Ameriprise Financial Reports Third Quarter Earnings; Ameriprise Financial Reports Earnings for the First Time as a Public Company Following Its Spin Off from American Express Company on September 30, 2005.

Business Wire › October 24, 2005

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MINNEAPOLIS -- Net Income before Discontinued Operations Per Diluted Share Was $0.50 Adjusted Earnings Per Diluted Share Were $0.73

Ameriprise Financial, Inc. (NYSE:AMP) today reported net income before discontinued operations of $123 million for the third quarter, down 35 percent from $188 million a year ago. Adjusted earnings - net income excluding discontinued operations, AMEX Assurance and non-recurring separation costs - increased 11 percent, to $179 million in 2005 from $161 million in the 2004 quarter. Net income before discontinued operations per diluted share for the third quarter of 2005 was $0.50. Adjusted earnings per diluted share for the third quarter 2005 were $0.73, up 11 percent from the comparable period last year.

Included in both net income and adjusted earnings for the third quarter of 2005 is a $70 million expense, $46 million after-tax, related to the comprehensive settlement of the consolidated securities class action lawsuit discussed later in this release. Also included in the quarter is an after-tax benefit of $44 million from the annual Deferred Acquisition Cost (DAC) assessment, $13 million in tax expenses related to the finalization of prior period tax returns and $4 million in after-tax realized net investment losses. Included in third quarter 2004 were $22 million in after-tax regulatory and legal costs, an after-tax benefit of $15 million from the annual DAC assessment and $7 million in after-tax realized net investment gains.

Revenues grew 9 percent to $1.9 billion in the third quarter of 2005 from $1.7 billion in the same period of 2004. Adjusted revenues - revenues excluding discontinued operations and AMEX Assurance - grew 15 percent, predominantly driven by 25 percent growth in management, financial advice and service fees and 19 percent growth in distribution fees for the same period.

Return on equity - calculated using net income before discontinued operations, which includes separation costs, and equity excluding both the assets and liabilities of discontin...

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