This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ameriprise Financial's CEO Discusses Q2 2012 Results - Earnings Call Transcript

And with that, I’ll turn it over to Jim.

James Cracchiolo

Good morning. Thank you for joining us for our second quarter earnings discussion. I’ll begin with my overview of our business performance for the quarter and then Walter will discuss our financial results in more detail. Afterwards, we’ll take your questions.

As we reported yesterday, our headline operating results were impacted by a few items, the largest of which relates to taxes in prior periods. Walter will explain these in more detail. If you exclude these items, EPS and return on equity would have been up nicely.

Overall, results in the quarter were solid despite the challenging market conditions and low interest rates that continue to pressure revenue levels which you are seeing across financial firms; and as you would expect, we are adjusting our expense levels to reflect this decline. We’re making good progress executing our strategy in helping our clients navigate a difficult market environment. Our business fundamentals are sound with solid traction in our advisory business, good client acquisition, and strong retail net flows.

In asset management, we’ve completed our integration of Columbia Management and together with Threadneedle have a global platform with strong performance and expanded distribution. In protection annuities, we maintained good books of business with strong risk management and underwriting. We continue to manage expenses prudently and our balance sheet and capital management underpin our firm. Meanwhile, we have the flexibility to invest for business growth and return significant capital to shareholders while maintaining the flexibility afforded by our free cash flow and large excess position.

During the quarter, we devoted $428 million to share repurchases and dividends. With the increased dividend we announced last quarter, our dividend yield is about 2.9%, which is at the higher end of our peer group. In fact, over the past six quarters we’ve returned more than 130% of our operating earnings to shareholders, putting us in the top quintile of financial companies in the S&P 500.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,131.86 +47.37 0.28%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,838.6430 +8.1730 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs