With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

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Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

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The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

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The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

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F500-2021-253-Ameriprise Financial

The financial services company conducts a diverse range of financial planning services, but draws most of its profit from wealth management.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-245-Amerprise-Financial

Founded in 1894, the holding company has a long history in financial planning, wealth and asset management, and insurance.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Founded in 1894, Ameriprise Financial is a global diversified financial services company offering wealth management, asset management, insurance, and annuity products. The company serves over 3.5 million clients and manages more than $1.4 trillion in assets as of 2024 through a network of 10,000 financial advisors.

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Ameriprise Financial (AMP): Company Profile, Stock Price, News, Rankings

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Ameriprise Financial

ameriprise financial

Welcome to the Q1 2026 Earnings Call. My name is Jael, and I will be your conference operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press star one on your touch-tone phone. As a reminder, the conference is being recorded. I'll now turn the call over to Stephanie Rabe. Stephanie, you may begin.

Welcome to Ameriprise Financial's first quarter earnings call. On the call with me today are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions. Turning to our earnings presentation materials that are available on our website, on slide two you will see a discussion of forward-looking statements. Specifically, during the call you'll hear references to various non-GAAP financial measures, which we believe provide insight into the company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website at www.ir.ameriprise.com. Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties.

A sample list of factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our first quarter 2026 earnings release, our 2025 annual report to shareholders, and our 2025 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On slide three, you see our GAAP financial results at the top of the page for the first quarter. Below that, you see our adjusted operating results, which management believes enhances the understanding of our business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Many of the comments that management makes on the call today will focus on adjusted operating results. With that, I'll turn it over to Jim. 

Good afternoon, and thanks for joining us. As you saw in our earnings release, Ameriprise delivered a strong start to the year, driven by our disciplined execution and the benefits of our diversified business. While the first quarter was marked by ongoing market volatility and economic uncertainty contributing to a more cautious client behavior, our value proposition continued to clearly differentiate us. Across the firm, we remain deeply engaged with clients and delivered excellent financial performance. We're focused on maintaining a high-quality, well-positioned business while continuing to invest and innovate to support deep, long-term client relationships. Our business generates consistent earnings across market cycles. Equally important, we maintain a disciplined approach to capital allocation that enables Ameriprise to deliver strong value to shareholders. For the quarter, adjusted operating revenues were up 11% to $4.8 billion.

Earnings and EPS were also up double digits, with EPS up 19% to a record $11.26. We continued to deliver best-in-class ROE, which increased to more than 54%. In addition, our assets under management administration advisement grew 12% to $1.7 trillion, driven by our client net inflows and positive markets. The consistency of these results reflects the strength of our integrated business and the benefits of our approach. Very clearly, Ameriprise is distinguished by the compelling experience we deliver to both clients and advisors. Across the firm, we remain focused on serving client needs and best interests exceptionally well. That differentiation is reflected on a consistently earning excellent client satisfaction, which continues to be 4.9 out of five, and also by the recognition our firm receives year after year. On the advisor side, our distinctive value proposition drives sustainable practice growth, higher productivity, and recurring revenue over time.

Turning to our results, total client assets grew 12% to $1.1 trillion, with wrap assets growing 16% to $664 billion. In the quarter, we were lighter on flows based on more cautious client behavior and some lumpiness in recruiting and terminations. We ended the quarter with $6 billion of wrap net inflows. Importantly, underlying activity was good. For the quarter, we kept clients closely engaged and delivered strong transactional activity up 10%. Our cash business remains stable with nearly $30 billion in sweep balances. As we soar, our advisors again generated meaningful productivity and revenue growth, with productivity increasing another 10% in the quarter to a record $1.2 million per advisor. Our strategy remains grounded in organic growth, built, not bought. Advisors consistently value Ameriprise for the depth of our value proposition and the strength of our partnership.

