Ameriprise Financial said its fourth-quarter profit increased 10% as a late-year market rally helped boost the value of assets that generate fees. The firm reported that its combined assets under management, administration and advisement reached a record high of $1.7 trillion for the three months ended December 31, an 11% increase from the same period a year earlier.
Shares of Ameriprise moved higher in premarket trading, rising about 4% on the news. The firm attributed the rise in fee-bearing assets in part to a broader advance in U.S. stocks during the final quarter of the year, which market participants linked to investor enthusiasm around artificial intelligence, lower interest rates and what it described as steady economic growth - conditions that helped keep clients invested.
Ameriprise highlighted growth in the revenue streams tied to its advice and management business. Management and financial advice fees climbed 14% to $3.10 billion in the fourth quarter, while net investment income for the period was $891 million. The company said total client assets at its advice and wealth management unit, which focuses on higher net-worth households with investable assets roughly between $500,000 and $5 million, expanded to $1.17 trillion from $1.03 trillion a year earlier.
On profitability, Ameriprise reported fourth-quarter adjusted operating profit of $1.04 billion, or $10.83 per share, compared with $947 million, or $9.36 per share, in the prior-year quarter. Chief executive Jim Cracchiolo noted the company used its capital position to increase returns to shareholders in the quarter to more than 100% of adjusted operating earnings.
The company also reported a year-to-date share performance contrast: its shares fell 8% in 2025 even as the benchmark S&P 500 index posted a 16.4% gain over the same period.
Summary
Ameriprise’s fourth-quarter results reflect a combination of market-driven asset appreciation and rising fee income. Record assets under management, administration and advisement at $1.7 trillion supported higher management fees and helped lift adjusted operating profit to $1.04 billion.
Key points
- Assets under management, administration and advisement reached a record $1.7 trillion in Q4, up 11% year-over-year.
- Management and financial advice fees rose 14% to $3.10 billion; net investment income was $891 million.
- Fourth-quarter adjusted operating profit was $1.04 billion, or $10.83 per share, versus $947 million, or $9.36 per share, a year earlier.
Risks and uncertainties
- Market sensitivity - Fee revenue and assets under management depend on market performance and investor flows, making revenue vulnerable to market downturns or outflows.
- Concentration in advice and wealth management - The firm’s advice business, which targets high net-worth households, could be affected if that client segment reduces allocations or withdraws assets.
- Relative share performance - The company’s stock had fallen 8% in 2025 versus a 16.4% gain in the S&P 500, indicating potential investor concern about longer-term performance compared with the broader market.