Ameriprise Financial — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income was $1.126 billion, a 23% increase from $912 million in the prior-year quarter; GAAP net income per diluted share was $12.32 compared to $9.33 a year ago.
• Adjusted operating earnings were $1.029 billion, up 7% from $965 million; adjusted operating earnings per diluted share were $11.26, a 14% increase from $9.87.
• Adjusted operating earnings, excluding unlocking impacts, were $1.103 billion, up 14% from $970 million; per diluted share was $12.07, a 22% increase from $9.92.
• Adjusted operating net revenues increased 10% to $5.1 billion, driven by asset growth and strong client engagement.
• Pretax adjusted operating margin was 28%.
• Return on equity, excluding AOCI, was 56.2% for the quarter, up from 52.8% in the prior-year period.
• The company returned over $1.0 billion to shareholders, representing 93% of operating earnings for the quarter.
• Unlocking impacts resulted in an unfavorable after-tax impact of $72 million ($0.79 per share) on a GAAP basis and $74 million ($0.81 per share) on an adjusted operating basis.

Guidance and Future Outlook:

• The operating effective tax rate is expected to be between 20% and 22% for the full year 2026.
• Approximately $32 billion of Huntington assets are anticipated to transition to the platform through mid-2027.
• An additional 29 advisors managing nearly $4 billion of client assets, acquired via Huntington's acquisition of Cadence Bank, are expected to join the platform in mid-2027.
• Full-year general and administrative expenses for the Asset Management segment are expected to be flat, excluding Seligman and other performance fee compensation.

Business Segments and Product Lines:

• Advice & Wealth Management:
  • Adjusted operating net revenues increased 13% to $3.371 billion.
  • Pretax adjusted operating earnings rose 12% to $989 million with a margin of 29.3%.
  • Total client assets grew 8% to $1.231 trillion; wrap assets increased 12% to $729 billion.
  • Adjusted operating net revenue per advisor (TTM) reached a new high of $1.24 million, up 13%.
  • The segment added 79 experienced advisors in the quarter.
  • Transactional activity grew 6%, driven by the planning model.
  • Bank assets increased 2% to $24.7 billion.
• Asset Management:
  • Adjusted operating net revenues increased 9% to $990 million.
  • Pretax adjusted operating earnings increased 18% to $308 million; net pretax adjusted operating margin increased 360 basis points to 45.7%.
  • Assets under management and advisement increased 4% to $743 billion.
  • Total net AUM and AUA flows were $(9.3) billion, including $(5.5) billion in institutional outflows and $(2.9) billion in retail outflows.
  • Net inflows of $1.3 billion were generated in technology and healthcare strategies, and $2.4 billion in ETFs, SMAs, and Model Delivery offerings.
  • 78% of retail funds were above median versus peers on an asset-weighted 3-year basis; 92 Columbia Threadneedle funds globally earned four- or five-star Morningstar ratings.
• Retirement & Protection Solutions:
  • Adjusted operating net revenues decreased 10% to $997 million.
  • Pretax adjusted operating earnings, excluding unlocking, were $198 million, down 1% from $200 million.
  • Sales increased 24% to $1.8 billion, driven by structured variable annuities, variable annuities without living benefit riders, and variable universal life insurance.
• Corporate & Other:
  • Pretax adjusted operating loss, excluding Closed Blocks, was $92 million.
  • Long Term Care pretax adjusted operating earnings, excluding unlocking, were $4 million.
  • Fixed Annuities pretax adjusted operating loss, excluding unlocking, was $10 million.

Market and Competitive Landscape:

• Total assets under management, administration, and advisement grew 8% to $1.8 trillion.
• The company was recognized on the Forbes 2027 Most Trusted Companies in America list.
• Ameriprise and Huntington Bank completed the transition of 258 Huntington advisors with $28 billion of client assets transferring through early 2027.
• Investment performance remained strong with 78% of retail funds above median on a 3-year asset-weighted basis and 87% on a 10-year basis.

Risks and Challenges:

• Asset Management segment experienced net outflows of $9.3 billion, including $5.5 billion in institutional outflows related to client asset allocation decisions and $2.9 billion in retail outflows, which included $0.8 billion from VP/VIT funds associated with a closed block of variable annuities with living benefit riders.
• Retirement & Protection Solutions faced impacts from outflows in variable annuities with living benefit riders and higher distribution expenses related to strong structured annuity sales.
• The company noted industry pressure on active managers contributing to retail outflows.

Management Commentary and Tone:

• Jim Cracchiolo, Chairman and CEO, stated the company delivered another strong quarter reflecting business quality, deep client relationships, and a focus on profitable growth.
• Management highlighted ongoing investments in client and advisor experience, including the thoughtful integration of AI, driving high engagement and solid underlying flows.
• The tone emphasized the strength of the balance sheet and capital generation, enabling consistent investment in the business while returning capital to shareholders.

Other Key Points:

• The company announced a new share repurchase authorization of $5.5 billion through September 30, 2028.
• Common stock share repurchases totaled $871 million in the quarter, up 27% from the prior-year period.
• Dividends paid were $155 million, unchanged from the prior-year quarter.
• The company completed its annual unlocking review, resulting in modest updates to policyholder behavior assumptions reflecting an improvement from the prior year.