Ameriprise Financial closed out 2024 with record-high advisor productivity, despite only modest growth in its overall headcount amid a fiercely competitive recruiting market. The firm's Advice & Wealth Management division played a key role in driving new client asset highs and increasing advisory account flows, according to Financial Planning.
Despite these challenges, Ameriprise grew its annual profit by one-third in 2024. The firm added a net 60 advisors, increasing its total headcount by 1 percent year-over-year to 10,427. Employee advisors increased by 28 to 2,256, while independent franchise advisors grew by 32 to 8,171. In the fourth quarter alone, Ameriprise recruited 91 experienced advisors. According to Financial Planning, the firm attributed rising productivity to strong client and advisor engagement, as well as strategic portfolio positioning.
Stock and bond market growth, combined with inflows into advisory accounts, drove client assets up 14 percent year-over-year to $1.03 trillion. Wrap advisory accounts surged 18 percent to $573.9 billion, while advisory account flows soared 59 percent to $11.1 billion.
However, overall net flows declined by 50 percent to $11.3 billion. Financial Planning reported that a key factor was the addition of $14.7 billion in assets from approximately 100 advisors at Comerica Bank, who joined Ameriprise in November 2023 as part of a major recruiting push in the independent brokerage space.
Ameriprise reported an 18 percent increase in adjusted operating costs, reaching $2.01 billion, driven by higher client assets and business expansion. The firm excluded a one-time $50 million expense related to its August SEC settlement over off-channel communications. Ameriprise, along with LPL Financial, Edward Jones, and Raymond James, paid the largest fines among the 26 firms that settled with the SEC, contributing to a combined $392.75 million in penalties.
For the fourth quarter, Ameriprise generated $823 million in pretax-adjusted operating earnings on $2.83 billion in revenue, maintaining a 29 percent margin. Annual net income for the full company—including wealth management and its three other segments—rose 33 percent from the prior year to $3.4 billion, more than offsetting the decline in interest revenue resulting from Federal Reserve rate cuts.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