We continue to prioritize our core advisor team productivity, and we complement it by recruiting high-quality advisors who view us as a strategic partner supporting strong client outcomes and practice growth. 61 advisors joined during the quarter, and we're seeing a pickup of activity in the second quarter. In AFIG, we continue to expand this channel as a premier platform for banks and credit unions. During the quarter, we signed a multi-year agreement to become the retail investment program provider for Huntington Bank. This relationship is expected to add approximately 260 advisors and $28 billion in assets, with onboarding beginning later this year. Huntington selected Ameriprise for our leadership and advice, strong culture, and capabilities. As we shared, we consistently invest across the firm to meet client needs today and further strengthen the business for the future. These are intentional multi-year investments across technology, systems, and new capabilities.

We're focused on clear, high-impact outcomes that deepen engagement, deliver relevant and actionable information while enabling highly personalized quality experiences. In particular, we've designed our tech platform around how advisors work, not individual tools. It connects multiple capabilities like our CRM platform, eMeeting, advice insights, and practice workflows into an intelligent ecosystem enhanced with embedded AI and automation. To that end, we feel good about the progress we're making. Our focus is on using AI and intelligent automation capabilities at scale to help advisors deliver a consistent, high-quality client experience while improving how they operate day to day. In terms of investments in solutions, after the initial launch of our Signature Wealth UMA mid last year, we're now expanding the product capabilities and seeing positive early asset movement and engagement.

There is meaningful upside as we continue to expand capabilities, including the introduction of SMAs and as we broaden the strategy set over time. With regard to our bank solutions, which complement our overall offering, bank assets now exceed $25 billion, with continued strength in pledge lending. With the recent introduction of products, including HELOCs and checking accounts, we now offer a complete suite. As we reach more of our advisors and clients, we expect this will present opportunities to bring additional assets to the firm. To close out AWM, we received new recognition in the quarter. For the 2026 J.D. Power U.S. Investor Satisfaction Study, Ameriprise ranked third out of 23 firms overall, a terrific result that underscores the quality of the experience we deliver.

Turning to our retirement and protection business, as advisors deliver more comprehensive advice, they are thoughtfully incorporating annuity and insurance solutions to address clients' increasingly complex needs. Sales were solid in the quarter, supported by continued demand across annuities and VUL. In addition to meeting client needs, this business continues to generate attractive margins and consistent earnings over time, with RiverSource again recognized as one of the most profitable insurers in the industry. Moving to asset management. Assets under management increased 8% year-over-year to $706 billion in the quarter. Investment performance remains a strength. More than 70% of our funds are performing above the peer median over one, three, and five-year periods, and 85% are above the median over 10 years. This sustained performance continues to be recognized externally.

In the most recent Barron's Best Fund Family rankings, Columbia Threadneedle placed in the top 10 across all time periods. Our U.S. fixed income team recently earned four 2026 Lipper Awards. Importantly, net outflows improved significantly year-over-year to $5.9 billion, reflecting better trends across both retail and institutional channels. Gross retail sales in North America continued to improve, up 26%, even in a volatile market environment, and we're seeing nice sales within Ameriprise from good initial sales in Signature Wealth. Retail flows in EMEA also improved. However, they were impacted by headwinds from the geopolitical volatility during the quarter. On the product side, we continue to advance our strategy across ETFs, SMAs, and alternatives with a clear focus on scale, consistency, and performance.

Our ETF platform surpassed $10 billion in assets under management, supported by a differentiated offering across North America and EMEA. In SMAs, we benefit from long-standing track records and remain a top 10 provider with continued positive flows. In alternatives, our technology and healthcare hedge fund strategies delivered strong performance and sales momentum, and we see good opportunities ahead. Consistent with our approach in wealth management, we're applying advanced analytics and technology within asset management, including in investment research, where these capabilities are contributing real value. At the same time, we're transforming how we leverage our global platform. We're driving greater efficiency across the front, middle, and back office while continuing to strengthen our data foundation. We're also making good progress on back-office outsourcing, with a substantial portion of the conversion expected to be completed later this year.

These initiatives complement our broader efforts to streamline systems and support operating leverage over time. Now, for Ameriprise overall, our focus is having a premium branded, client-focused business that delivers strong financial performance and attractive returns. Over the past year, we have achieved record earnings and generated best-in-class return on equity, now exceeding 54%, as I mentioned. Given this performance and our current valuation, we continue to view our shares as an attractive buying opportunity. As a result, as you know, we increased our share repurchases in the fourth quarter and continued our strong return to shareholders with 88% returned in the first quarter. Our board just approved another 6% increase in our dividend. Ameriprise is built to perform across market cycles. We're well positioned to deliver meaningful value over time, manage risk responsibly, and generate resilient performance.

