AMP - Earnings call transcript Q4 2024 | Ameriprise Financial, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Q4 2024 earnings call. My name is Mark, and I will be your operator for today's call. [Operator Instructions] As a reminder, the conference is being recorded. I will now turn the call over to Stephanie Raby. Stephanie, you may begin.

Unknown Attendee

Thank you, operator, and good morning. Fourth Call. Financial's Ameriprise to Quarter Earnings Welcome

On Chairman Chief and with me Financial Jim Cracchiolo, today are CEO; the call Officer. and Walter Berman,

Following we'd be to your remarks, happy questions. take

on will see discussion presentation that earnings our statements. a On to you are of Turning available X, Slide our materials forward-looking website.

found Specifically, numbers numbers insight today's various company into in financial during operations. will can to which website measures, Reconciliation to call, references you non-GAAP their the GAAP respective we be the of our www.ir.ameriprise.com. and hear non-GAAP believe materials provide at

could Jim. page results forward-looking the performance to call GAAP Many results. And it the management which our our operations a to and today of our be to found core underlying statements reflecting annual be cause publicly and operating understanding results sample factors our on our make Some X, statements top from reflecting the release, to Below of performance. in of shareholders financial comments only makes different focus make our adjusted I'll involve we on the risks of you fourth that plans number XX-K today's risks operating with expectations earnings the be these this of These you adjusted XXXX events update analysis. forward-looking business and that XXXX turn call on actual meaningful of see future will Slide uncertainties. by report. of may materially list trend over statements and We statements. On XXXX facilitates operating that, speak no and can as management more the forward-looking, results, obligation A about forward-looking and quarter. or revise the report and that, management's fourth date quarter for overall a our that at see believes enhances

Jim Cracchiolo

Good Thanks call. earnings everyone. morning, our for joining

building We're excellent a of with client and quarter number strong our on demonstrating to new engagement complete of we'll aware, the achieved year. you're fourth that Ameriprise delivered also a strength discuss our records As an good propositions. Ameriprise you. value

Regarding U.S. economic the amid external growth strong and markets. were markets environment, labor resilient equity

cooled, inflation late time interest in the rates As Fed for third XXXX. the lowered

$XXX like XX% strong there ago. up cuts $X.XX, in again, were up we strong our XX%. growth markets, diluted million, pace assets and However, billion, slower share asset per trillion, growth equity management, for from XX.X% on activity. revenues Total for we advisement $X.X new up it rate be highs operating a earnings this will grew a up adjusted year XX%, quarter. achieved some XX% up business with of looks return under results, delivered administration Earnings industry-leading noted. and $X.X year. With to from and to And Ameriprise XX.X%, Once were the transactional items positive excluding

flow client Our growth business. year-end, to our wealth action. management, markets. $X of goal-based XX% excellent Total device clients business results productivity, and good to continues the strength demonstrate up proposition end excellent In adviser of drive assets at our from trillion value grew overall

which to the the total us making to marks strengthening For of quarter, $XXX growing annualized substantially represents high. XX% third largest further X% one up the all-time than were This the client up more XX% billion, $XX under is billion, an $XX.X platforms flow also rate. an assets were Wrap from management inflows in flow significantly quarter. Wrap industry. billion,

hold ago. cash. significant had XX% level pickup We continue a from of to higher up a Clients also activity, transactional a in year

we're shift However, into and wrap term a other from seeing products.

our strength through investments new of value of and advisers, million technology activity creates. $X to adviser, regard proposition our per nicely platform and A is transactional to a consistent it outstanding key our to work our record We XXXX. With the capabilities put adviser value support. expect as reflecting more XX% again, to over best-in-class move cash grew be greater productivity up and we integrated and

advisers proud our team analytics the data tools, the serve are that and solutions and to needs deepen further leveraging relationships. The as CRM excellent I client consistently in of and Our well our as Ameriprise earns digital are recognition marketplace.

