Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q2 2022 Earnings Presentation
19 slides from Ameriprise Financial's earnings presentation, Jul 27, 2022
Slide 1: Ameriprise Financial Second Quarter 2022 Conference Call
Ameriprise Financial Second Quarter 2022 Conference Call July 27, 2022 © 2022 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our July 26, 2022 earnings release and/or in this July 27, 2022 presentation constitute forward- looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of July 27, 2022. These f
Slide 3: Consolidated Second Quarter 2022 Results
Consolidated Second Quarter 2022 Results GAAP Q2 2022 Q2 2021 Over/(Under) Net Revenues ($M) $3,508 $3,418 3% Expenses ($M) $2,553 $2,697 5% Net Income ($M) $756 $591 28% Diluted EPS $6.61 $4.88 35% ROE, ex. AOCI (1) 57.0% 19.5% NM Adjusted Operating Q2 2022 Q2 2021 Over/(Under) Net Revenues ($M) $3
Slide 4: Q2 2022 Business & Financial Results
Q2 2022 Business & Financial Results Walter Berman Chief Financial Officer © 2022 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: EPS up 10% reflecting strong business performance in a challenging macro environment
EPS up 10% reflecting strong business performance in a challenging macro environment • Underlying business momentum, initial interest rate benefits and Pretax Adjusted Operating Earnings1 expense discipline were more than offsetting market depreciation • Significant opportunity remains to garner add
Slide 6: AUM/A declined modestly as strong business growth largely offset market impacts
AUM/A declined modestly as strong business growth largely offset market impacts Assets Under Management & Administration (AUM/A) • Total flows remained strong at $69 billion $ in billions over the past year, including $6 billion in ($113) the quarter $69 $1,211 ($246) $1,170 $136 • AUM/A declined on
Slide 7: Wealth Management flows remain strong albeit at a lower level than 2021 record levels
Wealth Management flows remain strong albeit at a lower level than 2021 record levels Total Client Assets Total Client Flows TTM Revenue Per Advisor $ in billions $ in billions $ in thousands $807 (9)% $9.5 (10)% 11% $814 $735 $8.6 $731 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q1 2022 Calculated on a
Slide 8: Wealth Management strong profitability from interest rates and organic growth
Wealth Management strong profitability from interest rates and organic growth Pretax Adjusted Operating Earnings • Revenue grew $76 million with pretax earnings $ in millions up 16%, as higher interest earnings and client flows more than offset market depreciation and lower transactional activity $4
Slide 9: AWM well positioned to realize further benefits from rising rates on cash products
Based on current assumptions, AWM is well positioned to realize further benefits from rising rates on cash products Gross Revenue from Cash Products • Significant benefit from rising interest rates based on current Fed expectations • Over $47 billion of client cash balances across our sweep program,
Slide 10: Asset Management performance is in line with the industry given market volatility
Asset Management performance is in line with the industry given market volatility Total AUM Total Flows Adjusted Operating Margin $ in billions $ in billions $593 $598 $6.7 45.4% 38.5% Q2 2021 Q2 2022 ($3.1) Q2 2021 Q2 2022 Pre-BMO Includes BMO Business © 2022 Ameriprise Financial, Inc. All rights r
Slide 11: Asset Management financial performance reflects the challenging macro backdrop
Asset Management financial performance reflects the challenging macro backdrop Pretax Adjusted Operating Earnings • Adjusted operating revenues were flat as the $ in millions addition of the BMO business offset markets, foreign exchange rates and outflows $253 • Underlying fee rate remained stable a
Slide 12: Retirement & Protection Solutions delivered stable earnings
Retirement & Protection Solutions delivered stable earnings Pretax Adjusted • Pretax earnings of $179 million reflecting continued solid performance with a differentiated risk profile Operating Earnings $ in millions • RPS sales declined to $1.2 billion as a result of market dislocation $182 $179 an
Slide 13: Strong balance sheet and free cash flow generation support capital return commitment
Strong balance sheet and free cash flow generation support 90% capital return commitment for 2022 Capital Returned to Shareholders • Strong balance sheet fundamentals and superior $ in millions capital strength $133 – Cash flow generation of ~90% over time $131 – $1.9 billion of holding company avai
Slide 14: Reconciliation Tables
Reconciliation Tables © 2022 Ameriprise Financial, Inc. All rights reserved. 14
Slide 15: 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) 2022 2021 2022 2021 (Under) Net income $ 756 $ 591 $ 6.61 $ 4.88 35% Less: Net realized investment gains (los
Slide 16: Reconciliation tables: Adjusted Operating Net Revenues & Expenses
Reconciliation tables Adjusted Operating Net Revenues & Expenses Quarter Ended June 30, % Over / (in millions, unaudited) 2022 2021 (Under) Total net revenues $ 3,508 $ 3,418 3% Less: Net realized investment gains (losses) (15) 10 Less: Market impact on non-traditional long-duration products 25 21 L
Slide 17: 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) 2022 2021 Net income $ 3,249 $ 1,065 Less: Adjustments (1) 467 (980) Adjusted operating earnings $ 2,782 $ 2,045 Total Ameriprise Financial, Inc.
Slide 18: Reconciliation tables: Pretax Adjusted Operating Earnings Mix Shift
Reconciliation tables Pretax Adjusted Operating Earnings Mix Shift Quarter Ended June 30, (in millions, unaudited) 2022 Advice & Wealth Management $ 492 Asset Management 222 RPS 179 Pretax adjusted operating earnings ex Corporate $ 893 Advice & Wealth Management 55 % Asset Management 25 % RPS 20 % S
Slide 19: 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) 2022 2021 Adjusted operating total net revenues $ 881 $ 879 Distribution pass thru revenues (200) (225) Subadvisory and other pass thru revenues (91)