Ameriprise had record fourth-quarter earnings driven by a strategic acquisition, strong stock market performance and net client inflows during the quarter. Looking ahead, the Minneapolis-based company said rising interest rates would be a benefit to the company's banking operations and other businesses.
"Ameriprise delivered another very strong quarter and a record year for client flows, assets and financial results," chief executive Jim Cracchiolo said in a news release.
Cracchiolo also said the company is ready for the coming year, including higher interest rates. The Federal Reserve indicated Wednesday that it would raise rates in March for the first time in more than three years.
"Ameriprise is well-positioned to continue navigating the current environment successfully, and rising interest rates would be another positive," Cracchiolo said.
John Barnidge, an analyst with Piper Sandler, wrote in a research note before the fourth-quarter earnings release Wednesday that certain Ameriprise businesses, including its Asset Wealth Management unit, would benefit from a rising interest rate environment.
Ameriprise also expects to see in the first quarter more benefits of its $829 million acquisition in November of BMO Financial Group's EMEA Asset Management unit. The integration of BMO has gone according to plan, the company said.
The addition of the BMO business in Europe, Middle East and Africa added $136 billion in assets under management. Ameriprise's total assets under management and administration is now $1.4 trillion.
During the fourth quarter, Ameriprise clients added nearly $40 billion to their portfolios.
