Ameriprise Net Profit Flags, But Operating Earnings Jump

   By Michael Calia 
 

Ameriprise Financial Inc. (AMP) said its earnings fell 24% in the fourth quarter as expenses increased, but operating earnings and revenue at the financial-services company grew.

The results beat Wall Street expectations.

The company's advice and wealth-management has helped buoy operating earnings recently, as have contributions from its 2010 acquisition of Columbia Management.

In the fourth quarter, Ameriprise Financial posted earnings of $296 million, or $1.47 a share, compared with from $389 million, or $1.80 a share, a year ago.

Operating earnings, which exclude realized gains and losses, market impacts on variable annuity benefits and other items, jumped to $1.87 a share from $1.71.

Revenue rose 10% to $2.95 billion.

Analysts surveyed by Thomson Reuters expected a profit of $1.81 a share on $2.88 billion in revenue.

Management and financial advice fees, which contribute the most to the company's revenue, posted a revenue increase of 15%. Net investment income declined 9%, and distribution fees rose 4.9%.

Assets under management and administration increased 13% to $771 billion, due to advisor client net inflows and market appreciation.

Total expenses rose 9.4% to $2.47 billion.

Shares of Ameriprise were inactive at $103.54 in recent after-hours trading. The stock is down 10% so far this year through Monday's close.

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