July 23–Ameriprise Financial Inc. said its second-quarter operating earnings rose 6 percent to $436 million and its investment level held relatively steady after overseas earnings were dented by the effect of the strong dollar.
The Minneapolis-based financial management firm also said its net income rose 11 percent to $415 million and revenue jumped 2 percent to $3 billion.
Executives and analysts look more closely at operating earnings, an after-tax measure that excludes the consolidation of certain investments, some charges and hedging activities. That number for the April-to-June period translated to $2.33 a share, above analysts’ forecast of $2.27.
The company said per-share operating earnings were reduced by 5 cents because of higher than expected weather-related insurance losses and other items.
In a statement, Jim Cracchiolo called the performance “good” and said Ameriprise hit records for client assets and adviser productivity. “We’re managing through this protracted period of low interest rates and higher equity market volatility while continuing to invest in the business consistent with our strategy,” he said in the statement.
Assets under management and administration rose only slightly, to $811 billion, because new investments by clients and appreciation in the market was offset by a $12 billion effect of translating foreign currency into the U.S. dollar.
Combined with dividends, Ameriprise returned $549 million to shareholders, up 20 percent from the first quarter.
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