Ameriprise Financial Second Quarter 2025 Conference Call July 24, 2025 © 2025 Ameriprise Financial, Inc. All rights reserved. Forward-looking statements Some of the statements made in our July 24, 2025 earnings release and/or in this presentation constitute forward-looking statements. These statements reflect management's estimates, plans, beliefs and expectations, and speak only as of July 24, 2025. These forward-looking statements involve a number of risks and uncertainties. A list of certain factors that ...

Financial Performance - Second quarter adjusted operating earnings per diluted share increased 7% to $9.11, reflecting asset growth and expense discipline [7] - GAAP net income per diluted share was $10.73, a 34% increase from $8.02 a year ago [8] - Adjusted operating net revenues increased 4% to $4.3 billion, primarily driven by asset growth [7] - Total revenues for Q2 2025 were $4,490 million, a 2% increase from $4,392 million in Q2 2024 [39] - Net income for Q2 2025 reached $1,060 million, reflecting a 28% increase compared to $829 million in Q2 2024 [39] - Total net revenues increased by 4% to $4,375 million in Q2 2025 from $4,220 million in Q2 2024 [39] - Basic earnings per share for Q2 2025 were $10.88, up from $8.16 in Q2 2024 [39] - Adjusted operating earnings for Q2 2025 were $900 million, up 2% from $882 million in Q2 2024 [83] Assets and Management - Assets under management, administration, and advisement reached a record high of $1.6 trillion, up 9% [7] - Total client assets grew 11% to a record high of $1.1 trillion, with client net flows of $4.3 billion [14] - Assets Under Management (AUM) in Advice & Wealth Management grew to $611,333 million, a 15% increase from $531,268 million in Q2 2024 [42] - Total assets under management and advisement reached $689,723 million, a 2% increase from $673,860 million in Q2 2024 [53] - Total managed assets increased to $654,224 million in Q2 2025, up 2% from $641,880 million in Q2 2024 [53] Shareholder Returns - The company returned $731 million of capital to shareholders in the quarter, representing 81% of adjusted operating earnings [7] - Total capital returned to shareholders was $731 million, a 5% increase from $693 million in Q2 2024 [42] Revenue Streams - Adjusted operating net revenues for the Asset Management segment were $830 million, with a net pretax adjusted operating margin of 39% [16] - Management and financial advice fees rose by 11% to $1,737 million in Q2 2025 from $1,571 million in Q2 2024 [45] - Total revenues for Q2 2025 increased by 4% to $2,922 million compared to $2,816 million in Q2 2024 [45] Expenses - Distribution expenses rose to $1,596 million, a 10% increase compared to $1,450 million in Q2 2024 [39] - Distribution expenses increased by 10% to $1,546 million in Q2 2025 from $1,403 million in Q2 2024 [45] - The company experienced a 33% decrease in banking and deposit interest expense, down to $115 million from $172 million in Q2 2024 [39] Tax and Income - The operating effective tax rate was 21.7%, expected to be between 20% and 22% for the full year 2025 [26] - The effective tax rate for Q2 2025 was 21.6%, slightly higher than the 21.1% in Q2 2024 [92] Debt and Equity - Total long-term debt for Ameriprise Financial was $5.805 billion as of June 30, 2025, compared to $5.782 billion on June 30, 2024 [78] - The debt to capital ratio for Ameriprise Financial was 33.6% as of June 30, 2025, down from 40.5% on June 30, 2024 [78] - The total equity of Ameriprise Financial increased to $6.082 billion as of June 30, 2025, compared to $4.993 billion on June 30, 2024 [78] - Total equity increased to $6,082 million as of June 30, 2025, compared to $5,228 million at the end of 2024 [82] Other Financial Metrics - The company reported a pretax income margin of 30.9% for Q2 2025, up from 24.9% in Q2 2024 [87] - Return on equity excluding accumulated other comprehensive income (AOCI) was 45.8% for the twelve months ended June 30, 2025 [94] - Adjusted operating return on equity excluding AOCI improved to 51.5% for the twelve months ended June 30, 2025 [94]

