April 21, 2009 / 8:57 PM / 9 years ago

UPDATE 1-Ameriprise Financial posts lower Q1 profit

* Sees more than $350 mln in re-engineering savings in ‘09

April 21 (Reuters) - Ameriprise Financial Inc (AMP.N), an asset manager and broker specializing in retirement plans, posted a lower quarterly profit, hurt by a decline in equity markets and lower short-term interest rates.

First-quarter net income attributable to the company fell to $129 million, or 58 cents a share, from $191 million, or 82 cents a share, last year.

Ameriprise, spun off from American Express (AXP.N) in 2005, said total net revenue fell to $1.72 billion.

The company said it continues to reduce expenses, which decreased 12 percent to $1.59 billion in the quarter, in light of market-driven revenue declines.

The company expects the majority of the full-year re-engineering savings of $350 million to be realized in the second half of the year.

Ameriprise said it intends to commit about two-thirds of the savings to the net income, while reinvesting the remainder in growth initiatives.

Management and financial advice fees fell 30 percent to $554 million and distribution fees dropped 28 percent to $311 million.

Shares of the company closed at $24.20 Tuesday on the New York Stock Exchange. (Reporting by Supantha Mukherjee in Bangalore; Editing by Anne Pallivathuckal)

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