Q4 2025 Ameriprise Financial Inc Earnings Call

January 29, 2026

I would also highlight that the Emir price Roe is Best in Class A year after year and 1 of the highest in financial services at nearly 53%.

Jim Cracchiolo: Regarding the overall business, we're driving nice progress across many areas. Our advisors are leveraging our proven advice value proposition and generating high client value, satisfaction, and practice growth. Overall, we had continued strong AWM client asset growth, up 11%. Wrap assets were also up nicely, up 14% year-over-year, and our advisor count is up, and advisor productivity continues to be very strong, increasing another 10%. And we're back to strong recruiting levels, bringing in 90 experienced advisors in the quarter, one of our best. The Ameriprise value proposition, as well as the strength and stability of the firm, continue to differentiate us in the recruiting space, and our pipeline in the Q4 is strong. Across the business, we're leveraging our investments to further elevate our value proposition and drive long-term economic returns.

In fact, the Mayor Price is well-positioned. Even if the environment becomes more challenging, our complementary mix of revenue streams, effective expense management, and strong margins help enable us to sustain strong financial performance.

Regarding the overall business with driving, nice progress in many areas.

Our advisors are leveraging our proven advice value proposition and generating high client value, satisfaction, and practice growth.

Overall, we have continued strong AWM client asset growth of 11%.

Wrap assets will also up nicely up 14% year-over-year and our advisor account is up and advisor. Productivity continues to be very strong increasing in another 10%.

And we're back to strong recruiting levels bringing in 90 experienced advisors in the quarter 1 of our best.

The American Enterprise value proposition as well as the strength of stability of the firm continue to differentiate Us in the recruiting space and our pipeline in the fourth quarter is strong.

Jim Cracchiolo: In September, we launched a new advertisement that reinforces our premium brand and helps ... here in 2025. It's been one of our most successful rollouts, and early advisor feedback has been very positive. We continue to build on these early results as more advisors integrate the new platform into their practice.

Across the business will leveraging our investments to further Elevate. Our value proposition and drive long-term economic returns.

in September, we launched a new advertising that reinforces our premium brand and helps

Here in 2025 it's been 1 of our most successful rollouts and early advisor. Feedback has been very positive. We continue to build on these early results, as more advises integrate, the new platform into their practice.

Stephanie Rabe: Thank you, operator, and good morning. Welcome to Ameriprise Financial's Fourth Quarter Earnings Call. On the call with me today are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions. Turning to our earnings presentation materials that are available on our website, on slide 2, you will see a discussion of forward-looking statements. Specifically, during the call, you will hear references to various non-GAAP financial measures, which we believe provide insight into the company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website at www.ir.ameriprise.com. Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties.

Stephanie Rabe: Thank you, operator, and good morning. Welcome to Ameriprise Financial's fourth quarter earnings call. On the call with me today are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions. Turning to our earnings presentation materials that are available on our website, on slide 2, you will see a discussion of forward-looking statements. Specifically, during the call, you will hear references to various non-GAAP financial measures, which we believe provide insight into the company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website at www.ir.ameriprise.com. Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties.

Thank you, operator, and good morning. Welcome to Ameri price, financials fourth quarter, earnings call.

On the call with me today are Jim Cracchiolo, Chairman and CEO, and Walter Berman, Chief Financial Officer.

Following their remarks, we'd be happy to take your questions.

Turning to our earnings presentation materials that are available on our website, on slide 2 you will see a discussion of forward-looking statements.

Specifically, during the call, you will hear references to various non-gaap Financial measures.

Which we believe provide insight into the company's operations.

Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today’s materials.

and on our website at,

Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events.

and overall, operating plans and performance,

Stephanie Rabe: A sample list of these factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our Q4 2025 earnings release, our 2024 Annual Report to Shareholders, and our 2024 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On slide 3, you see our GAAP financial results at the top of the page for Q4. Below that, you see our adjusted operating results, which management believes enhances our understanding of the business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Many of the comments that management makes on the call today will focus on adjusted operating results. With that, I'll turn it over to Jim.

A sample list of these factors and risks that could cause actual results to be materially different from forward-looking statements can be found in our Q4 2025 earnings release, our 2024 Annual Report to Shareholders, and our 2024 10-K report. We make no obligation to publicly update or revise these forward-looking statements. On slide 3, you see our GAAP financial results at the top of the page for Q4. Below that, you see our adjusted operating results, which management believes enhances our understanding of the business by reflecting the underlying performance of our core operations and facilitates a more meaningful trend analysis. Many of the comments that management makes on the call today will focus on adjusted operating results.

These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties.

A sample list of these factors and risks that could cause actual results to be materially different from forward-looking statements.

Can be found in our fourth quarter, 2025 earnings release.

Our 2024 annual report to shareholders and our 2024, 10K report.

We make no obligation to publicly update or revise, these forward-looking statements.

On slide 3.

You see our gaps Financial results at the top of the page for the fourth quarter.

Below that you see our adjusted operating results, which management believes enhances our understanding of the business by reflecting the underlying performance of our core operations and facilitates a more meaningful Trend analysis.

With that, I'll turn it over to Jim.

That management makes on the call. Today, we'll focus on adjusted operating results.

And with that, I'll turn it over to Jim.

Jim Cracchiolo: Good morning, everyone, and thanks for joining our call. I'll begin with an overview of the business and our progress, and then Walter will discuss our financials in more detail. Ameriprise delivered a strong fourth quarter to complete a very good year in 2025, reflecting the strength of our business, effective strategy, and excellent client experience. Looking externally, equity markets performed well in the quarter, supported by resilient US economic growth, and the overall environment remains quite positive. With that backdrop, Ameriprise delivered new all-time records across the board in the fourth quarter. On an adjusted operating basis, revenue grew 10% to $4.9 billion, driven by strong organic client flows and markets.

James M. Cracchiolo: Good morning, everyone, and thanks for joining our call. I'll begin with an overview of the business and our progress, and then Walter will discuss our financials in more detail. Ameriprise delivered a strong fourth quarter to complete a very good year in 2025, reflecting the strength of our business, effective strategy, and excellent client experience. Looking externally, equity markets performed well in the quarter, supported by resilient US economic growth, and the overall environment remains quite positive. With that backdrop, Ameriprise delivered new all-time records across the board in the fourth quarter. On an adjusted operating basis, revenue grew 10% to $4.9 billion, driven by strong organic client flows and markets.

Good morning, everyone, and thanks for joining our call. I'll begin with an overview of the business and our progress, and then Walter will discuss our financials in more detail.

A mayor price delivered, a strong fourth quarter to complete a Very Good Year in 2025 reflecting. The strength of our business effective strategy, and excellent client experience. Looking at externally Equity, markets performed. Well, in the quarter, supported by resilient US economic growth and the overall environment remains quite positive.

With that backdrop, a merit price delivered new all-time records across the board in the fourth quarter.

Jim Cracchiolo: We also had double-digit growth in our earnings, up 10% to over $1 billion, as well as in earnings per share, which increased 16% to $10.83. Ameriprise return on equity was again excellent, increasing over 100 basis points to 53.2%, our highest ever. We completed 2025 with assets under management, administration, and advisement at $1.7 trillion, up 11%, and another new high. Across the firm, we're leveraging the strength of our businesses and capabilities to deliver good results while investing in organic growth opportunities and innovation. Supported by our strong financial foundation, we're making key investments across the company in top-tier technology, digital capabilities, AI, and cloud infrastructure. We're also bringing out new product solutions in each of our businesses to further serve more investor needs and deepen relationships.

We also had double-digit growth in our earnings, up 10% to over $1 billion, as well as in earnings per share, which increased 16% to $10.83. Ameriprise return on equity was again excellent, increasing over 100 basis points to 53.2%, our highest ever. We completed 2025 with assets under management, administration, and advisement at $1.7 trillion, up 11%, and another new high. Across the firm, we're leveraging the strength of our businesses and capabilities to deliver good results while investing in organic growth opportunities and innovation. Supported by our strong financial foundation, we're making key investments across the company in top-tier technology, digital capabilities, AI, and cloud infrastructure. We're also bringing out new product solutions in each of our businesses to further serve more investor needs and deepen relationships.

On an adjusted operating basis, Revenue grew 10% to 4.9 billion dollars driven by strong, organic client, flows and markets. We also had double digit growth in our earnings up, 10% to over a billion dollars as well as in earnings per share which increased 16% to $10.83.

And Ameriprise return on equity was, again, excellent, increasing over 100 basis points to 53.2%, our highest ever.

We completed 2025 with assets under management Administration and advisement at 1.7 trillion dollars up 11% and another new high.

Across the firm, we’ll leverage the strengths of our businesses and capabilities to deliver good results, while investing in organic growth opportunities and innovation.

Jim Cracchiolo: These investments help further enhance our client and advisor experience and drive organic growth. These investments extend to advice and wealth management, where our leading advisor value proposition and integrated technology continue to drive excellent client satisfaction, as well as strong organic flows and advisor productivity. Total client assets reached a new record of $1.2 trillion at year-end, up 13% from our focused action to drive flows as well as from positive markets. Total client inflows were $13.3 billion, up 18%, which is one of our best quarters for flows. These results reflect the strength of our legacy flows from our advisor engagement, client acquisition in the target market, and our recruiting success. Our wrap business also grew strongly. Assets increased 17% to $670 billion, with meaningful growth in flows.

These investments help further enhance our client and advisor experience and drive organic growth. These investments extend to advice and wealth management, where our leading advisor value proposition and integrated technology continue to drive excellent client satisfaction, as well as strong organic flows and advisor productivity. Total client assets reached a new record of $1.2 trillion at year-end, up 13% from our focused action to drive flows as well as from positive markets. Total client inflows were $13.3 billion, up 18%, which is one of our best quarters for flows. These results reflect the strength of our legacy flows from our advisor engagement, client acquisition in the target market, and our recruiting success. Our wrap business also grew strongly. Assets increased 17% to $670 billion, with meaningful growth in flows.

Supported by a strong financial foundation, we're making key investments across the company—in top-tier technology, digital capabilities, AI, and cloud infrastructure. We're bringing out new products and solutions in each of our businesses to further serve, more invested in the needs, and deepen relationships.

These investments help further enhance our client advisor experience and drive organic growth.

These investments extend to advice and wealth management, where our leading advisor value proposition and integrated technology continue to drive excellent client satisfaction, as well as strong organic flows and advisor productivity.

Total client assets, reached. A new record of 1.2 trillion at year. End up 13%. From our focused action to drive flows as well as from positive markets.

Total client inflows were 13.3 billion of 18% which is 1 of our best quarters for flows. These results, reflect the strength of our Legacy flows, from our advisor, engagement client acquisition, and the target market and our recruiting success.

Jim Cracchiolo: This included good flow momentum in our new Signature Wealth Unified Managed Account, which we launched at midyear in 2025. It's been one of our most successful rollouts, and early advisor feedback has been very positive. We continue to build on these early results as more advisors integrate the new platform into their practices. Advisors are seeing real value in the enhanced personalization, automated portfolio monitoring, rebalancing, reporting, and centralized trading. We're also adding new capabilities and strategies to our Signature Wealth platform as we move forward. In addition, we continue to have good transaction activity, up 5% year-over-year. Our bank products complement the business nicely, with assets up to $25.3 billion. We're rolling out and testing new offerings, including expanding our lending book, where we saw good growth led by pledge and nice initial uptake in mortgage loans.

This included good flow momentum in our new Signature Wealth Unified Managed Account, which we launched at midyear in 2025. It's been one of our most successful rollouts, and early advisor feedback has been very positive. We continue to build on these early results as more advisors integrate the new platform into their practices. Advisors are seeing real value in the enhanced personalization, automated portfolio monitoring, rebalancing, reporting, and centralized trading. We're also adding new capabilities and strategies to our Signature Wealth platform as we move forward. In addition, we continue to have good transaction activity, up 5% year-over-year. Our bank products complement the business nicely, with assets up to $25.3 billion. We're rolling out and testing new offerings, including expanding our lending book, where we saw good growth led by pledge and nice initial uptake in mortgage loans.

