Ameriprise Financial Inc
) first-quarter operating earnings came in at $1.59 per share,
marginally surpassing the Zacks Consensus Estimate of $1.57.
Also, this rose 9.7% from the year-ago earnings of $1.45.
Better-than-expected results were primarily driven by top-line
improvement, partially offset by a rise in operating expenses.
Further, assets under management and administration improved in
the quarter. The company's capital deployment activities were
After taking into consideration net realized gains or losses,
integration and restructuring charges, market impact on variable
annuity guaranteed living benefits, amortization of deferred
acquisition costs (DAC) and deferred sales inducement costs
(DSIC), market impact on index universal life benefits, unearned
revenue amortization, reinsurance accrual and consolidation of
certain investment entities, Ameriprise's net income from
continuing operations came in at $336 million or $1.58 per share.
This compares favorably with net income of $245 million or $1.06
per share in the year-ago quarter.
Performance in Detail
On an operating basis, total net revenue climbed 3.9% year over
year to $2.61 billion. The rise was primarily driven by strong
advisor client net inflows and market appreciation, partially
offset by a decline in net investment income and discontinuance
of certain banking operations. However, it missed the Zacks
Consensus Estimate of $2.64 billion by 1.2%.
Operating expenses came in at $2.1 billion, rising 4.5% from the
year-ago quarter. The surge largely reflects higher distribution
costs and disclosed benefits pertaining to 2012, partially offset
by a decline in general and administrative expenses.
Total assets under management and administration were $708
billion, up 5% on a year-over-year basis. The increase was mainly
due to market appreciation along with advisor client net inflows.
Capital Deployment Activities
During the reported quarter, Ameriprise bought back 5.2 million
shares for $360 million.
Concurrent with the earnings release, Ameriprise announced a hike
in its quarterly cash dividend of 15.6% to 52 cents per share.
The dividend is payable on May 17 to shareholders of record as of
Performance of Other Banks
) first-quarter 2013 adjusted earnings surpassed the Zacks
Consensus Estimate. The improved results were primarily
attributable to increased top line, partially offset by higher
The Blackstone Group L.P
) first-quarter 2013 economic net income (ENI) beat the Zacks
Consensus Estimate by a penny. Better-than-expected results were
aided by substantial top-line growth, offset by higher operating
) is scheduled to report its earnings on Apr 26, 2013.
Ameriprise's consistent capital deployment activities continue to
boost investors' confidence. Moreover, the company's cautious
expense management and strong balance sheet will help it improve
its bottom line going forward.
However, the existing low interest-rate environment and stringent
regulatory landscape are expected to keep the company's
financials slightly strained.
Ameriprise currently carries a Zacks Rank #2 (Buy).
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