Ameriprise reported strong Q1 results (EPS +19%, revenue +11%) but guided cautiously amid market volatility and aggressive industry recruitment. Key cross-company signals include a large Huntington Bank win (~$28B AUM, Q4) and continued Comerica outflows from the Fifth Third acquisition. Management highlighted disciplined capital return (88% payout) and a reluctance to match peers' expensive recruiting deals. Huntington Bank selected Ameriprise as retail investment program provider, adding 260 advisors and $28B assets starting Q4.
Ameriprise reported strong Q1 results (EPS +19%, revenue +11%) but guided cautiously amid market volatility and aggressive industry recruitment. Key cross-company signals include a large Huntington Bank win (~$28B AUM, Q4) and continued Comerica outflows from the Fifth Third acquisition. Management highlighted disciplined capital return (88% payout) and a reluctance to match peers' expensive recruiting deals. Huntington Bank selected Ameriprise as retail investment program provider, adding 260 advisors and $28B assets starting Q4.
Ameriprise reported strong Q1 results (EPS +19%, revenue +11%) but guided cautiously amid market volatility and aggressive industry recruitment. Key cross-company signals include a large Huntington Bank win (~$28B AUM, Q4) and continued Comerica outflows from the Fifth Third…
Huntington Bank selected Ameriprise as retail investment program provider, adding 260 advisors and $28B assets starting Q4.
Comerica termination (due to Fifth Third acquisition) caused a one-time $25M payment and ongoing asset outflows through Q3.
Adjusted operating EPS rose 19% to $11.26 on record revenue of $4.8B; ROE exceeded 54%.
Management emphasized AI as embedded in an integrated technology platform for advisors, driving productivity gains and efficiency, with advisors gaining time for client relationships. They see near-term productivity gains and selective automation, with potential for AI agents to handle some advisor work, though no quantification was provided.
Management expresses cautious optimism: reported strong results but flagged volatility, cautious client behavior, and lumpy recruiting, with no explicit full-year guidance upgrade.
Management conveyed confidence in the business model, citing strong financial results, disciplined capital allocation, and a differentiated value proposition despite acknowledging competitive and market headwinds.
“the recruiting deals we are seeing today in this perceived risk on environment exceed what we believe is a balanced risk return approach, given the long cash paybacks and marginal P&L benefits”
Ameriprise captures a large wealth-management outsourcing deal, adding ~260 advisors and $28B in client assets, beginning in Q4.
“During the quarter, we signed a multi-year agreement to become the retail investment program provider for Huntington Bank.”
… and the strength of our partnership. We continue to prioritize our core advisor team productivity, and we complement it by recruiting high-quality advisors who view us as a strategic partner supporting strong client outcomes and practice growth. Sixty-one advisors joined during the quarter and were seeing a pickup of activity in the second quarter. And in AFIG, We continue to expand this channel as a premier platform for banks and credit unions. During the quarter, we signed a multi-year agreement to become the retail investment program provider for Huntington Bank. This relationship is expected to add approximately 260 advisors and $28 billion in assets with onboarding beginning later this year. Huntington selected Ameriprise for our leadership and advice, strong culture, and capabilities. As we shared, we consistently invest across the firm to meet client needs today and further strengthen the business for the future. These are intentional multi-year investments across technology, systems, and new capabilities. We're focused on clear high impact outcomes that deepen engagement, deliver relevant and actionable information, while enabling highly personalized quality experiences. …
Comerica terminated its wealth-management contract with Ameriprise after being acquired by Fifth Third, resulting in a one-time $25M make-whole payment and ongoing asset outflows through Q3.
“In the court of Comerica, exercised their option for early termination of your relationship with us.”
… will note that advisor compensation within distribution expenses increased in line with the revenues advisors generate. G&A expenses were a 4% primarily driven by volume and growth-related expenses, including investments in signature wealth and banking products. This level was consistent with our expectations. Pre-tax adjusted operating earnings increased 20% to $951 million, with continued strong contribution from core distribution and core cash earnings. In the court of Comerica, exercised their option for early termination of your relationship with us. This resulted in a one-time $25 million make-whole payment for onboarding costs and future earnings, which finalized all payments that were due to us for this termination. Excluding this benefit, earnings increased 17%. Our core distribution earnings grew in the mid-30% range, benefiting from higher client assets and advisory fees. as well as strong activity levels. The strong level of core distribution earnings that we generated is unique relative to other independent wealth managers and demonstrates our focus ensuring that our growth is profitable. Bank earnings grew 6% in a quarter, while certificate earnings declined. In …
Fifth Third's acquisition of Comerica led to the termination of the Ameriprise partnership, suggesting Fifth Third will bring wealth management in-house or use a different provider.
“Fifth Third purchased them, and they wanted to keep it with what they're operating.”
Thank you. Yeah. My other question, I just wanted to drill into this a fig opportunity and I'll just tell you the way I'm thinking about it and maybe get your response. So it seems like the costs of being in this business are going to go up. Maybe AI helps that. Maybe it actually adds to that. Who knows? But, but if, if, if you have these banks out there that want to be in the wealth management business, but don't want to make the investments that are required, It seems to me that that's just a net that plays into your hand in terms of this AFIG opportunity and that we'll likely see more of these. And I just want to make sure that I'm thinking about it right.
You're thinking about it 100% correct. Let me give an example. When we spoke to Huntington Bank, they kicked the tires and they were out there looking at who would be the best provider, etc. Their goal is having excellent banking complemented by this, and they knew that that they wanted to focus their energies with this being, you know, of where they can get the type of support, the capabilities, the culture, the environment to deliver great for their clients. And so they kicked the tires on any other firm out there, and they clearly chose us for those reasons. We think we'll have a great partnership. CoAmerica actually was working fabulously for the bank. You can speak to their chief executive, who's now stepped down. The people who headed their wealth management, who helped them grow, the advisors, the productivity advisors love us, would love to stay. So it's not that we lost the business. Fifth Third purchased them, and they wanted to keep it with what they're operating. So, you know, I think that capability is there, and I think as people understand what we provide them, I think there'll be a lot more opportunity for us.
Management explicitly refuses to chase aggressive recruiting packages, warning that industry deals exceed a balanced risk-return and will compress peers' long-term profitability. — Competitors offering excessive upfront transition assistance may face margin pressure and elevated churn, while Ameriprise's discipline protects its franchise but could slow headline flow growth.
… a combination of the aggressive recruiting environment, which drove higher advisor departures, as well as the acceleration of Comerica advisors departing as a result of their acquisition. We anticipate the higher pace of outflows related to Comerica will continue in the second and third quarters, culminating with the conversion occurring near the end of the third quarter. While we have significant capacity to recruit, the recruiting deals we are seeing today in this perceived risk on environment exceed what we believe is a balanced risk return approach, given the long cash paybacks and marginal P&L benefits over the extended life of these arrangements. We will continue to evaluate the facts and circumstances, whether for recruiting or retention, to assess the tradeoffs between sustained profitability versus flows and associated risk. This approach will ensure decisions are driving sustained shareholder value creation. Lastly, I will note that in the latter part of the quarter, we've seen improving trends. As we look ahead, the addition of Huntington Bank is anticipated in the fourth quarter, and will bring approximately 260 advisors and 28 billion of client assets onto our …