Before I close, I want to highlight the iconic Ameriprise reputation, which remains an important competitive advantage. We are proud to have a company that continues to be widely recognized in the marketplace for who we are and how we operate. In the minds of consumers, employees, and investors, Ameriprise has been named one of America's most trustworthy companies in 2026 by Newsweek. From Fortune, Ameriprise is also one of America's most innovative companies for 2026, affirming our leadership in technology in driving transformational change. In closing, Ameriprise offers a differentiated combination of an excellent client and advisor value proposition, sustainable, profitable growth, and an attractive capital return. With that, I'll turn it over to Walter to discuss our financials in more detail.

Thank you, Jim. Ameriprise delivered strong financial results in the quarter with adjusted operating earnings per share up 19% to $11.26 and an operating margin of 28%. These results reflected the strength of our diversified earnings profile and the operating leverage embedded in our businesses as well as the return from significant investments we have continued to make. Our ability to generate attractive growth in margins across cycles underscores the durability of our platform and the discipline we bring to execution. Total assets under management, administration, and advisement increased 12% to $1.7 trillion, which, coupled with strong client engagement, drove an 11% increase in revenues to $4.8 billion. In the quarter, we returned 88% of operating earnings to shareholders through share repurchases and dividends. Our balance sheet remains exceptionally strong, with $2.3 billion of both excess capital and holding company available liquidity.

Let's turn to wealth management financials on slide six. Adjusted operating net revenues increased 14% to $3.2 billion. The core distribution business is performing well given the value of our planning model and the multiple touch points we have with the client to meet their needs holistically. Our fee-based and transaction revenues remain quite strong, increasing 17%, benefiting from growth in client assets and higher activity levels. In addition, our bank revenues increased 6% from business growth, including the expansion of our lending products, while revenues from cash sweep and certificates declined. Adjusted operating expenses in the quarter increased 12%, with distribution expenses up 14%. I will note that advisor compensation within distribution expenses increased in line with the revenues advisors generate. G&A expenses were up 4% primarily driven by volume and growth-related expenses, including investments in Signature Wealth and banking products. This level was consistent with our expectations.

Pre-tax adjusted operating earnings increased 20% to $951 million, with continued strong contribution from core distribution and core cash earnings. In the quarter, Comerica exercised their option for early termination of their relationship with us. This resulted in a one-time $25 million make-whole payment for onboarding costs and future earnings, which finalized all payments that were due to us for this termination. Excluding this benefit, earnings increased 17%. Our core distribution earnings grew in the mid-30% range, benefiting from higher client assets and advisory fees, as well as strong activity levels. The strong level of core distribution earnings that we generated is unique relative to other independent wealth managers and demonstrates our focus ensuring that our growth is profitable. Bank earnings grew 6% in the quarter, while certificate earnings declined. In total, core cash earnings were essentially flat from a year ago.

We continued to take actions to build the bank portfolio in a way that supports stable earnings contributions going forward. The overall bank has a yield of 4.6% with a four-year duration, with now only 7% of the portfolio in floating rate securities. In the quarter, new purchases at the bank were $1.9 billion at a yield of 5% with a 4.1-year duration. Last, our aggregate margins remained excellent at 30%, up from 28% a year ago. Underlying that, our core distribution margin is over 20% with a solid contribution from cash. Let's turn to slide seven. Advisor Wealth Management generates solid asset growth in the quarter. Client assets grew 12% to $1.1 trillion, and wrap assets increased 16% to $664 billion, driven by solid organic growth, strong advisor productivity, and equity market appreciation.

