Ameriprise Financial Q3 Net Income Soars 78% on Strong Fee Growth

Ticker: AMP · Form: 10-Q · Filed: Oct 31, 2025 · CIK: 820027

Sentiment: bullish

Topics: Wealth Management, Financial Planning, Asset Management, Earnings Growth, Share Buybacks, Financial Services, Q3 Earnings

Related Tickers: AMP, BLK, MS, SCHW, LPL

TL;DR

**AMP crushed Q3, net income up 78% on solid fee growth and expense control – buy the dip if you get one!**

AI Summary

AMERIPRISE FINANCIAL INC (AMP) reported a strong third quarter ended September 30, 2025, with net income increasing significantly to $912 million, up 78.5% from $511 million in the same period of 2024. Diluted earnings per share also saw a substantial rise to $9.33, compared to $5.00 in Q3 2024. Total net revenues grew by 9.0% to $4,791 million from $4,397 million year-over-year, driven by a 9.2% increase in management and financial advice fees to $2,811 million and a 5.1% rise in distribution fees to $539 million. Banking and deposit interest expense decreased by 37.4% to $102 million, contributing to higher net revenues. Total benefits and expenses decreased by 3.6% to $3,617 million, primarily due to a significant reduction in the change in fair value of market risk benefits, which fell to $302 million from $566 million. The company also repurchased 1,393,786 common shares for $715 million during the quarter, reflecting a continued focus on returning capital to shareholders. For the nine months ended September 30, 2025, net income increased to $2,555 million from $2,330 million in the prior year.

Why It Matters

This robust performance by Ameriprise Financial signals strong operational efficiency and effective capital management, which is crucial for investors seeking stable returns in the financial services sector. The significant increase in net income and EPS, coupled with reduced expenses, demonstrates the company's ability to navigate market conditions and enhance profitability. For employees, this could indicate job security and potential for growth within a thriving organization. Customers benefit from a financially sound institution, ensuring reliable service and product offerings. In the broader market, AMP's strong results could set a positive tone for other wealth management and financial planning firms, potentially influencing sector valuations and competitive strategies.

Risk Assessment

Risk Level: medium — While net income and revenues are strong, the company's 'Change in fair value of market risk benefits' remains a significant and volatile expense, totaling $302 million for the quarter and $789 million for the nine months ended September 30, 2025. This line item can fluctuate wildly, as evidenced by the remeasurement gains/losses on future policy benefit reserves, which swung from a $22 million gain in Q3 2024 to a $22 million loss in Q3 2025. This volatility introduces uncertainty into future earnings, despite current positive trends.

Analyst Insight

Investors should consider Ameriprise Financial's strong Q3 performance as a positive indicator of its core business strength and capital return strategy. However, they should closely monitor the 'Change in fair value of market risk benefits' and other market-sensitive items for potential future volatility. A long-term hold might be appropriate for investors comfortable with some market-driven earnings fluctuations, given the consistent growth in management and financial advice fees.

Financial Highlights

revenue
$4,791M
total Assets
$177,185M
net Income
$912M
eps
$9.33
cash Position
$9,574M
revenue Growth
+9.0%

Revenue Breakdown

SegmentRevenueGrowth
Advice & Wealth Management$2,751M+4.2%
Asset Management$879M+2.5%
Retirement & Protection Solutions$989M+15.0%
Corporate & Other$114M-10.7%

Key Numbers

Key Players & Entities

FAQ

What were Ameriprise Financial's net income and diluted EPS for Q3 2025?

Ameriprise Financial reported net income of $912 million for the three months ended September 30, 2025, a significant increase from $511 million in the prior year. Diluted earnings per share for the same period were $9.33, up from $5.00 in Q3 2024.

How did Ameriprise Financial's total net revenues change in Q3 2025?

Total net revenues for Ameriprise Financial increased by 9.0% to $4,791 million for the three months ended September 30, 2025, compared to $4,397 million in the same period of 2024.

What contributed to the increase in Ameriprise Financial's revenues?

The increase in revenues was primarily driven by a 9.2% rise in management and financial advice fees to $2,811 million and a 5.1% increase in distribution fees to $539 million for the three months ended September 30, 2025.

