Ameriprise Financial, Inc. · NYSE:AMP
Ameriprise Financial — Q4 2022 Earnings Presentation
21 slides from Ameriprise Financial's earnings presentation, Jan 26, 2023
Slide 1: Fourth Quarter 2022 Conference Call
Ameriprise Financial Fourth Quarter 2022 Conference Call January 26, 2023 © 2023 Ameriprise Financial, Inc. All rights reserved.
Slide 2: Forward-looking statements
Forward-looking statements Some of the statements made in our January 25, 2023 earnings release and/or in this January 26, 2023 presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of January 26, 2023.
Slide 3: Consolidated Fourth Quarter 2022 Results
Consolidated Fourth Quarter 2022 Results GAAP Q4 2022 Q4 2021 Over/(Under) Net Revenues ($M) $3,617 $3,760 (4)% Expenses ($M) $2,998 $2,894 (4)% Net Income ($M) $494 $701 (30)% Diluted EPS $4.43 $5.96 (26)% ROE, ex. AOCI (1) 43.1% 51.2% (810) bps Adjusted Operating Q4 2022 Q4 2021 Over/(Under) Net R
Slide 4: Q4 2022 Business & Financial Results
Q4 2022 Business & Financial Results Walter Berman Chief Financial Officer © 2023 Ameriprise Financial, Inc. All rights reserved. 4
Slide 5: EPS up 13% for the quarter and 11% for the year
1 EPS up 13% for the quarter and 11% for the year • Our diversified business mix generates stable earnings across market cycles Pretax Adjusted Operating Earnings2 • AWM earnings grew 41% and drove 64% of the company’s earnings in the quarter, as a result of robust organic growth driven by strong un
Slide 6: Interest earnings and business momentum more than offset market pressures
Interest earnings and business momentum more than offset market pressures Operating Net Revenues $ in millions $3,705 (2)% • AUM/A declined 17% as significant business growth and client $3,645 flows were more than offset by depreciating markets – Equity markets down 19% – Fixed income markets down 1
Slide 7: Wealth Management organic growth demonstrated the strength of our value proposition
Wealth Management organic growth demonstrated the strength of our value proposition across market cycles Total Client Assets Total Client Flows TTM Revenue Per Advisor $ in billions $ in billions $ in thousands 43% 23% 4% $827 $41.4 $42.5 $796 $858 $758 $674 $732 $29.7 2020 2021 2022 2020 2021 2022
Slide 8: Wealth Management delivered record earnings and a new high margin of 30%
Wealth Management delivered record earnings and a new high margin of 30% Adjusted Operating Pretax Adjusted • Pretax earnings up 41%, as client flows and higher Total Net Revenue Operating Earnings interest earnings more than offset market depreciation $ in millions $ in millions and lower transacti
Slide 9: Asset Management industry remained challenged in 2022
Asset Management industry remained challenged in 2022, with a 17% decline in AUM from markets and a 3% decline due to foreign currency translation Total AUM Total Flows $ in billions $ in billions $42.9 Includes $16.9B from BMO US Asset $754 Transfer $584 $547 $5.7 $(6.5) Incl $2.6B from 2020 2021 2
Slide 10: Asset Management results reflect the challenging market environment
Asset Management results reflect the challenging market environment consistent with industry Adjusted Operating Pretax Adjusted Operating Earnings • AUM declined 23% year-over-year from significant equity Total Net Revenue $ in millions $ in millions and fixed market depreciation, as well as foreign
Slide 11: Retirement & Protection Solutions delivered strong earnings and free cash flow
Retirement & Protection Solutions delivered strong earnings and free cash flow Pretax Adjusted • Pretax operating earnings of $229 million benefited from: Operating Earnings – Enhanced yield by repositioning the investment portfolio $ in millions – Lower amortization of deferred acquisition costs $2
Slide 12: Strong balance sheet and free cash flow supported $2.4 billion capital return
Strong balance sheet and free cash flow generation supported $2.4 billion capital return in 2022 Capital Returned to Shareholders • Strong balance sheet fundamentals and free cash flow $ in millions generation enabled continued capital return – Strong excess capital and holding company $131 $140 $14
Slide 13: Reconciliation Tables
Reconciliation Tables © 2023 Ameriprise Financial, Inc. All rights reserved. 13
Slide 14: Adjusted Operating Earnings Per Diluted Share (Quarter)
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) 2022 2021 2022 2021 (Under) Net income $ 494 $ 701 $ 4.43 $ 5.96 (26)% Less: Net realized investment
Slide 15: Adjusted Operating Earnings Per Diluted Share (Year-to-date)
Reconciliation tables Adjusted Operating Earnings Per Diluted Share Per Diluted Share Year-to-date Year-to-date December 31, December 31, % Over/ (in millions, except per share amounts, unaudited) 2022 2021 2022 2021 (Under) Net income $ 2,559 $ 2,760 $ 22.51 $ 23.00 (2)% Less: Net realized investme
Slide 16: Ameriprise Financial Operating Expenses
Reconciliation tables Ameriprise Financial Operating Expenses Year-to-date December 31, % Over/ (in millions, except per share amounts, unaudited) 2022 2021 (under) Total Ameriprise operating expenses $ 10,873 $ 10,557 3% BMO operating expenses 363 54 NM Total Ameriprise operating expenses excluding
Slide 17: Adjusted Operating Net Revenues & Expenses
Reconciliation tables Adjusted Operating Net Revenues & Expenses Quarter Ended December 31, % Over / (in millions, unaudited) 2022 2021 (Under) Total net revenues $ 3,617 $ 3,760 (4)% Less: Net realized investment gains (losses) (9) 9 Less: Market impact on non-traditional long-duration products (50
Slide 18: 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) 2022 2021 Net income $ 2,559 $ 2,760 Less: Adjustments (1) (165) 36 Adjusted operating earnings $ 2,724 $ 2,724 Less: Annual unlocking/loss r
Slide 19: Pretax Adjusted Operating Earnings Mix Shift
Reconciliation tables Pretax Adjusted Operating Earnings Mix Shift Quarter Ended December 31, (in millions, unaudited) 2022 2021 Advice & Wealth Management $ 665 $ 472 Asset Management 146 330 RPS 229 183 Subtotal pretax adjusted operating earnings $ 1,040 $ 985 Advice & Wealth Management 64 % 48 %
Slide 20: Advice and Wealth Management Pretax Adjusted Operating Margin
Reconciliation tables Advice and Wealth Management Pretax Adjusted Operating Margin % Over/ % Over/ (in millions, unaudited) 4 Qtr 2022 4 Qtr 2021 (Under) 3 Qtr 2022 (Under) Revenues Management and financial advice fees: Advisory fees $ 1,084 $ 1,209 (10)% $ 1,107 (2)% Financial planning fees 117 11
Slide 21: AWM Full Year G&A Expense and Asset Management Net Margin
Reconciliation tables Advice and Wealth Management Full Year G&A Expense Year-to-date December 31, (in millions, unaudited) 2022 2021 Total G&A expenses $ 1,540 $ 1,426 8% Asset Management Net Pretax Adjusted Operating Margin Quarter Ended December 31, (in millions, except per share amounts, unaudit