Ameriprise signals 85% capital return target and robust digital growth as AUM hits $1.7T

Earnings Call Insights: Ameriprise Financial, Inc. (AMP) Q3 2025

MANAGEMENT VIEW

* CEO Jim Cracchiolo opened the call highlighting, "Ameriprise delivered another strong quarter and generated significant value as we built on our performance from the first half of the year," while emphasizing the company's resilience amid a fluid operating environment with inflation and recent Fed rate cuts.
* Cracchiolo noted, "Assets under management, administration and advisement grew to a new high of $1.7 trillion, up 8% year-over-year." He cited double-digit earnings growth, a firm-wide margin of 27%, and return on equity at nearly 53%.
* The CEO reported advisor productivity up 10%, AWM client asset growth up 11%, and wrap assets up 14%. He stated, "We're back to strong recruiting levels, bringing in 90 experienced advisors in the quarter, one of our best."
* Digital and AI investments were noted as transformative, with Cracchiolo stating, "Record digital adoption from our clients and our mobile app satisfaction hit an all-time high in the quarter."
* Cracchiolo shared the successful launch of the Signature Wealth platform and new banking products such as HELOCs and checking accounts.
* He discussed improvements in asset management, reporting, "Net outflows improved across the board from last quarter as redemptions slowed... and we had an increase in retail gross sales, particularly in North America."
* CFO Walter Berman said, "Ameriprise delivered another quarter of solid performance, underpinned by exceptional balance sheet strength." He reported, "Adjusted operating EPS, excluding unlocking, up 12% to $9.92 with a strong margin of 27% across the firm. Adjusted operating net revenues, excluding unlocking, increased 6% to $4.6 billion, driven by asset growth."

OUTLOOK

* Berman stated, "We remain committed to returning capital to shareholders at a differentiated pace and are targeting an 85% payout ratio for the fourth quarter based upon our share price and substantial free cash flow."
* The company is targeting a full-year G&A decline of 3% and expects low to mid-single-digit growth in wealth management G&A expenses for the full year, with stable advisor compensation ratios.
* Management reaffirmed the focus on disciplined expense management and ongoing investments in technology and advisor support.

FINANCIAL RESULTS

* Adjusted operating EPS, excluding unlocking, rose 12% to $9.92, with adjusted operating net revenues up 6% to $4.6 billion.
* Assets under management, administration, and advisement reached $1.7 trillion, an 8% year-over-year increase.
* Adjusted operating net revenues in Wealth Management increased 9% to $3 billion. Pretax adjusted operating earnings rose 7% to $881 million, with a margin of 29.5%.
* Asset Management operating earnings increased 6% to $260 million, with total assets under management and advisement at $714 billion. Net outflows improved to $3.4 billion.
* Retirement & Protection Solutions reported pretax adjusted operating earnings (excluding unlocking) of $200 million, with solid sales of $1.4 billion.
* The company returned $842 million in capital during the quarter and reported an excess capital position of $2.2 billion and $2.5 billion in available liquidity.

Q&A

* Suneet Kamath, Jefferies: Asked about the Comerica relationship after recent M&A. Cracchiolo responded, "We have an excellent relationship with Comerica... We feel very comfortable with the arrangement we had in place."
* Kamath also asked about sizable advisor practice departures. Cracchiolo explained, "These two practices went RIA... But overall, it's fine for them. We've recruited very strongly."
* Wilma Jackson Burdis, Raymond James: Queried about lower flow activity and market rationality. Cracchiolo suggested a combination of market conditions and recruiting competition were factors, but stressed, "The balances of the book are very good. The clients are highly engaged."
* David Giunta, BMO: Asked about Wrap program adjustments and advisor headcount. Cracchiolo said, "It's a onetime sort of an adjustment," and confirmed advisor count is up year-over-year but numbers are no longer disclosed.
* Jeffrey Schmitt, William Blair: Inquired about Asset Management expense actions. Cracchiolo said, "We've made a number of adjustments... A lot of that change has been already completed."
* Steven Chubak, Wolfe Research: Questioned organic growth and cash trends. Cracchiolo said, "Our flow rate around the industry... over the course of a year, 2 years, 3 years, our flow rate has been very good and consistent."
* Other analysts focused on bank yields, certificate balances, and Asset Management margins, with management reiterating stability and ongoing monitoring, and providing ranges for expected outcomes.

SENTIMENT ANALYSIS

* Analysts exhibited a neutral to slightly cautious tone, probing on advisor flows, competitive recruiting, and margin sustainability, but did not press aggressively.
* Management maintained a confident, constructive tone, frequently emphasizing stability, resilience, and long-term focus. Cracchiolo stated, "We feel very good about our position."
* Compared to the previous quarter, management's tone remains consistent, while analyst questions in the current quarter show more interest in competitive dynamics and the impact of advisor departures.

QUARTER-OVER-QUARTER COMPARISON

* The company’s focus on digital and AI investments and the Signature Wealth platform remained, with further progress reported this quarter.
* Advisor recruiting improved, with 90 experienced advisors joining versus 73 in the prior quarter.
* Adjusted operating EPS growth accelerated to 12% from 7%. Wealth Management revenues and Asset Management operating earnings also grew at a faster pace.
* The capital return payout target remained at 85%, but actual capital returned increased from the previous quarter.
* Analyst focus shifted more toward competitive pressures in recruiting and retention, as well as the implications of recent advisor team departures.
* Management’s confidence and messaging around resilience and long-term fundamentals remained consistent.

RISKS AND CONCERNS

* Management cited ongoing market volatility, inflation, Fed rate changes, and competitive recruiting as key risks.
* Departures of large advisor teams were noted as one-off events, with management emphasizing strong underlying organic business and recruiting pipeline.
* Expense discipline and strategic investments in technology are intended to mitigate these challenges, and the company continues to monitor trends in advisor compensation and client flows.

FINAL TAKEAWAY

Ameriprise management highlighted another quarter of robust performance, driven by record assets under management, double-digit EPS growth, and strong advisor productivity. Strategic investments in digital and AI capabilities, successful recruiting, and a commitment to returning 85% of operating earnings to shareholders underpin the company’s outlook, even as competitive dynamics and macroeconomic uncertainties persist. Management reiterated confidence in Ameriprise’s business fundamentals, balance sheet, and ability to sustain shareholder value in varied market environments.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/amp/earnings/transcripts]

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