Ameriprise Boosts Wealth Management Productivity by 11%

Ameriprise Financial’s wealth management unit, a “key” growth engine that accounts for a growing share of the firm’s overall profitability, had an 11% increase in advisor productivity year on year in the previous quarter, according to CFO Walter Berman.

The firm’s advisory and wealth management unit had total client assets of $900.5 billion at the end of the fourth quarter, up 10% from the previous quarter and 19% from the fourth quarter of 2022, according to the earnings release.

Assets under management and administration totaled $484.8 billion at the end of the most recent quarter, rising 10% quarter on quarter and 19% year on year.

Berman reported that the year-over-year gain in total client assets was driven by organic growth, customer flows, and better equities markets.

Ameriprise’s advisors are also “becoming more productive with the support of our advice model,” Berman said, noting that revenue per advisor for 2023 was $916,000, up 8% on an annualized basis since 2018.

The company’s advisor count was 10,367 at the end of the latest quarter, up 1% from the previous quarter and year. Although the firm’s advisor count increased by 6% year on year to 2,228 from 2,096, its independent “franchisee” advisor count decreased marginally to 8,139 from 8,173.