Our wrap business also grew strongly. Assets increased 17% to $670 billion, with meaningful growth and flows. This included good flow momentum, and our new Signature Wealth Unified Management Account, which we launched at midyear in 2025. It's been one of our most successful rollouts, and early advisor feedback has been very positive. We continue to build on these early results as more advisers integrate the new platform into their practices.

Advisors are seeing real value. In the enhanced personalization automated portfolio monitoring rebalancing reporting and centralized Trading.

We're also adding new capabilities and strategies for our signature wealth platform as we move forward.

In addition, we can continue to have good transaction activity up, 5% year-over-year.

Jim Cracchiolo: After our initial launch of HELOCs, we're seeing strong early interest. We just launched checking accounts, which rounds out our complete bank offering and will be important to enable greater uptake of savings and lending products in advisor practices going forward. Advisor productivity continues to increase nicely, as I mentioned, up 8% to $1.1 million per advisor in the quarter. Our proven advisor value proposition helps them achieve this level of productivity. This includes our interconnected systems of capabilities, anchored by our strong digital advice, CRM, and extensive practice management resources. As we shared, we're also innovating with AI and automation to help advisors identify meaningful client insights and growth opportunities while reducing time-consuming tasks. Also key, our integrated capabilities drive strong system reliability, efficiency, and resiliency. Our best-in-class service is another competitive advantage. This year, J.D.

After our initial launch of HELOCs, we're seeing strong early interest. We just launched checking accounts, which rounds out our complete bank offering and will be important to enable greater uptake of savings and lending products in advisor practices going forward. Advisor productivity continues to increase nicely, as I mentioned, up 8% to $1.1 million per advisor in the quarter. Our proven advisor value proposition helps them achieve this level of productivity. This includes our interconnected systems of capabilities, anchored by our strong digital advice, CRM, and extensive practice management resources. As we shared, we're also innovating with AI and automation to help advisors identify meaningful client insights and growth opportunities while reducing time-consuming tasks. Also key, our integrated capabilities drive strong system reliability, efficiency, and resiliency. Our best-in-class service is another competitive advantage. This year, J.D.

Is complement. The business nicely with assets up to 25.3 billion. We're rolling out and testing new offerings, including expanding our lending book where we saw good growth led by pledge and nice initial uptake in mortgage loans.

Through our initial launch of helocs, we're seeing strong early interest. We just launched checking accounts which rounds out our complete bank offering and will be important to enable greater uptake of savings and lending products in advisor practices going forward.

Advisor, productivity continues to increase nicely. As I mentioned up, 8% to 1.1 million dollars per advisor in the quarter.

Test.

also key our integrated capabilities Drive strong system, reliability, efficiency, and resiliency

Jim Cracchiolo: Power recognized Ameriprise for the seventh consecutive time for delivering an outstanding customer service experience to advisors for our phone support. And for the second straight year, we earned J.D. Power's certification for our client phone support as well, which is terrific. We're known for our commitment to client and advisor success. Experienced advisors continue to choose Ameriprise. We've added 91 quality advisors, building on a strong momentum from the Q3, and the pipeline for experienced recruits across channels remains attractive. And by the way, our total advisor count is up 1% year-over-year. Ameriprise advisors continue to stand out industry-wide for exceptional service, growth, and high-quality practices. We had a record 478 teams named to the Forbes Best-in-State Wealth Management Teams 2025 ranking. Earlier this month, I attended the AWM field leader kickoff for the year.

Power recognized Ameriprise for the seventh consecutive time for delivering an outstanding customer service experience to advisors for our phone support. And for the second straight year, we earned J.D. Power's certification for our client phone support as well, which is terrific. We're known for our commitment to client and advisor success. Experienced advisors continue to choose Ameriprise. We've added 91 quality advisors, building on a strong momentum from the Q3, and the pipeline for experienced recruits across channels remains attractive. And by the way, our total advisor count is up 1% year-over-year. Ameriprise advisors continue to stand out industry-wide for exceptional service, growth, and high-quality practices. We had a record 478 teams named to the Forbes Best-in-State Wealth Management Teams 2025 ranking. Earlier this month, I attended the AWM field leader kickoff for the year.

Our best-in-class service is another competitive Advantage this year. JD Power, recognized the Merit prize for the seventh, consecutive time for delivering an outstanding customer service, experience to advise us for our phone support and for the second straight year, we earned JD Power certification for our client phone support as well, which is terrific.

We're known for our commitment to client and advisor success experience. Advised, continue to choose America prize. We've added 91 quality advisors building on a strong momentum from the third quarter.

And the pipeline for experienced recruits across channels remains attractive.

And, by the way, our total advised accounts are up 1% year-over-year.

Price. Advisers continue to stand out, industrywide for exceptional, service growth and high quality practices. We had a record. 478 teams named to the Forbes best in state, wealth management, teams, 2025 ranking,

Jim Cracchiolo: Our AWM team is made up of strong cadre of field leaders who help advisors leverage our value proposition and client experience to build even more successful practices. Our retirement and protection solutions are also contributing nicely to transactional activity, organic growth, and deeper share of wallet. Structured Annuity sales were up 7% in the quarter, and life and health sales grew 14%, with most of the focus on accumulation-focused Variable Universal Life. Our overall portfolio continues to perform very well. Here again, we're investing in product enhancements and leveraging AI and digital to increase efficiencies in underwriting and overall service. In asset management, we're delivering meaningful financial results as we leverage our global capabilities for greater efficiency and future growth. Assets Under Management and Advisement reached $721 billion for the quarter, up 6%.

Our AWM team is made up of strong cadre of field leaders who help advisors leverage our value proposition and client experience to build even more successful practices. Our retirement and protection solutions are also contributing nicely to transactional activity, organic growth, and deeper share of wallet. Structured Annuity sales were up 7% in the quarter, and life and health sales grew 14%, with most of the focus on accumulation-focused Variable Universal Life. Our overall portfolio continues to perform very well. Here again, we're investing in product enhancements and leveraging AI and digital to increase efficiencies in underwriting and overall service. In asset management, we're delivering meaningful financial results as we leverage our global capabilities for greater efficiency and future growth. Assets Under Management and Advisement reached $721 billion for the quarter, up 6%.

Are we here this month? I attended the AWM Field Leader Kickoff for the year.

Or awm team is made up of strong, Cadre of field leaders, who helped advisers, leverage, our value proposition and client experience to build. Even more successful practices.

Our retirement and protection Solutions are also contributing nicely to transactional, activity organic growth and deeper, share of wallet.

Structured annuity sales were up 7% in the quarter, and life and health sales grew 14%, but most of the focus on accumulation was on variable universal life.

Our overall portfolio continues to perform very well.

Here again, we're investing in product enhancements and leveraging, Ai and digital to increase efficiencies and underwriting and overall service.

In Asset Management with delivering meaningful Financial results. As we leverage our Global capabilities for greater efficiency and future growth

Jim Cracchiolo: We had continued strong investment performance with 103 four- and five-star Morningstar rated funds at year-end. Nearly 70% of our funds globally were above the median for the one-year time frame on an asset-weighted basis, and stronger for long-term time frames, with 80% of our funds above the median for three- and ten-year performance periods. Regarding flows, we generated $1.9 billion in net inflows in the quarter, which included higher reinvested dividends. Overall, we had net inflows in model delivery strategies and improvement in institutional gross sales. We continue to invest to further broaden out our investment capabilities to meet evolving market demand. That includes expanding our active ETF lineup and further building out our SMA model delivery and alternatives offerings.

We had continued strong investment performance with 103 four- and five-star Morningstar rated funds at year-end. Nearly 70% of our funds globally were above the median for the one-year time frame on an asset-weighted basis, and stronger for long-term time frames, with 80% of our funds above the median for three- and ten-year performance periods. Regarding flows, we generated $1.9 billion in net inflows in the quarter, which included higher reinvested dividends. Overall, we had net inflows in model delivery strategies and improvement in institutional gross sales. We continue to invest to further broaden out our investment capabilities to meet evolving market demand. That includes expanding our active ETF lineup and further building out our SMA model delivery and alternatives offerings.

assets on the management and advisement reach 721 billion dollars for the quarter of 6%.

We had continued strong investment performance, with 1,034 4- and 5-star Morningstar-rated funds at year end.

Nearly 70% of our funds, globally above the medium, for the 1 year, time frame on an asset weighted basis and stronger. For long-term, time frames with 80% of our funds above the medium, for 3 and 10 year performance periods.

Regarding flows, we generated $1.9 billion in net inflows in the quarter, which included higher reinvested dividends overall. We had net inflows in model delivery strategies and Improvement, and institutional growth sales. We continue to invest to further broaden out our investment capabilities to meet evolving market demand.

Jim Cracchiolo: During the quarter, we launched 6 new active, managed, and research-enhanced ETFs in the US, along with our initial launch of ETFs in EMEA. Across asset management, we're leveraging our global footprint to generate additional operational efficiencies. Our back-office transformation and data foundation work will continue to increase the cost effectiveness of data delivery and help ensure our solutions are scalable.... Reflecting on Ameriprise overall, our business and financial results remain strong, with record revenue, earnings, EPS, and return on equity, as well as a differentiated level of capital return. As you saw, we increased our capital return to more than 100% in the quarter. We were opportunistic with a discount in the share price, and the size of the buyback brought our total capital return for the year to nearly 90%, one of our highest levels in recent years.

During the quarter, we launched 6 new active, managed, and research-enhanced ETFs in the US, along with our initial launch of ETFs in EMEA. Across asset management, we're leveraging our global footprint to generate additional operational efficiencies. Our back-office transformation and data foundation work will continue to increase the cost effectiveness of data delivery and help ensure our solutions are scalable.... Reflecting on Ameriprise overall, our business and financial results remain strong, with record revenue, earnings, EPS, and return on equity, as well as a differentiated level of capital return. As you saw, we increased our capital return to more than 100% in the quarter. We were opportunistic with a discount in the share price, and the size of the buyback brought our total capital return for the year to nearly 90%, one of our highest levels in recent years.

That includes expanding our active ETF lineup and further building out our SMA model delivery and Alternatives offerings.

During the quarter, we launched six new actively managed and research-enhanced ETFs in the US, along with our initial launch of ETFs in EMEA.

Across Asset Management, we will leverage our global footprint to generate additional operational efficiencies. Our back office transformation and data foundation work will continue to increase the cost effectiveness of data delivery and help ensure our solutions are scalable.

Reflecting on a m p overall, our business and financial results, remain strong with record Revenue, earnings EPs and return on Equity, as well as a differentiated level of capital return.

As you saw, we increased our Capital return to more than 100% in the quarter. We were opportunistic with a discount in the share price.

Jim Cracchiolo: We've also consistently maintained a healthy and resilient balance sheet. 2025 was another terrific year for us, our 20th as a public company. In just 2 decades, we've established Ameriprise as a premier brand built on helping millions of clients achieve their most important financial goals. And we're continually innovated and transformed how we go to market, earning best-in-class recognition and results across a wide range of environments. Equally important, we earned a highly respected reputation over the years for who we are and how we operate the firm. In fact, Ameriprise was just named one of America's most iconic companies by Time. We rank among the top 50 across industries, and we're also the leading diversified financial services firm on the list, and this award adds to many others.

We've also consistently maintained a healthy and resilient balance sheet. 2025 was another terrific year for us, our 20th as a public company. In just 2 decades, we've established Ameriprise as a premier brand built on helping millions of clients achieve their most important financial goals. And we're continually innovated and transformed how we go to market, earning best-in-class recognition and results across a wide range of environments. Equally important, we earned a highly respected reputation over the years for who we are and how we operate the firm. In fact, Ameriprise was just named one of America's most iconic companies by Time. We rank among the top 50 across industries, and we're also the leading diversified financial services firm on the list, and this award adds to many others.

And the size of the buyback brought our total capital return for the year to nearly 90%—one of our highest levels in recent years.

We've also consistently maintained a healthy and resilient balance sheet.

2025 was another terrific year for us, our 20th, as a public company.

And in just two decades, we've established the Ameriprise brand as a premier brand built on helping millions of clients achieve their most important financial goals.

And we’re continually innovating and transforming how we go to market, earning best-in-class recognition and results across a wide range of environments.

