex. AOCI (1) 51.2% 26.1% NM Adjusted Operating Q4 2021 Q4 2020 Over/(Under) Net Revenues ($M) $3,

  4. Slide 4: Q4 2021 Business & Financial Results

    Q4 2021 Business & Financial Results Walter Berman Chief Financial Officer © 2022 Ameriprise Financial, Inc. All rights reserved. 4

  5. Slide 5: EPS up 36% driven by profitable organic growth in Wealth and Asset Management

    EPS up 36% driven by profitable organic growth in Wealth and Asset Management • Ameriprise adjusted operating EPS was $6.15 compared to $4.53 last year Pretax Adjusted Operating Earnings1 • Wealth and Asset Management delivered strong organic growth and generated 81%(1) of AMP pretax adjusted operat

  6. Slide 6: Wealth and Asset Management continue to deliver strong organic growth

    Wealth and Asset Management continue to deliver strong organic growth Total AUM/A Q4 Wealth and Asset Full Year Wealth and $ in billions $1,418 Management Flows Asset Management Flows $ in billions $ in billions $136 $40.0 $84.4 29% $1,282 $15.0 $15.0 $1,102 140% 139% $69.4 $25.0 $16.7 $35.3 Q4 2020

  7. Slide 7: Wealth and Asset Management are the growth drivers for Ameriprise

    Wealth and Asset Management are the growth drivers for Ameriprise Wealth and Asset Wealth and Asset Management Wealth and Asset Management Management Net Revenue Pretax Adjusted Pretax Adjusted $ in millions Operating Earnings Operating Margin(1) $ in millions $3,174 420 23% $802 28.3% bps 45% $2,57

  8. Slide 8: Wealth Management continued strong track record of profitable organic growth in the quarter

    Wealth Management has a continued strong track record of profitable organic growth in the quarter Total Client Assets Total Client Flows TTM Revenue Per Advisor(1) $ in billions $ in billions $ in thousands $12.5 17% $858 29% 20% $796 $732 $9.7 $666 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 (1

  9. Slide 9: Wealth Management strong track record of profitable organic growth for the full year

    Wealth Management has a strong track record of profitable organic growth for the full year Total Client Assets Total Client Flows TTM Revenue Per Advisor(1) $ in billions $ in billions $ in thousands 33% $41.4 28% 105% $796 $858 $732 $666 $620 $643 $29.7 $20.2 2019 2020 2021 2019 2020 2021 2019 2020

  10. Slide 10: Wealth Management had excellent financial results

    Wealth Management had excellent financial results Adjusted Operating Pretax Adjusted • Revenue grew 19% year-over-year Total Net Revenue Operating Earnings – Robust client flows of $12.5 billion, up 29% $ in millions $ in millions – Higher transactional activity – Equity market appreciation $472 19%

  11. Slide 11: Asset Management strong track record of profitable growth in the quarter

    Asset Management has a strong track record of profitable growth in the quarter Total AUM Total Flows Adjusted Operating Margin $ in billions $ in billions $27.5 620 45.7% $754 bps $15.0 $136 39.5% 38% $618 $20.5B $547 $12.5 $7.0 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 BMO EMEA Acquired Asset

  12. Slide 12: Asset Management strong track record of profitable growth for the year

    Asset Management has a strong track record of profitable growth for the year Total AUM Total Flows Adjusted Operating Margin $ in billions $ in billions 970 $42.9 bps 46.0% $754 53% $15.0 $50B $136 39.1% 36.3% $618 $547 $27.9 $494 $5.7 ($7.1) 2019 2020 2021 2019 2020 2021 BMO EMEA Acquired Assets 20

  13. Slide 13: Solid business performance drove 64% growth in Asset Management earnings

    Solid business performance drove 64% growth in Asset Management earnings Adjusted Operating Pretax Adjusted • Revenue increased 33% reflecting the cumulative benefit of net Total Net Revenue Operating Earnings inflows, strong performance fees and market appreciation; $ in millions $ in millions excl

  14. Slide 14: Retirement & Protection Solutions performed well with stable earnings and free cash flow

    Retirement & Protection Solutions performed well with stable earnings and substantial free cash flow Pretax Adjusted • Earnings were $183 million reflecting continued solid performance Operating Earnings $ in millions • Accelerating mix shift through product actions announced in the quarter $180 $18

  15. Slide 15: Strong balance sheet and free cash flow supported ~90% capital return

    Strong balance sheet and free cash flow generation supported ~90% capital return Capital Returned to Shareholders • Strong balance sheet fundamentals and superior $ in millions capital strength $133 – Ongoing free cash flow generation of ~90% $131 – $2.4 billion of holding company available liquidit

