(Reuters) - Financial services company Ameriprise Financial Inc (AMP.N) reported a stronger-than-expected 44 percent rise in second-quarter profit, driven by its wealth management business.
Assets under management 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