Equally important, we earned a highly respected reputation over the years for who we are and how we operate the firm.

1 of the America's most iconic companies by time.

We ranked among the top 50 across industries, and we're also the leading diversified financial services firm on the list.

Jim Cracchiolo: We were again included on the Wall Street Journal's list of best managed companies for 2025, and America's Most Responsible Companies 2026 list from Newsweek, as well as Ameriprise is one of America's best companies, 2026, according to Forbes. In closing, we feel very good about the business and how we're positioned as we look to 2026. We're executing our clear, consistent strategy, driving innovation, and using operating leverage where we see opportunity. With that, Walter will discuss the numbers in more detail, and then we'll take your questions.

We were again included on the Wall Street Journal's list of best managed companies for 2025, and America's Most Responsible Companies 2026 list from Newsweek, as well as Ameriprise is one of America's best companies, 2026, according to Forbes. In closing, we feel very good about the business and how we're positioned as we look to 2026. We're executing our clear, consistent strategy, driving innovation, and using operating leverage where we see opportunity.

And this award adds to many others.

We were again, included on the Wall Street, journal's list of best managed companies for 2025.

and America's most responsible companies 2026 list from Newsweek as well as American Press, is 1 of America's best companies, 2026 according to Forbes

In closing, we feel very good about the business and how we're positioned as we look to 2026.

With that, Walter will discuss the numbers in more detail, and then we'll take your questions.

We're executing our clear consistent strategy, and driving Innovation. And using operating leverage where we see opportunity with that. Walter will discuss the numbers in more detail and then we'll take your questions.

Walter Berman: Thank you, Jim. Ameriprise delivered excellent financial metric performance in the quarter, with adjusted operating earnings per share up 16% to $10.83, and a strong operating margin of 27%. We had record assets of $1.7 trillion of 11%, which, coupled with strong client engagement, drove record revenues of $4.9 billion. We continue to make good investments for growth, particularly within wealth management. We were optimistic with share repurchases in 2025, given share price and accelerated our capital return. In the quarter, we returned over 100% of operating earnings to shareholders. Our balance sheet remained exceptionally strong, with excess capital of approximately $2.1 billion and holding company available liquidity of $2.2 billion. Let's turn to slide six.

Thank you, Jim.

Mayor of prize delivered, excellent. Financial metrics performance in the quarter with adjusted operating earnings per share up, 16% to $10.83 and a strong operating margin of 27%.

We had record assets of 1.7 trillion of 11% which coupled with strong client engagement drove record revenues of 4.9 billion.

We continue to make good Investments for growth particularly within Wealth Management.

We were optimistic with share repurchase in 2025.

Given share price and accelerated, our Capital return.

In the quarter, we returned over 100% of operating earnings to shareholders.

Our balance sheet remained exceptionally strong with excess capital of approximately 2.1 billion and holding company available to liquidity of 2.2 billion.

Walter Berman: Performance metrics and wealth management were strong across all measures, notably with client and wrap flow rates in our historic ranges. Total client assets grew 13% to a record high of $1.2 trillion, with strong client flows of $13.3 billion, representing a 4.7% annualized flow rate. Wrap assets increased 17% to a record high of $670 billion, with $12.1 billion of net inflows in the quarter, representing 7.4% annualized flow rate. These are near record levels of flows, and we saw both our client and wrap flow rates build each month of the quarter. The improvement in both client and wrap flows was a result of continued strong core flows, higher advisor recruiting in the back half of the year, and very strong retention levels.

Performance metrics and wealth management were strong across all measures, notably with client and wrap flow rates in our historic ranges. Total client assets grew 13% to a record high of $1.2 trillion, with strong client flows of $13.3 billion, representing a 4.7% annualized flow rate. Wrap assets increased 17% to a record high of $670 billion, with $12.1 billion of net inflows in the quarter, representing 7.4% annualized flow rate. These are near record levels of flows, and we saw both our client and wrap flow rates build each month of the quarter. The improvement in both client and wrap flows was a result of continued strong core flows, higher advisor recruiting in the back half of the year, and very strong retention levels.

Let's turn to slide 6.

Performance metrics and wealth management were strong across all measures, notably with client and reflow rates in our historic ranges.

Total client assets, grew 13% to a record. High of 1.2 trillion with strong client, flows of 13.3 billion. Representing a 4.7% annualized flow rate.

Rap assets increased 17% to a record, high of 670 billion with 12.1 billion of net inflows. In the quarter representing 7.4% annualized flow rate.

These are near record levels of flows and we saw both our client and raflow rates, build each month of the quarter.

The Improvement in both client and raft. Flows was a result of continued strong core flows, higher advisor, recruiting in the back, half of the year and very strong retention levels.

Walter Berman: In addition, transactional activity remained strong, increasing 5% compared to the prior year, primarily from growth in annuity products and brokerage. Cash sweep balances increased to $29.9 billion, compared to $27.1 billion in Q3, which is consistent with the normal seasonal trend we typically see near the end of Q4. Our advisor trends remained solid as well. Retention was good across all channels, and we saw strong momentum in our experienced advisor recruiting, with 91 advisors joining us in the quarter. Our value proposition resonates with advisors, and we remain focused on ensuring our transition packages are attractive to experienced advisors that share our values and commitment to the client experience. In total, our advisor productivity continues to grow, reaching a new high of 1.1 million. Let's turn to wealth management financial results on slide 7.

In addition, transactional activity remained strong, increasing 5% compared to the prior year, primarily from growth in annuity products and brokerage. Cash sweep balances increased to $29.9 billion, compared to $27.1 billion in Q3, which is consistent with the normal seasonal trend we typically see near the end of Q4. Our advisor trends remained solid as well. Retention was good across all channels, and we saw strong momentum in our experienced advisor recruiting, with 91 advisors joining us in the quarter. Our value proposition resonates with advisors, and we remain focused on ensuring our transition packages are attractive to experienced advisors that share our values and commitment to the client experience. In total, our advisor productivity continues to grow, reaching a new high of 1.1 million. Let's turn to wealth management financial results on slide 7.

In addition, transactional activity remains strong, increasing 5% compared to the prior year, primarily from growth in annuity products and brokerage.

Cash sweep balances increased $229.9 billion compared to $27.1 billion in the third quarter, which is consistent with the normal seasonal trend we typically see near the end of the fourth quarter.

Our browser Trends remain solid as well.

Retention was good across all channels.

And we saw a strong momentum in our experience advisor, recruiting with 91 advisers joining us in the quarter.

Our value proposition resonates with advisors, and we remain focused on ensuring our transition packages are attractive to experienced advisors that share our values and commitment to the client experience.

In total.

Our advisor productivity continues to grow, reaching a new high of $1.1 million.

Walter Berman: Adjusted operating net revenues increased 12% to $3.2 billion. The core business is performing very well, given the value of our planning model and the multiple touch points we have with the client to meet their needs holistically. Our fee-based and transaction revenues were quite strong, increasing in the low teen percentage range, benefiting from higher client assets and activity levels. Our cash revenues, which include net investment income, distribution fees related to off-balance sheet cash, and banking and deposit interest expense increased modestly despite the impact from the Fed funds rate reduction since September 2024. Adjusted operating expenses in the quarter increased 11%, with distribution expenses up 12%. I would note that advisor compensation within distribution expense increased in line with the revenues advisors generate.

Adjusted operating net revenues increased 12% to $3.2 billion. The core business is performing very well, given the value of our planning model and the multiple touch points we have with the client to meet their needs holistically. Our fee-based and transaction revenues were quite strong, increasing in the low teen percentage range, benefiting from higher client assets and activity levels. Our cash revenues, which include net investment income, distribution fees related to off-balance sheet cash, and banking and deposit interest expense increased modestly despite the impact from the Fed funds rate reduction since September 2024. Adjusted operating expenses in the quarter increased 11%, with distribution expenses up 12%. I would note that advisor compensation within distribution expense increased in line with the revenues advisors generate.

Let's turn to wealth management Financial results on slide 7.

Adjusted operating net revenues increased 12% to $3.2 billion.

The core business is performing very well given the value of our planning model and the multiple touch points, we have with the client to meet their needs holistically.

Our fee based and transaction revenues were quite strong.

Increasing in the load team percentage range, benefiting from higher client assets and activity levels.

These related to all balance sheet cash.

And Banking and deposit. Interest expense increased modestly, despite the impact from the FED funds rate reduction since September of 2024

adjusted operating expenses in the quarter increased 11% with distribution expenses of 12%.

I would note that a buyer compensation within distribution expense increased in line with the revenues advisors generate

Walter Berman: Distribution expenses in the quarter were 65.8% of total management and financial advice fees, and total distribution fees, excluding off-balance sheet sweep cash, which is consistent with the 66% level we have guided to. Full-year G&A expenses were up 4.5%, primarily driven by volume and growth-related expenses, including investments in Signature Wealth and banking products. This level was consistent with the guidance we provided. Pre-tax adjusted operating earnings increased 13% to $926 million, with continued strong contribution from both core and cash earnings. Our core earnings grew in the mid-20% range, benefiting from higher client assets and advisory fees, as well as strong activity levels. The strong level of core earnings that we generated is unique and demonstrates our focus on profitable growth.

Distribution expenses in the quarter were 65.8% of total management and financial advice fees, and total distribution fees, excluding off-balance sheet sweep cash, which is consistent with the 66% level we have guided to. Full-year G&A expenses were up 4.5%, primarily driven by volume and growth-related expenses, including investments in Signature Wealth and banking products. This level was consistent with the guidance we provided. Pre-tax adjusted operating earnings increased 13% to $926 million, with continued strong contribution from both core and cash earnings. Our core earnings grew in the mid-20% range, benefiting from higher client assets and advisory fees, as well as strong activity levels. The strong level of core earnings that we generated is unique and demonstrates our focus on profitable growth.

This distribution expense in the quarter was 65.8% of total management and financial advice fees and total distribution fees, excluding off-balance sheet sweep cash.

Which is consistent with the 66% level. We have guided to

Full year GNA expenses were up 4.5%.

Primarily driven by volume and growth-related expenses, including investments and signature wealth and banking products.

This level was consistent with the guidance, we provided.

Free tax adjusted operating earnings increased 13% to 926 million with continued. Strong contribution from both core and cash earnings, our core earnings grew in the mid 20% range benefiting from higher client assets and advisory fees as well as strong activity levels.

Walter Berman: Cash earnings increased modestly, despite the impact from the Fed funds rate reduction since September 2024. Our strategy of leveraging Ameriprise Bank has been important in minimizing the impact from Fed funds effective rate reductions on our AWM business. In fact, net investment income in the bank was flat for the year. We continue to take actions to build the bank investment portfolio in a way that supports stable earnings contributions going forward. The overall bank portfolio has a yield of 4.6%, with a 3.8-year duration, with now less than 9% of the portfolio in floating rate securities. In the quarter, new purchases at the bank were $2.7 billion, at a yield of 5%, with a 4.3-year duration. Last, our margins remained excellent at 29.3%.

Cash earnings increased modestly, despite the impact from the Fed funds rate reduction since September 2024. Our strategy of leveraging Ameriprise Bank has been important in minimizing the impact from Fed funds effective rate reductions on our AWM business. In fact, net investment income in the bank was flat for the year. We continue to take actions to build the bank investment portfolio in a way that supports stable earnings contributions going forward. The overall bank portfolio has a yield of 4.6%, with a 3.8-year duration, with now less than 9% of the portfolio in floating rate securities. In the quarter, new purchases at the bank were $2.7 billion, at a yield of 5%, with a 4.3-year duration. Last, our margins remained excellent at 29.3%.

The strong level of core earnings that we generated is unique and demonstrates our focus on profitable growth.

Cash earnings increased modestly despite the impact from the Fed funds rate reduction since September of 2024.

Our strategy of leveraging. America prize bank has been important in minimizing the impact from fed funds effective rate reductions on our awm business. In fact,

Net investment income in the bank was flat for the year.

We continue to take actions to build the bank Investment Portfolio in a way that supports stable earnings contributions going forward.

The overall Bank portfolio has a yield of 4.6%.

With a 3.8 year duration was now, less than 9% of the portfolio in floating rate securities.

