Ameriprise Financial (AMP) reported second-quarter 2012 net income from continuing operations of $224 million, or $0.99 per diluted share, compared to $319 million, or $1.27 per diluted share, a year ago — a decline of about 30%.
The company also said second-quarter operating earnings were $254 million, or $1.13 per share, compared with $333 million, or $1.33 per share, a year ago. Results in the quarter included a charge of $57 million, or 26 cents per share, for unfavorable items, including a $40 million, or 18-cent-per-share, impact from a tax-related issue.
Analysts had expected the company to earn $1.32 before charges.
Operating net revenues were $2.5 billion, a 3% decline from a year ago, primarily due to lower net investment income from continued low interest rates and volatile equity markets, the company says. These market-driven impacts, though, were partially offset by growth in fee-based revenues driven by Ameriprise advisor client net inflows.
“Our business results were solid considering the difficult markets during the quarter,” said Chairman and CEO Jim Cracchiolo (right), in a press release. “We experienced good advisor client and asset growth with strong net inflows in our fee-based products.”
Advice & Wealth Management
Ameriprise client assets grew 4% from a year ago to $331 billion driven by strong net inflows, and wrap assets grew 7% to $113 billion, including $2.6 billion of wrap net inflows in the quarter, a 12% increase from a year ago. This represents about $34 million in average AUM per advisor and $265,000 in average new inflows of wrap-account assets per advisor.