Did Ameriprise Financial's expenses increase or decrease in Q3 2025?

Total benefits and expenses for Ameriprise Financial decreased by 3.6% to $3,617 million for the three months ended September 30, 2025, down from $3,752 million in Q3 2024.

What was the impact of market risk benefits on Ameriprise Financial's Q3 2025 results?

The change in fair value of market risk benefits decreased significantly to $302 million in Q3 2025 from $566 million in Q3 2024, contributing to the overall reduction in total benefits and expenses.

How much did Ameriprise Financial spend on share repurchases in Q3 2025?

Ameriprise Financial repurchased 1,393,786 common shares for a total of $715 million during the three months ended September 30, 2025.

What was Ameriprise Financial's cash and cash equivalents balance at September 30, 2025?

As of September 30, 2025, Ameriprise Financial reported cash and cash equivalents of $9,574 million, an increase from $8,149 million at December 31, 2024.

What is the current number of outstanding common shares for Ameriprise Financial?

As of October 24, 2025, Ameriprise Financial had 92,905,713 shares of common stock outstanding.

What was the pretax income for Ameriprise Financial in Q3 2025?

Ameriprise Financial's pretax income for the three months ended September 30, 2025, was $1,174 million, a substantial increase from $645 million in the same period of 2024.

Are there any new accounting pronouncements that will impact Ameriprise Financial's financial condition?

The company is assessing ASU 2023-09 (Income Tax Disclosures) and ASU 2024-03 (Disaggregation of Income Statement Expenses), which are disclosure-related and not expected to impact consolidated results. ASU 2025-05 (Credit Losses) is also not expected to impact results. ASU 2025-06 (Internal-Use Software) is being evaluated for potential impact.

Risk Factors

Industry Context

Ameriprise Financial operates within the highly competitive financial services industry, which includes asset management, wealth management, retirement solutions, and insurance. Key industry trends include increasing demand for personalized financial advice, the shift towards fee-based advisory models, and the ongoing impact of technological advancements and regulatory scrutiny. The industry is characterized by consolidation and a focus on client retention and acquisition.

Regulatory Implications

The financial services industry is subject to extensive regulation by bodies like the SEC and FINRA. Ameriprise must navigate evolving compliance requirements related to consumer protection, data security, and capital adequacy. Changes in regulations can impact business models, increase operational costs, and affect product offerings.

What Investors Should Do

  1. Monitor management and financial advice fee growth
  2. Assess the impact of market risk benefits on earnings volatility
  3. Evaluate the effectiveness of capital return strategies
  4. Analyze expense management, particularly general and administrative costs

Key Dates

Glossary

Variable Interest Entities (VIEs)
Entities for which the consolidation requirements of GAAP are met through the application of VIE guidance, meaning Ameriprise has the power to direct the activities that most significantly impact the VIE's economic performance and has the obligation to absorb losses or the right to receive benefits that could be significant. (Ameriprise consolidates VIEs in its financial statements, impacting its reported assets, liabilities, revenues, and expenses.)
Deferred Acquisition Costs
Costs incurred in connection with acquiring or originating contracts that are capitalized and amortized over the expected life of the contracts. These costs include commissions and other expenses related to selling insurance policies and annuity contracts. (Amortization of these costs impacts the company's reported expenses and profitability. The company had $2,634 million in deferred acquisition costs as of September 30, 2025.)
Market Risk Benefits
Represents the value of certain guarantees provided on annuity and life insurance products, which protect policyholders from adverse market movements. The company manages the risk associated with these benefits through hedging strategies. (Changes in the fair value of these benefits can significantly impact earnings, as seen with the $302 million change in Q3 2025.)
Separate Account Assets
Assets held in separate accounts, typically for variable annuity and variable life insurance products. These assets are legally segregated and are generally not subject to the claims of the company's general creditors. (Represents a significant portion of the company's assets ($80,679 million as of September 30, 2025) and is linked to investment performance.)
Diluted Earnings Per Share (EPS)
A measure of a company's profit allocated to each outstanding share of common stock, assuming that all convertible securities and stock options were exercised. It provides a more conservative view of profitability per share. (Reported as $9.33 for Q3 2025, a substantial increase from $5.00 in Q3 2024, indicating improved profitability on a per-share basis.)