Our new Signature Wealth Program continues to gain momentum, and a significant portion of the assets are new money to Ameriprise. Client flows were $4.2 billion and wrap flows were $6 billion in the quarter. This reflected several moving pieces that I will explain. Same-store sales levels remained strong and consistent, aside from the normal seasonal impacts and client caution resulting from volatility in the quarter. However, in the quarter, we had some lumpiness in our flows caused by a combination of the aggressive recruiting environment, which drove higher advisor departures, as well as the acceleration of Comerica advisors departing as a result of their acquisition. We anticipate the higher pace of outflows related to Comerica will continue in the second and third quarters, culminating with the conversion occurring near the end of the third quarter.

While we have significant capacity to recruit, the recruiting deals we are seeing today in this perceived risk-on environment exceed what we believe is a balanced risk-return approach, given the long cash paybacks and marginal P&L benefits over the extended life of these arrangements. We will continue to evaluate the facts and circumstances, whether for recruiting or retention, to assess the trade-offs between sustained profitability versus flows and associated risk. This approach will ensure decisions are driving sustained shareholder value creation. Lastly, I will note that in the latter part of the quarter, we've seen improving trends. As we look ahead, the addition of Huntington Bank is anticipated in the fourth quarter and will bring approximately 260 advisors and $28 billion of client assets onto our platform.

Separately, we are further enhancing our advisor succession strategies for both internal and external advisors, including expanding and leveraging Ameriprise Personal Wealth Group, our centralized advisor group, as a potential succession option. Let's turn to slide eight. Advice & Wealth Management generated solid productivity growth. Our advisor productivity continues to grow, reaching a new high of $1.2 million, up 10% year-over-year, driven by strong growth in wrap assets and related fees, as well as enhancements to advisor efficiency from the integrated tools, technology, and support we provide. In addition, transactional activity remained strong, increasing 10% compared to the prior year. This is primarily from nice growth in annuity products and brokerage transactions. Total client cash of $86 billion was essentially flat year-over-year and sequentially. Bank assets increased 6% year-over-year to $25.5 billion, with the bank representing a stable source of earnings going forward.

Cash sweep balances decreased slightly to $29.4 billion compared to $29.9 billion in the prior quarter, which is consistent with the seasonal tax pattern we would expect to see. Certificate balances declined to $7.6 billion from $8.2 billion in the prior quarter, given the interest rate environment. We continue to have elevated cash balances in third-party money market funds at nearly $48 billion. We have seen that decline for the first time in January and February. With the volatility later in the quarter, we saw cash levels build modestly again. This remains an important opportunity when rates decline to see these cash balances deployed into other products on the platform. Turning to asset management on slide nine. Financial results were strong in the quarter. Operating earnings increased 13% to $273 million. Results reflected asset growth and the positive impact from transformation initiatives.

Total assets under management advisement increased to $706 billion, up 8% year-over-year from higher ending market levels. As Jim mentioned, net outflows improved in the quarter. Revenues increased 8% to $910 million and the underlying fee rate remained stable at approximately 47 basis points. Expenses increased 5% in the quarter. General and administrative expenses were up 4%, driven by volume-related expenses and unfavorable foreign exchange translation. Margin reached 44% in the quarter, which is above our targeted range of 35%-39%. Let's turn to slide 10. Retirement and protection solutions continued to deliver strong earnings and free cash flow generation, reflecting the high quality of the business that was built over a long period of time.

Pre-tax adjusted operating earnings was $190 million, which reflected higher distribution expenses associated with strong sales levels and continued outflows from variable annuities with living benefits, partially offset by higher equity market levels. However, we continue to expect earnings over time to be in the $800 million range per year. This business has excellent risk-adjusted returns and continues to be an important part of AWM's client value proposition. Turning to the balance sheet on slide 11. Balance sheet fundamentals and free cash flow generation remain strong, which is core to our ability to invest for growth on a sustainable basis while also continuing to return capital to shareholders. We have an excellent excess capital position of $2.3 billion. We have $2.3 billion of available liquidity. Our asset liabilities are well matched, and our investment portfolio is diversified and high quality.

We have no exposure to middle market lending directly or through funds and BDCs in our owned assets. Similarly, we have limited direct exposure to broadly syndicated loans in our own assets. Our disciplined capital return is a key element of our ability to consistently generate strong long-term shareholder value. In the quarter, we returned $936 million of capital to shareholders, which was 88% of operating earnings. This included the opportunistic repurchase of 1.6 million shares to take advantage of the decline in our P/E multiple in the quarter. We also raised the quarterly dividend by 6%. These actions are a demonstration of the confidence we have in our continued free cash flow generation and commitment to return capital to shareholders.