excellent out providing advisers. is row, satisfaction an our client experience to Our customer the of Power at support in for X. And year outstanding for recognized J.D. service a X.X sixth phone

for In Power their continue process. clients. for also the high-quality our stand to out growth also Ameriprise And addition, advisers J.D. for certification in our industry exceptional support received phone in leading service,

in-state more through a earnings further pipeline. With to we And to generate survey productive on we XXX the another teams In slower year as XX% our marking great with best team's is also increase XX fact, advisers to nice we with recommend of engagement a good had see Ameriprise is set another recent $XX XXXX to attractive regard key accounts field continue opportunity the terrific. Maintaining And ] A fourth HELOCs with management efforts. our strength. our attracted advisers, a about balances high bank recruiting. adviser what of with. XXXX. checking than excellent feel fourth work growing we [ wealth Ameriprise place we experienced In as we our affiliate record expand or indicated time that for move which our ranking, with and CDs, to is in advisers benefits recruiting the of This level billion. a our product quarter, satisfaction

continue products, growth Solutions of to Retirement sales Protection earnings. Speaking drive strong and & our

annuity robust also that our we XX% our As meaningfully, team we I where very are underwriting. VUL activity in variable product. And growth appropriate good had enhance quarter health of business, continues transaction disability we in included with mentioned, for focused the sales products our and including on accelerated how have environment. we do and business, to up Life the up and with good life XX%, grew the for structured AWM. Part sales in sales, that strong

substantial Management, we're growth. results while our evolve Asset greater for flow. In and financial free strong we Solutions meet help leverage generating Our Retirement to us & Protection as efficiency comprehensive future capabilities cash and continue clients' global needs generating

was assets research total, management the funds ] more performance $XXX of strategic above XX-year X- periods. including of outperformed under our the have advisement thought our is competitive Threadneedle XXX key globally funds anchor U.S. time across And X- Columbia team delivering consistent and quarter, with strong or our the The earned X- for strategies, continue ratings. XX% medium and nearly X-star funds the [ and we and Morningstar X-year to or in funds In and For year-end, frames, leadership. were excellent At investment XX% billion. and in

$X.X insurance gross we of than delivery $X lineup as legacy investment $X.X flows billion, Regarding ETF active due businesses. market SMA complement the net to billion $X.X meeting outflows excluding EMEA we our in net America fundings billion, we and ago. a higher legacy mutual expected net our institutional, both demand. dividends. drive our and further partner to reflecting business inflows of highlighted. To and broaden fund stronger we to building inflows model our had retail, includes we've year and total flows, more from capabilities and growing out well improvement as slower billion, North continue sales future of This evolving had had In inflows a flows, In reinvested

seventh flows the over now In under provider the assets for year. advisement $XX And fact, are making our we in had model of us the nearly billion, delivery largest $X billion U.S.

growth. And you organic other Ameriprise. deliver unique strong another and and and to especially free overall, needs, million Management see it tightly to on the the that excellent ability provide investments strong flow firm with In the we investing XXX-year better Asset with our the year firm-wide the this continue client data year. and capital will line, X legacy an for AI to results. Ameriprise billion beyond. position. our cash product expenses. At manage in overall, time, continue to we reinforced meet a was and in improved Consistent we're $X.X years us quarter, to we're build efficiency will Reflecting continues of We evolving Asset Management, consistently capital best-in-class and excellent for out This our and built capabilities. same returned work completing For business benefits year transformational achieve quarter includes another and on and for EMEA. $XXX growth returns

the substantial now capital X a of of count share ROE a And to in we resulted in which years, is is best amount Over reduction of our returned industry billion, the shareholders, last XX.X%. and one nearly XX%. $XX consistently the

our to Another for culture and the we Ameriprise, important operate for we how business. out stand differentiator continue

position for team in In as best companies what in the responsible one fact, by we're America's one has were again of XXXX and just and America's of of Ameriprise Forbes. I'm attractive proud by an XXXX accomplished, in most companies Newsweek we XXXX. recognized

will the then questions. take Walter we'll and your detail more Now in provide Walter? quarter,