Year-Over-Year Comparison

Ameriprise Financial demonstrated robust performance compared to the prior year. Total net revenues increased by 9.0% to $4,791 million, driven by strong growth in management and financial advice fees (+9.2%) and distribution fees (+5.1%). Net income saw a substantial surge of 78.5% to $912 million, with diluted EPS rising to $9.33 from $5.00. Total benefits and expenses decreased by 3.6%, largely due to a reduction in the change in fair value of market risk benefits, which improved profitability. No new significant risks were highlighted in the provided text, suggesting a stable risk profile.

Filing Stats: 4,880 words · 20 min read · ~16 pages · Grade level 18.5 · Accepted 2025-10-31 14:47:26

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information 3

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 3 Consolidated Statements of Operations — Three and nine months ended September 30, 2025 and 2024 3 Consolidated Statements of Comprehensive Income — Three and nine months ended September 30, 2025 and 2024 4 Consolidated Balance Sheets — September 30, 2025 and December 31, 2024 5 Consolidated Statements of Equity — Three and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Cash Flows — Nine months ended September 30, 2025 and 2024 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 1. Basis of Presentation 9 2. Recent Accounting Pronouncements 9 3. Revenue from Contracts with Customers 10 4. Variable Interest Entities 15 5. Investments 20 6. Financing Receivables 24 7. Deferred Acquisition Costs and Deferred Sales Inducement Costs 29 8. Policyholder Account Balances, Future Policy Benefits and Claims 30 9. Separate Account Assets and Liabilities 41 10. Market Risk Benefits 42 11. Debt 47 12. Fair Values of Assets and Liabilities 48 13. Offsetting Assets and Liabilities 59 14. Derivatives and Hedging Activities 61 15. Shareholders' Equity 66 16. Income Taxes 69 17. Contingencies 70 18. Earnings per Share 71 19. Segment Information 71

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 75

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 103

Controls and Procedures

Item 4. Controls and Procedures 105

Other Information

Part II. Other Information 106

Legal Proceedings

Item 1. Legal Proceedings 106

Risk Factors

Item 1A. Risk Factors 106

Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 106

Other Information

Item 5. Other Information 106

Exhibits

Item 6. Exhibits 107

Signatures

Signatures 108 2 Index AMERIPRISE FINANCIAL, INC.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in millions, except per share amounts) Revenues Management and financial advice fees $ 2,811 $ 2,573 $ 8,013 $ 7,428 Distribution fees 539 513 1,563 1,524 Net investment income 920 934 2,679 2,756 Premiums, policy and contract charges 493 409 1,214 1,180 Other revenues 130 131 395 389 Total revenues 4,893 4,560 13,864 13,277 Banking and deposit interest expense 102 163 344 514 Total net revenues 4,791 4,397 13,520 12,763 Benefits and expenses Distribution expenses 1,714 1,539 4,922 4,408 Interest credited to fixed accounts 141 118 366 435 Benefits, claims, losses and settlement expenses 343 430 981 1,056 Remeasurement (gains) losses of future policy benefit reserves 22 ( 22 ) 9 ( 34 ) Change in fair value of market risk benefits 302 566 789 658 Amortization of deferred acquisition costs 60 59 181 181 Interest and debt expense 84 87 246 252 General and administrative expense 951 975 2,814 2,892 Total benefits and expenses 3,617 3,752 10,308 9,848 Pretax income 1,174 645 3,212 2,915 Income tax provision 262 134 657 585 Net income $ 912 $ 511 $ 2,555 $ 2,330 Earnings per share Basic $ 9.47 $ 5.09 $ 26.23 $ 22.93 Diluted $ 9.33 $ 5.00 $ 25.83 $ 22.53 See Notes to Consolidated Financial Statements. 3 Index AMERIPRISE FINANCIAL, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 (in millions) Net income $ 912 $ 511 $ 2,555 $ 2,330 Other comprehensive income (loss), net of tax: Net unrealized gains (losses) on securities 357 1,005 923 692 Net unrealized gains (losses) on derivatives — — ( 9 ) — Effect of changes in discount rate assumptions on certain long-duration contracts ( 46 ) ( 147 ) ( 88 ) ( 16 ) Effect of changes in instrument-spec