As we go through 2026, our strong foundation, coupled with our ERM capabilities and decisioning framework, position us well to continue investing for growth in a targeted way and return capital to shareholders at a differentiated pace. In summary, on slide 12, Ameriprise delivered solid results in the first quarter. Over the last 12 months, revenues grew 8%, adjusted EPS increased 12%, return on equity grew 140 basis points, and we returned $3.6 billion of capital to shareholders. We had similar growth trends over the past five years with 9% compounded annual revenue growth, 20% compounded annual EPS growth, return on equity improving over 17 percentage points, and we returned $14 billion of capital to shareholders. These trends are consistent over the long term as well. We have an excellent foundation and capacity moving forward that enables consistent and sustained profitable growth.

Thank you. We'll now begin the question-and-answer session. If you have a question, please press star one on your touchtone phone. If you wish to be removed from the queue, simply press star one again. If you're using a speakerphone, you may need to pick up your handset first before pressing the numbers. Once again, if you have a question, please press star one on your touchtone phone. Your first question comes from the line of Wilma Burdis of Raymond James. Your line is open.

Hey, good afternoon. First question, why didn't Ameriprise lean in more to return more than 88% of operating earnings in 1Q 2026, especially given the stock was back to kind of Liberation Day levels at certain points? Should we expect 2Q 2026 capital return levels more in line with 4Q 2025 if the stock stays at the current level? Thanks.

Yes. Okay. As we indicated, we will be buying back 85%-90%. Certainly, looking at the P/E ratio and where we are right now, that it's a reasonable expectation that we would take advantage of that and be purchasing up to the higher number and then evaluate it because we certainly have the capacity to do that and invest in the business continually.

Okay. Thank you. Could you quantify the outflows from the Comerica advisors just to help us arrive at a more normalized net flow number for 1Q 2026? Along similar lines, if you could talk about the remainder of the year. Should we expect additional outflows from Comerica and talk a little bit about the Huntington Bank inflow expectations? Thanks.

Okay. The Comerica outflow started as it relates to the acquisition in the fourth quarter and certainly continued in the first. They were a reasonable portion of the outflows that we had. We are certainly seeing, because of the acquisition, a more accelerated pattern. We expect that pattern to continue and accelerate actually in the second and third quarter. As I indicated, based on our current plans, we should finalize the contract by the end of the third quarter. Yes, that's the level. We're seeing that activity.

Well, the contract was executed and finalized, and so any financial impact from that is already in what we collected. We're fine. Those flows will continue to come out, and it'll be complete at the end of September, I think.

Huntington will come in the fourth quarter, and that will be moved in the fourth quarter.

That would be, as I indicated earlier, about $28 billion.

Your next question comes from the line of Brennan Hawken of BMO Capital Markets. Your line is open.

Hey, good afternoon, Jim and Walter. Thanks for taking my question. I'd like to follow up on that last one. I'd like to get a mark-to-market on Comerica. I believe it was $18 billion of assets. I think you said that it started to come out in the fourth quarter. You saw a little this quarter, and you expect some the next two. I know you just chose not to quantify, but is it reasonable just to take that $18 billion and allocate it across four quarters and call it a day? Or will there be some lumpiness and concentration in particular quarters? Thanks.

It's hard to know exactly what that trend line is. Fifth Third has taken over the activity. I think from our perspective, just so we know, the deal was concluded. That's why after receiving back what we needed to receive back and the compensation and the reimbursements, et cetera, we booked the $20-some-odd million in the quarter for a make whole. It will come through the flows, but the impact financially to us is immaterial. We can't give exactly how they'll transfer it. We're mentioning it is in the flow. Maybe as we go forward, we'll try to break things to be a little clearer on it. I can't sit here to tell you exactly what will come out quarter to quarter.

Assume that all of it will be out by the end of the third quarter.