In the quarter.

Walter Berman: Turning to asset management on slide eight. Financial results were strong in the quarter. Operating earnings increased 17% to $293 million. Results reflected asset growth, higher performance fees, and the positive impact from transformation initiatives. Total assets under management and advisement increased to $721 billion, up both year-over-year and sequentially from higher ending market levels. Revenues increased 12% to $1 billion, benefiting from higher performance fee revenue than a year ago. Performance fees are an important revenue stream for the asset management business, and this quarter were recognized due to very strong performance in our hedge fund. Expenses increased 10% in total, with distribution expenses up 5%. In the quarter, general and administrative expenses were up 13% as a result of higher performance fee compensation and foreign exchange translation.

Turning to asset management on slide eight. Financial results were strong in the quarter. Operating earnings increased 17% to $293 million. Results reflected asset growth, higher performance fees, and the positive impact from transformation initiatives. Total assets under management and advisement increased to $721 billion, up both year-over-year and sequentially from higher ending market levels. Revenues increased 12% to $1 billion, benefiting from higher performance fee revenue than a year ago. Performance fees are an important revenue stream for the asset management business, and this quarter were recognized due to very strong performance in our hedge fund. Expenses increased 10% in total, with distribution expenses up 5%. In the quarter, general and administrative expenses were up 13% as a result of higher performance fee compensation and foreign exchange translation.

You purchased at the bank for $2.7 billion at a yield of 5%, with a 4.3-year duration. Last, our margins remain excellent at 29.3%.

Turning to ask Management on slide date.

Financial results were strong in the quarter; operating earnings increased 17% to $293 million.

Results reflected asset growth, higher performance fees, and the positive impact from the transformation initiative.

Toll.

Management and advisement increased to $721 billion.

Of both year-over-year and sequentially from higher ending market levels.

Revenues increased 12% to $1 billion.

Benefiting from higher performance fee Revenue than a year ago.

Performance fees are an important Revenue stream for the asset management business, and this quarter were recognized due to very strong performance in our hedge fund.

Increase 10% in total.

With distribution and expenses up 5%.

In the quarter.

General and administrative expenses were up 13% as a result of higher performance fee, compensation and foreign exchange translation.

Walter Berman: Margins reached 40% in the quarter, which is above our target range. Let's turn to slide 9. Retirement & protected solutions continued to deliver strong earnings and free cash flow generation, reflecting the high quality of the business that was built over a long period of time. Pre-tax adjusted operating earnings were $200 million, in line with our target range. This business has excellent risk-adjusted returns and continues to be an important part of the AWM client value proposition. Turning to the balance sheet on slide 10. Balance sheet fundamentals and free cash flow generation remain strong, which is a core to our ability to invest for growth on a sustainable basis, while also continuing to return capital to shareholders. We have an excellent excess capital position of $2.1 billion. We have $2.2 billion of available liquidity.

Margins reached 40% in the quarter, which is above our target range. Let's turn to slide 9. Retirement & protected solutions continued to deliver strong earnings and free cash flow generation, reflecting the high quality of the business that was built over a long period of time. Pre-tax adjusted operating earnings were $200 million, in line with our target range. This business has excellent risk-adjusted returns and continues to be an important part of the AWM client value proposition. Turning to the balance sheet on slide 10. Balance sheet fundamentals and free cash flow generation remain strong, which is a core to our ability to invest for growth on a sustainable basis, while also continuing to return capital to shareholders. We have an excellent excess capital position of $2.1 billion. We have $2.2 billion of available liquidity.

Margins reached 40% in the quarter which is above our target range.

Let's turn to slide 9.

Retirement and protected Solutions continuing to deliver strong earnings and free cash flow. Generation reflecting, the high-quality of the business that was built over a long period of time.

Pre-tax adjusted, operating earnings were 200 million in line with our target range.

This business has excellent risk-adjusted returns and continues to be an important part of the AWM client value proposition.

Turning to the balance sheet on slide 10.

Balance sheet fundamentals and free cash flow generation remains strong, which is a core to our ability to invest for growth on a sustainable basis. While also containing to return Capital to shareholders,

Capital position of 2.1 billion.

Walter Berman: Our assets and liabilities are well matched, and our investment portfolio is diversified and high quality. Ameriprise's consistent capital return strategy is a key element of our ability to consistently generate strong long-term shareholder value. As I mentioned, we were opportunistic in the second half of 2025 and accelerated our share buyback. In fact, we increased our capital return 37% year-over-year to $1.1 billion in the fourth quarter, which is 101% of operating earnings. For the full year, we returned $3.4 billion of capital, which was 88% of operating earnings. As we enter 2026, our strong foundation, coupled with our ERM capabilities and decisioning framework, position us well to continue investing for growth in a targeted way... and return capital to shareholders at a differentiated pace.

Our assets and liabilities are well matched, and our investment portfolio is diversified and high quality. Ameriprise's consistent capital return strategy is a key element of our ability to consistently generate strong long-term shareholder value. As I mentioned, we were opportunistic in the second half of 2025 and accelerated our share buyback. In fact, we increased our capital return 37% year-over-year to $1.1 billion in the fourth quarter, which is 101% of operating earnings. For the full year, we returned $3.4 billion of capital, which was 88% of operating earnings. As we enter 2026, our strong foundation, coupled with our ERM capabilities and decisioning framework, position us well to continue investing for growth in a targeted way... and return capital to shareholders at a differentiated pace.

We have $2.2 billion of available liquidity, and our assets and liabilities are well matched.

And our investment portfolios Diversified and high quality.

Amir price, consistent, Capital return. Strategy is a key element of our ability to consistently generate strong long-term shareholder value.

As I mentioned, we were opportunistic in the second half of 2025.

And accelerated our share of buyback. In fact, we increased our capital return 37% year-over-year to $1.1 billion in the fourth quarter.

Which is 101% of operating earnings.

For the full year, we returned $3.4 billion of capital.

Which was 88% of operating earnings as we enter 2026, our strong Foundation coupled with our ERM capabilities and decisioning framework positioned us well to continue investing for growth in a targeted way.

Walter Berman: In summary, on slide 11, Ameriprise delivered solid results in the fourth quarter to conclude a strong 2025. In 2025, revenues grew 6%, adjusted EPS increased 12%, return on equity grew 60 basis points, and we returned $3.4 billion of capital to shareholders. We have an excellent foundation and capacity moving forward that enables consistent and sustainable profitable growth. With that, we will take your questions.

In summary, on slide 11, Ameriprise delivered solid results in the fourth quarter to conclude a strong 2025. In 2025, revenues grew 6%, adjusted EPS increased 12%, return on equity grew 60 basis points, and we returned $3.4 billion of capital to shareholders. We have an excellent foundation and capacity moving forward that enables consistent and sustainable profitable growth.

And return capital to shareholders at a differentiated pace.

In summary on slide 11, Ameri prize delivered, solid results in the fourth quarter to conclude a strong 2025.

In 2025 revenues grew 6%.

Adjusted EPS increased 12%.

Return on Equity grew 60 basis points.

And we return 3.4 billion of capital to shareholders.

With that, we will take your questions.

We have an excellent foundation and capacity moving forward that enables consistent and sustainable, profitable growth.

With that, we will take your question.

Operator: Thank you. We will now begin the question-and-answer session. If you have a question, please press star one on your touchtone phone. If you wish to be removed from the queue, please press star one. If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star one on your touchtone phone. Our first question comes from the line of Steven Chubak with Wolfe Research. Please go ahead.

Thank you. We will now begin the question and answer session.

If you have a question, please press *1 on your touchtone phone.

If you wish to be removed from the queue, please, press star 1.

If you are using a speakerphone, you may need to pick up the handset first before pressing the numbers. Once again, if you have a question, please press star 1 on your touchtone phone.

Our first question comes from the line of Stephen tuac with wolf research. Please go ahead.

Steven Chubak: Hi, good morning, and thanks for taking my questions. So wanted to start off, on organic growth. The Q4 acceleration was quite impressive, especially in light of a tougher recruiting backdrop cited by some of your peers. You also spoke of maintaining competitive TA rates as part of your recruiting packages, and was hoping you could help us reconcile the acceleration net new flows that we saw in the quarter with the lower distribution expense ratio. And can you speak to the outlook for both organic flows and distribution expense, in the coming year?

Hi, good morning and thanks for taking my questions.

So, wanted to start off on organic growth. The Q4 acceleration was quite impressive, especially in light of a tougher recruiting backdrop cited by some of your peers. You also spoke about maintaining competitive TA rates as part of your recruiting packages.

Jim Cracchiolo: So I'll, I'll start, and then I'll ask Walter to handle more on the expense side. First of all, I want to apologize for the delay. We were having some technical difficulties. Our flows in the Q4 were very strong. It was both organic growth, new clients, additive flows from current clients, as well as, as you saw a pickup in the recruiting as we head towards the latter part of the year. Retention was very good. So we feel good about the underlying flow picture, as we said. We thought that would be something that you would start to see coming back. We were a little delayed from some of our peers, in that regard from a quarterly basis. From an overall perspective, we feel good about how we're moving into 2026.

And was hoping you could help us reconcile the acceleration—that new flows that we saw in the quarter—with the lower distribution expense ratio. And can you speak to the outlook for both organic flows and distribution expense in the coming year?

James M. Cracchiolo: So I'll, I'll start, and then I'll ask Walter to handle more on the expense side. First of all, I want to apologize for the delay. We were having some technical difficulties. Our flows in the Q4 were very strong. It was both organic growth, new clients, additive flows from current clients, as well as, as you saw a pickup in the recruiting as we head towards the latter part of the year. Retention was very good. So we feel good about the underlying flow picture, as we said. We thought that would be something that you would start to see coming back. We were a little delayed from some of our peers, in that regard from a quarterly basis. From an overall perspective, we feel good about how we're moving into 2026.

Uh, so I'll I'll start and then I'll ask Walter to handle more on the expense side. I first of all, I want to apologize for the delay. Uh, we were having some technical difficulties, um, off flows. In the fourth quarter would very strong, it was both organic growth. New clients, they had to flows from current clients as well as, um, as you saw a pickup in the recruiting as we had. So as a lot of part of the year, a retention was very good. Uh, so we feel good about the underlying flow picture. As we said, uh, we thought that would be something that you would start to see coming back. Um, we were a little delayed from some of our peers at uh, in that regard from a quarterly basis. Um, from an overall perspective, we

Jim Cracchiolo: From an expense perspective, it's very much in line with the productivity increases that our advisors generated and the volume of what they generated. Walter, I'll ask you to cover the expense side.

From an expense perspective, it's very much in line with the productivity increases that our advisors generated and the volume of what they generated. Walter, I'll ask you to cover the expense side.

Walter Berman: Yeah, on the distribution expense side, we certainly see it's in line where we've seen with the revenue growth. So, on that basis, we see that we'll be in the ranges that you've seen, and we feel comfortable with it. Obviously, there, as we talked about, we are competing, so you could see some increase in distribution, but it is certainly within the ranges that we feel very comfortable, and the revenue generation associated with it.

We feel good about how we're moving into 2026, uh, from an expense perspective. It's very much in line with the productivity increases that our advisors generated and the volume of what they generated. Uh, Walter, I'll ask you to cover the expense side. Yeah, on the distribution expense side, we certainly see it's in line with where we've seen, uh, with the revenue growth. So, on that basis, we, uh, see that will be in the ranges that you've seen, uh, and, uh, we feel comfortable with it. Um, obviously, there are, as we talked about, we are competing, so you could see some increase in distribution, but it is certainly within the ranges that we feel very comfortable and the revenue generation associated with it.

Steven Chubak: You know, it's helpful color. And maybe switching gears to the expense side, given a number of areas on the investment front that were cited in the prepared remarks, was hoping you could provide preliminary guidance on, for 2026, growth in firm-wide OpEx, as well as GNA growth within AWM, just given higher percentage of investment likely being allocated on the wealth side.

