About three years after activationAmeriprise Bank is helping to boost the firm’s wealth management revenue, a buffer to offset lower profits from managing client portfolios as stocks tumble.
Profits in the firm’s advisory and wealth management segment rose 30% in the third quarter, even as market volatility reduced client assets and advisory flows. according to to the firm’s October 25 earnings report. The Minneapolis-based firm has added more than 200 independent financial advisors for the second quarter in a rowits existing base improves their performance based on the strength of higher cash and other intermediary assets whose returns are less tied to equity value.
Account flows increased “significantly” in the third quarter, driven by Ameriprise’s ability to “generate good growth in advisor performance,” CEO Jim Cracchiolo said in a statement.
“Ameriprise delivered another strong quarter, demonstrating the strength of our business and our ability to navigate periods of volatility and market downturns,” said Cracchiolo. “Growth in our cash business and banking led to higher spread returns in wealth management, which more than offset the equity market depreciation in our business.”
Scroll down the slideshow to see key wealth management takeaways from Ameriprise’s third-quarter earnings release. To close the company’s second quarter earnings, click here. To see the firm’s first quarter results, go next this link.