Ameriprise Financial Inc.'s second-quarter profit rose 6% as strength in its financial-advisory business helped offset ongoing pressure in its asset-management unit.
The Minneapolis-based company said Wednesday it earned $492 million in the three months ended June 30.
Adjusted for one-time items and market effects of certain investments, Ameriprise had an operating profit that amounted to $4.06 a share, up 14% from $3.56 a share a year ago. That beat the consensus outlook of analysts for an adjusted profit of $4 a share.
Revenue rose 3% to $3.25 billion.
The company's advice-management business, anchored by a network of about 10,000 financial advisers who produce about half its revenue, experienced a 7% gain in pretax adjusted-operating profit. The unit's margin held steady at 22.7%, and revenue per adviser was up 6%.
Ameriprise's asset-management business continued to experience outflows as it has for several years, partly as investors modify portfolios and seek lower-cost investments. The business reported a 6% decline in revenue and 10% decline in pretax adjusted operating profit. Its assets under management fell 3%.
"Our asset-management, insurance and annuity businesses continue to generate competitive returns and consistent free cash flow, complementing wealth management," Jim Cracchiolo, the company's chief executive, said in a statement.
He noted the company's ongoing drive to restructure its businesses to fit more directly with demands of clients in its main investment advisory business. The company is selling its auto and home insurance business to American Family Insurance in a deal that will close later this year. It's also recently gained regulatory approval to launch a bank.
Evan Ramstad • 612-673-4241
