Ameriprise Financial's second-quarter earnings call featured analyst questions on a $19 billion client asset outflow from Comerica, expected to complete by the end of the third quarter, with Huntington Bank's onboarding anticipated to offset the loss. CEO Jim Cracchiolo and CFO Walter Berman addressed the timeline and magnitude of the exit, while also confirming that current capital return levels, including stock buybacks, are sustainable given ongoing free cash flow generation. Management reiterated that wealth and asset management margins are sustainable and that AI adoption is expected to drive further adviser productivity gains. The firm reported revenue of $4.90 billion, beating analyst estimates of $4.81 billion, and adjusted EPS of $11.07 versus estimates of $10.81. Analysts also questioned softness in total client flows relative to robust wrap flows, which management attributed to the Comerica exit and seasonal tax impacts, while noting increased activity in Columbia Threadneedle's SMAs and ETFs.
Ameriprise Financial IncQ2 revenue and EPS beat estimates, with sustainable buybacks and margins.
Huntington Bancshares IncorporatedHuntington's onboarding is expected to offset the Comerica outflow, benefiting Ameriprise.
Fifth Third Bancorp