Walter Berman

Ameriprise the operating in year. EPS delivered excellent another and for Adjusted prior Jim. in accrual operating year segments and increased achieved underlying This $X.XX quarter severance to quarter its share-based in the expense, strong regulatory excluding XXXX. the XX% to mark-to-market you, XX% and a increased year, on impacts the compensation, across the our strong Thank conclude growth unlocking. demonstrates quarter

advisement growth, investing particularly across margin in from equity continue and resulted be and areas our wealth and in management, well delivered appreciation. trillion, in our Assets demonstrate sustainable inflows consolidated efficiency objectives. market XX% to expenses revenue strong under and over business of that XX% businesses. G&A will shareholder benefiting to managed focus XX%. And on future $X.X growth year management, strong the strong increased a past administration while This achieve to we drive operating effectiveness client

or flow of XX% generation at In trillion $XX.X returned flows [indiscernible] to coupled were balance the rate. enabled XX% client revenue generated Strong the in $XX.X adviser annual from you'll $XXX best-in-class assets. Golden sheet billion. Our the cash businesses, strong across to was the billion shareholders grew including flows management. operating X% XX.X%. On of balances, Wrap of earnings market third-party particularly X, flow revenue $XXX reached see up XX% billion XX% coupled with metrics ago. Total client flows transactional continued were or stable diversified ROE which results operating assets new return all-time a brokered was high activity CDs, XX% from were high up with or and client our in shareholders, at $X strong money growth year million cash and with Slide to strong free we us Wrap billion. XXXX, XX% funds $X.X and quarter and our over fundamentals, assets $XX.X quarter. an $X growth, to million, wealth earnings strong of per a billion, of strong to

funds put money clients other pace see work beginning products into is which wrap our However, to flowing has the back money in decreased and market money platform. and to we're on significantly, in

markets and a operating increased financial up XX% significant sweep with normalize, quarter, to billion as activity. balances growth time We net asset $X.X quarter see growth full client line expenses Slide and billion. On expect over expenses. year. strong rates growth transactional which $X.X was this in transactional the Adjusted $XX.X to expectations, [ billion business in continue Margins Adjusted increased XX% X, opportunity. flow And driven with creates to to sequentially results operating $XXX remained from in Pretax core at the increased and for distribution increased cuts and markets, expense million in ] for than reflecting volume-related revenues adjusted quarter repositioning. and $X.X Fed and to the XX%, expenses and from which were by XX% increased operating wealth management. $XXX activity. G&A rate strong offset higher investments earnings the X% combined were billion reflecting business higher equity XX%. million up portfolio the $XX This approximate million more funds growth impact you the

the reached higher year. fees effectiveness years performance quarter Margins fees on and Asset and growth quarter initiatives net to Slide from excluding [ experience with prior driven earnings of quarter. versus Those offsetting future $XXX Management XX% very increased and continue results. the year, performance client expense outflows. the improved management reflecting billion. benefits for related expenses, the reflecting compensation, efficiencies from Adjusted operating last [ assets ] in expenses company's performance performance transformation to strong XX% both advisement well more XX% impact $XXX to up X. million, increased quarter similar XX% initiatives X% strong X% outflows in and will of strong results XX%, ]. strong of profitability. full the full from defer strengthen management was General annual year, enhance to and the in Turning operating X%. and our increased by the proactive transformation consisting grew the in X% further Financial fee were marks to Operating for year the Revenues and similar This model under in as and markets, to XX% and levels year operating as to administrative industry. Total than the

in segment, up nicely Slide by to Solutions reflecting and with generation, higher-margin continued deliver the sales flow period up million adjusted Corporate Retirement & strong or a Protection cash turn built continued quality Let's X. XX% Protection sales Pretax of XX% higher in were free operating to the the business that billion. In premium annuity strong to year. equity pretax million the primarily was and closed sales products mention & interest the and earnings in unlocking. to $XXX time. to claims VUL year, $XX over markets, ] Care by of with Long earnings associated operating high $XX long trends. Overall, The Retirement for for quarter million from million, expense Solutions to of higher full [ reaching increases. excluding reflected were earnings [indiscernible] wanted I $X.X $XXX quarter increased consistent benefit the variable Term new business higher $XX the and sales strong full million earnings Protection adjusted Results offset up partially distribution the and reflected the rate stronger performance

