Ameriprise Financial Reports Q1 2025 Results with $4.481 Billion Revenue and $583 Million Net Income

Ameriprise Financial, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $4.481 billion, a 4% increase from $4.325 billion in the same period last year. The company's net income for the quarter was $583 million, down 41% from $990 million in the prior year, primarily due to significant market impacts on non-traditional long-duration products and a decrease in investment income. The diluted earnings per share were $5.83, compared to $9.46 in the previous year.

The company experienced notable changes in its revenue streams, with management and financial advice fees rising by 8% to $2.602 billion, driven by market appreciation and wrap account net inflows. However, net investment income fell by 4% to $868 million, reflecting declining investment portfolio yields. Distribution fees also saw a modest increase of 3%, totaling $522 million, attributed to higher transactional activity. In contrast, premiums, policy, and contract charges decreased by 8% to $360 million, primarily due to lower sales of life contingent payout annuities.

Operationally, Ameriprise Financial's assets under management, administration, and advisement reached $1.495 trillion as of March 31, 2025, marking a 3% increase from the previous year. The Advice & Wealth Management segment saw a 10% rise in assets, while the Asset Management segment experienced a 5% decline, largely due to net outflows. The company reported a total of 95,222,673 shares outstanding as of April 25, 2025, reflecting ongoing share repurchase activities, with $271 million remaining under its current repurchase authorization.

Looking ahead, Ameriprise Financial remains focused on its strategic objectives, including enhancing operational efficiency and leveraging its core capabilities to navigate the uncertain economic environment. The company anticipates continued pressure from market fluctuations and regulatory changes but aims to achieve adjusted operating earnings per diluted share growth of 12% to 15% over the long term. The effective tax rate for the quarter was 15.1%, down from 18.8% in the prior year, influenced by lower pretax income and increased foreign tax credits.