Clearly, again, we are seeing, because we are getting certainly advisors giving us notice on terminations, and that's why I say it's built up. Like Jim said, we can't really predict the amount, but we are certainly seeing heavier activity take place in the first and starting now in the second quarter.

Yeah. Okay. Cool. Obviously, it doesn't matter, you're made whole, all that. It just helps to know what the amount of noise is so that people can get to an underlying.

Yeah. No. We understand, and we'll try to be clearer as we go forward.

Thank you. Appreciate it. Okay. There's a lot of focus within the Wall Street on the cash and whether or not these AI tools are going to allow for optimization of cash. It's not a huge central feature for you guys in your business model. How are you thinking about that as you move forward? I know you've got the bank as part of the strategy now, but have you considered looking at some of these tools within your own network? How are you considering that development that's likely to come down the pike? Thanks for taking my question.

Yeah. Good question. First and foremost, I think Walter tried to give you some further information of the cash contribution as we looked at it for this quarter as we reported. You can see, yes, cash adds a certain amount to our margin, but the bulk of our earnings and profitability is from the real wealth management part of that component with the fees and the transactions and things that we conduct on behalf of the clients. Our transaction revenue from the sweep, as we said, is a very, very small part. It's only a few %. From our perspective, it's not the bulk of our earnings, number one. Honestly, I don't know why people wouldn't look at the core margin and give it even more valuation than where people are making all of their earnings from cash.

In our case, what we tried to do is then develop the bank in a way that we can add value added from both lending activities and savings programs that we'll be ramping up with even on checking and activities. The amount of cash that will still be in transaction, whether AI-assisted or not, is so low that money will be moving in and out to do that. Just like a basic checking account to some extent. From looking at it, we already provide so much in capability and ease for our advisors to do that on behalf of their clients and with their clients, that that's why our cash levels that we maintain is on average $100. We're not as concerned with it, and if there are other capabilities that come about that make sense, we will look at them.

We're not looking at that as a major change to what's being held there.

Yeah. Just let me emphasize again, our average balance now is $6,000. We, as Jim said, very active, and certainly it's at transactional levels that meet that minimum standard.

In the account. We are constantly evaluating it, but I think we're at a very good level, and the percentage of our earnings that come from cash is certainly at a level that is probably lower than most of our peers, and therefore certainly manageable because we've had that balance.

Yep. All fair. Thanks very much for taking my question.

Your next question comes from the line of Michael Cyprys of Morgan Stanley. Your line is open.

Great. Thanks for taking the question. Just wanted to ask about the bank with the new initiatives that you have across lending, savings. Hoping you could elaborate on how those are contributing today. Realize it's early days. I was hoping you could talk about the steps you're taking to drive broader engagement, how you see that ramping, and what are some of the other initiatives you guys are thinking about in the coming quarters?

Good. Thank you for the question. The one that we had launched previously that is growing nicely and there's still a very large opportunity for us is Pledge as more of our advisors get familiar with it and activate their activities around it. That's the one that's probably a little more mature in our channel. The opportunity compared to someone like Morgan Stanley and others; there's a lot more opportunity for us there that we are focused on. We just completed the launch of the checking account, which is always a core component of banking, and that in complement with things like HELOCs, mortgages, and now some of the savings' programs. We're starting to now ramp that up as we start to get that out to advisors and also have that, types of information for the client to access.

This is at the early stages of what we think we can do there. We see some early signs as we did some initial launches with advisors, and they like what we're providing and the benefits. We're hoping that this becomes a much stronger contribution as we go, but we're at the early stages of it.

Great. Just as a follow-up question on AI, I was hoping you could update us on the AI tools that you have available for advisors today, how you see that evolving over the next year or so, and where do you see some of the biggest opportunities. How meaningful could this be as you think about advisor productivity and ultimately efficiency savings for Ameriprise?

Yeah. I know AI has come up, and every time someone comes out with a new tool or say that they have some kind of service. Let me give you a little, and I tried to in my talking points in opening, we view AI as more of an extension of our total technology strategy that we've been building for many years. First of all, it's not a standalone initiative. What differentiates what we're trying to do is that these capabilities are embedded in an integrated platform built around how advisors work, supported by the data foundation, which is very critical in a highly regulated business, and the governance for it. Now, the integration allows us to deploy AI directly into everyday workflows, like across advice, ops, service, and rather than layering it as a tool in a fragmented system.

