Profits at Ameriprise Financial Inc. shot up 19 percent in the fourth quarter, fueled by strong results in its advice and wealth-management business and recent gains in the stock market.
The investment services company, which just launched a new ad campaign featuring actor Tommy Lee Jones, reported operating earnings of $367 million, or $1.71 per share, up from $308 million, or $1.31 per share, a year ago.
It was the best showing in several quarters for Minneapolis-based Ameriprise, whose shares have been climbing higher and higher since last spring. Ameriprise released results after markets closed Wednesday. Shares, which closed at $66.86, were up in after-hours trading.
The company, which has $2 billion in deployable capital, declared a quarterly cash dividend of 45 cents per common share payable Feb. 22.
"We reported a record high for assets under management and administration driven by strong client net inflows into fee-based accounts and equity market appreciation," chairman and CEO Jim Cracchiolo said in the company's news release.
The company's two central business lines -- advice and wealth management, and asset management -- both saw double-digit growth in pretax operating income.
Advice and wealth management business operating earnings jumped 43 percent from a year ago as retail clients invested more with the company. The increase came despite a negative impact from changing the deposit-taking bank it ran for clients, Ameriprise Bank, into a national trust institution, the company said.
Operating earnings in the firm's asset-management business grew 11 percent from a year ago despite even heavier outflows from its important Columbia Management business.
