Ameriprise earnings tumble amid lower interest rates, coronavirus
November 4, 2020 by Tobias Salinger
Lower interest rates amid the coronavirus are slashing Ameriprise’s wealth business to the tune of hundreds of millions of dollars a quarter.
The firm’s Advice and Wealth Management segment’s pretax adjusted operating earnings fell 19% year-over-year to $320 million, Ameriprise said in its third-quarter earnings on Oct. 28. The firm’s average yield on client cash has plummeted to 71 basis points, compared to 204 bps in the year-ago period. Interest revenue tumbled by $116 million.