Advice and wealth management pre-tax operating earnings at Ameriprise Financial rose 39 per cent, from $94 million to $131 million, in the first quarter of 2013.  

The firm said the hike reflects strong revenue growth, continued expense management and ongoing investments in the business, “partially offset by a $10 million decline in earnings from continued low interest rates.”

First quarter 2013 pre-tax operating margin in this segment was 12.9 per cent, compared to 9.9 per cent a year ago. The year-ago quarter included earnings from Ameriprise Bank, which ceased certain banking operations in Q4 2012, the firm said.

Total retail client assets grew 11 per cent to $372 billion and operating net revenue per advisor - excluding results from former banking operations - rose 9 per cent. Mutual fund wrap net inflows increased 41 per cent to $4.1 billion, while brokerage cash balances declined $1 billion sequentially and “remained elevated” at $17.6 billion.

Operating net revenues increased 7 per cent to $1 billion. This was driven by record retail client net inflows and market appreciation, the firm said, partially offset by the above-mentioned bank transition. When excluding former banking operations, underlying operating net revenues rose 10 per cent.

Operating expenses also increased, rising 3 per cent to $887 million, primarily reflecting higher distribution expenses associated with business growth.

General and administrative expenses declined by 9 per cent. This reflects ongoing expense discipline, lower expenses associated with completion of the brokerage platform conversion and lower ongoing bank expense, Ameriprise said. Likewise, underlying expenses declined 3 per cent (when excluding former banking operations).

For the group as a whole, net income ended the first quarter at $336 million, up from $245 million a year ago. First quarter 2013 operating earnings were $338 million, up slightly from $335 million.