Turning the $X generation sheet on Balance and to billion remains strong sheet Slide of capital. XX. free excess fundamentals flow cash balance with

well. and continues Our diversified investment to high-quality portfolio perform

bank repositioned rate portfolio in forward. fixed positions yield we This I and a with floating As securities before, X/X securities rate the us have X% our into X-year duration. a well of noted moving approximately

as shareholder XXXX, which sources fourth strong to and growth. businesses, capital Earnings and consistent We Ameriprise ability a have basis XXX XX%. long-term enabled and had billion strategy X over as to EPS equity We underlying targets. returned return delivered similar $XX growth, take $X.X adjusted past speaks focus our XX, consistently capital to XX diversified we stated Slide are percentage of share over and billion per on Return quarter, a dividends to for annual profitable trends of capital of X% in revenues consistent all capital with compounded to our shareholders. long returned that, our from differentiated growth, summary, our annual the on future financial revenue by shareholders is These grew This performance well drives trends mix nature XX% shareholders. This fundamentals. return improved record cycles the In points, outperforming Ameriprise's invest across excellent growth of track on supports growth years value. In term continuation the complementary over of XX%. increased compounded on grew multiple long equity business we'll the points, we return as questions. well. business our as growth. With

Operator

with Jefferies. first your the Suneet [Operator Kamath Instructions] And question comes of line from

Suneet Kamath

the know, 'XX. that and you I that you've that above the through of kind start wanted an Is maybe get in Walter, expectation? be you XXXX there? was past, your I walk to NII bank. the sequentially can down about there would expectation some And NII with still of The maybe year-over-year. pieces talked

Walter Berman

Suneet. Sure,

coming we in that at the and XX%. the XX% So repositioned quarter, floating. quarter, were we the fixed into And down bank during to XX%

about $X.X we that aspect. billion by grew base seasonal our and So have managed both we've And quarter, in also now, growth. the basically, from

in. that's the So coming positioning

think of forward, that now. have position good I going So we're in right a fundamentals we the because sitting

we with have adjusted studied rate. in We client interest the taken January, accordingly rate, the the and we also crediting change that

well, interest bank but good sustain income, again, and our -- think we in of the there's I positioning lot see -- that So to variables. But positioning in net position. us all think, that are continue put a I has certainly quite the fundamentals us

but that it sted, And you -- rates have rate will if relates then you're normally, and -- you spread now benefit. on reduction. that's impacted adjusted to As your go. looking drop will obviously, a to certificates, obviously, get you'll as the sweep, at by business, it rates, be And and be

to we go certainly good back So to I net Put say it ]. continue as 'XX into income. interest [ positioned well we're would generate

Suneet Kamath

Yes. Got it.

cash you at level, Okay. billion assets. is what it's Jim, guess, think of then, I I the the of X%, Xx talked that client And think, been. for being $XX this And I X% has level normal about maybe roughly

So I balance some cash guess, get in do Or to are to X% going to this to want just for environment be your thinking are Just time? you of think back that about we we that it. higher how a advisers ultimately sense X% get level?

