Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q2 2023 Earnings Presentation
20 slides from Ameriprise Financial's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Conference Call
Ameriprise Financial Second Quarter 2023 Conference Call July 27, 2023 © 2023 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our July 26, 2023 earnings release and/or in this July 27, 2023 presentation constitute forward- looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of July 27, 2023. These f
Slide 3: Consolidated Second Quarter 2023 Results
Consolidated Second Quarter 2023 Results GAAP Q2 2023 Q2 2022 Better/(Worse) Net Revenues ($M) $3,876 $3,486 11% Expenses ($M) $2,749 $2,713 (1)% Net Income ($M) $890 $614 45% Diluted EPS $8.21 $5.37 53% Return on Equity, ex. AOCI (1) 48.6% 55.5% (690) bps Adjusted Operating Q2 2023 Q2 2022 Better/(
Slide 4: Q2 2023 Business & Financial Results
Q2 2023 Business & Financial Results Walter Berman Chief Financial Officer © 2023 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: EPS up 30% demonstrating the strength of our diversified business model
EPS up 30% demonstrating the strength of our diversified business model • Strong financial results from business momentum and higher interest rates – Wealth Management delivered strong organic growth and benefited Pretax Adjusted Operating Earnings1 from higher spread revenue; represented 68% of AMP
Slide 6: Strong business momentum and interest earnings
Strong business momentum and interest earnings Operating Net Revenues • AUM/A increased 9% as business growth, client flows and $ in millions rising equity markets were partially offset by lower fixed 10% income markets $3,826 $3,479 • Operating net revenues increased 10% – Significant benefits from
Slide 7: Wealth Management: Client-focused model pivots with markets & drives strong organic growth
Wealth Management: Client-focused model pivots with markets & drives strong organic growth Total Client Assets Total Client Flows TTM Revenue Per Advisor1 $ in billions $ in billions $ in thousands 10% $9.4 $8.6 7% $874 13% $833 $814 $735 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 (1) Calculate
Slide 8: AWM client cash has returned to historic levels
AWM client cash has returned to historic levels • Earnings on client cash balances have increased substantially Client Cash Balances – Fee yields increased 347 bps from a year ago to 4.77% $ in billions – Client cash balances returned to normalized levels at approximately 5.0% of client assets $47.4
Slide 9: Wealth Management earnings increased 49%
Wealth Management earnings increased 49% Adjusted Operating Pretax Adjusted • Strong revenue and pretax earnings growth driven by Total Net Revenue Operating Earnings higher spreads and continued client net inflows $ in millions $ in millions – $9.4 billion total client flows, up 10% – $42 billion o
Slide 10: Asset Management remains challenged by markets and outflows, consistent with the industry
Asset Management remains challenged by markets and outflows, consistent with the industry Total AUM Total Flows $ in billions $ in billions $617 $598 $(3.1) ($5.3) Q2 2022 Q2 2023 Q2 2022 Q2 2023 © 2023 Ameriprise Financial, Inc. All rights reserved. 10
Slide 11: Asset Management financial results reflect the challenging environment
Asset Management financial results reflect the challenging environment Adjusted Operating Pretax Adjusted • Lower revenues and pretax adjusted operating Total Net Revenue Operating Earnings earnings are a result of deleveraging from declines $ in millions $ in millions in fixed income markets, net o
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 Operating Earnings • Overall RPS sales trends were mixed in the quarter $ in millions – Protection sales improved 18% to $77 million with the majority of the $189 sales in higher margin, accumulation-
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 $140 $138 $146 – Strong excess capital position of $1.3 billion $142 $138 – AA-rated investment portfolio is well positi
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 June 30, June 30, % Better/ (in millions, except per share amounts, unaudited) 2023 2022 2023 2022 (Worse) Net income $ 890 $ 614 $ 8.21 $ 5.37 53% Adjustments: Net realized investment g
Slide 16: Reconciliation tables
Reconciliation tables Pretax Adjusted Operating Earnings Quarter Ended June 30, % Better/ (in millions, unaudited) 2023 2022 (Worse) Total net revenues $ 3,876 $ 3,486 11% Adjustments: Net realized investment gains (losses) 3 (14) Market impact on non-traditional long-duration products 1 2 Mean Reve
Slide 17: Reconciliation tables
Reconciliation tables Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income “AOCI” Twelve Months Ended June 30, (in millions, unaudited) 2023 2022 Net income $ 3,017 $ 3,065 Less: Adjustments (1) (143) 409 Adjusted operating earnings $ 3,160 $ 2,656 Total Ameriprise Financial, Inc.
Slide 18: Reconciliation tables
Reconciliation tables Pretax Adjusted Operating Earnings Mix Shift Quarter Ended June 30, (in millions, unaudited) 2023 2022 Advice & Wealth Management $ 731 $ 492 Asset Management 162 222 RPS 189 168 Subtotal pretax adjusted operating earnings $ 1,082 $ 882 Advice & Wealth Management 68 % 56 % Asse
Slide 19: Reconciliation tables
Reconciliation tables Asset Management Net Pretax Adjusted Operating Margin (in millions, unaudited) 2 Qtr 2023 Adjusted operating total net revenues $ 808 Distribution pass through revenues (183) Subadvisory and other pass through revenues (95) Net adjusted operating revenues $ 530 Pretax adjusted
Slide 20: Reconciliation tables
Reconciliation tables Adjusted Operating G&A Expenses excluding PSU Mark to Market Quarter Ended June 30, % Better/ (in millions, unaudited) 2023 2022 (Worse) General and administrative expense $ 967 $ 894 (8)% Less: CIEs expenses 1 2 Less: Integration/restructuring charges 25 14 Adjusted operating