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation Ameriprise Financial, Inc. is a holding company, which primarily conducts business through its subsidiaries to provide financial planning, products and services that are designed to be utilized as solutions for clients' cash and liquidity, asset accumulation, income, protection and estate and wealth transfer needs. The foreign operations of Ameriprise Financial, Inc. ("Ameriprise Financial") are conducted primarily through Columbia Threadneedle Investments UK International Limited, TAM UK International Holdings Limited and Ameriprise Asset Management Holdings Singapore (Pte.) Ltd and their respective subsidiaries (collectively, "Threadneedle"). The accompanying Consolidated Financial Statements include the accounts of Ameriprise Financial, Inc., companies in which it directly or indirectly has a controlling financial interest and variable interest entities ("VIEs") in which it is the primary beneficiary (collectively, the "Company"). All intercompany transactions and balances have been eliminated in consolidation. The interim financial information in this report has not been audited. In the opinion of management, all adjustments necessary for a fair statement of the consolidated results of operations and financial position for the interim periods have been made. All adjustments made were of a normal recurring nature. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Results of operations reported for interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission ("SEC") on February 20, 2025 ("2024 10-K"). The Company

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) years. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition. 3. Revenue from Contracts with Customers The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the Consolidated Statements of Operations: Three Months Ended September 30, 2025 Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 557 $ — $ — $ 557 $ — $ 557 Institutional — 140 — — 140 — 140 Model delivery — 24 — — 24 — 24 Advisory fees 1,664 — — — 1,664 — 1,664 Financial planning fees 120 — — — 120 — 120 Transaction and other fees 102 52 17 — 171 — 171 Total management and financial advice fees 1,886 773 17 — 2,676 — 2,676 Distribution fees: Mutual funds 227 58 — — 285 — 285 Insurance and annuity 268 40 87 — 395 — 395 Off-balance sheet brokerage cash 21 — — — 21 — 21 Other products 126 — — — 126 — 126 Total distribution fees 642 98 87 — 827 — 827 Other revenues 67 3 — — 70 — 70 Total revenue from contracts with customers 2,595 874 104 — 3,573 — 3,573 Revenue from other sources (1) 497 32 998 113 1,640 61 1,701 Total segment gross revenues 3,092 906 1,102 113 5,213 61 5,274 Banking and deposit interest expense ( 102 ) — — ( 9 ) ( 111 ) — ( 111 ) Total segment net revenues 2,990 906 1,102 104 5,102 61 5,163 Elimination of intersegment revenues ( 239 ) ( 27 ) ( 113 ) 10 ( 369 ) ( 3 ) ( 372 ) Total net revenues $ 2,751 $ 879 $ 989 $ 114 $ 4,733 $ 58 $ 4,791 10 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Three Months Ended September 30, 2024 Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 540 $ — $ — $ 540 $ — $ 540 Institutional — 143 — — 143 — 143 Model delivery — 21 — — 21 — 21 Advisory fees 1,451 — — — 1,451 — 1,451 Financial planning fees 111 — — — 111 — 111 Transaction and other fees 97 52 14 — 163 — 163 Total management and financial advice fees 1,659 756 14 — 2,429 — 2,429 Distribution fees: Mutual funds 209 57 — — 266 — 266 Insurance and annuity 266 41 87 — 394 — 394 Off-balance sheet brokerage cash 32 — — — 32 — 32 Other products 107 — — — 107 — 107 Total distribution fees 614 98 87 — 799 — 799 