Jim Cracchiolo

to you what think more see term in, high. Well, back got pretty rates the it in. are money the levels Suneet, also you're sitting start mean, flows as still we interest redeployed But with The higher saw, be. curve used to you cash short I remember, in but I being than of pretty

but last higher short -- were down. a way, continued position cash time, time. I right? end basis on the But the pickup a that spread but And curve, would picked income-type dropped time -- in not more is it the they to going the you're product would well. But they a over points occurs of start the in getting rates over shift it's so up you average for -- say, the longer a curve, as And dramatic as stabilization probably there. And years. the and much come they're over should probably well. see -- like over And didn't good little end It's in mean, but some XX there I the than you'll money a back consumer bit, -- will allocation XXX market, into rate see on say, yes, as the the I cash still good fixed because of is

Operator

Hawken line Brennan UBS from And Financial. of question next comes your with the

Brennan Hawken

to Walter, NII would a the point love bank at put on the finer commentary.

as towards So just you're and correctly. lowered wanted And be make sure here like January to rate crediting but a X, now constructive it to in then NII number I [indiscernible]. you outcome sounds know working the that also, that interpreted I

Walter Berman

It's evaluate continue point quarter that. the But to XXX XX in competitive ] will bank. assess. Obviously, absorb we So the [ through go we fourth drop. we a basis did a process in and effective

we And like did deposits deposits, but said, I so and and seasonal growth. are, -- those add

indicated, position, -- good And I so think a we we'll we're say 'XX. I go as to -- through in I as we're navigate and

now, with and in high-yielding the XX% So and in where I'm at we're sitting confident fixed investments. quite bank high-quality

Brennan Hawken

when a think Okay. coming Do And growth, a maybe be to offset the as been rates But How we loan about we bank within it's then loan partial growth security-based has could particularly largely growth bank the that about pledge loans the continue? been more down loan through so the move make, expect you attractive. within residential thinking story. story -- XXXX? also mortgage subsidiary should we the as loans,

Jim Cracchiolo

looking We'll we pledge. that's after in that's be -- something later quarter, the know And think launch sought to -- that I to haven't the that's fixed And we in yet. it's the had scheduled first wires.

on So out as the some the we're also those second in, adding would later more lines. loan also coming I on utilization more checking some product along side products well balances out that launching year later we're adding the HELOCs with. coming with a the think, the and be to of products engagement bank would also We're going account the as CDs, help to into in of that side, be bank deposit portfolio. We'll for that bring the other the the quarter, with

on them. really and But launching the part that nice is the really established. feel lending we getting over the portfolio. to feel bank go we we a as products build on. up there in an we've set we're periodically time, opportunity increase But So like And been loan can remember, focused portfolio of we

Brennan Hawken

Or shift? Okay. an still And expected the residential lead? mortgage will we is there

Jim Cracchiolo

Yes.

Operator

question with the of Goldman Sachs. And your from Blostein next line Alex comes

Unknown Analyst

been. firm's on help is repurchase peers opportunity, you how it But Appreciate how opportunities? Could cadence get Alex. for inorganic wealth Luke the about feels inorganic capital here where you're you like the are specifically how within thinking about are has and us to This frame AWM, particularly beginning more consistent strategy, thinking acquisitive?

Jim Cracchiolo

Yes.

a feel redeploy RPS a the that and we that business, a very returns, generation in is business. little we sense. From dividend very the through business gives the right buyback have of pricey have flow ability to more a have we like in well-established us has we ability that capital on consistent a acquisitions, we the cash across -- which good And lot based that is our perspective now. bit So increases remember, really market

of has -- sort perspective on things, up on if equity private an been have on business wealth et solution, good appropriate cetera. bringing on that a to do the you're they a appropriately think We a looking I advisers segment. focus types in client how experience, at advice-based more want of

we in we so regard. that targeted And But an want from there. opportunity perspective, see still acquisition

We also are investing to broaden out our channels.

we're number opportunities, senten AAC more a in have we that some our at AFIG looking our We or now. opportunities And and own of sites right direct. in have whether working

to feel ability to organically I looking space some the newer now we're as both so good as inorganic in at happening on about grow less marketplace. what's that the right the of probably in establishing, our larger So based channels well continue

Unknown Analyst

Maybe the just minute path I call, on Asset business say the you organic color. to Management. towards the there? a getting the to know Appreciate closer top clear. a to and but biggest improvement neutral drivers of And driving a term? rate on switching you longer for gears you loud it growth what Yes, back the are would see to Do touched

