Jan 29 (Reuters) - Asset and wealth manager Ameriprise Financial reported a 10% rise in its fourth-quarter profit on Thursday, as an artificial intelligence-fueled market rally boosted the value of its fee-generating assets to a record high.
Ameriprise's shares rose 4% in premarket trading.
U.S. stocks rallied in the final quarter of last year on enthusiasm around AI, easing interest rates and steady economic growth, keeping clients invested and lifting assets under management.
Ameriprise's assets under
management, administration and advisement came in at a record $1.7 trillion during the three months ended December 31, up 11% from a year ago.
"Leveraging our strong capital position, we increased our return to shareholders in the fourth quarter to more than 100% of adjusted operating earnings," said CEO Jim Cracchiolo.
Assets under management and the fees earned by managers depend on two factors: money flowing in and out of the funds and the performance of investments.
Ameriprise's management and financial advice fees rose 14% to $3.10 billion during the fourth quarter, while its net investment income stood at $891 million.
Total client assets at its advice and wealth management business, which primarily targets high net-worth households with $500,000 to $5 million in investable assets, grew to $1.17 trillion from $1.03 trillion a year earlier.
Ameriprise's fourth-quarter adjusted operating profit rose to $1.04 billion, or $10.83 per share, compared with $947 million, or $9.36 per share, a year earlier.
The company's shares fell 8% in 2025, compared with a 16.4% gain in the benchmark S&P 500 index
(Reporting by Atharva Singh in Bengaluru; Editing by Sahal Muhammed)