All right, helpful of color and maybe uh Switching gears to the expense side. Give me a number of areas on the investment front that we're excited in the prepared remarks. I was hoping you could provide preliminary guidance,

Jim Cracchiolo: Okay. Let me just start. We continue to invest aggressively in technology capabilities, AI, on product solutions and services. We've rolled out a good number of them, including some of the stuff we mentioned for the bank, expanding some of our product services, our Signature Wealth, et cetera. So we feel good, and we got a good agenda to continue. But having said that, we continue to re-engineer and transform and free up and get some productivity improvements from things like AI and intelligent automation, et cetera, as well as where we locate our resources. So I'll turn it over to Walter.

James M. Cracchiolo: Okay. Let me just start. We continue to invest aggressively in technology capabilities, AI, on product solutions and services. We've rolled out a good number of them, including some of the stuff we mentioned for the bank, expanding some of our product services, our Signature Wealth, et cetera. So we feel good, and we got a good agenda to continue. But having said that, we continue to re-engineer and transform and free up and get some productivity improvements from things like AI and intelligent automation, et cetera, as well as where we locate our resources. So I'll turn it over to Walter.

Growth in firmwide Opex as well as GNA growth within awm. Just given higher percentage of uh investment likely being allocated, on the Wild Side.

Okay.

Walter Berman: Yeah. So, as it relates to what—and the key point is what Jim said—is while we continue to invest, we also are basically transforming our expense base by constantly evaluating and improving the way we operate. So, the net effect of that should be, as you look at the company, staying within the ranges that you saw, you know, again, based on volume and other things, but certainly seeing small increase versus last year. And on as it relates to AWM, with that combination of investing and then and streamlining and through transformation, probably in the same range of, you know, mid, you know, single digits. That's probably—but again, there's investments in there being offset.

Let me just start what we have. And we, um, we continue to, um, invest aggressively in technology capabilities, AI product Solutions, and services. Uh, We've rolled out a good number of them, uh, including some of the stuff we mentioned, for the bank, uh, expanding, um, some of our product services, our signature wealth, Etc. So we feel good and we got a good agenda to continue. But having said that, we continue to re-engineer, and transform and free up and get some productivity improvements from things like Ai and intelligent automation, Etc, uh, as well as, uh, where we locate our resources, so I'll turn it over to Walter. Yeah. So, uh, as a relationship and the key point is what Jim said, is while we continue to invest. We also, uh, are basically transforming our expense Space by constantly evaluating, uh,

And improving the way we operate. So uh the net effect of that should be as you look at the company uh, staying within the ranges that you saw. You know, again based on volume and up things, but certainly seeing small increase versus uh last year and on as it relates to awm with that combination of investing and then and and streamlining and through transformation, probably in the same range of

you know, they, you know, uh, single digits

That's probably but again there's investments in their being offset.

Steven Chubak: That's great color. Thanks so much for taking my questions.

That's right. Caller. Thanks so much for taking my questions.

Operator: Our next question comes from the line of Wilma Burgess with Raymond James. Please go ahead.

Our next question comes from the line of Wilma bergus with Raymond James, please go ahead.

Wilma Burdis: Hey, good morning. Great, results on flows in Q4 2025. Could you give us a little bit more color on what to expect into early 2026? Saw 91 advisors recruited in Q4, which seems to imply a pretty solid result, for Q1. So, maybe give us a little more, more color there. Thanks.

Hey, good morning. Great, uh, results on flows in 4,225.

Walter Berman: ... Yeah, so as we talked about, the drivers of that certainly are organic. And looking at that and looking at the components of organic recruiting and certainly terms, we believe we were all seeing good results, but there is seasonality attached to that. But certainly, as the fundamentals, we do see good results as relates to those elements of getting the traction. And so, we just feel like we're certainly on recruiting and on organic, we're certainly there. And then we certainly are competing on to ensure that we retain our advisors. But there is a seasonality factor attached to it.

Walter Berman: Yeah, so as we talked about, the drivers of that certainly are organic. And looking at that and looking at the components of organic recruiting and certainly terms, we believe we were all seeing good results, but there is seasonality attached to that. But certainly, as the fundamentals, we do see good results as relates to those elements of getting the traction. And so, we just feel like we're certainly on recruiting and on organic, we're certainly there. And then we certainly are competing on to ensure that we retain our advisors. But there is a seasonality factor attached to it.

Could you give us a little bit more color on what to expect in to the early 26? I saw 91 advisors recruited in 4 q which seems to imply a pretty solid result uh, for 1 2. So uh maybe give us a little more more color there. Thanks.

Yeah, so, as we talked about the drivers of that are certainly, are, are, are organic, uh, and and looking at that, and looking at the components of organic recruiting. And, uh, certainly terms that we, we believe we were all going seeing good results. But there is seasonality attached to that. But certainly as the fundamentals, we do see good results as as relates to those elements of getting the traction. And so, um, it's we just feel like we're over certainly uh, on recruiting and, and I want to organic we there. And then we certainly are competing on, uh, to ensure that we retain our advisors, but there is a seasonality factor attached to it.

Wilma Burdis: Thank you. And then how should we think about the buyback going forward? Strong result in the quarter, and could you also remind us what you consider the best use of $2.1 billion of excess capital, particularly in this environment? Thanks.

Thank you. And then, how should we think about the buyback going forward? Strong result in the quarter. And could you also remind us what you consider the best use of $2.1 billion of excess capital?

Walter Berman: Sure. So the key, and again, as you saw, we said we will be optimistic, and we certainly were, as we saw, well, the amount of buyback and dividends in Q4. And, again, that's with investment in the businesses and looking at all aspects of it. So we feel comfortable with the generation as we look into 2026, as a certainly important element to return to shareholders. And, at this point, I would say that the range that you saw for the year was eighty- we returned 88% with dividends and buyback. That's a pretty good range of 85% to 90%, based on what we today, with our capabilities and the ability to return to shareholders as a value point.

Uh, particularly in this environment. Thanks.

Wilma Burdis: Thank you very much.

Sure, so, the key and again, as you saw, we we said, we will be optimistic and we certainly were as we saw, we, uh, well, the amount of buyback and dividends in the fourth quarter. And, uh, again, that's a with investment in the businesses and looking at all aspects of it. So, we feel comfortable with the generation as we look into 2026 as, uh, certainly important element to return to shareholders. And, uh, I I at this point, I would say, uh, that the range that you saw for the year was 80, we returned 88% with dividends and buy back. That's a pretty good range of 85 to 90 based on what we, uh, today with our capabilities. And, and, and the ability to return to shareholders is a value point.

Walter Berman: You're welcome.

Thank you very much.

You're welcome.

Operator: The next question comes from the line of Craig Siegenthaler with Bank of America. Please go ahead.

The next question comes.

Comes from the line of Craig, Sigler with Bank of America. Please go ahead.

Craig Siegenthaler: Thanks. Good morning, Jim, Walter. Hope everyone's doing well. We have a follow-up on the strong net new assets in wealth management in the quarter. So I heard your response just to Wilma's question, that there's a seasonal factor that we should account for. But what about a second factor from elevated financial advisor movement in the quarter due to an integration at a peer? Should we also be adjusting for this going forward?

Thanks, good morning, Jim Walter. Hope everyone's doing well. Um, we have a fault on the Strong, net new assets, um, in wealth management, the quarter. So I heard your response just to Wilma's question that there's a seasonal factor that we should account for. But what about a second factor from elevated financial advisor movement in the quarter due to an integration at a peer? Should we also be adjusting for this going forward?

Jim Cracchiolo: From our perspective, you know, we know things are happening from an industry perspective. Our recruiting, as we showed you in Q4, our pipeline in Q1 is quite strong. So we feel from our perspective that we'll continue to bring on good, experienced people. And we continue with all of the resources that we've been applying and the technology, focused very much on our advisors, generating continued organic growth and all, and that's the core of our business. So I don't know if that answers your question. From a recruitment, listen, it's a competitive market out there. We also very much focused on retaining our advisors. Our retention was quite strong in Q4. But we feel very good about where we are.

James M. Cracchiolo: From our perspective, you know, we know things are happening from an industry perspective. Our recruiting, as we showed you in Q4, our pipeline in Q1 is quite strong. So we feel from our perspective that we'll continue to bring on good, experienced people. And we continue with all of the resources that we've been applying and the technology, focused very much on our advisors, generating continued organic growth and all, and that's the core of our business. So I don't know if that answers your question. From a recruitment, listen, it's a competitive market out there. We also very much focused on retaining our advisors. Our retention was quite strong in Q4. But we feel very good about where we are.

Jim Cracchiolo: I don't want to comment from an industry perspective from other competitors.

I don't want to comment from an industry perspective from other competitors.

So we feel from our perspective that we'll continue to bring on good experience people, um, and we continue with all of the resources that we've been applying and the technology, uh, focused very much on our advisors generating continued organic or uh, growth and all. And that's the core of our business. So I don't know if that answers your your question, um, from a recruitment. Listen, it's a competitive market out there. We also very much focused on retaining our advisors or retention was quite strong in the fourth quarter. Um, but we feel very good about where we are. Um I I don't want to comment from an industry perspective from other competitors.

Craig Siegenthaler: Thanks for that. Just a follow-up on client cash, also in wealth management. You know, overall trends are pretty good in the quarter, and, but we saw some mixing in the underlying balances, especially with off-balance sheet. You know, what's going on with that mix? How should we think about the mix going forward? And seasonality will flip from positive to kind of tougher in Q1. What are your thoughts on cash sweep growth in the first half of 2026?

Walter Berman: Okay. So, yes, you saw the seasonality that you would see in the fourth quarter, and we felt very good about it. But we are seeing, certainly looking at the sweep component, at the on-balance sheet and off-balance sheet, comfortable with the generation and the management. But we do say, with certainly managing that, we'll as in the first quarter, you will see utilization for tax and other reasons. But we do, we have positive generation. And the other thing, as relates to our strategy, we have certainly minimized the amount of floating and certainly within our buffers, but we intend to, and we to basically continue to implement our strategy to basically invest out more so the impact, even if rates come off, that we can absorb that.

Thanks for that. And just a uh follow up on client cache. Awesome wealth management. You know overall Trends are pretty good in the quarter. Um, and uh, but we saw some mixing in the underlying balances. Um, especially with off-balance sheet. You know, what's going on with that mixed? How should we think about the mix going forward? And seasonality will flip from positive to kind of tougher in 1, queer? What are your thoughts on cash? Sweep growth in the first half of 2026,

Walter Berman: And certainly, and offset some of that.

And certainly, and offset some of that.

Okay. So our, uh, the corner that yes, is showing the seasonality that you would see in the fourth quarter and we feel very good about it. Uh, uh, but we are seeing certainly looking at the sweet component looking, uh, at the, uh, on balance sheet and off balance sheet, comfortable with the generation and the management. But, uh, we do say, we with, uh, certainly managing that we'll certainly as in the first quarter, you will see utilization for tax on other reasons, but we do, uh, we have positive generation. And the other thing is relates to our strategy. We have certainly minimized the amount of floating and certainly within our reference. But we intend to and we, uh, to basically continue to implement our strategy to uh, basically invest Outlaws of the impact. Even if rates come off that we can absorb that uh, and certainly uh, and offset some of that.

Craig Siegenthaler: Thanks, Walter.

Thanks Walter.

Walter Berman: You're welcome.

You're welcome.

Operator: Your next question comes from the line of Brennan Hawken with BMO. Please go ahead.

Your next question comes from the line of Brennan Hawkins with BMO. Please go ahead

Brennan Hawken: Good morning. Thanks for taking my questions. I'd love to drill into the bank channel. We see continued consolidation among the regional banks. You know, you guys are intending that yourselves with the Comerica deal. So curious about - I believe you guys have spoken, though, despite that consolidation, about a desire to continue to grow. So how do you manage the risk of consolidation if you're going to continue to look to grow in that channel? And how is the engagement going with your partners at Comerica, as they approach the close of their deal with Fifth Third? Thanks.

Good morning. Thanks for taking my questions. Um, I'd love to drill into the bank Channel. Um we see continued consolidation among Regional Banks. You you know you guys are intending that yourselves with the Chimera uh deal. Um, so curious about you, I believe you guys have spoken though.

