Ameriprise Plans 85–90% Capital Returns and Holds $7B Off-Balance-Sheet Cash
Ameriprise’s bank unit holds $7 billion in off-balance-sheet cash with a 3.8-year duration and 5% average yield, its lowest short-term rate exposure. The firm returned 88% of capital in 2025, targets 85–90% going forward, and added 336 advisors to support about 4% net new asset growth.
1. Integrated Bank Positioning
Ameriprise rebuilt its bank unit after 2012 to service clients and stabilize earnings. The unit now holds about $7 billion in off-balance-sheet and short-term cash, has a duration of 3.8 years and earns roughly 5%, marking its lowest exposure to short-term rates.
2. Capital Return Strategy
The company returned 88% of its capital to shareholders in 2025 and plans to target 85–90% of capital returned going forward. This framework signals potential for more aggressive share buybacks while maintaining investments in its businesses.
3. Advisor Growth and Channel Expansion
Ameriprise added 336 advisors in 2025 and aims for about 4% long-term net new asset growth. The firm is expanding its franchise, bank (Huntington), remote/team and succession channels, adjusting compensation and occasionally acquiring practices to remain competitive.