Ameriprise Financial reported higher third-quarter earnings, revenue and client assets, citing continued asset growth and strong client engagement. The Minneapolis-based wealth manager also returned more than $1 billion to shareholders during the quarter and authorized a further $5.5 billion in share repurchases through September 2028.
The results included a favorable market effect on the value of derivatives and market risk benefits, in contrast with unfavorable market effects a year earlier. Ameriprise also outlined continued expansion of its financial-institutions channel through advisor transitions from Huntington Bank.
Key details
- Earnings rose year over year. Third-quarter GAAP net income was $1.13 billion, up 23% from $912 million. GAAP diluted earnings per share increased to $12.32 from $9.33.
- Operating results also improved. Adjusted operating earnings were $1.03 billion, up 7% from $965 million. Adjusted operating earnings per diluted share rose 14% to $11.26. Excluding “unlocking”—the effects of annual insurance and annuity assumption reviews and model changes—adjusted operating earnings per share increased 22% to $12.07.
- Revenue and assets grew. Adjusted operating revenue increased 10% to $5.1 billion, primarily reflecting asset growth and client engagement. Assets under management, administration and advisement reached $1.8 trillion, up 8%.
- Profitability remained high. Pretax adjusted operating margin was 28%. Return on equity excluding accumulated other comprehensive income was 55.2% on a GAAP basis and 55.3% on an adjusted basis; adjusted return on equity excluding unlocking was 56.2%.
- Shareholder returns were substantial. Ameriprise returned more than $1 billion in capital during the quarter, equal to 93% of operating earnings, and increased share repurchases. Its new $5.5 billion repurchase authorization runs through September 30, 2028.
- Huntington advisor transitions are expanding. Ameriprise said the transition of 258 Huntington Bank advisors is underway, with $28 billion in client assets transferring through early 2027. A further 29 advisors, managing nearly $4 billion in assets and joining Huntington through its acquisition of Cadence Bank, are expected to move onto Ameriprise’s platform in mid-2027.
- Year-to-date earnings were higher. Through September, GAAP net income was $3.15 billion, up 23% from $2.56 billion. Adjusted operating earnings rose 11% to $3.12 billion, while adjusted operating earnings excluding unlocking increased 13% to $3.20 billion.
- Management pointed to investment in the client and advisor experience, including the use of AI, as part of its focus on engagement, advisor practice growth and client activity.
The quarter’s results reflect both ongoing growth in client assets and favorable market-related valuation effects. The large repurchase authorization adds to the capital Ameriprise is directing toward shareholder returns, alongside its stated commitment to invest in its business.