Jim Cracchiolo: So we continue to see good opportunity in the financial institutions business. We've been adding a number of institutions through the latter part of the year. We feel the opportunity is really good there for us to continue. We know that consolidation occurs, that can both present opportunities or challenges depending on how that takes place and what the interested parties may be considering. In regards to Comerica, we have a very good relationship with them. I know they're going through their acquisition. I know that will be soon closing, so we'll see exactly where they proceed there. But we have really generated really good value in our partnership with them. Their advisors love our platform and capabilities and the support, their clients as well, et cetera.

James M. Cracchiolo: So we continue to see good opportunity in the financial institutions business. We've been adding a number of institutions through the latter part of the year. We feel the opportunity is really good there for us to continue. We know that consolidation occurs, that can both present opportunities or challenges depending on how that takes place and what the interested parties may be considering. In regards to Comerica, we have a very good relationship with them. I know they're going through their acquisition. I know that will be soon closing, so we'll see exactly where they proceed there. But we have really generated really good value in our partnership with them. Their advisors love our platform and capabilities and the support, their clients as well, et cetera.

Despite that consolidation about a desire to continue to grow. So how do you manage the risk of consolidation? If you're going to continue to look to grow in that channel and how is the engagement going with your partners at cam America? Um, as they approached the close of their deal with Fifth Third. Thanks.

Jim Cracchiolo: I know Comerica is very positive on our relationship, but again, you know, that's a decision now for Fifth Third to make as part of whatever deal and arrangement. I know they already had their own, activities in-house, et cetera. So we'll see where that goes, but we still feel very strongly, that with the- what we can provide and what we deliver, and the satisfaction that every party who have joined us has with us, both the advisor, the client, and the institution, we feel good opportunity for us to continue to move forward. So the, the only thing I would add to that, as you would imagine, any contractual arrangement that you have contemplates these sort of contingencies, and, so there are protections built into the contract.

I know Comerica is very positive on our relationship, but again, you know, that's a decision now for Fifth Third to make as part of whatever deal and arrangement. I know they already had their own, activities in-house, et cetera. So we'll see where that goes, but we still feel very strongly, that with the- what we can provide and what we deliver, and the satisfaction that every party who have joined us has with us, both the advisor, the client, and the institution, we feel good opportunity for us to continue to move forward. So the, the only thing I would add to that, as you would imagine, any contractual arrangement that you have contemplates these sort of contingencies, and, so there are protections built into the contract.

So we continue to see, good opportunity in the financial institutions business. Uh, we've been adding a number of Institutions um, through the latter part of the year, um, we feel the opportunity is really good there for us to continue. Um, we know that consolidation occurs that can vote present opportunities or challenges depending on how that takes place. And what the interesting parties may be considering, um, in regard to to America and we had a have a, very good relationship with them. Uh, I know they're going through their acquisition, I know that will be assumed closing, so we, we'll see exactly where they proceed there. Um, but we have, uh, really generated really good value in our partnership with them. Um, their advisors love our, um, platform and capabilities and the support their clients, as well, Etc. I know,

Call America is very positive on our relationship but again, you know, that's a decision now for Fifth Third to make as part of whatever deal and arrangement, I know they already had their own, uh, activities in house, Etc. So we'll see where that goes. But we still feel very strongly uh, that with the what we can provide and what we deliver, uh, and the satisfaction that every party who have joined us has with us, both the advisor and the client and the institution. Uh, we feel good opportunity for us to continue to move forward.

So the only thing I would add to that as you would imagine any contractual Arrangement that you have contemplates, these sort of contingencies and that there are protections built into the contract.

Brennan Hawken: Understood. Thanks for that color. Appreciate it. Following up on Steven's question, you guys spoke to expense outlook. Thanks for that color. I believe, Walter, when you spoke to some of the growth that you saw in GNA, investments were flagged as a driver. Certainly, we've seen some of your competitors in wealth leaning in on expense growth and making investments in the platform. You know, can you speak to what portion of expense growth we should expect to come from investments? And you know, how long a duration those investments will take in order to finish up, and then what sort of, to the extent that you are comfortable competitively, you know, what kind of enhancements you're looking to make?

Expense out work, thanks for that color. Um, uh, I believe Walter when you spoke to some of the growth that you saw in GNA um, Investments were flagged as a driver. Certainly we've seen

Um, some of your competitors in wealth, um, leaning in on expense growth and making investments in the platform. You know, can can you speak to, um, what portion of expense growth? We should expect to come from Investments. And, um, you know, how, how long a duration, those investments will take in order to to, uh, finish up and then what you what sort of to the extent that you are comfortable, competitively, uh, you know what kind of enhancements you're looking to make?

Jim Cracchiolo: Jim? Yeah, so what I would say is, I, I think as we continue to proceed, we'll continue to make very good investments. So technology continues to change. Capabilities are continuing to one where we really look to help our advisors, really manage their business really highly productively with information and data and the use of analytics, and AI. So I would say our investments are going to continue. It's not like one, you know, like, tranche, and that's it. Having said that, as you would know from following us, is over the years, we continue to transform our business and free up resources from other places. So I would say if we were just doing the investment and not the reengineering, we would have, a much higher expense increase every year.

James M. Cracchiolo: Jim? Yeah, so what I would say is, I, I think as we continue to proceed, we'll continue to make very good investments. So technology continues to change. Capabilities are continuing to one where we really look to help our advisors, really manage their business really highly productively with information and data and the use of analytics, and AI. So I would say our investments are going to continue. It's not like one, you know, like, tranche, and that's it. Having said that, as you would know from following us, is over the years, we continue to transform our business and free up resources from other places. So I would say if we were just doing the investment and not the reengineering, we would have, a much higher expense increase every year.

Jim yeah. So what I would say is um I I think as we continue to proceed, we'll continue to make very good Investments. So technology continues to change um capabilities or continuing to 1 where we really look to help our advisors, um, really manage their business really highly productively with information and data and the use of analytics, uh, and AI. So I would say, our investments are going to continue. It's not like 1, you know, like tanch and that's it. Having said that, as you would know from following us is over the years. We continue to transform our business and free up resources from other places.

Jim Cracchiolo: But we are very good at what we do and how we do it so that we offset some of that increase if it's just purely if you're thinking about investments. So the largest part of our expense growth really is from volume increase, as you would imagine. But I would say we feel very comfortable, but I will also say we have a leading technology and capability platform out there I'd put against anyone in the industry. And the way it's all integrated and the way the advisor can be productive on it, because when we attract advisors coming from you name in the house, they are very positive about our capabilities here. The other thing I would just add is, yes, and with the scope of Ameriprise, we have the ability to leverage across our entire platform to support all the businesses.

But we are very good at what we do and how we do it so that we offset some of that increase if it's just purely if you're thinking about investments. So the largest part of our expense growth really is from volume increase, as you would imagine. But I would say we feel very comfortable, but I will also say we have a leading technology and capability platform out there I'd put against anyone in the industry. And the way it's all integrated and the way the advisor can be productive on it, because when we attract advisors coming from you name in the house, they are very positive about our capabilities here. The other thing I would just add is, yes, and with the scope of Ameriprise, we have the ability to leverage across our entire platform to support all the businesses.

So, I would say if we were just doing the investment and not the re-engineering, we would have, um, a much higher expense increase every year, but we are very good at what we do and how we do it so that we offset some of that increase, if it's just purely, if you thinking about Investments. So, the largest part of our expense growth, really is from volume increase as you would imagine. Um, but I would say we feel very comfortable, but I will also say, we have a leading technology in in capability, platform out there. I put against anyone in the industry and the way it's all integrated. And the way the advisor can be productivity on it because when we attract advisors incoming from you, name on the house, they are very positive about our capabilities here.

Jim Cracchiolo: So that gives us an advantage to really provide that capability in a more efficient and effective way because we can leverage it over a broader base.

So that gives us an advantage to really provide that capability in a more efficient and effective way because we can leverage it over a broader base.

I would just add is yes. And with the scope of all mirror price, we have the ability to leverage across our entire platform to support all the businesses. So that gives us an advantage to really provide that capability uh in a more efficient. And effective way because we can leverage over a broader base.

Brennan Hawken: Got it. Okay. Thanks for taking my questions.

Got it. Okay. Thanks for taking my questions.

Operator: Your next question comes from the line of Suneet Kamath with Jefferies. Please go ahead.

Suneet Kamath: Great, thanks. I wanted to start with Signature Wealth. Can you give an update in terms of, you know, what percentage of advisors are using it? And when you roll out these platforms, is there a material difference in terms of utilization for the franchisee advisors relative to the employee advisors?

Your next question comes from the line of Sumit kman with Jeffrey. Please go ahead.

Jim Cracchiolo: So, Suneet, when we started the initial launch of it, back in the mid-summer timeframe, you know, it always takes a little time as you then you have to roll out and launch the platform, advise the advisors of how to utilize and train them on it, et cetera, et cetera. So our uptake from the rollouts we've done of previous wrap-type advisory programs is actually one of the best so far, and the amount of assets and number of advisors uptaking it. Having said that, you know, it's more of they start, they sample it, and then they start to continue to go down that journey. And as they get comfortable with it, then they start really picking up their level of activity.

James M. Cracchiolo: So, Suneet, when we started the initial launch of it, back in the mid-summer timeframe, you know, it always takes a little time as you then you have to roll out and launch the platform, advise the advisors of how to utilize and train them on it, et cetera, et cetera. So our uptake from the rollouts we've done of previous wrap-type advisory programs is actually one of the best so far, and the amount of assets and number of advisors uptaking it. Having said that, you know, it's more of they start, they sample it, and then they start to continue to go down that journey. And as they get comfortable with it, then they start really picking up their level of activity.

Great, thanks. Um, I wanted to start with, uh, signature wealth, uh, can you give an update in terms of, you know what, what percentage of advisors are are using it. And and when you roll out these platforms, is there a material difference? In terms of utilization? Um, for the franchisee advisors, relative to the employee advisors

Jim Cracchiolo: We have a reasonable good percentage of accounts opened from advisors, a number of advisors across both channels. So we feel very good about that, but I think this will be something that, as an example, it is a new, more comprehensive platform. And all of its capabilities, the advisors are getting used to, from how they do the portfolio construction, et cetera, but they love the idea of the, the proposals it generates, how it monitors the portfolio, how it rebalances the portfolio, how it does more centralized trading for the portfolio, et cetera, and, and the reporting that they're able to provide the client and the intelligence from it. So we think it'll be very good. We've recently added managed SMAs to it that will continue to roll out. We're adding other capabilities as we do that.

We have a reasonable good percentage of accounts opened from advisors, a number of advisors across both channels. So we feel very good about that, but I think this will be something that, as an example, it is a new, more comprehensive platform. And all of its capabilities, the advisors are getting used to, from how they do the portfolio construction, et cetera, but they love the idea of the, the proposals it generates, how it monitors the portfolio, how it rebalances the portfolio, how it does more centralized trading for the portfolio, et cetera, and, and the reporting that they're able to provide the client and the intelligence from it. So we think it'll be very good. We've recently added managed SMAs to it that will continue to roll out. We're adding other capabilities as we do that.

So, uh, Senate, uh, when we, we started the initial launch of it. Um, back in, um, the midsummer time frame. Um, you know, it always takes a little time as you, then you have to roll out and launch the platform and advise the advisors of how to utilize and train them on it. Etc, etc. So our uptake from the rollouts we've done of previous rap, type advisory programs is actually 1 of the best so far. Um, and the amount of assets, the number of advisors up taking it. Having said that, you know, it's more of, they start, they sample it and then they start to continue to go down that Journey. Um, and as they get comfortable with it, then they start really picking up their level of activity. Um, we have a reasonable good percentage of accounts open from advisors a number of advisors across boat channels. Um,

Jim Cracchiolo: So over the course of this year, we'll have a fuller spectrum of all of the various types of subset of programs in it that they can then utilize more comprehensively. So, I think we're in good shape with our initial launch, and it's proceeding very well.

So over the course of this year, we'll have a fuller spectrum of all of the various types of subset of programs in it that they can then utilize more comprehensively. So, I think we're in good shape with our initial launch, and it's proceeding very well.

Suneet Kamath: So fair to say we're kind of still in the early innings of this, and there's a lot more?

