Ameriprise Financial Inc. said Tuesday that its operating earnings rose 10 percent in the third quarter, beating analysts' estimates, as the surging stock market lifted its fee-based advising business.
Ameriprise said its operating earnings amounted to $407 million, or $2.10 a share, well above the $1.96 a share expected by analysts and the $1.91 a share it reported in the same period a year ago. Net profit was $420 million, or $2.17 a share.
Revenue was $3.1 billion, up from $2.8 billion a year ago.
The Minneapolis-based investment firm saw gains during the July-to-September period from both more investing by its clients and greater productivity by the advisers who deal with clients.
Its total assets under management grew to $797 billion in the quarter, up 8 percent from a year ago, as clients put more money into the market and the market appreciated.
Operating revenue per adviser was up 13 percent due to asset growth and client actions. And pretax earnings in its advice and wealth management unit was up 35 percent.
Ameriprise made $442 million in share repurchases and dividends during the quarter, lifting its total return to shareholders to $1.4 billion so far this year.
"With our financial strength and cash flow generation, we continue to return significant capital to shareholders," Jim Cracchiolo, chief executive, said in a statement.
