AMP » Topics » Balance sheet fundamentals remain strong

This excerpt taken from the AMP 8-K filed Apr 21, 2009.

Balance sheet fundamentals remain strong

 

MINNEAPOLIS — April 21, 2009 — Ameriprise Financial, Inc. (NYSE: AMP) today reported net income of $129 million for the first quarter ended March 31, 2009. The results represent a 32 percent decline from net income of $191 million for the first quarter ended March 31, 2008.

 

Earnings per common share for the first quarter of 2009 were $0.58, compared to $0.82 for the first quarter of 2008. First quarter 2009 results reflect the significant decline in equity markets and the lower short-term interest rate environment. These two factors negatively impacted year-over-year results by approximately $0.62 per share.

 

The 40 percent year-over-year decline in the S&P 500 Index contributed to a 14 percent decline in net revenues to $1.7 billion in the first quarter of 2009, compared to $2.0 billion in the first quarter of 2008. Management and financial advice fees and distribution fees were impacted by lower equity markets and clients’ increased preference for short-term and fixed income investment products.

 

Management continues to reduce expenses in light of market-driven revenue declines. General and administrative expenses for the first quarter of 2009 were down 1 percent from the prior year, and declined 15 percent excluding integration costs and additional expenses from acquisitions closed in the fourth quarter of 2008.

 

As of March 31, 2009, the company’s estimated excess capital position increased to more than $1 billion. The company continues to maintain strong balance sheet fundamentals, including a large liquidity position and high-quality invested asset portfolio. The company’s net unrealized investment loss position declined from year-end 2008 to $1.82 billion, and net realized investment gains were immaterial in the quarter.

 

“Despite the continued challenges presented by the market and economic conditions, our results demonstrate that the company has been positioned to manage through the current environment,” said Jim Cracchiolo, chairman and chief executive officer. “We continue to manage aggressively for weak conditions over the short term. We are seeing benefits from our ongoing expense initiatives, and we continue to maintain solid balance sheet fundamentals and strong capital positions. At the same time, we continue to invest in our central value proposition—deep, enduring client-advisor relationships built around comprehensive financial planning. We are confident our strong financial foundation and diverse, resilient franchise will provide significant leverage as market conditions improve.”

 



 

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