Of this year, we'll have a full spectrum of all of the various types of subsets of programs in it that they can then utilize more comprehensively. So, um, I think we're in good shape with our initial launch, and it's proceeding very well.

Jim Cracchiolo: Early innings. Very-

Suneet Kamath: Got it.

Jim Cracchiolo: Early innings, but very good progress.

James M. Cracchiolo: Early innings, but very good progress.

so so, so fair to say we're kind of still in the early Innings of this, um and there's a lot more

Suneet Kamath: Okay, that's helpful. And then, just on the organic growth, I know you talked about the seasonality, but can you maybe quantify how much of a benefit that was in the quarter in terms of seasonality? And then just longer term, do you still think 4% to 5% organic growth in Advice and Wealth is a reasonable bogey for you? Thanks.

Very early innings, but very good progress.

Walter Berman: As we said, the seasonality is, again, it occurs in the fourth quarter. Actually, there wasn't that much seasonality. It more as it relates to the first and third quarter. But it's yes, the range that we're talking about, and especially driven by our organic aspect is probably appropriate. You then get the changes as it relates to one-off events of that. So, yeah, I think the 4 to 5 is a good measure, and you would have adjustments as seasonality takes place within it. But that's our annual, as we think about it, on a rolling rate basis.

Okay, that that's helpful. And and then um just on the organic growth, uh, I know you talked about the seasonality but can you maybe quantify how much, um, of a benefit that was in the quarter in terms of seasonality and then just longer term? Do you still think 4 to 5% organic growth in advice? And wealth is, is a reasonable bogey for you? Thanks.

as we said, uh, the seasonality is, uh, again it occurs in, in the fourth quarter, actually, the there wasn't that much in more, as it relates to the first and a quarter, but it's

Oh, yes. The the range that we're talking about and especially driven by our or or or the organic aspect is, uh, is is probably an is a is appropriate. Uh, you then get the changes as it relates to 1-off events of that. So, yeah, I, I think the 4 to 5 is, is, is a good measure and you would have adjustments, as seasonality takes place within it, but that's our annual as we think about it on a roll rate basis.

Suneet Kamath: Okay, that's helpful. Thanks.

Okay, that's helpful. Thanks.

Operator: Your next question comes from the line of Alex Blostein with Goldman Sachs. Please go ahead.

[Analyst] (Goldman Sachs): Hi, everyone. This is Luke on for Alex. Thanks for taking the questions. Had just a couple of quick clarifications. So obviously, expenses have been very well maintained for a few years, and you kind of spoke to a similar outlook in 2026. As you think maybe longer term, sounds like investments remain a big focus. I'm sure you guys will keep finding ways to reengineer the base. But do you think that kind of, like, low single-digit growth is the right way to think about the expense algorithm beyond 2026 at a high level?

Your next question comes from the line of Alex Blowin, with Goldman Sachs. Please go ahead.

Jim Cracchiolo: Yep. Yep, I think so. I mean, you, you still got a level of inflation and other things, and, and even as you look at other services that you actually buy externally, prices have gone up, you know, particularly from various vendors that provide things. So I, I think, yes, you, you got to consider that. I mean, I don't know about you, but when you look at inflation still at roughly 3%, you got to deal with that as a factor into. And, technology companies and others, even though there are savings or improvements in, in the lowering of some costs, other technology services have been charged higher and higher as they invest in their capabilities in AI, et cetera, so.

James M. Cracchiolo: Yep. Yep, I think so. I mean, you, you still got a level of inflation and other things, and, and even as you look at other services that you actually buy externally, prices have gone up, you know, particularly from various vendors that provide things. So I, I think, yes, you, you got to consider that. I mean, I don't know about you, but when you look at inflation still at roughly 3%, you got to deal with that as a factor into. And, technology companies and others, even though there are savings or improvements in, in the lowering of some costs, other technology services have been charged higher and higher as they invest in their capabilities in AI, et cetera, so.

Hi everyone. This is Luke on for Alex, thanks for taking the questions. Had just a couple of quick clarifications, so obviously expenses have been very well maintained for a few years. And you kind of spoke to, uh, a similar Outlook in 2026. As you think maybe longer term sounds like Investments remain a big Focus. I'm sure you guys will keep, um, finding ways to re-engineer the base. But do you think that kind of like low single digit growth is the right way to think about the expense algorithm Beyond 2026 at a high level?

Walter Berman: Yeah, and that is one input, but obviously, you're always managing the margin to ensure that you have that relationship of expense to revenue. And but as you said, we continually invest, so this was... And we're continuing reengineering. That's been the hallmark of the way we manage.

Yep. Yep. Yep, I think so. I mean, you, you still got a level of inflation and other things, and, and even as you look at other services that you actually buy externally prices have gone up, um, you know, particularly from various vendors that provide things. So, so, I I think yes, you, you got to consider that. I mean, I don't know about you, but when you look at inflation still, that roughly 3%. You got to deal with that as a factor into and uh technology companies. And others, even though they're savings or uh improvements in in the lowering of some costs, other technology services are have been charged higher and higher as they invest in their capabilities and AI Etc. So yeah, and that is 1 input. But obviously, you're always managing to margin to ensure that you have that relation.

Relationship of expansion of revenue and, but as you said, we continually invest. So, this it was, and we're continuing to re-entering. That's been the hallmark of the way we manage.

[Analyst] (Goldman Sachs): Yep, loud and clear. And just one more clarification from me. You mentioned positive cash generation during the quarter in the AWM business. I just wanted to make sure, does that mean, like, ex seasonality, you're still seeing kind of, like, cash growth on an organic basis? And then, like, maybe more high level, how do you think about the pace of cash growth, particularly as we head into potentially an environment where rates continue to migrate lower? Thanks.

Walter Berman: Yeah. Yes, in the fourth quarter, you do see that, but I do see there's an underlying element as it relates to cash generation, as it relates to cash coming in from that standpoint, but also new product capabilities, which will generate additional cash for us. The answer is yes. So, again, it is an area of growth for us because it meets our clients' needs, and there's certainly a key element to building the relationship with our clients and providing that product.

Yep. Loud and clear and and just 1 more clarification for me. Um, you mentioned positive cash, generation uh during the quarter and the awm business. I just wanted to make sure does that mean like X seasonality? You're still seeing kind of like cash growth on organic basis and then like maybe more high level. How do you think about the pace of of cash growth particularly as we had in potentially an environment where rates continue to migrate lower? Thanks?

Yeah.

Jim Cracchiolo: Yeah, I would also say if, if rates continue to come down on the short end of the curve, people will continue to start to move more from what they're, you know, placed in money markets, et cetera. So you saw it already move from, you know, term-type, loans, I mean, CDs and certificates, et cetera, to money markets. Money markets are still very high. I think the money markets will then start to continue to move into the market in one way or the other. So I think, and once that does, it'll move into sweep a bit more for more transactional and investment purposes.

James M. Cracchiolo: Yeah, I would also say if, if rates continue to come down on the short end of the curve, people will continue to start to move more from what they're, you know, placed in money markets, et cetera. So you saw it already move from, you know, term-type, loans, I mean, CDs and certificates, et cetera, to money markets. Money markets are still very high. I think the money markets will then start to continue to move into the market in one way or the other. So I think, and once that does, it'll move into sweep a bit more for more transactional and investment purposes.

Yes you uh in the in the fourth quarter you do see that but I do see there's an underlying element as it relates to cash generation as it relates to cash coming in from that standpoint. But also new product capabilities which will generate additional cash for us to answer is yes. So, uh, again we, it is an area of growth for us because, uh, it, it meets our clients needs and there's there's certainly, uh, a key element to building the relationship with our clients and providing that product. Yeah, I would also say if, if rates continue to come down on the short end that our curve people will continue to start to move more from what their, you know, Place their money markets. Etc. So you saw it already moved from, you know, term type, um loans, I mean CDs and and and uh certificates Etc uh to money markets. Uh money markets are still

Still very high. I think the money markets will then start to continue to move um into the market in 1 way or the other. Um so I think and once that does, it'll move into sweep a bit more for more transactional and investment purposes.

Operator: Your next question comes from the line of John Barnidge with Piper Sandler. Please go ahead.

Garnish with Piper Sandler. Please go ahead.

John Barnidge: Good morning. Thank you for the opportunity. What does the consolidation opportunity look like for asset management, in your opinion? Thank you.

Good morning, thank you for the opportunity.

What does the consolidation opportunity look like for Asset Management, in your opinion? Thank you.

Jim Cracchiolo: I mean, you've seen consolidation over the many years in asset management. I think with the markets being so good, there's more of a probably a wait and see, so to speak, in some regards. What we've been doing really is really transforming our platform capability in a sense, so that we have the good, real strong technology capability to add more assets, to introduce more products and services more effectively, efficiently, and to set up our resourcing in locations that can lower our costs, including where we might outsource. So we feel good about that. We've been introducing a number of new products with our active ETFs, growing our SMAs and our model capability, and getting that launched, as well as expanding some of our alternative assets, like our hedge funds and other things like that.

James M. Cracchiolo: I mean, you've seen consolidation over the many years in asset management. I think with the markets being so good, there's more of a probably a wait and see, so to speak, in some regards. What we've been doing really is really transforming our platform capability in a sense, so that we have the good, real strong technology capability to add more assets, to introduce more products and services more effectively, efficiently, and to set up our resourcing in locations that can lower our costs, including where we might outsource. So we feel good about that. We've been introducing a number of new products with our active ETFs, growing our SMAs and our model capability, and getting that launched, as well as expanding some of our alternative assets, like our hedge funds and other things like that.

Jim Cracchiolo: So we are in a good organic state of what we're changing around and maintaining the margins and the fee basis, even though we're impacted by some of the flow situation in the active. I actually think over time, active will reassert itself, just like it's starting to do in different types of formats, like in the active ETFs. I think the consolidation will continue out in the industry, and I think there's an opportunity in that regard as we think about it, to partner. But right now, we're very much focused on getting our position in a very good state. And I think we are at this point, for how we're managing the expense base, as and investing. And I feel really good about that, and our investment performance is quite strong over the track record.

So we are in a good organic state of what we're changing around and maintaining the margins and the fee basis, even though we're impacted by some of the flow situation in the active. I actually think over time, active will reassert itself, just like it's starting to do in different types of formats, like in the active ETFs. I think the consolidation will continue out in the industry, and I think there's an opportunity in that regard as we think about it, to partner. But right now, we're very much focused on getting our position in a very good state. And I think we are at this point, for how we're managing the expense base, as and investing. And I feel really good about that, and our investment performance is quite strong over the track record.

Um I would probably I mean, you've seen consolidation over the many years in Asset Management. I think with the markets being so good. There's more of a probably, a wait and see. So to speak in some regards. Um, what we've been doing really is really Transforming Our platform capability in a sense. So that we have the, the good really strong technology capability to add more assets to introduce more products and services more effectively efficiently. Um, and to set up our resources and locations that uh, can lower our cost, including where we might Outsource. So we feel good about that. We've been introducing a number of new products, whether AC ETFs growing or estimates and our model capability, um, and getting that launched, as well as expanding, some of, our alternative acts, like our hedge funds and other things like that. So we are in a good organic state of what we're changing.

Jim Cracchiolo: We're in a good state, depending on what the environment is, for us to capitalize.

We're in a good state, depending on what the environment is, for us to capitalize.

Changing around and maintaining the the, the, the margins and the fee basis. Even though we're impacted by some of the flow situation in the active, I actually think over time active will reassert itself just like it's starting to do in different types of formats like in the active ETFs. Um, I think the consolidation will continue out in the industry, um, and I think there's an opportunity in that regard as we think about it, to to partner. But, um, right now we're very much focused on getting our, uh, position in a very good State. Um, and I think we are at this point, uh, for how we're managing, uh, the expense base as an investing, um, and I feel really good about that. And our investment performance is quite strong over the, the track records. So um, we're in a good State depending on what the environment is for us to uh capitalized.

Operator: Thank you very much. My follow-up question may be sticking with that, and I totally acknowledge your comments that with markets being favorable, it's kind of a wait-and-see mode, but you've also really transformed the tech capability. And I know that's like a continual investment type of thing, but what inning do you think we are in, in that initial transformation of the expense base to better position the organization to add additional AUM? Thank you.

