Ameriprise Financial’s wealth management unit reported another strong quarter Wednesday as both its net revenues and earnings posted double-digit year-over-year percentage increases.
The Minneapolis-based firm’s advice and wealth management segment reported $729 million in net earnings for the third quarter, a figure up 23% year over year. The haul would have been even bigger, the firm said, had it not been for the need to set aside $20 million “for an industry-wide regulatory matter relating to electronic communication recordkeeping requirements.”
Ameriprise and other industry players have been dogged for the past year or so by Securities and Exchange Commission investigations into financial firm employees’ use of WhatsApp and similar services to discuss business matters with clients and amongst themselves. Also reporting its results Wednesday, St. Louis-based Stifel said it had to set aside $67 million in the third quarter for legal charges mainly arising from a similar probe.
As at Stifel, Ameriprise’s advice and wealth management segment was the standout in an otherwise difficult quarter. Ameriprise has estimated wealth management constitutes 85% of its business.
“Wealth Management remains our primary growth driver with good client flows and excellent client-advisor engagement,” Ameriprise Chairman and CEO Jim Cracchiolo said in a statement.
For more highlights from Ameriprise’s third-quarter earnings, scroll down. To read about its second quarter, click here. For its first-quarter results, follow this link.