Ameriprise Profits Rise But with Fewer Financial Advisors

Posted on February 25th, 2015 at 11:39 AM
Ameriprise Profits Rise But with Fewer Financial Advisors

From the Desk of Jim Eccleston at Eccleston Law Offices:

In 2014, Ameriprise Financial's wealth management reported $792 million in profits, up 33% year-over-year. Total client assets in the last quarter in 2014 for the firm's wealth management division rose to $444 billion, a 9% increase year over year. Total revenues for wealth management grew 11% year-over-year, rising to $1.2 billion from $1.1 billion.

However, the firm’s financial advisor headcount was down. The number of employee advisors fell to 2,083 from 2,205 for the year-ago period. The ranks of independent advisors grew year-over year, rising to 7,589 from 7,511.

Retention rates were slightly down. For employee advisors, the figure fell to 91.2% for the fourth quarter in 2014 from 92% for the same period a year ago. For independent advisors, the rate dropped 94.5% from 94.7%.

There was some consolidation in the independent advisor channel, as some advisors prepared for retirement by selling or transitioning their practices to other advisors.

Productivity remained strong across both channels, but especially among new hires.

In a press release, the firm said recruiting remained strong as Ameriprise picked up 73 experienced advisors across both channels during the quarter. Productivity grew 13% year-over-year, rising to $496,000 in operating net revenue per advisor.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Ameriprise Financial, James Eccleston, Eccleston Law Offices, Finanical Advisors

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.