John Barnidge: Thank you very much. My follow-up question may be sticking with that, and I totally acknowledge your comments that with markets being favorable, it's kind of a wait-and-see mode, but you've also really transformed the tech capability. And I know that's like a continual investment type of thing, but what inning do you think we are in, in that initial transformation of the expense base to better position the organization to add additional AUM? Thank you.

Thank you very much. And my follow-up question may be sticking with that and I, I totally acknowledge your comments that with marketing favorable, it's kind of a wait and see mode, but you've also really transformed the tech capability and I know that's like, a continual investment type of thing. But what inning, do you think we are in in that initial transformation of the expense base?

Jim Cracchiolo: We're probably in the later innings. Well, we will be, you know, doing the work right now, and we'll complete it sometime later this year on the back office part of that. We are really doing more on the front end. We're using, you know, AI and intelligent automation and other things like that, and leveraging the demographics that we have offshore, et cetera. So, we're pretty far along in that regard, so I feel pretty good. Walter, you want to comment?

James M. Cracchiolo: We're probably in the later innings. Well, we will be, you know, doing the work right now, and we'll complete it sometime later this year on the back office part of that. We are really doing more on the front end. We're using, you know, AI and intelligent automation and other things like that, and leveraging the demographics that we have offshore, et cetera. So, we're pretty far along in that regard, so I feel pretty good. Walter, you want to comment?

Walter Berman: No, no, I think you covered it well.

To better position the organization to add additional AUM. Thank you. We're probably in the later Innings. Um, we're completing well, we will be, you know, uh, doing uh, the work right now and we'll complete it sometime later this year on the, the back office part of that. Um, we are really doing more on the, uh, front end. We're using, you know, Ai and intelligent Automation, and other things like that. Um, and leveraging, the demographics that we have, uh, offshore Etc. So, uh, we're pretty far along in that regard. Um, so I feel pretty good Walter you want to comment. No, no, uh, uh, I think the governor will

Operator: Thank you.

John Barnidge: Thank you.

Thank you.

Operator: Your next question comes from the line of Tom Gallagher with Evercore ISI. Please go ahead.

Your next question comes from the line of Tom Gallagher with evercore isi. Please go ahead.

Tom Gallagher: Thanks. First question, where do you see AWM margins going in 2026? Do you think you can maintain this 29 to 30% range?

Thomas Gallagher: Thanks. First question, where do you see AWM margins going in 2026? Do you think you can maintain this 29 to 30% range?

Walter Berman: Certainly, if you look at core, and as Rabie said, and we're, again, we're generating very good, strong, consistent margins in core. The other thing is going to be on interest, and now we've minimized that also because of the way we invested. So it is in a good range as we look at what the Fed is saying and other things of that nature, that it will be in this certain range. And it'll be just if there are other third-party elements that we just can't manage, like government or other changes as it relates to interest. But as it relates to the core, we feel we're tracking well. And so it's a reasonably good range.

Thanks. Um, first question: Where do you see WM margins going in '26? Do you think you can maintain this 29 to 30% range?

Tom Gallagher: Thank you. And then, I know you mentioned, Jim, you felt good about the pipeline for recruiting FAs for 2026. How do you feel about retention of existing advisors? Would you, you know, any, any color there?

Thomas Gallagher: Thank you. And then, I know you mentioned, Jim, you felt good about the pipeline for recruiting FAs for 2026. How do you feel about retention of existing advisors? Would you, you know, any, any color there?

Uh, on certain—if you look at core and as it relates to—and again, we are generating good, strong, um, consistent margins in core. The other thing is going to be on interest. And now, we've minimized that also because of the way we invested, so it is in a good range as we look at what the Fed is saying and other things of that nature, that it will be in this range. And it'll be just if there are other third-party elements that we just can't manage, like government or other, uh, changes as it relates to interest. But as it relates to the core, uh, we feel we're tracking well, uh, and so it's the reason we could range.

Thank you. And then

Jim Cracchiolo: So I think overall, we feel very good. It doesn't mean you won't lose some people because it depends on what people, you know, put out there and offer them. But we're also very good in a sense of where we can, when that happens, to show why we actually help the advisor more over time, generate value than the check. But you know, those things will come along. We got hit with a little last year, as you recognize, and others do. So we know that this is something we are dealing with, but what we try to do, help our advisors really achieve, and then recruit in people who want to actually have the capability and have a strong focus on their growth and how we can assist them in their growth.

James M. Cracchiolo: So I think overall, we feel very good. It doesn't mean you won't lose some people because it depends on what people, you know, put out there and offer them. But we're also very good in a sense of where we can, when that happens, to show why we actually help the advisor more over time, generate value than the check. But you know, those things will come along. We got hit with a little last year, as you recognize, and others do. So we know that this is something we are dealing with, but what we try to do, help our advisors really achieve, and then recruit in people who want to actually have the capability and have a strong focus on their growth and how we can assist them in their growth.

Uh, I know you mentioned Jim, you felt good about the pipeline for recruiting uh, FAS. Uh, for 26 the how do you feel about retention of existing advisors, would you, you know any any color there?

Um but we're also very good in a sense of where we can when that happens to show why we actually help the advisor more over time generate value than the the check. Um so but you know those things will come along. We got hit with a little last year as you recognize and and others do. Uh, so uh we we know that this is something we we are dealing with. But so what we try to do

Jim Cracchiolo: We're not looking to just attract anyone here. We have an excellent platform. We have excellent capabilities. We have excellent leadership that help advisors. I continue to get notes from people who have come to us from the independents, from wirehouses, from RIAs, and they said their only mistake was not coming to us sooner. And their growth since they got here has been tremendous. And I can name any firm that you mention, and I can show you that. So again, now, it's a very competitive people say a lot out there. They promise a lot out there. I think that's all I can say is when they're here, we deliver.

We're not looking to just attract anyone here. We have an excellent platform. We have excellent capabilities. We have excellent leadership that help advisors. I continue to get notes from people who have come to us from the independents, from wirehouses, from RIAs, and they said their only mistake was not coming to us sooner. And their growth since they got here has been tremendous. And I can name any firm that you mention, and I can show you that. So again, now, it's a very competitive people say a lot out there. They promise a lot out there. I think that's all I can say is when they're here, we deliver.

Tom Gallagher: Got you. That's helpful color. And just, if I could just squeeze one more in, the elevated mortality in RPS this quarter, was that more a large claim, volatility or higher frequency of claims?

Thomas Gallagher: Got you. That's helpful color. And just, if I could just squeeze one more in, the elevated mortality in RPS this quarter, was that more a large claim, volatility or higher frequency of claims?

Help our advisors really achieve, uh, and then recruiting people who want to actually have the capability and have a strong, uh, focus on their growth, and how we can assist them in their growth. We're not looking to just attract anyone here. Uh, we have an excellent platform. We have excellent capabilities. We have excellent leadership. That helped advise us. I I continue to get notes from people who have come to us from the independence, from warehouses from raas. And they said, their only mistake was not coming to us sooner. Uh, and their growth since they got here has been tremendous and I can name any firm that you mentioned and I can show you that. So again, now I it's a very competitive, people say a lot out there, they promise a lot out there. I think that's all I can say is when they're here, we deliver

Gotcha. That's helpful color and just if I could just squeeze 1 more in the elevated mortality in RPS. This quarter was that more large claim, uh, volatility or higher frequency of claim.

Walter Berman: It is higher claims. At this stage, I think it is more frequency. It's, you know what? It's a balance. It's nothing really that it's in both elements. So, it's—I think it's both actually, contributed on both. Nothing, nothing exceptional in either way.

Jim Cracchiolo: ... And we don't see it as something that will impact what we've been seeing over the longer term. Yeah, it's, it's certainly within the range, so there's nothing there from that standpoint, and it's just, yep. So, I would say it's, it's a balanced situation, both. There was nothing that elevated us to even think there was any any issue. Okay, thanks.

James M. Cracchiolo: And we don't see it as something that will impact what we've been seeing over the longer term.

It is a higher claims uh, at this stage. I think it is more frequency. Uh, it's I'm it's you know what? It's a balance. It's nothing really uh, that a? It's in both elements so uh, it's I think it's both actually, you can contribute on both nothing. Nothing exceptional in either way.

Walter Berman: Yeah, it's, it's certainly within the range, so there's nothing there from that standpoint, and it's just, yep. So, I would say it's, it's a balanced situation, both. There was nothing that elevated us to even think there was any any issue.

And we don't see it as something that will impact where we, what we've been seeing over the longer term.

Thomas Gallagher: Okay, thanks.

It's yeah, it's it's certainly within the range. So there's nothing there from that, uh, standpoint. And it's just, uh, yeah. So, uh, I would say it's, it's a balanced situation. Both, there was nothing that elevated us to even think there was any any issue.

Okay, thanks.

Operator: Our final question comes from the line of Tyler Mueller with William Blair. Please go ahead.

hi, their final question comes from the line of Tyler Mueller with William Blair please go ahead

Tyler Mueller: Hi, good morning. Just one on asset management. I know you called out the strong hedge fund performance, driving higher performance fees. Were there any other strategies or regions contributing to that? And then, can you give any color on the hedge fund performance and outlook there?

Hi. Good morning. Just 1 on Asset Management. I know you called out the strong hedge fund performance. Driving higher performance fees.

Jim Cracchiolo: Yeah, no, we, we've had some really good flows in a number of disciplines. So both in equity and retail, if you look at some of our different areas there, our dividend income, contrarian core, things like that. We've had it in institutional, in things like our Japan and other strategies, some of the fixed income, but I would just say... And we have been getting very good flows into our hedge funds area, et cetera. We picked up some real estate last year in Europe, et cetera, that was very good. So we see really pockets of good growth and consistency there. But as you know, there's also the rotation in some of the things like LDI and other things that have impacted us.

James M. Cracchiolo: Yeah, no, we, we've had some really good flows in a number of disciplines. So both in equity and retail, if you look at some of our different areas there, our dividend income, contrarian core, things like that. We've had it in institutional, in things like our Japan and other strategies, some of the fixed income, but I would just say... And we have been getting very good flows into our hedge funds area, et cetera. We picked up some real estate last year in Europe, et cetera, that was very good. So we see really pockets of good growth and consistency there. But as you know, there's also the rotation in some of the things like LDI and other things that have impacted us.

Are there any other strategies or regions contributing to that, and then can you give any color on the hedge fund performance and outlook there?

Jim Cracchiolo: So we feel looking into 2026, we're in a good state, and that we're hoping that that will continue to show its improvement. I think we're doing some of the right things, and our performance is quite strong. We just need to pick up a bit more in the fixed income area, where our performance is really good, and I think that's where we can pick up a bit more share, as we get that identified.

So we feel looking into 2026, we're in a good state, and that we're hoping that that will continue to show its improvement. I think we're doing some of the right things, and our performance is quite strong. We just need to pick up a bit more in the fixed income area, where our performance is really good, and I think that's where we can pick up a bit more share, as we get that identified.

Yeah, no, we, we've had some really good, um, uh, flows in, and a number of disciplines. So, so both in equity and Retail. If you, you look at some of our, um, uh, different areas there, the dividend income contrarian core things like that. Um, we've had it in institutional and things, like our Japan and other strategies, uh, some of the, uh, fixed income. Uh, but uh, I would just say and we have been getting very good flows into our hedge funds area, Etc. Um, we picked up some real estate last year in Europe, Etc, that was very good. So we see really pockets of good growth and and uh consistency there. Uh but as you know there's also the rotation in some of things like ldi and other things that have impacted us. So we feel looking into 226, we're in a good State and that we're hoping that that will continue to show its improved.

Improvement—um, and uh, I think we're doing some of the right things, and our performance is quite strong. We just need to pick up a bit more in the fixed income area where our performance is really good, and I think that's where we can pick up. So, a bit more share, uh, as we get that identified.

Tyler Mueller: Thank you.

Thank you.

Operator: We have no further questions at this time. This concludes today's conference. Thank you for participating. You may now disconnect.

We have no further questions at this time. This concludes today's conference, thank you for participating, you may now. Disconnect

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