Ameriprise Financial's profit rises as client assets hit record $1.7 trillion

Oct 30 (Reuters) – Asset and wealth manager Ameriprise Financial reported a rise in third-quarter profit on Thursday, driven by a surge in asset values as markets climbed to record highs. WHY IT'S IMPORTANT The results underscore how record equity markets and renewed investor optimism have lifted earnings across the asset management industry, with rising portfolio values translating into higher fees. That momentum has also strengthened client engagement across the sector, driving higher activity levels. BY THE NUMBERS Ameriprise said assets under management, administration and advisement rose 8% and reached a record high of $1.7 trillion in the quarter ended September 30. On an adjusted basis, operating profit rose 17% to $965 million, or $9.87 per share. That compares with $828 million, or $8.10 per share, a year earlier. Adjusted operating net revenue increased 9% to $4.7 billion, driven by asset growth. KEY QUOTE "Our strategic investments, disciplined expense management and strong financial foundation help us to effectively navigate and grow across market cycles," CEO Jim Cracchiolo said. CONTEXT Persistent consumer strength has kept the U.S. economy on track, driving equity markets higher, as investors continue to take risks despite lingering trade tensions and geopolitical turmoil. For asset managers, profits depend on the balance between client flows and the performance of the portfolios they oversee. Earlier this month, BlackRock, the world's biggest asset manager, also reported record assets under management, driven by a rally in global markets and its recent dealmaking spree that boosted fee income. (Reporting by Manya Saini in Bengaluru; Editing by Shinjini Ganguli)

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