Jim Cracchiolo

Yes.

alternative space business So passes Asset bit some moved is. you growth of where has more think the and that unless a Management been overall to listen, have pressure, or the under I

doing pay and We been look a took So that efficient. lot we as will the experiencing. lot that really business, been we've transforming we've what dividends case, a cost, the rate of in out getting at is some our flow more

both increasing a growth On the and side that positive are sales the here see bit on side, Europe. our we

out in formats. branching different are We

the our billion for That that we So over will We part already. be et franchise. opportunity bigger grown there. and models our SMAs cetera, of think growing $XX a in there's deli, us a have business model SMAs, think

launching back and think think I to launched into more active changed. as in which has format the a are ETFs under of of number moving we active, is as especially the are and have passive in mutual part good has really mutual from funds more the excellent starting But in We People ETFs that for traction -- pressure X- have of changing format come attracting in now the environment. segment. some products again, little opportunity take this us some the bit area, to are fund X-stuff fund time. and Europe. a we that But see an will gain

that industry. but the across I think is like is there more mentioned. Institutional see we for getting are consultant can things a in little many I've a us you feel path But lumpy, forward more we the approvals.

out. branching are We

up We in as right have set gotten some now we Japan nice there. flows

that in a be little over lumpy, but that's better we'll be to way. out to think I build time, think going a more able I So

Operator

And line of your with next Wolfe the question Research. Steven Chubak comes from

Michael Anagnostakis

here. just to on flows This is for despite on growth has seeing resilient Steven. moderating in touch Michael the more I Anagnostakis M&A industry wanted been Organic 'XX.

more a been better in have recruiting peers backdrop. optimistic your higher that 'XX of backlog, accelerate could Some with with market

X%-plus you level 'XX that playing backlog? 'XX? a seen based see to in outlook had to see you organic the through on and you And getting do recruiting do flows how near-term back your and So path

Jim Cracchiolo

as type more new flow continue like client overall, both earnings wrap as that what more got company can't nice picture flow that looks I there'll growth, be a are wrap from that net we've sit in, more in and at little a forward. to a probably that little the So business sort a flow market it, after But the look but going the move seen back the say things I pickup other will of think people picture flow a comfortable election, and based think picture, we we I of -- and the occur. coming into picture. the more little We also solid that on changes here that programs. GDP idea quarter-to-quarter things we more employment just conditions think

say I saw, our there. From in for the probably So you it would fourth as was positive good idea recruits, an it's pipeline the quarter. a of environment

Our the But very again, part new only It's -- a you recruiting small going into do. of pipeline of so year. looks what yes, good is can't predict. sort we marketplace, a competitive

lot channel, people bringing -- as important in across And grow teams a are is for more our adding We we to us. also in try productivity newer very to as which well people. the

we're capabilities, I with nice our so enhancements in will technology, think in our in there beneficial experience, for And client be some us. think gaining traction we that

Michael Anagnostakis

one color. cash. And helpful maybe Very just moving over sweep on

seasonal the elements. growth in Solid are some There quarter.

month, can give mark-to-market we I day a left reverse the remarks, had you in the think still you us a cash to mentioned prepared those some degree. Understanding in January on tend date? to during sweep January have to

Walter Berman

It's stable standpoint been that December. of Walter. from fairly It's endpoint the from

Operator

Piper next And Barnidge comes Sandler. the your of John with question line from

John Barnidge

benefit Term Long Care, quarter. the on in question rate a A from was and increases there premium

ago the premium with out Term Care actuarial increases, rate we view of rate those retain decision expect quarter of a Care how we the should to assumption there? in review to a Term Corporate? With level assets earnings run Long Long be those And borne higher do

Walter Berman

Well, okay.

from been look active and was benefit So -- getting rate from in certainly benefit quarter claims We additional request. pending our this have out benefit as with there -- at we increases.

