Ameriprise anticipates Huntington Bank onboarding to add $28B and approximately 260 advisers in Q4
View original at seekingalpha.com“Asset Management results included operating earnings "increased 13% to $273 million," revenues "increased 8% to $910 million," and "margin reached 44% ... above our targeted range of 35% to 39%"”
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Both W-2 and franchise recruiting packages are extremely aggressive in the market
60% confidenceAssets under management administration advisement up 12% to $1.7 trillion
60% confidenceThe solid core of our growth is there, but flows can be lumpy
60% confidenceAmeriprise has capacity to return 85%-90% of operating earnings
60% confidenceAmeriprise delivered a strong start to the year, driven by disciplined execution and the benefits of diversified business
60% confidenceHigher pace of Comerica-related outflows will continue in Q2 and Q3, culminating with conversion occurring near end of Q3
60% confidencePledge product is growing nicely, checking just completed launch, and we're at early stages
60% confidenceWrap net inflows of $6 billion
60% confidenceEPS up 19% to a record $11.26
60% confidenceDistribution expense should stay in current range
60% confidenceTransactional activity up 10%
60% confidenceHuntington's selection validates the bank demand for outsourcing wealth management investment to firms like Ameriprise
60% confidenceStrategy is organic growth, built, not bought
60% confidenceRetirement & Protection Solutions earnings expected to be in the $800 million range per year over time
60% confidenceQ1 was lighter on flows due to client caution and some lumpiness in recruiting and terminations
60% confidenceMost of $28 billion asset transfer will occur in Q4
60% confidenceHuntington is a 10-year deal with paybacks within our ranges and IRRs are very good
60% confidenceProductivity increasing another 10% to a record $1.2 million per adviser
60% confidenceAmeriprise signed multiyear agreement to become retail investment program provider for Huntington Bank, expected to add approximately 260 advisers and $28 billion in assets with onboarding beginning later this year
60% confidenceSignature Wealth rollout is one of the quickest versus prior wrap launches
60% confidenceComerica assets totaling $18 billion
60% confidenceAsset Management G&A should track neutral or small negative
60% confidenceHuntington deal process took over a year
60% confidenceAI is embedded in integrated platform, with eMeeting taking away hours of work every week, but we haven't extrapolated productivity gains
60% confidenceHuntington onboarding will come in Q4
60% confidenceAmeriprise will be buying back 85% to 90% of operating earnings
60% confidenceIn the quarter, Ameriprise returned 88% of operating earnings to shareholders through share repurchases and dividends
60% confidenceSweep is only a few percent of earnings and we're not as concerned with it
60% confidenceAdjusted operating earnings per share up 19% to $11.26 and operating margin of 28%
60% confidenceComerica financial impact was immaterial
60% confidence
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