Other revenues 66 5 — ( 1 ) 70 — 70 Total revenue from contracts with customers 2,339 859 101 ( 1 ) 3,298 — 3,298 Revenue from other sources (1) 566 23 872 123 1,584 56 1,640 Total segment gross revenues 2,905 882 973 122 4,882 56 4,938 Banking and deposit interest expense ( 163 ) — — ( 7 ) ( 170 ) — ( 170 ) Total segment net revenues 2,742 882 973 115 4,712 56 4,768 Elimination of intersegment revenues ( 237 ) ( 24 ) ( 113 ) 7 ( 367 ) ( 4 ) ( 371 ) Total net revenues $ 2,505 $ 858 $ 860 $ 122 $ 4,345 $ 52 $ 4,397 11 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Nine Months Ended September 30, 2025 Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 1,602 $ — $ — $ 1,602 $ — $ 1,602 Institutional — 405 — — 405 — 405 Model delivery — 69 — — 69 — 69 Advisory fees 4,696 — — — 4,696 — 4,696 Financial planning fees 350 — — — 350 — 350 Transaction and other fees 296 152 44 — 492 — 492 Total management and financial advice fees 5,342 2,228 44 — 7,614 — 7,614 Distribution fees: Mutual funds 653 166 — — 819 — 819 Insurance and annuity 769 117 250 — 1,136 — 1,136 Off-balance sheet brokerage cash 82 — — — 82 — 82 Other products 354 — — — 354 — 354 Total distribution fees 1,858 283 250 — 2,391 — 2,391 Other revenues 207 11 — 1 219 — 219 Total revenue from contracts with customers 7,407 2,522 294 1 10,224 — 10,224 Revenue from other sources (1) 1,516 60 2,670 348 4,594 154 4,748 Total segment gross revenues 8,923 2,582 2,964 349 14,818 154 14,972 Banking and deposit interest expense ( 344 ) — — ( 25 ) ( 369 ) — ( 369 ) Total segment net revenues 8,579 2,582 2,964 324 14,449 154 14,603 Elimination of intersegment revenues ( 689 ) ( 78 ) ( 330 ) 25 ( 1,072 ) ( 11 ) ( 1,083 ) Total net revenues $ 7,890 $ 2,504 $ 2,634 $ 349 $ 13,377 $ 143 $ 13,520 12 Index AMERIPRISE FINANCIAL, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued) Nine Months Ended September 30, 2024 Advice & Wealth Management Asset Management Retirement & Protection Solutions Corporate & Other Total Segments Non-operating Revenue Total (in millions) Management and financial advice fees: Asset management fees: Retail $ — $ 1,592 $ — $ — $ 1,592 $ — $ 1,592 Institutional — 424 — — 424 — 424 Model delivery — 60 — — 60 — 60 Advisory fees 4,115 — — — 4,115 — 4,115 Financial planning fees 333 — — — 333 — 333 Transaction and other fees 291 154 44 — 489 — 489 Total management and financial advice fees 4,739 2,230 44 — 7,013 — 7,013 Distribution fees: Mutual funds 604 169 — — 773 — 773 Insurance and annuity 773 120 255 — 1,148 — 1,148 Off-balance sheet brokerage cash 122 — — — 122 — 122 Other products 321 — — — 321 — 321 Total distribution fees 1,820 289 255 — 2,364 — 2,364 Other revenues 192 10 — — 202 — 202 Total revenue from contracts with customers 6,751 2,529 299 — 9,579 — 9,579 Revenue from other sources (1) 1,709 56 2,514 369 4,648 156 4,804 Total segment gross revenues 8,460 2,585 2,813 369 14,227 156 14,383 Banking and deposit interest expense ( 514 ) — — ( 22 ) ( 536 ) — ( 536 ) Total segment net revenues 7,946 2,585 2,813 347 13,691 156 13,847 Elimination of intersegment revenues ( 698 ) ( 71 ) ( 327 ) 21 ( 1,075 ) ( 9 ) ( 1,084 ) Total net revenues $ 7,248 $ 2,514 $ 2,486 $ 368 $ 12,616 $ 147 $ 12,763 (1) Revenues not included in the scope of the revenue from contracts with customers standard. The amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments. The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company's contracts with customers on a consolidated basis. Management and Financial Advice Fees Asset Management Fees The Company earns revenue for performing asset management se

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