Ameriprise 3Q Earnings Rise 39 Percent
Tuesday October 24, 5:12 pm ET
Ameriprise Third-Quarter Income Rises 39 Percent on Higher Fees
MINNEAPOLIS (AP) -- Asset manager Ameriprise Financial Inc. said Tuesday third-quarter net income rose 39 percent as higher service fees offset a decline in investment income.
The company posted third-quarter profit of $174 million, or 71 cents per share, compared with earnings of $125 million, or 50 cents per share, in the year-ago quarter.
Adjusted earnings rose to 94 cents per share from 73 cents per share.
Analysts polled by Thomson Financial, on average, forecast adjusted earnings of 80 cents per share.
The results were adjusted for the retention of Amex Assurance by American Express Co. American Express at the end of the third quarter of 2005 spun off Ameriprise but retained some of the company's operations, including Amex Assurance.
Revenue rose 6 percent to $1.98 billion from $1.87 billion. The company credited the growth to fundamental improvement in asset-based fees and premiums. Ameriprise attracted assets from higher-margin, less capital-intensive products like wrap accounts and variable annuities.
Management and advisory fees rose 5 percent to $720 million, while premium revenue rose 21 percent, to $244 million, excluding Amex Assurance.
The gains offset a 3 percent decline in investment income.
Shares of Ameriprise dipped 31 cents to $49.29 in after-hours electronic trading, from their close on the New York Stock Exchange at $49.60. |
