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AMP NYSE· Ameriprise Financial Inc.
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AMP NYSE· Ameriprise Financial Inc.
Earnings report Q4 2023

Ameriprise Financial, Inc. Reports Decrease in Revenue in Latest Quarter

Segments of Revenue

  • Advice & Wealth Management: The segment's net revenues decreased from $8.46 billion in 2022 to $8.46 billion in 2023.
  • Asset Management: The segment's net revenues decreased from $3.51 billion in 2022 to $3.28 billion in 2023.
  • Retirement & Protection Solutions: The segment's net revenues decreased from $3.12 billion in 2022 to $3.12 billion in 2023.
  • Corporate & Other: The segment's net revenues decreased from $479 million in 2022 to $533 million in 2023.

Strengths

  • Despite the overall decrease in revenue, the Advice & Wealth Management segment maintained stable net revenues.
  • The Asset Management segment experienced a decrease in net revenues, primarily driven by a decline in management and financial advice fees.
  • The Retirement & Protection Solutions segment maintained stable net revenues, indicating resilience in this area of the business.
  • The company's management highlighted the strength of their diversified business model, which allows them to navigate challenging market conditions.

Challenges

  • The overall decrease in revenue across all segments indicates a challenging operating environment for Ameriprise Financial, Inc.
  • The Asset Management segment faced a decline in management and financial advice fees, which contributed to the decrease in net revenues.
  • The Corporate & Other segment experienced a decrease in net revenues, suggesting potential challenges in this area of the business.

Noteworthy

  • The Asset Management segment reported a significant decrease in adjusted operating earnings, with a decline of 15% compared to the previous year.
  • The Corporate & Other segment reported an adjusted operating loss of $306 million, indicating potential difficulties in this segment.

Summary

Ameriprise Financial, Inc. faced a decrease in revenue in the latest quarter, with all segments experiencing a decline in net revenues. The Asset Management segment was particularly affected, with a decrease in management and financial advice fees contributing to the overall decline. Despite these challenges, the company's Advice & Wealth Management and Retirement & Protection Solutions segments maintained stable net revenues, showcasing their resilience in a challenging operating environment. However, the Corporate & Other segment reported an adjusted operating loss, indicating potential difficulties in this area of the business. Overall, Ameriprise Financial, Inc. will need to address these challenges and focus on strategies to drive revenue growth in the future.

Source documents

Form 10-K  filed on Feb 22, 2024
74 pages scanned

Reference data

Company financials Q4 revenue 4.17B
Analyst estimates Q4 EPS missed by -5.26%
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