Ameriprise Financial Services Inc. (AMP) has reported second-quarter 2016 net income of $335 million, or $1.97 per share. That is a 19% drop from $415 million in the second quarter of 2015.

Operating earnings also fell year over year by 13% to $379 million, or $2.23 per share, in the quarter; these results missed analysts’ estimates.

“Ameriprise delivered solid underlying results in the second quarter given increased volatility, lower average equity markets and persistently low interest rates,” said Jim Cracchiolo, chairman and CEO, in a statement. 

The financial services company posted revenue of $2.9 billion in the second quarter, down 4% from a year ago. Ameriprise attributes this to lower average equity and other markets compared with a year ago, as well as asset management outflows, resulting in lower fee revenue.

Meanwhile, operating expenses were trimmed by 1% in the period to $2.4 billion. This included lower distribution expenses as well as a 1% drop in general and administrative expenses.

Total assets under management and administration were $777 billion. According to the company, as Ameriprise advisor client net inflows were more than offset by “the unfavorable impact of foreign exchange rates related to the U.K. referendum and asset management net outflows.”

Advice & Wealth Management advisor client assets increased to $462 billion, reflecting “continued strength in fee-based investment advisory net inflows, including $2.3 billion of net inflows in the quarter,” according to the company.

“In this environment, clients remain cautious, which is reflected in slower activity and high cash balances,” Cracchiolo said in a statement. “However, retail client assets increased to an all-time high and we had another strong quarter for experienced advisor recruiting during a time of change for the industry. In Asset Management, we continue to make progress in the U.S. and are implementing our initial plans to manage the post-UK referendum period effectively.

On a trailing 12-month basis, operating net revenue (or fees & commissions) per advisor declined 1% to $507,000. This reflects lower average equity markets, high market volatility and lower transactional client activity, according to Ameriprise.

The total number of advisors grew to 9,758, which reflects strong retention and “another successful recruiting quarter,” according to the company. In the quarter, 98 advisors movied their practices to Ameriprise.

The unit had pretax operating earnings of $221 million, up slightly from last year; its pretax operating margin increased to 17.7% from 17.3% a year ago. Operating net revenues fell 2% to $1.3 billion, which Ameriprise attributes to wrap account net inflows and higher earnings on cash balances that were more than offset by lower client activity and a 5% decline in average equity markets.”

— Check out Raymond James Tops Estimates, Reports Strong Revenue: Q2 Earnings on ThinkAdvisor.