Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q1 2024 Earnings Presentation
35 slides from Ameriprise Financial's earnings presentation, Apr 23, 2024
Slide 1: Ameriprise Financial
Ameriprise Financial May 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 Tripled EPS ~90% ongoing ~$20B return
Slide 5: One dynamic firm delivering significant value
One dynamic firm delivering significant value Wealth Global Asset Benefits Management Management Wealth management1 drives ~86% 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% 38% 2014 31% 2024 $2.6B $4.5B 17% 65% 31% Advice & Wealth Management Asset Management Retirement & Protection Solutions 2024 represents trailing 12-months through 3-31-24. 6 1. E
Slide 7: Advice & Wealth Management is delivering sustained profitable growth
Advice & Wealth Management is delivering sustained profitable growth A longstanding leader in 10,364 financial planning and advice financial advisors Excellent client $942K trailing 12-month satisfaction adjusted operating net revenue per advisor Significant and Over 80% fee- sustainable benefit fro
Slide 8: Recognized for our premium client experience and for managing our business responsibly
Recognized for our premium client experience and for managing our business responsibly Ameriprise recognized as Ameriprise has been recognized Ameriprise earned a 2023 Recognized among the #1 among wealth by J.D. Power for providing “an Hearts & Wallets Top best-managed companies managers in Kipling
Slide 9: Attractive and fast-growing market
Attractive and fast-growing market Households1 Investable assets1 Investable assets2 (in millions) ($ in trillions) CAGR 2016 – 2023 $20M+ 0.3 $12 +7% U.S. households $10-$19.9M 0.5 +4% $7 with $500K+ $5M-$9.9M 1.6 +8% in investable $10 assets $500k – $4.9M 19.5 $26 +6% represent 88% $100k – $499K 2
Slide 10: Within the opportunity, we are focused on investors with $500K-$5M
Within the opportunity, we are focused on investors with $500K-$5M and a Responsible Mindset Who they are What they want The Responsible Mindset investors in our target market Our primary target market is that we are focused on want what we can provide. households with $500K–$5M What’s important whe
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 2024 AWM 30% Regionals / 16% Independents Wirehouses 25% Data represents trailing 12-months through 3-31-24. 14 Source: Company f
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 16% 14% 26% $53.3 $942 $49.5 $916 $954 $827 $901 $42.5 $758 2022 2023 2024 2022 2023 2024 2022 2023 2024 15 2024 represent
Slide 16: Wealth Management has delivered excellent growth and financial performance across market cycles
Wealth Management has delivered excellent growth and financial performance across market cycles Grow our client base and move further up market Advice and Wealth Management PTI ($ in millions) Stable advisor force with increase advisor productivity $2,920 Deepen client relationships 14% CAGR Ameripr
Slide 17: RPS: maintaining differentiated risk-return profile while supporting clients' long-term needs
RPS: maintaining differentiated risk-return profile while supporting clients’ long-term needs Important solutions for our Confident Retirement® approach Stable $199 Life ~$100B $ $ Insurance in-force client AUM1 Strong returns Strategically managing our with a lower books of business risk profile To
Slide 18: We are a leading global asset manager with strong performance
We are a leading global asset manager with strong performance amidst challenging market environment $652B in AUM $ Global presence Net flow rate trend in and capabilities line with peers1 Strong institutional Top 15 long-term mutual presence funds in the U.S.2 Ranked #6 by Institutional Investor Top
Slide 19: Our investment approach is a foundation for client success
Our investment approach 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
Slide 20: We have a broad set of investment capabilities and solutions to meet client needs
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 21: 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 67% 63% 80% 88% 1 year 3 years 5 years 10 year 117 funds out of 234* earned an Overall Rating of 4 or 5 stars: - 25 funds received 5-star Overall Rat
Slide 22: Broad global distribution capability
Broad global distribution capability U.S. EMEA APAC 11 locations 13 locations 5 Locations • $278B U.S. Retail Product AUM • $71B EMEA Retail Product AUM • Private bank / GSR (global strategic relationship) distribution operations in • 5 focused intermediary sales channels: • Key countries / regions
Slide 23: Focused on maintaining strong margins in the target range of 31 – 35%
Focused on maintaining strong margins in the target range of 31 – 35% 42.1% 36.0% 33.2% 31.8% 31.5% 28.8% 27.6% 23 Represents trailing 12-months through 3-31-24. Adjusted operating margin for BLK, TROW, APAM, AMP, IVZ, JHG, BEN
Slide 24: Unique shareholder value creation opportunity with diversified free cash flow generation
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 $1.8 $1.5 Significant operating leverage in Asset Growing contribution Management fromnormalize
Slide 25: We have returned $22 billion of capital to shareholders over the past 10 years
We have returned $22 billion of capital to shareholders over the past 10 years Capital Returned to Shareholders $ in billions $2.5 $2.3 $2.6 $2.4 $2.4 $2.1 $2.2 $2.1 $1.8 $1.8 $1.8 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Dividends Share Repurchase 25 2024 represents trailing 12-months thro
Slide 26: Increasing and diversified sources of free cash flow as business mix shift accelerates
Increasing and diversified sources of free cash flow as business mix shift accelerates Pretax Adjusted Operating Earnings1 18% 31% 2024 Continued 38% 2014 Growth & $2.6B 17% $4.5B Mix Shift 65% 31% Advice and Wealth Management Asset Management Retirement & Protection Solutions 2024 represents traili
Slide 27: 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 28: Appendix
Appendix 28
Slide 29: 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 30: 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 31: Reconciliation Tables
Reconciliation Tables Adjusted operating earnings per diluted share Per Diluted Share Full Year TTM (1) 2014 2024 % Change Reported EPS $ 8.31 $ 29.38 Less: Impact of operating adjustments (0.21) (0.61) Adjusted operating EPS $ 8.52 $ 29.99 Less: Impact of annual unlocking (0.14) (0.72) Adjusted ope
Slide 32: Reconciliation Tables
Reconciliation Tables Mix Shift ($ in millions) Full Year TTM 2014(1) 2024 Advice & Wealth Management pretax adjusted operating earnings $ 792 $ 2,920 Less: Unlocking - - Pretax adjusted operating earnings excluding unlocking $ 792 $ 2,920 Asset Management pretax adjusted operating earnings $ 788 $
Slide 33: Reconciliation Tables
Reconciliation Tables Advice & Wealth Management net pretax adjusted operating margin ($ in millions) TTM 2024 Adjusted operating total net revenues $ 9,713 Pretax adjusted operating earnings $ 2,920 Pretax adjusted operating margin 30.1% 33
Slide 34: Reconciliation Tables
Reconciliation Tables Asset Management net pretax adjusted operating margin ($ in millions) TTM 2024 Adjusted operating total net revenues $3,334 Less: Distribution pass through revenues 741 Less: Subadvisory and other pass through revenues 387 Net adjusted operating revenues $2,206 Pretax adjusted
Slide 35: Reconciliation Tables
Reconciliation Tables Adjusted operating return on equity ($ in millions) Twelve Months Ended March 31, 2024 Net income $ 3,129 Less: Adjustments (1) (62) Adjusted operating earnings $ 3,191 Less: Unlocking (78) Adjusted operating earnings excluding Unlocking $ 3,269 Total Ameriprise Financial, Inc.