The result is greater efficiency, better insights, and more time that our advisors can really spend on the client relationships, which actually drives the outcomes that you're looking for. In the near term, we see productivity gains and selective automation. Longer term, we see capabilities supporting the growth by enabling advisors to serve more clients with higher standards of advice. Now, that's embedded, as I've said previously, into many of the tools and capabilities that we have. If you look at things like client acquisition, meeting planning, meeting schedule, meeting preparation, goal-based advice, the products and solutions, meeting follow-up and summarization and business planning, those are the things that we've embedded in the tools.

Our eMeeting, as an example, capability that's already integrated, can pull all the data from advisor engagement with the client, the past cases that they're in, the opportunities that we get from advisor insight, so that they can say, what's the next thing possibly the client may be interested based on where they are in their financial situation. That's what we do and we'll continue to enhance. Over time, we'll introduce more AI agents to do some of the actual advisor work, where it's necessary or appropriate to ease, and give them more productivity rather than adding more staff. Those are the things we're embedding from the advisor, but we also do that from a company perspective. Does that help you understand how we're thinking?

Yes. That's helpful. Just curious if you're able to quantify any of the productivity gains that you've seen so far.

I would say we see clear productivity where advisors have enabled it. We see as an example, our eMeeting takes away hours of work within an advisor practice every week. Okay. We haven't extrapolated what advisors then do with that productivity, but those are things that we'll try to figure out the metrics appropriate for them.

Your next question comes from the line of Suneet Kamath of Jefferies. Your line is open.

Great. Thanks. Good evening. I wanted to come back to AWM organic growth. If I remember correctly, last quarter, I think you guys expressed some confidence in the 4%-5% target for the year. I think three quarters now we've been talking about increased competition. You're talking about it again now, but based on what you're seeing, do you still think you can achieve that 4%-5% this year? Or is the increase in competition that you're talking about sort of taking you off that glide path? Thanks.

Okay. Let's break it. For what we talk about the organic, the same store, we are seeing good growth.

Yes. The area that deviates on that is on the attrition side of it, and certainly in this quarter, Comerica certainly contributed towards that. That's the variable that affects when you look at these arrangements that are being offered at this stage, both on the attrition side and then on the recruiting side. The solid core of our growth is there, and that's we feel very comfortable with. Them managing the net on the inorganic is the element that deviates. The answer is, certainly as you saw in last quarter, we were up, this quarter it was down. One of these things that could be, I hate to use the word lumpy, but that's exactly what it is as we manage through it, depending on how aggressive we see the environment and then how we gauge the appropriateness of responding on that basis.

Our objective, yes, because we think that is a good objective because the core is solid. Now it's a matter of the implication of it as it relates to aggressive bidding on the recruiting side or on retention.

It's sort of funny because I know how much focus is on this metric. You think about it, so as an example for us, our core assets and all that grew strongly over the year, and we generated the revenue from it that translated into real profitability we brought to the bottom line. For instance, we're, I would call an appropriate acquirer, but we would never pay way more on an acquisition for a business just because we want to grow our size, if we don't see a good appropriate return over time. Advisors like that will take a big check. It doesn't mean they'll stay with you after that check is up in some fashion. What you want to do is recruit people that know that you can help add value and give them a good practice, support, development, and really a good strong client value proposition.

Our firm stands out in that regard. Our client satisfaction, the idea of one of the most trusted firms out there. If you look at some of the players out there, they don't register. It depends on what you want to play in. In our case, we have a lot of capital, as you know, to buy up. We could buy some of these firms. We can put advisors on it. We don't look at that as the best way for us to grow our business, to deliver a strong premium value, and really have a good culture of the type of advisors that we really think are important to work with clients. That's what we do. Listen, some of our advisors will take a big check, especially when they know it's more value than what it's pertaining to.

Just like in the fourth quarter, Walter said, we attracted more in than last. In the first quarter, we had a little more, not so on the number, but the size. Now our pipeline's ramping up again for the second quarter. To Walter's point, it will be a little bumpy, but the underlying of where we focus productivity growth across 10,000 is what we think will drive true profitability.

