Ameriprise Financial, Inc. (NYSE:AMP) Q1 2023 Earnings Call Transcript

Page 6 of 6

Andrew Kligerman: Got it. Perfect. And then with respect to the 83 advisors you brought in, could you give us a sense of maybe the AUM per advisor relative to the AUM per advisor that you have now? And maybe a little color on their sweet spot. Are they in that $500,000 to $5 million net worth, what end of the spectrum do they come in at?

Walter Berman: Yes. I would say, thus, we are continuing to have that track pattern of really the quality of the AUM and the GDC, the trailing GDC is stronger, and we keep on growing that. So we feel very good about that. We’re being very selective to ensure that they fit into basically our relationship and approach that we have. And so it’s very much aligned on that. So it’s — we feel very good about the quality of them.

Andrew Kligerman : So Walter, so net assets per adviser a little better than your average?

Walter Berman: I would tell you, it continues to be better than our average.

Andrew Kligerman: Got it. And then lastly, just on the capital management. It looks like your payout ratio as a percent of operating earnings is coming in around 80-ish percent, maybe a little less. Historically, you were at 90% or maybe even better. And I guess with the bank having grown a lot, should we expect something in that sort of 75%, 80% payout range going forward? Anything likely to change there?

Walter Berman: So as we said, we talked about — from our standpoint, we are building organically, and yes, there’s capital, but we have the capacity, and we feel that the — we’ve given an indication that it will be in that 80% range. But we really had the ability to — as we look at opportunistically to basically take it up. But we just — we will evaluate the market and everything from that standpoint, but the 80% is a reasonable number at this stage, as we’ve indicated. And most people have built that into their projection set.

Andrew Kligerman: Yeah. We have. Thanks a lot.

Operator: Thank you. And we have no further questions at this time. Ladies and gentlemen, this will conclude today’s conference. Thank you for participating. You may now disconnect.

Follow Ameriprise Financial Inc (NYSE:AMP)

Page 6 of 6