Ameriprise EPS Up 7 Percent in Q2

Key Points

• - Adjusted operating earnings per share (EPS) of $9.11 exceeded estimates and were up 7% year over year.

• - Revenue was $4.34 billion, missing analyst expectations.

• - Assets under administration reached a record $1.58 trillion, but wealth management net flows and asset management segment outflows showed some pressure.

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Ameriprise Financial (NYSE:AMP), a diversified financial services provider known for its wealth and asset management offerings, released its earnings on July 24, 2025. The company reported adjusted operating earnings per share (EPS) of $9.11, which beat analyst expectations of $9.00 non-GAAP EPS. Net income (GAAP) was $1.06 billion. The period marked new highs for assets under administration, but also showed reduced net flows in wealth management and continuing outflows in asset management. Overall, the quarter demonstrated strong capital returns and asset growth, with continued focus needed on expense control and organic client asset inflows.

Source: Analyst estimates for the quarter provided by FactSet.

Business Overview and Strategic Focus

Ameriprise Financial operates across wealth management, asset management, and retirement and protection solutions. Its business model emphasizes long-term relationships led by its network of more than 10,000 financial advisors, who provide planning and investment advice to households mainly in the $500,000 to $5 million investable assets range.

The company's recent focus areas include expanding its wealth management and investment capabilities, leveraging technology, and maintaining strict regulatory compliance. It also highlights its human capital strategy, aiming to keep advisor productivity and retention high. Success in these areas depends both on maintaining client trust and innovating its advisory and investment platforms.

Quarter Highlights: Revenue Drivers, Flows, and Capital Actions

Within Advice & Wealth Management, Adjusted operating net revenue was up 6% to $2.81 billion. and client assets reached a record $1.08 trillion, up 11%. Adjusted operating net revenue per advisor, a key productivity metric, reached $1.1 million on a trailing twelve-month basis, up 11%. The firm added 73 experienced advisors. However, Net flows in wealth management were $4.3 billion, down 35% from $6.6 billion in Q2 2024, as industrywide trends and market volatility played a role.

The launch of the Ameriprise Signature Wealth Program—a new unified managed account (UMA) platform—showcased efforts in product innovation. This platform brings together multiple advisory solutions in a single offering, aiming to simplify and enhance the advisor-client experience. Wrap assets, a core advisory product, climbed 15% year over year. Efficiency initiatives limited general and administrative expense growth in wealth management, but total segment adjusted operating expenses rose 9%, with higher distribution and interest costs involved. The pretax adjusted operating margin for this segment declined to 28.9%, compared to 31.1% in Q2 2024.

Asset Management, delivered through Columbia Threadneedle Investments, showed mixed performance. the segment recorded another quarter of net outflows—$(8.7) billion adjusted operating. A large institutional outflow occurred as a result of the winding down of the Lionstone business, while retail outflows continued. On the positive side, investment performance remained resilient, with 44% of equity funds and 83% of fixed income funds in the top two quartiles as of June 30, 2025. Segment margin (adjusted operating) reached 39.0%, up from 37.6% a year ago, reflecting both cost controls and the impact of market appreciation.

The Retirement & Protection Solutions segment provided stability. Variable annuities contract accumulation values were $87.8 billion. This business benefited from strong demand, attractive investment returns, and continued positive free cash flow generation. Life insurance in force stayed stable at $197.8 billion. General and administrative expenses declined by 1 % for this segment.

Ameriprise continued to return capital aggressively. The company returned $731 million to shareholders via dividends and share repurchases—equal to 81% of adjusted operating earnings. Share repurchases totaled $573 million, 6% higher than the prior year. The company improved its balance sheet strength, reducing long-term debt 9.3% to $3.079 billion and lowering its debt-to-capital ratio to 33.6% from 40.5%.

Ameriprise’s Business Segments and Product Lines

The company’s Advice & Wealth Management segment centers on financial planning and investment advice, mainly for mass affluent households. This includes advisory accounts, brokerage, and cash solutions. The newly launched Ameriprise Signature Wealth Program is a unified managed account (UMA) platform, which consolidates advisory services for easier household-level management. Wrap accounts, an important product type that bundles investment and advice services for a fee, remain a key driver of growth.

Columbia Threadneedle Investments, the asset management arm, offers mutual funds, institutional portfolios, and model delivery solutions for both retail and institutional clients. While assets under management grew thanks to market gains, net flows remained negative, reflecting continued challenges in attracting new institutional capital. The Retirement & Protection Solutions business provides variable annuities (tax-advantaged long-term investment products) and life insurance to help clients achieve long-term financial security.

Outlook and What to Watch

Looking ahead, Ameriprise management expects general and administrative expenses in wealth management to rise in the low- to mid-single-digit range for 2025. The operating tax rate guidance stands at 20–22 %. No formal revenue or EPS guidance for future quarters was given.

Investors should monitor trends in client asset net flows and pretax adjusted operating margins within wealth management, as well as persistent net outflows in the asset management division. Innovation in unified managed accounts and advisor recruiting trends also remain key watchpoints. With overall asset levels at record highs but organic client inflows moderating, investors should monitor the company’s ability to sustain growth.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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