Ameriprise Cuts Net Outflows to $5.9B While Q1 Revenue and AUM Rise
Ameriprise reduced net outflows to $5.9 billion in Q1 from $18.3 billion a year earlier, boosted by a $25 million make-whole payment despite advisor attrition tied to Comerica’s asset transfer. The firm beat Q1 earnings estimates with year-over-year revenue and AUM growth, though rising expenses limited profit gains.
1. Q1 Outflow Improvement and Financial Performance
Ameriprise reported net outflows of $5.9 billion in Q1, a significant improvement from $18.3 billion a year earlier, aided by a $25 million make-whole payment tied to the Comerica asset transfer. Revenue and assets under management rose year-over-year, enabling the firm to beat earnings estimates despite higher operating expenses.
2. Advisor Attrition and Recruitment Pressure
The firm expects continued advisor departures in the second and third quarters as Comerica completes its asset conversion near the end of Q3. Executives pointed to an aggressive recruiting environment, with competitors increasing spending on recruiting and retention.
3. Huntington Bank Partnership and Growth Outlook
In February, Ameriprise signed a deal to oversee $28 billion in client assets for approximately 260 Huntington Bank advisors, with conversions slated for Q4. Management emphasized such partnerships and a focus on organic growth as key drivers for a more sustainable expansion runway.