Yeah. That makes sense. I get it, that people sometimes over-index to one number in one quarter. Obviously strong last quarter-

No, I know. I appreciate you asking the question, honestly. Thank you.

Yeah. My other question, I just wanted to drill into this AFIG opportunity, and I'll just tell you the way I'm thinking about it and maybe get your response. It seems like the costs of being in this business are going to go up. Maybe AI helps that, maybe it actually adds to that. Who knows? If you have these banks out there that want to be in the wealth management business but don't want to make the investments that are required, it seems to me that that plays into your hand in terms of this AFIG opportunity, and that we'll likely see more of these. I just want to make sure that I'm thinking about it right.

You're thinking about it 100% correct. Let me give an example. When we spoke to Huntington Bank, they kicked the tires, and they were out there looking at who would be the best provider, et cetera. Their goal is having excellent banking complemented by this. They knew that they wanted to focus their energies with this being of where they can get the type of support, the capabilities, the culture, the environment to deliver great for their clients. They kicked the tires on any other firm out there, and they clearly chose us for those reasons. We think we'll have a great partnership. Comerica actually was working fabulously for the bank. You can speak to their Chief Executive, who's now stepped down, the people who headed their wealth management, who helped them grow their advisors, their productivity advisors love us, would love to stay.

It's not that we lost the business. Fifth Third purchased them, and they wanted to keep it with what they're operating. I think that capability is there, and I think as people understand what we provide them, I think there'll be a lot more opportunity for us.

Yeah. One of those is really the deepening of the relationship is what we do with our clients, and certainly they recognize our capability doing that with their bank clients.

Your next question comes from the line of Crispin Love of Piper Sandler. Your line is open.

Thank you. Good afternoon. Appreciate you taking my question. Just first, the operating margins in the asset management business, very strong at 44% in the quarter. Are the expense management actions from that segment complete or still ongoing? And then any other key callouts for the margin strength? And is that level sustainable or would you expect it to trend back to that 35%-39% targeted range?

The transformation certainly is working its way through, and the back-office transformation is really not taken hold yet. That you'll see as it goes through. As part of the way we operate, you'll see continual, certainly transformation and streamlining of that. Again, also you see the operating expenses go up because of volume and other related things. Yes, we are certainly committed to the transformation and improvement of our processes and getting the benefit of that. The biggest one right now is that the back office has not worked its way through the numbers yet.

Yeah. We are advancing. We're extending our product line, ETFs, SMAs, et cetera. We're adding other capabilities. I think we will continue to drive the progress on how we leverage our global platform we put in place with the back office, but at the same time we are investing, so we'll keep the expense base in check. Hopefully that will continue to maintain good margins.

Perfect. Thank you. Just on the Huntington Bank win you announced earlier in the quarter, can you just give a little bit more color there? Was this a competitive takeaway? Just a little overview on the process or competition to get this win? How long did it take to get over the finish line? How long were you working on that one?

No, actually, Huntington Bank ran their own activities, broker deal, et cetera. They were very careful because they did not want to give up that unless they had someone that would really provide what they were looking for and take it to another level for them. Those things are very important because we love clients that really care about their clients.

Great. Thank you. Appreciate it. Thank you for taking my questions.

Your next question comes from the line of Steven Chubak of Wolfe Research. Your line is open.

Hi, good evening, Jim and Walter, and thanks for taking my questions. Wanted to double-click a little bit into the discussion around NNA and appreciate the disciplined approach to recruitment, the reluctance to chase, given the more aggressive TA packages in the market. Our channel checks indicate that TA rates have been and should remain relatively sticky. I just want to better understand, one, how that informs your outlook for core NNA over the course of the year, so X and noise related to Comerica, but also the interplay with the distribution expense, which surprised positively and declined about 100 basis points year-over-year.

I'm sorry on that one. Could you just repeat? I hate to do that. I'm sorry. I just didn't get the essence of it.

Oh, just trying to understand the interplay with core NNA expectations over the remainder of the year.

Ameriprise Financial (AMP) Q1 2026 Earnings Call Transcript

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