UPDATE 1-Ameriprise Q2 profit beats Wall Street
(Recasts; adds details)
July 23 (Reuters) - Ameriprise Financial Inc (AMP.N: Cotización), an asset manager and broker specializing in retirement plans, reported a second-quarter profit that beat market estimates as expenses reduced, and raised its quarterly dividend by 13 percent.
Ameriprise posted net income of $210 million, or 93 cents a share, compared with $196 million, or 81 cents a share, a year earlier. Excluding investment gains and losses, earnings were $1.01 a share.
Analysts on average expected the company to earn 87 cents a share, before special items, according to Reuters Estimates.
Expense management initiatives implemented in the first quarter helped reduce general and administrative expenses, the company said. Expenses for the quarter fell 9 percent to $1.74 billion.
Total revenue fell 9 percent to $2 billion.
Management and financial advice fees fell 1 percent to $780 million, while net investment income fell 23 percent to $393 million.
The company increased the quarterly dividend to 17 cents a share from 15 cents a share. The dividend is payable on August 22, 2008 to shareholders of record on August 8, 2008.
Shares of the Minneapolis-based company, which has lost more than 16 percent of its value in the last six months, closed down 15 cents at $40.51 Wednesday on the New York Stock Exchange. (Reporting by Adheesha Sarkar in Bangalore; Editing by Pratish Narayanan)
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