Core Viewpoint - Ameriprise Financial, Inc. (AMP) is expected to report year-over-year growth in revenues and earnings for Q2 2025, with results influenced by higher assets under management (AUM) and administration (AUA), although rising expenses may pose challenges [1][10]. Financial Performance Expectations - The Zacks Consensus Estimate for AMP's management and financial advice fees is $2.6 billion, reflecting a 6% increase from the prior year [3]. - Distribution fees are estimated at $522.1 million, indicating a 3.4% rise, while other revenues are projected at $137.1 million, suggesting a 6.3% growth [4]. - Net investment income is expected to decline by 8.7% to $841.2 million, and premiums, policy, and contract charges are estimated to fall by 1% to $377.2 million [5]. Asset Management Insights - Total AUM and AUA are projected to reach $1.49 trillion, representing a 4.4% increase year-over-year [6]. - Despite market volatility, the company has experienced decent inflows, contributing to the growth in AUM and AUA [6]. Expense Management - Total adjusted operating expenses are anticipated to rise by 6% year-over-year to $3.24 billion, driven by technology upgrades and hiring, despite efforts to control general and administrative costs [7][10]. Earnings Estimates - The consensus estimate for earnings per share is $9.00, indicating a 5.5% increase from the previous year, with total sales expected to reach $4.34 billion, reflecting a 4% increase [11]. Earnings Surprise History - Ameriprise has a solid earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 2.05% [2]. Earnings Whisper - The likelihood of Ameriprise beating the Zacks Consensus Estimate for earnings this quarter is low, as it currently has an Earnings ESP of -0.73% and a Zacks Rank of 3 [8][9].

Summary of AMP's Wealth and Retirement Business Units Conference Call Company Overview - **Company**: AMP (AMP) - **Date**: July 21, 2025 - **Focus**: Wealth and Retirement Business Units Key Points and Arguments Strategic Direction - AMP has simplified its portfolio, reduced costs, and strengthened its balance sheet, positioning itself as a specialist in retirement solutions [6][7] - The company aims to approach growth with a challenger brand mindset, embracing technology and agility while maintaining its legacy of safety and security [7] Financial Performance - In 2024, AMP reported an operating profit of $236 million, with $174 million (approximately 75%) coming from its wealth management businesses [8] - The North platform is the third-largest WRAP platform for superannuation and pensions in Australia, managing approximately $80 billion [10] Retirement Solutions - AMP has introduced innovative retirement solutions, including the North Guaranty and lifetime superannuation options, which are unique in the market [11][12] - The company launched the Citro Lifestyle app to address the social aspects of retirement, enhancing customer engagement [12] Market Opportunity - By 2031, 33% of Australia's population will be in retirement, with $750 billion in assets expected to transition into the retirement phase over the next six years [14] - Despite significant wealth, 80% of Australian retirees struggle to enjoy a comfortable retirement due to a lack of financial literacy and access to advice [16][17] Challenges in the Retirement Sector - 50% of Australians are concerned about not having enough money in retirement, leading to a tendency to underspend [18] - There is a shortage of independent financial advisers, which complicates access to quality advice for the general population [19] Innovative Features - AMP's lifetime solutions combine the benefits of account-based pensions and annuities, providing clients with higher income in retirement [29][32] - The company has developed a unique approach to mitigate market and longevity risks through pooled solutions and market-linked income streams [41][44] Age Pension Insights - 63% of Australians are eligible for some form of Centrelink support in retirement, with the asset test favoring those using AMP's lifetime super functionality [45][48] - AMP's analysis shows that 94% of its members could benefit from increased eligibility for the age pension through lifetime super features [49] Growth and Market Position - The platform market is growing at approximately 10% per year, with AMP's North platform positioned to capture a larger share of the addressable market estimated at $2.4 trillion [70] - Only 10% of Australians currently receive financial advice, indicating a significant opportunity for AMP to expand its advisory services [71] Technology and Efficiency - AMP is investing in in-house technology and AI to enhance adviser efficiency and client engagement, aiming to increase the number of clients served by each adviser [75][84] - The North platform has seen significant growth in managed portfolios, now totaling $21.8 billion, reflecting strong adviser and client adoption [83] Conclusion - AMP is well-positioned to capitalize on the growing retirement market through innovative solutions, a focus on financial advice accessibility, and leveraging technology to enhance adviser-client relationships [76][92]

AMP's Financial Performance and Strategy - AMP's FY24 NPAT was $107 million[16] - Platforms FY24 NPAT reached $72 million[18] - Super & Investments FY24 NPAT was $67 million[21] - AMP is focusing on wealth management after simplifying its portfolio[15, 11] - AMP is adopting a challenger brand mindset to drive performance in wealth businesses[9, 12] Retirement Solutions and Market Opportunity - Australia's superannuation savings pool is the world's fifth largest, worth $4.1 trillion and expected to reach $10 trillion by 2040[37] - Only 1% of post-retirement assets are in lifetime products, representing a $28 billion market opportunity[31] - Platforms market has grown 10% in the last 12 months to $760 billion[102] - AMP Super has $58 billion in total assets[137] - 94% of AMP's 580,000 members would benefit from Lifetime Super[68] North Platform Performance - North's total funds under administration are $83.2 billion[99] - North has $21.8 billion in Managed Portfolios funds under management[99, 120] - MyNorth Lifetime has over 2,000 members[99]