trajectory, It approved to look standpoint, it it. The fundamentals good say, in how and then good. light. all -- that it I go see gets to reflect are from if a it We think we positive has that and the have on a through I'd thing they and we're we process a see very good,

a -- we and give can't this, And positive but we'll growth million as $XX and So good number that, is generated we continuing very into good. coming good certainly XXXX, for profitability. of it an we is anticipate exact trajectory on element the you we be

John Barnidge

is question, Advice about And more becoming asset can channel, & if and advisers? you portfolio that talk alternative the Wealth Management my private for by the and demanded follow-up

Jim Cracchiolo

Yes.

digital the have added to -- say think good right product done We've will alternatives And probably for our credit alternatives more for side to us opportunity there's on advisers. but market upper one in an the now, our and more that on diligence to products the clients, clients grow. of for start nice those lot we would and our for channel platform a So due I product think adding a it's I the particularly small some start as in categories. our I platform. look

say channel, early probably really advisers the fits but capabilities that of that add in one probably think So and stages that as we start to I will add over at where the we're about time not But would part of assets in portfolio part be it of an as be, to in. large it's ultra-high-net-worth our are allocation those going because activity, a of will lot would a a area, say, illiquid. our you

Operator

the comes question Wilma next your James. And of line with Burdis from Raymond

Wilma Jackson Burdis

Corporate we costs in came expected. than bit lighter a

severance Some was the about but half and could of conversion of think given the ongoing that the cloud performance costs? LTC, first 'XX help in you us

Walter Berman

forward if those the -- in on $XX earnings $XX we those trajectory you mentioned see that if million, expense, of as you That we you think range. that elements do into -- release. had just would it for Corporate XXXX. million go And as is $XX you that basically it's that on, okay, saw, not were we million, in range the

Wilma Jackson Burdis

Okay.

the in that to for more maybe early year? similar something So Is fair XQ?

Walter Berman

Yes, Yes. pretty much.

Jim Cracchiolo

Yes.

severance -- did cetera, first of some we in. the come as that to of it and So start mainframes, on dissipate. through second the et to transformation some a less go will for will And quarter, that we coming technology change be the the bit there'll -- cloud we

Walter Berman

the first in it and through second work we'll quarter. And

Jim Cracchiolo

Yes.

Wilma Jackson Burdis

And how segments? the thinking across bit more give G&A a you're about could 'XX us in color little you on

Walter Berman

quite as As -- you the know, certainly, we we we to and look at this manage looked G&A year as taken changes. expense And action we well. we programs you processes base other saw and at transformation we've started, on adjust our

into going be over So will we've of and that all reengineer. to accomplished continue looking we're Certainly, in to that continue some carry XXXX. 'XX, we're constantly to --

but expenses, growth. prudent we're we AWM, associated have expenses AWM, very to As and our it with managing relates activity certainly, investment on in

feel as looking continuing of So at we expenses. those to -- generation. we about to ability it our measured demonstration will good manage demonstrate But revenue certainly how very the be related

Jim Cracchiolo

the some into and Management move In as we give the benefit that did will transformation us well. some Yes. business, 'XX Asset of

managing a in from we AI we very perspective, technology point, how the we're investments in overall, So business, Walter's good about feel company expenses. are making To capabilities. good

We part good about growth. volume-related, is have are think that we you G&A. variable that as And AWM, for also expense the in particularly of where having

say, it's would So something, not things. overhead-type as fixed it's you

Operator

And your line comes with Krueger of the question KBW. Ryan next from

Ryan Krueger

on first question My follow-up the flow wrap a was trends.

recent So big in far trend. you has in if similar fourth saw a on pretty X% January. increase the growth Comment in a at more from pace so X% the quarter to organic continued that

Jim Cracchiolo

look would consistent. -- at January combination probably say some look -- month January a the we As the things it's to the the things have little with there, -- is because of of a out start is But I little at the of occurred year. so that hard a beginning of

quarter. flow I of is a hard not perfect from. But but I fundamental. to science a see anything rest take the would probably don't -- month it's January a the So say always for