  16. Slide 16: Reconciliation Tables

    Reconciliation Tables © 2022 Ameriprise Financial, Inc. All rights reserved. 16

  17. Slide 17: Reconciliation tables: Adjusted Operating Net Revenues & Expenses

    Reconciliation tables Adjusted Operating Net Revenues & Expenses Quarter Ended December 31, % Over / (in millions, unaudited) 2021 2020 (Under) Total net revenues $ 3,760 $ 3,183 18% Less: Net realized investment gains (losses) 9 8 Less: Market impact on non-traditional long-duration products 13 20

  18. Slide 18: Reconciliation tables: Adjusted Operating Earnings Per Diluted Share

    Reconciliation tables Adjusted Operating Earnings Per Diluted Share Per Diluted Share Quarter Ended Quarter Ended December 31, December 31, % Over/ (in millions, except per share amounts, unaudited) 2021 2020 2021 2020 (Under) Net income $ 701 $ 177 $ 5.96 $ 1.43 NM Less: Net realized investment gai

  19. Slide 19: Reconciliation tables: Return on Equity Excluding AOCI

    Reconciliation tables Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI” Twelve Months Ended December 31, (in millions, unaudited) 2021 2020 Net income $ 2,760 $ 1,534 Less: Adjustments (1) 36 (236) Adjusted operating earnings $ 2,724 $ 1,770 Total Ameriprise Financial, I

  20. Slide 20: Reconciliation tables: Adjusted Revenue Per Advisor

    Reconciliation tables Advice & Wealth Management Adjusted Revenue Per Advisor % Over/(Under) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2021 vs 2021 vs (unaudited) 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2019 2020 Total Net Revenue ($ in M) $ 1,554 $ 1,653 $ 1,682 $ 1,710 $ 1,695 $ 1,53

  21. Slide 21: Reconciliation tables: Asset Management Net Pretax Adjusted Operating Margin

    Reconciliation tables Asset Management Net Pretax Adjusted Operating Margin Quarter Ended December 31, (in millions, except per share amounts, unaudited) 2021 2020 Adjusted operating total net revenues $ 1,060 $ 798 Distribution pass thru revenues (234) (205) Subadvisory and other pass thru revenues

  22. Slide 22: Reconciliation tables: Asset Management Net Pretax Margin Year-to-date

    Reconciliation tables Asset Management Net Pretax Adjusted Operating Margin Year-to-date December 31, (in millions, except per share amounts, unaudited) 2021 2020 2019 Adjusted operating total net revenues $ 3,682 $ 2,891 $ 2,913 Distribution pass thru revenues (907) (761) (747) Subadvisory and othe

  23. Slide 23: Reconciliation tables: Asset Management Margin ex BMO

    Reconciliation tables Asset Management Net Pretax Adjusted Operating Margin Quarter Ended December 31, 2021 Asset Asset Mgmt ex (in millions, unaudited) Mgmt BMO (2) BMO Adjusted operating total net revenues $ 1,060 $ 59 $ 1,001 Distribution, Subadvisory and other pass thru revenues (331) (1) (330)

  24. Slide 24: Reconciliation tables: Wealth and Asset Management Margin

    Reconciliation tables Wealth and Asset Management Net Pretax Adjusted Operating Margin Quarter Ended December 31, (in millions, except per share amounts, unaudited) 2021 2020 Advice & Wealth adjusted operating total net revenues $ 2,114 $ 1,776 Asset Management net adjusted operating revenues 729 49

  25. Slide 25: Reconciliation tables: Pretax Adjusted Operating Earnings Mix Shift

    Reconciliation tables Pretax Adjusted Operating Earnings Mix Shift Quarter Ended December 31, (in millions, unaudited) 2021 2020 Advice & Wealth Management $ 472 $ 352 Asset Management 330 201 RPS 183 180 Pretax adjusted operating earnings ex Corporate 985 733 Advice & Wealth Management 48 % 48 % As

  26. Slide 26: Reconciliation tables: Earnings Growth and Mix Shift ex Unlocking

    Reconciliation tables Pretax Adjusted Operating Earnings Growth and Mix Shift ex Unlocking Twelve Months Ended December 31, % Over/ (in millions, unaudited) 2021 2020 (Under) Advice & Wealth Management $ 1,743 $ 1,321 Asset Management 1,096 697 Total Advice & Wealth Mangement and Asset Management 2,

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