Ameriprise Financial-Ameriprise Q1 Earnings Beat on Higher Revenues & AUM, Dividend Raised

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]