Ryan Krueger

it. Got do quarter here? feel expectation the margin, reasonable on from in going forward AWM Fed then a rate XX% pretty the And fourth the following you cuts, the that's

Walter Berman

do. I Yes,

Operator

the our line comes Kenneth Lee And question Markets. with RBC final Capital from of

Kenneth Lee

just Apologies if this this couple morning. was calls before, covered juggling I'm of a but

were bank of mix there, color the floating of the across term? expected. in are around a little portfolio near additional assets fixed in portfolio change versus you thinking terms perhaps I any any bit of assets, expectation allocation a kind In over there How have the business, that? the would the than the probably Is lower about bank fees

Walter Berman

Sure.

So that stayed in listen, to our I fixed. XX% into to XX% we mix It's the indicated, pretty at range. X% X% -- has quarter adjusted duration is We did high quality as the we much the bank, and came with fixed on and the same.

-- it's, it So and and quality duration. the same again,

that we rates. -- So garnered feel is we good

only again, basis a mix. in XX Fed, the the XX-some-odd for change. that standpoint, from the on bank it points that was from impact We based and almost the So quarter, basis that's -- impact the was point

Kenneth Lee

say just one time. elevated to higher if higher there. follow-up, the RPS that over helpful Very Fair you. side. Got earnings translate just I over into may, could time, And on yields

expectations in earnings the there? rate what outlook check want And your that. run to Just XXXX on are or for for

Walter Berman

Yes.

the certainly, that covered that -- at I the with think standpoint from I the we feel comfortable bank...

Jim Cracchiolo

RPS.

Walter Berman

Excuse me?

Jim Cracchiolo

RPS.

Walter Berman

certainly, year, see we Oh, from again, sale. obviously growth. RPS. we're we to had upon fundamentals good that transactional course, standpoint, and the which both fundamentals of -- time there, based earnings But I'm the the sorry. good a reduces the On RPS, sales do seeing very

-- -- base and managing is And the solid. so quite liability we're the

standpoint, it's from I So pretty feel solid that a number.

Operator

next the Stanley. with have question from Michael Morgan We Cyprys

Michael Cyprys

well have as in efforts question we that years. guys think expense quite Just efficiency on a about executed recent you

on maybe those here, Just deployment the incremental you that see much to that with is how do there attributable recent deploying could be use could expense for capabilities then forward versus horizon, maybe look how say AI of of like broader potential What's maybe the of would even you talk for deployment. tools. DeepSeek cases the faster, like some efficiencies? Maybe greater you prospects you And seems including you And as about agents. announcement, the AI AI see look generative unleash from of it journey Ameriprise? curious of the to some

Just about curious thinking how you're that.

Jim Cracchiolo

Yes.

that intelligent of across we deploy deploying to been we've number we while, So increase business. and in for areas automation, a continue the that robotics the

work that be nice we AI, And we're of from that benefit regard. We've see in that generative different seeing on further. and growing greater lot cases for so we're further of done running some also will things a opportunity we lot a out efficiency

we're working example, but clients. do productively, in gotten with level their with efficiency, As advisers business help the enhancing drive capabilities center call interactions we to reach efficiencies. utilizing to improving lot In -- that how Columbia, a of out we've and regarding research our and easily, now identifying an client lot more already in people. to book experience we've more opportunities a tested a of We're working our

number that things of there's So at across. we're looking a

that in Now you a recognize space. to have we're regulated highly also

we to we have get what expand from we learnings do. look So at more But and cetera, we start is et you more do, out to we further. information how cetera, process. test can that, And as results and that good have a which use that roll et really governance what there, we

I deployed will from really and that things So we've but to you not time are that's learned great tested gotten you But that been yet answer no. getting it say, be we've intelligent automation, the it? think something like The that added. deployed on will over and AI. generative be But starting for is the yet efficiencies if now. But be

Operator

at further today's time. no participating. for conference. you this concludes have questions This Thank We

You may now disconnect

Ameriprise Financial (AMP) 30 Jan 252024 Q4 Earnings call transcript