Ameriprise Financial Overview - Ameriprise Financial has $1.5 trillion in total assets under management, administration, and advisement[7] - Ameriprise Bank, FSB holds over $24 billion in assets[8] - The company has $198 billion life insurance in force[8] - Ameriprise Financial's market capitalization has increased from $8.8 billion at spin-off to $46.4 billion[8] Financial Performance - Advice & Wealth Management contributed 65% to the company's pretax adjusted operating earnings in 2025, amounting to $3.263 billion[19, 85] - Asset Management accounted for 19% of pretax adjusted operating earnings in 2025, totaling $955 million[19, 92] - Retirement & Protection Solutions represented 16% of pretax adjusted operating earnings in 2025, which is $742 million[19, 85] - The company's adjusted operating earnings excluding annual unlocking were $3.681 billion in the trailing twelve months ending March 31, 2025[88] - Ameriprise Financial returned $12.2 billion of capital to shareholders over five years[22] Wealth Management - Wealth Management client assets reached $1.023 trillion in 2025[44] - Wealth Management pretax adjusted operating earnings were $3.263 billion in 2025[44] - Wealth Management adjusted operating net revenue was $11.0 billion in 2025[44] Columbia Threadneedle Investments - Columbia Threadneedle has $657 billion in Assets Under Management and Advisement[56]

Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms Investing.com and Seeking Alpha, focusing on dividend stocks and general market commentary [1] - Since 2023, Albert Anthony has gained over 1,000 followers and has covered more than 200 companies across multiple sectors [1] - He has experience as an analyst in the IT sector and was part of the IT team at a top 10 financial firm in the US [1] Group 2 - Albert Anthony holds a B.A. from Drew University and has completed coursework through the Corporate Finance Institute and Coursera [1] - In 2025, he plans to launch a new book on Amazon discussing his methodology as an analyst and how he rates stocks [1] - The Albert Anthony brand is owned by Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1]

Financial Performance - Adjusted operating earnings for the three months ended March 31, 2025, were $950 million, up 8.2% from $878 million in the same period of 2024[252]. - The net income for the twelve months ended March 31, 2025, was $2.994 billion, a decrease of 4.3% compared to $3.129 billion in 2024[255]. - Total revenues for the three months ended March 31, 2025, were $4,481 million, an increase of $156 million, or 4%, compared to the prior year period[264]. - Net income decreased by $407 million, or 41%, to $583 million for the three months ended March 31, 2025, compared to $990 million in the prior year[264]. - Adjusted operating earnings per diluted share increased to $9.50, up from $8.39, representing a growth of 13.3%[252]. Assets Under Management - As of March 31, 2025, Ameriprise Financial has $1.5 trillion in assets under management, administration, and advisement, reflecting a 3% increase from $1.45 trillion in the previous year[244][261]. - The total assets under management increased by $19.5 billion, or 2%, from $1.127 trillion in 2024 to $1.146 trillion in 2025[261]. - The Advice & Wealth Management segment's assets under management grew by 10% to $569.1 billion, up from $518.1 billion in the previous year[261]. - Total Assets Under Management (AUM) increased by $19.5 billion, or 2%, to $1.1 trillion as of March 31, 2025, driven by a $51.0 billion increase in Advice & Wealth Management AUM and a $30.7 billion decrease in Asset Management AUM[262]. - Total client assets increased by $68.7 billion, or 7%, to $1.0 trillion as of March 31, 2025, primarily due to market appreciation and client net inflows[280]. Revenue and Fees - Management and financial advice fees increased by $203 million, or 8%, for the three months ended March 31, 2025, reflecting market appreciation and continued wrap account net inflows[265]. - The Advice & Wealth Management segment reported total revenues of $2.9 billion for the three months ended March 31, 2025, a 6% increase from $2.7 billion in the prior year[286]. - Management and financial advice fees rose by $210 million, or 14%, to $1.7 billion, driven by an 18% increase in average advisory wrap account assets, which reached $88.0 billion[287]. Expenses and Costs - Distribution expenses increased by $193 million, or 14%, for the three months ended March 31, 2025, primarily due to higher advisor compensation and investments in recruiting experienced advisors[272]. - Distribution expenses increased by $185 million, or 14%, to $1.6 billion, reflecting higher transactional activity and investments in recruiting experienced advisors[291]. - General and administrative expenses for the Corporate & Other segment decreased by $6 million, or 8%, for the three months ended March 31, 2025, compared to the prior year[318]. Investment and Market Conditions - The S&P 500 daily average increased by 18% from 4,996 in 2024 to 5,899 in 2025, indicating a favorable market environment[258]. - Net investment income decreased by $60 million, or 11%, to $500 million, primarily due to lower average invested assets and unfavorable investment yields[289]. - The anticipated deposit growth is expected to be positively impacted by rising interest rates, which will affect investment portfolio yield[352]. Cash and Liquidity - Total cash balances increased to $86.0 billion as of March 31, 2025, up from $82.4 billion in the prior year, with Ameriprise Bank deposit balances increasing by 7%[283]. - The company maintained substantial liquidity with $7.8 billion in cash and cash equivalents as of March 31, 2025[323]. - The parent company had $1.3 billion in cash, cash equivalents, and unencumbered liquid securities as of March 31, 2025, compared to $856 million as of December 31, 2024[324]. Corporate Actions and Strategy - The company is focusing on a strategy to shift towards lower-risk products, including exiting variable annuities with living benefit riders[352]. - The company anticipates adjusted operating earnings per diluted share growth of 12% to 15% in the upcoming periods[253]. - The company continues to monitor the potential impact of the OECD's Pillar Two model rules on its consolidated financial statements[332].

