CORRECTED-Wealth management boosts Ameriprise profit
(Corrects 4th bullet point to insert words "and administration"; Corrects second paragraph to read "total client assets" from "assets under management")
* 2nd-qtr net profit $322 mln vs $224 mln year earlier
* 2nd-qtr adj earnings $1.69/shr vs est $1.62/shr
* Wealth management business revenue rises 13 pct
* Total assets under management and adminstration rise to $703 bln
July 24 (Reuters) - Financial services company Ameriprise Financial Inc reported a stronger-than-expected 44 percent rise in second-quarter profit, driven by its wealth management business.
Total client assets rose 13 percent to $373 billion in the quarter, the company said on Wednesday.
Revenue in the wealth management business rose 13 percent to $1.08 billion, making up about 40 percent of total revenue.
Minneapolis-based Ameriprise has been successful in recruiting veteran advisers from larger bank-owned brokerages over the past year.
Many of Ameriprise's big-broker recruits in 2012 came from Bank of America Merrill Lynch, Morgan Stanley Wealth Management, and Wells Fargo Advisors, based on moves tracked by Reuters.
The addition of veteran advisers helps to drive revenue as they tend to bring significant client assets with them.
Total assets under management and administration, which includes both the wealth and asset management businesses, rose 7 percent to $703 billion in the quarter.
Net profit rose to $322 million, or $1.54 per share, from $224 million, or 99 cents per share, a year earlier.
On an operating basis, the company earned $1.69 per share while total revenue rose about 9 pct to $2.75 billion.
Analysts on average had expected earnings of $1.62 per share on revenue of $2.77 billion.
Shares of Ameriprise, which have risen about 80 percent in the past year, closed at $86.24 on the New York Stock Exchange. The stock was unchanged in trading after the bell. (Reporting by Avik Das in Bangalore; Editing by Ted Kerr)
- Exclusive: Radar data suggests missing Malaysia plane deliberately flown way off course - sources
- Investigators focus on foul play behind missing plane-sources |
- Search for Malaysian plane may extend to Indian Ocean - U.S |
- Russia ships troops into Ukraine, repeats invasion threat |
- Russia blocks internet sites of Putin critics