Financial Data and Key Metrics Changes - Total revenues increased by 5% driven by positive asset growth and higher transactional activity [10] - Earnings rose by 8% with EPS up 13%, reflecting strong business growth and ongoing expense discipline [10] - Return on equity excluding AOCI remains at 52%, indicating best-in-class performance [10] Business Line Data and Key Metrics Changes - In Wealth Management, assets increased by 7% to $1 trillion, with inflows of $10.3 billion [11] - Wrap activity saw a 34% increase in flows to $8.7 billion, with total wrap assets growing by 10% to $573 billion [12] - Retirement Protection Solutions reported strong earnings with annuities growing by 28% and life business sales up by 22% [23] - Asset Management faced challenges with net outflows of $18.3 billion, despite strong investment performance [25][50] Market Data and Key Metrics Changes - Assets under management and advisement reached $1.5 trillion, benefiting from strong net client flows and equity market appreciation [39] - The bank's assets grew to over $24 billion, contributing positively to earnings [20] Company Strategy and Development Direction - The company is focused on enhancing its advice value proposition and integrating technology to support advisers [14][17] - A new Unified Managed Account (UMA) platform called Signature Wealth is being tested, expected to launch soon [15][66] - The company aims to maintain flexibility and opportunism in a volatile market environment, supported by a strong capital position [30][84] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing market volatility and economic uncertainty but expresses confidence in the company's diversified business model [8][36] - The outlook for net interest income is positive due to proactive portfolio adjustments [62] - The company remains committed to returning capital to shareholders, with an 8% dividend increase announced [31][41] Other Important Information - The company achieved a 12% increase in adviser productivity, reflecting strong asset growth [17] - Client satisfaction remains high, with a rating of 4.9 out of 5 [18] - The company has been recognized for its technology innovation and client engagement strategies [16][33] Q&A Session Summary Question: Outlook for AWM NII and bank earnings - Management expects improvement in net interest income based on recent actions taken [62] Question: Details on Signature Wealth platform - Signature Wealth is a comprehensive UMA platform that offers flexibility for advisers and clients [66] Question: AWM flows and competitive landscape - Management reports strong client activity and engagement, with good new asset additions [71] Question: Adviser recruiting environment - The company has seen good recruitment numbers and a strong pipeline for the second quarter [95] Question: Capital position and potential acquisitions - Management emphasizes flexibility in responding to market opportunities due to a strong capital position [84] Question: G&A expenses outlook - G&A expenses are expected to remain flat for the year [134] Question: Client behavior in April - No significant changes in client transactional activity have been observed despite market volatility [138]

Core Viewpoint - Ameriprise Financial (AMP) reported strong first-quarter 2025 adjusted operating earnings of $9.50 per share, exceeding the Zacks Consensus Estimate of $9.12, reflecting a 13% increase year over year [1] Financial Performance - Adjusted operating total net revenues for the quarter were $4.31 billion, a 5% increase year over year, although it fell short of the Zacks Consensus Estimate of $4.38 billion [3] - Total GAAP net revenues were $4.35 billion, also up 5% year over year [3] - Adjusted operating expenses rose to $3.16 billion, an increase of 5% [3] - Net income on a GAAP basis was $583 million or $5.83 per share, down from $990 million or $9.46 per share in the prior-year quarter [2] Assets Under Management - As of March 31, 2025, total assets under management (AUM) and assets under administration (AUA) reached $1.49 trillion, a 3% increase year over year, driven by decent client net inflows [4] Capital Distribution Actions - Ameriprise repurchased 1.2 million shares for $617 million during the quarter and announced a new share repurchase authorization of $4.5 billion through June 30, 2027 [5] - A quarterly cash dividend of $1.60 per share was declared, marking an 8% increase from the previous payout, to be paid on May 19 to shareholders as of May 5 [6] Future Outlook - Elevated expenses, primarily due to technology upgrades, are expected to continue impacting AMP's bottom line, but the company is well-positioned for top-line growth due to its robust AUM balance and business-restructuring initiatives [7]